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Can this article protect you from buying a lemon?

Dec 15, 2015

If you have been looking at pre-owned cars lately, you may have noticed that some of them are designated as being “certified.” A certified pre-owned vehicle is simply one that is part of a certification program, meaning that it has met certain standards for quality. The muddy the waters somewhat, certified pre-owned (CPO) programs can be further divided into “dealer CPO” and “factory CPO” programs. While any car dealer, either franchised or independent can offer a “dealer CPO” program, only a franchised dealer can offer a factory CPO program.

For example, for a used Toyota to become a Toyota certified pre-owned vehicle, it undergoes a 170-point inspection. To be up to standard, a Toyota CPO vehicle cannot be more than six model years old or have more than 75,000 miles on it. Among other items, the tire tread and brake pads must both be 50% or better, and no more than two body panels can have had prior paintwork (even by a professional bodyshop). Because the tires and brakes have a high minimum requirement, many CPO Toyotas actually have new tires and brake pads installed so that they can pass the CPO inspection, providing a higher quality used car to the customer.

Every factory CPO program is a little bit different, but they all have standards published online, and come backed by the manufacturer. By contrast, the “house” certification programs that some independent dealers offer can be a bit more opaque.

Factory-certified pre-owned cars do not just provide peace-of-mind and higher quality, there are other benefits to the CPO program as well, such as better warranties, and sometimes, reduced interest rates. For example, a CPO Toyota comes with the balance of a 7-year/100,000-mile powertrain warranty, a 12-month/12,000-mile bumper-to-bumper warranty, and a full year of roadside assistance. Additionally, Toyota CPO models are eligible for special financing rates. We have embraced the factory CPO programs for Toyota, Scion, Ford, Lincoln, and Hyundai because we believe that these vehicles deliver the very best value to our customers. By starting with a superior product and being able to offer better warranties and lower interest rates, we hope to take the unknowns out of buying a pre-owned vehicle.