Best Used-Car Certification Programs

If you don't have a pet brand, but you want to take advantage of certification, some manufacturer programs are better than others.

Lexus' certified used program ranked highest in customer satisfaction, according to a 2005 J.D. Power and Associates survey of 15,390 used-car owners, with Cadillac and BMW ranking second and third, respectively.

IntelliChoice, a Campbell, Calif.-based consumer auto research company, evaluates CPO programs each year based on how well they match up with consumer preferences. Major areas of analysis include inspection lists, warranties, title verification, special financing availability, roadside assistance benefits and return policies. Winners for best luxury CPO programs in 2006 included — in this order — Jaguar, Volvo and Cadillac; winners for best non-luxury CPO programs were Volkswagen, Mazda and Honda. In the luxury class, IntelliChoice said Jaguar offered the best CPO warranty and tied with Infiniti, Audi and Land Rover for the best CPO inspection list. Among non-luxury CPO programs, IntelliChoice ranked Mazda as having the best warranty, while Nissan had the best inspections.

Not every manufacturer offers certified used-car programs. Some haven't yet determined if the value they'd get from certifying used cars would outweigh its costs. But that could change.

Buyers will also find that not all dealers participate in their associated manufacturers' CPO programs. In most cases, CPO programs are optional for dealers. Some simply may not have the capacity to certify used cars to manufacturers' standards. After all, it's the dealer — not the manufacturer — that actually does all the inspecting and reconditioning on these vehicles.

Finally, manufacturers aren't the only entities trying to benefit from the CPO label. It seems every used-car lot in America is offering "certified" cars. But car shoppers should approach any non-manufacturer-sponsored program with caution.

Rosemary Shahan, founder and president of Consumers for Auto Reliability and Safety, seconds this cautionary note about non-factory dealers. "Some dealers are going to Kinko's, making certified stickers and putting them on every car in the lot," she said. And when it's time to make good on those warranties, there could be more issues. "Is the dealer even solvent?" she said. "At least you have some recourse with factory programs."

As cited earlier, though, non-franchised dealer certification programs should not be ruled out altogether. In JDPA's 2004 study, certification programs from used-only dealerships earned a 7.31 satisfaction rating (on a 10-point scale). While that ranked half a point below franchised dealers, it suggests that reliable used dealers do provide worthwhile certification programs.

Whoever the seller, Shahan says legitimate warranty protections are the best reason to buy certified, but she emphasizes the importance of getting to the bottom of what's being covered. "Is the seller standing behind it in a meaningful way?" she said. "Are they backing the entire car or just a piece of it?"

Jack Gillis, author of the "The Car Book," agrees. He said buyers should evaluate the warranty as a stand-alone product while highlighting three items to check for: who's behind the warranty, what it covers and how long it lasts.