Used cars: Absolutely Guaranteed. Well, maybe

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. What you get for that extra money depends on where you’re shopping. If you’re buying a CPO car from a Honda dealer, your used vehicle will come with an extension of the original powertrain warranty of up to six years or 120,000 km, whichever comes first. In addition, you’ll have seven days or 1,000 km to exchange the vehicle for another one if it doesn’t live up to your expectations. As a bonus, Honda dealers offer financing rates on CPO cars as low as 0.9% — a tiny fraction of what you would pay at a bank. The APA’s Turk calls the cheap low interest rates a “huge advantage” for the majority of consumers who require financing over three to five years. Toyota offers a similar certified program, but the CPO guarantees from some domestic automakers seem scanty by comparison. Ford offers no extended warranty at all; it does, however, give buyers a cooling off period with a money-back guarantee for the first three days or 500 km of ownership. Ford also throws in one year of free basic maintenance and roadside assistance. Chrysler, on the other hand, offers little more than a three-day or 500-km exchange period on its CPO cars. If you’re considering a CPO vehicle, ask the dealer to put down in writing exactly what is covered. And try not to pay more than the guarantee is worth. Despite some of the claims you may hear from overenthusiastic dealers, a CPO car isn’t just like new. Turk and Edmonston offer four tips to help you assess the deal: Get a second opinion: A certified car is still a used vehicle — and that means its brakes, tires and exhaust will all have some wear. An independent mechanic can take a look at these common maintenance items and make sure the dealer’s mechanic didn’t miss anything. Expect to pay $80 to $100 for an independent inspection. Do a background check: While you’re getting your certified vehicle checked under the hood, it’s also a good idea to check out its life story. Even dealers can get tricked, so a vehicle history report from a web-based service like CarProof or CarFax is a great way to check for hidden accident claims, unpaid liens and odometer fraud. CarFax reports cost $25 for a single history or $30 for unlimited reports. CarProof charges $35 to $60 for each report, depending on the depth of information provided. Ask for the checklist: The carmaker’s mechanics are supposed to check off between 100 to 300 “points” before certifying a vehicle for a CPO program. You should ask for the checklist and keep it on file so that if something does go wrong, you can check the problem against the initial inspection. If it was something that was certified, you have a very strong case for restitution. Know who’s covering you: Ask who’s behind the warranty. In general, a warranty backed by the original manufacturer is better than one offered by a third-party company. Under the hood
Different carmakers offer very different levels of coverage in their certified pre-owned programs. Make sure you know what you’re buying.

Manufacturer	Inspection	Warranty	Bonus
Chrysler	Unspecified “thorough” inspection	Three-day or 500-km exchange	None
Ford	115-point inspection	Three-day or 500-km money-back guarantee	One year free basic maintenance, roadside assistance
General Motors	150-point inspection	Three months or 5,000-km warranty. 30-day or 2,5000-km exchange privilege	Three months or 5,000 km GM Roadside Assistance
Honda	100-point inspection	Extends powertrain warranty to six years or 120,000 km. Seven-day or 1,000-km exchange privelege	Financing as low as 0.9% on pre-owned cars
Totota	127-point inspection	12-month or 20,000-km powertrain warranty. Seven-day or 1,500-km exchange privilege	First oil and filter change free

Used cars: Absolutely Guaranteed. Well, maybe

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