A certified pre-owned car is a used car that’s been through an automaker’s inspection, which provides an extra sense of security in buying a used car. To gain certification, late-model vehicles have to fall within a limited age and mileage bracket.
Most certifications offer an extended powertrain warranty up to 10 years/100,000 miles (Mitsubishi); many auto manufacturers also recondition the vehicle before it’s put on sale.
Certified pre-owned cars typically list higher than non-certified cars – on midsize cars it averages about $1,100 more -- but the peace of mind and extended warranty can justify the extra cost in many situations.
We have a section dedicated to certified pre-owned vehicles. For more in-depth information, see here.
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I want to reinforce that certified does not equal flawless. For example, a friend recently found a manufacturer certified pre-owned car that had a few obvious cosmetic defects, including a missing manufacturer logo badge on the trunklid. This is not to say that CPO is a bad idea; just don't be surprised if the 500,000 point inspection still yields a less-than-perfect car.
I also want to second Tony's comment about using a service like Carfax or Autocheck (or both!) on any used car. However, while those services can be helpful, don't think they're perfect:
http://tinyurl.com/9parhg
(Links to a CBC investigative report about Carfax.)
Bob is correct. The CARFAX or other services are not perfect. When it comes to body repair it might not show. But when it comes to the fleet sale or NYC ownership - it is good.
Best thing is to know what you want to look for when inspecting a used car yourself!
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Certified pre-owned car is basically same car as any other used car. The dealer may get it at the auction, clean it, check it out for any obvious issues. Then they slap it with the warranty and a nice price tag.
If the car fails they already took enough money from you to fix it. If it doesn't fail, they keep all $$$ for the profit.
Best thing to do is to buy any used car with some of factory warranty still left on it. 10K miles should be enough to find all you need about your used car while being protected. Even Hondas and Toyotas come now with 50K drivetrain warranty.
Of course, use CARFAX or other tools not to get a car after collision or rental fleet, etc.