What You Need To Know About CPOs

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By Herb Weisbaum

Summary

Certified Pre-Owned Vehicles may not be all that you think.

Story Published: Feb 21, 2006 at 5:25 AM PDT

Story Updated: Jun 12, 2007 at 7:16 AM PDT

What You Need To Know About CPOs
SEATTLE - For a lot of people, a certified pre-owned vehicle (CPO) is the next best thing to buying a new one. They like the idea of getting a used car with a warranty, and they're willing to pay a bit more for this peace of mind. Just remember, all certification programs are not the same.

Apparently, a lot of people don't know that.

Consumer Reports (www.consumerreports.org) surveyed more than 7,000 people who bought a late-model (2000 - 2005) used vehicle during the previous 12 months. Of those who bought a CPO, 80 percent thought there are industry-wide standards that spell out what "certified" means. There are no such standards - no standard inspection, no standard warranty. "As a result," Consumer Reports says, "CPO programs can vary widely in terms of value and protection."

For instance, while Toyota gives CPO buyers a limited powertrain warranty for seven years/100,000 miles, Saturn CPOs have a limited powertrain warranty for just 90 days/3,000 miles. Each manufacturer also has different limits for how old a vehicle can be and how many miles it can have to qualify for its certification program.

Saturn: four years/60,000 miles Chrysler: five years/65,000 miles Acura: six years/80,000 miles Toyota: seven years/85,000 miles There are two basic kinds of certification programs; those run by the manufacturer and those done by the dealer. Rob Gentile, associate director of Consumer Reports Auto Price Services, says a certification program backed by an auto maker is usually best. "They tend to be newer vehicles with lower mileage," he says, "the warranties tend to be better, and it's easier to make claims against that vehicle if you do have a problem with it."

THE BOTTOM LINE: The editors of Consumer Reports say certification programs "can minimize the mechanical risks associated with purchasing a used vehicle." In fact, according to the magazine's survey "most CPO-vehicle buyers were satisfied and considered CPO vehicles to be a good value."

Just remember - certification is no substitute for having that used vehicle inspected before you buy it. "Manufacturers or dealers can claim that the vehicle is certified," Gentile explains, "but it doesn't necessarily guarantee that it's going to be trouble free. At the end of the day you want your own independent mechanic giving that vehicle a clean bill of health before you buy."

Intellichoice.com, the leading consumer automotive data resource, says the following CPO programs are the "best" for 2006:

Luxury

1. Jaguar 2. Volvo 3. Cadillac 4. Saab 5. Audi

Non-Luxury

1. Volkswagen 2. Mazda 3. Honda 4. Toyota 5. Ford/Mercury

For more information:

Consumer Reports: Certified pre-owned vehicles get high approval rating from owners

Intellichoice.com's best certified pre-owned vehicle programs for 2006

MSN Autos: Certified pre-owned cars

New vs. used cars

How to buy or sell a car

Tips from AAA: What to do before purchasing a used car