2005 Certified Pre-Owned Programs

The CPO waters are further muddied by the prevalence of dealer-backed programs without direct manufacturer affiliation. While these localized programs are most typically found at multi-brand, single-store enterprises, big-name dealerships may also choose to go their own CPO path. Automakers extract fees from dealerships for participation in the official programs that inevitably raise the vehicle's price. Dealers may choose to provide their own programs to both keep the pricing competitive and the profits higher. Both are understandable objectives, but it does make purchasing a CPO less clear cut for consumers.

To attain CPO status, vehicles have to meet certain mileage and condition requirements as determined by the sponsoring organization. Quality programs immediately disregard vehicles with a suspicious title history or evidence of accident damage. Qualifying vehicles are treated to minor repairs, parts replacement, and servicing, as necessary. Then they're wrapped in the protective blanket of an extended warranty, which can range from months to years.

Dealerships with their own programs will likely turn to third-party warranty packages, which are essentially aftermarket insurance, often with significant restrictions on coverage and where work on the vehicle can be performed. Even auto manufacturer programs have defined limitations, making it critical for consumers to completely review the paperwork to ensure their expectations will be met.

Ultimately, the cost to perform, back, and market the CPO programs is reflected in the transaction price. CPO vehicles cost, at minimum, hundreds more dollars than non-certified vehicles, even on the same lot. Often with luxury marques, the CPO treatment can carry a $1,000 or even $2,000 premium. But because the best programs offer peace of mind on used vehicles in close-to-pristine condition, they're worth the additional up-front investment for many consumers.