We’ve all gone mad for certified products. A friend of
mine will only drink certified organic
coffee; another friend will only use a
certified financial planner. Now the
certified trend is reaching the used car
market, too. According to consumer researcher
J.D. Power and Associates, sales
of Certified Pre-Owned (CPO) vehicles
have been steadily rising in recent years.
The appeal is obvious: a CPO vehicle is
one that’s been certified fit by the original
carmaker, which means that, in
theory at least, you no longer have to
worry about buying a lemon.

Or do you? CPO programs can add
more than a thousand bucks to the price
of a used car and, if you look under the
hood, it’s not always clear what benefit
they deliver.

“With a certified used car you’re getting
the manufacturer’s guarantee on the fitness
of the vehicle, so you should be able
to have greater peace of mind,” says Michael
Turk, legal counsel for the Automobile
Protection Association (APA). However,
he notes that CPO programs vary
hugely in what they offer. Some extend the
original warranty for a year and offer you
roadside assistance if the car breaks down.
Others promise you only that a mechanic
has gone over the car and thinks it will be
okay — at least for the next few weeks. “You
really have to do your homework,” says
Turk. “If all you’re getting is a detailed
inspection
report, why bother?”

CPO cars are typically newer vehicles
with low mileage. They’re sold through a
carmaker’s factory dealer network, rather
than through independent used car dealers.
“You should expect to pay at least
$300 more for a CPO car than you would
for the same car bought at an independent
dealer,” says Phil Edmonston, author of
the  Lemon-Aid
used car guides. But according
to J.D. Power and Associates the added cost for CPO peace-of-mind can
range as high as $1,600.