2005 Certified Pre-Owned Programs

Buying a used vehicle carries inherent risks: You can't be certain how the vehicle was treated for tens of thousands of miles before you bought it. Any of the 3,000-plus parts and components may be ready to fail when you least expect it. And the seller may not be trust-worthy.

To help allay these consumer concerns-and to provide dealerships with additional profit-bearing services-automakers developed certified pre-owned (CPO) programs. Started in the 1980s and perfected in the 1990s, CPO programs dovetailed with the surge in new-vehicle leases. Two- and three-year-old lease vehicles are required to meet high standards for return condition and thus provide a steady flow of quality, ripe-for-certification vehicles to dealer lots. Giving these vehicles a thorough inspection and backing them with warranty protection grants them instant curb appeal to used-vehicle shoppers, with dealers sated by the premium price these vehicles can command.

As the popularity for CPO vehicles continues to soar, dealers are certifying eligible vehicles-both lease returns and trade-ins-in droves. While "CPO" has become part of the automotive vernacular, its true definition is not guided by legal standards, ensuring wide variance in inspection and protection offered by certified programs.

The most common comparison point in marketing remains the number of inspection items covered in the programs. These figures themselves, however, carry limited value, as one company may count each component set, while another may break it down to each mechanical item. Reading the tedious CPO paperwork closely is the only way to be certain exactly what has been scrutinized in the inspection process.