Car Buying Advice

Because the risks of buying a used car can make some buyers uneasy, most automakers and some dealerships have now developed certification systems that are intended to give buyers greater peace of mind. Certified used cars are billed as the cream-of-the-crop, inspected, and reconditioned according to stringent guidelines. But they can cost hundreds or thousands of dollars more than noncertified vehicles.

All manufacturer programs require that candidates for certification have less than a specified age and mileage, typically no more than five years old and with less than 60,000 or 70,000 miles. Manufacturer programs also routinely exclude cars that have a suspicious title history or other serious flaws.

With a typical manufacturer-certification program, the dealership screens, inspects, and reconditions the chosen vehicles. The automaker then certifies that the car is sound and gives it a manufacturer-backed warranty. The terms of the warranties, however, can differ significantly from one brand to another, with coverage lasting from three months to several years. Some warranties extend the manufacturer's original new-car warranty, with the coverage listed from the date the car was first sold. Other warranties begin when you buy the certified vehicle.

Certification programs also typically throw in enhancements such as roadside assistance and trip-interruption insurance. Since these items are generally available through an auto-club membership or other source, the extras probably shouldn't be a deciding factor.

The term "certified" doesn't actually mean much. Any used-car dealer can call any car "certified." The term has no legal definition, and no watchdog agency polices its use. As a result, you'll sometimes see a car labeled "certified" that has not undergone any reconditioning process. It may carry only a service contract, the cost of which is rolled into the vehicle's price.

You might also see aftermarket warranty programs that look like a manufacturer certification. These "dealer certification" programs are underwritten by one of a number of warranty companies, which are essentially insurers that sell a program to dealers who then resell it to consumers. Because the quality and terms of such contracts vary widely, it's especially important to read the fine print carefully. Some unscrupulous dealers mislead car shoppers about the certification status of a given car, so it's important to be wary.

Don't assume that a certified car is worth the premium price. If you're buying a late-model, low-mileage car, you should expect it to be in good condition anyway. Negotiate the price as you would any other used car.

When considering any certified car, ask the dealer specific questions:

• Is the vehicle covered by a manufacturer-certified program or by a third-party plan sold by the dealer? Nonmanufacturer plans are wild cards because they can vary greatly in quality.
  
  
• What does the warranty cover, and for how long? Ask to see a copy of the warranty contract, not just a glossy brochure. Read the fine print.
  
  
• Is there a deductible? If there is a charge for service, find out how much it is, and whether you must pay it for each item serviced or for each service call. Ask about other fees, such as a "diagnostic" fee that's added to the deductible.
  
  
• Who provides the service? Ask whether you have to bring the car back to the original dealership for warranty work, or whether any same-brand dealership is fine. Ask what you're required to do in an emergency.

If you are buying a well-maintained car with a good record of reliability, you aren't taking much of a risk if you skip the certification route. But, once again, the real key for your peace of mind when buying a used vehicle is to have it thoroughly inspected by an independent mechanic.