Decades ago, purchasing a used car was a risky venture. Once the money changed hands, the previous owner—a dealer or a private individual—did not guarantee the mechanical reliability or offer any extended warranty on the used vehicle. As soon as the rear wheels left the driveway, you were on your own.
Unfortunately, many less-than-honest dealerships took advantage of the casual sales process and sold cars with defects cleverly disguised from the buyer. By the time the problem was discovered, it was too late for recourse. A “used car purchase" was regarded as "buyer beware."
To overcome the "used car" label, luxury automakers Lexus and Mercedes-Benz began offering certified programs for their late-model off-lease vehicles in the early 1990's. The vehicles were usually still within the original warranty period, and well maintained. Not wanting to place these premium vehicles on their lots as just another “used car,” the upscale manufacturers labeled them as “Certified” used vehicles after putting them through an inspection process.
The “Certified Pre-Owned” (CPO) program proved very popular with consumers. It was not long before other automotive manufacturers followed their lead.
Over the years, CPO programs have evolved for the better. In fact, they offer significant advantages over cars that are not CPO certified. Automakers have improved the programs to offer more benefits to their customers. Today, automobile manufacturers and selling agents have established detailed inspections, stringent standards, and extended warranties for their CPO programs that alleviate much of the worry when buying a used car.
All consumers benefit from CPO used vehicle programs. The vehicles are often newer, cleaner, and in much better condition than the average used car. Repairs have often been made to bring the vehicle up to standards, and generous extended warranties assure the buyer peace of mind for their investment.
The manufacturer benefits from the CPO programs too. Lease returns, vehicles typically just a few years old, make perfect candidates for the CPO program. Dealerships can quickly run them through a CPO program and offer them for sale again—often with manufacturer-backed incentives.
Unlike standards found with fuel, tires, or even automobile warranties, there is no "industry standard" CPO program. While this may seem odd, it actually works in favor of the consumer as manufacturers compete to offer more benefits with their programs. Some offer extended roadside assistance, break-down benefits, or even "if you don't like it, we'll buy it back" satisfaction guarantees!
Nearly every major automobile manufacturer offers a CPO program. For a complete list, including mileage requirements and warranty coverage, check out an excellent chart with the various manufacturer programs at Kelley Blue Book
