Why should I buy Certified Pre-owned Autos?
Put simply, it's a used car that comes with the original manufacturer's seal of approval.

Selected for its nearly new condition, a late-model used car becomes certified once it passes a rigorous inspection, inside and out. If necessary, factory-trained technicians repair or recondition the car to meet the manufacturer's strict certification standards. And an extended warranty backs it up.

Think of certified pre-owned (CPO) as an alternative to the uncertainty of buying used and the expense of buying new. Originally created to sell significant numbers of off-lease cars while enhancing their value, CPO programs allow you to purchase the next best thing to new with confidence. Benefits include:

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Maximized buying power
You can buy a higher class of vehicle or a comparable late-model car for considerably less than a new one. Many shoppers who otherwise couldn't afford a luxury car are choosing to buy from top brands like Lexus, Mercedes-Benz and Jaguar.

Additionally, you avoid the depreciation costs that occur in the first years of owning a new car. You may even receive discount financing, because the manufacturer's guarantee has minimized the risks of buying a pre-owned car.

Of course, the added security of buying certified pre-owned will cost you more than buying a non-certified used car. According to a 2003 J.D. Power and Associates study, you can expect to pay $1,000 more for non-luxury brands and up to $3,000 more for luxury brands.

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Quality inspection
Some consumers shy away from buying used, because they're concerned about buying someone else's problem. Inspections allow you to buy with greater confidence.

Typically, only recent model years and cars with limited mileage qualify for the manufacturer's certification. Cars that are selected undergo an extensive point-by-point inspection by factory-trained technicians. While many inspections range from a 70- to 150-point checklist, most are very similar and are performed using strict guidelines.

If a car is reconditioned to meet certification requirements, it is documented on inspection forms. You should be informed of the work.

Comprehensive point inspections generally cover:

• Road test
• Under the hood
• Under the vehicle
• Tires
• Exterior
• Interior
• Electrical system
• Heating/AC system
• Luggage compartment
• Safety/security features
• VIN match
• Required manuals and documents

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Extended warranty coverage
A warranty takes the worry out of buying pre-owned. Any remaining coverage from a new-car warranty usually transfers, and an extended warranty takes effect when the original warranty expires. Much like the original warranty, coverage lasts a certain number of years or miles, whichever occurs first. Warranties will vary depending on the manufacturer. Luxury brands tend to offer more comprehensive extended warranties than non-luxury brands.

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Emergency services
Beyond the extended warranty, many CPO programs offer the extra perks that come with buying a new car, like free maintenance, roadside assistance and rental car reimbursement. Some even offer reimbursement for hotel and meals if you are stranded due to mechanical failure.

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Before you go to the dealership, be informed so you can ask the right questions and make a wise decision. Here are a few pointers to think about when you're shopping for a CPO car:

Know who is doing the certification
Be aware of the different types of certified programs offered by manufacturers and used-car dealers. A used car sold with a third-party warranty is not the same as a manufacturer-certified pre-owned car. Programs offered through the original manufacturer typically offer a better warranty and a more extensive, standardized certification program.

Inspect the inspection list
Always ask to see the inspection list. Every car must go through a specific point-by-point inspection. This list will indicate how thorough the inspection is and if any repairs or maintenance work was required.

Find out about the warranty
Note the mileage and ask if there is a transferable new warranty on the car. Find out what the extended warranty offers, and see how it matches up to other CPO programs.

Ask about maintenance and repairs
Ask the dealer who will provide service on your car in the event it is required. Find out whether you will be locked into receiving service at a particular location. If the warranty will be honored at various locations, find out if any limitations apply.

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