Shopping for a Certified Pre-Owned Car

"Pre-owned," is just another way to say "used." But, if you are in the market for a used car, manufacturer certification programs can offer some real value. New car dealers sell certified pre-owned cars. Generally, each dealer will sell certified used cars of the same make that the dealership sells as new. (To buy a certified pre-owned Lexus, you would go to a Lexus dealer, for example.)

Used-car certification is one of the auto industry's hottest trends. It was created in the 1980s by Mercedes-Benz to assure consumers that the used cars on their lots were well maintained and durable. Lexus later adopted certification in the 1990s, and it is now available from most automakers.

To be certified, manufacturers require that a used car meet certain criteria. It usually must be relatively new and not have been driven more than a certain number of miles. It must be in cosmetically good shape and it will have to undergo a detailed mechanical inspection.

A certified car will also get an additional warranty. Factory-certified warranties vary greatly in coverage and length, and provide comprehensive (which covers the whole car) or powertrain coverage for a fixed number of years or miles, whichever comes first.

Some used vehicles are being certified and sold under programs backed not by a manufacturer, but by the dealers themselves, sometimes in conjunction with the same companies that provide extended service contracts. The scope and value of such programs can vary widely.