by Bob Cerullo

What is it that makes buyers, in growing numbers, willing to pay higher prices for “Certified “cars?  It is the peace of mind, car maker’s claim that comes from knowing the car they are buying has been fully inspected and is protected by an extended warranty. Are these cars really better and more reliable than non certified cars or are they the same cars with an extended warranty and a fancy sticker declaring them to be “CERTIFIED”? In fact “Certified” has come to mean different things to different people.

A GM dealer, who spoke to us on condition that he not be named, told us he had his own “Certified” stickers that he put on his better used cars after his service department had put them in top condition. The used cars he was offering for sale were trade-ins from customers who bought new cars. The dealer said there were two main reasons he didn’t subscribe to the GM Certified Used Car program. First of all he said he had to pay a $500 fee to GM. Then he was limited to financing the car through GM at a higher rate than he gets from a local bank. Plus GM’s warranty was is only 3000 miles. He said: “It is my certification which, I believe, is a better deal for the customer than a GM certification. And, I can sell the car at a lower price, and still make a profit.”

Certification programs vary. Cadillac, for example, offers a 24 month/20,000 mile warranty beyond the original new car warranty of 72/months/70,000 miles with roadside assistance.  Other GM brands offer only a 3 month/3000 mile comprehensive warranty plus the balance of the original warranty. Cadillac won’t take the car back but the other GM brands will take back for 3 days/150 miles with money back.

IntelliChoice, (IntelliChoice.com) surveys certified used car programs annually and issues a list of the best certified pre-owned programs. For 2002 Jaguar won as the best certified pre owned luxury program offering a warranty of six years or 100,000 miles from the original in service date with no deductibles and 24 hour roadside assistance. The best pre owned non luxury program went to Honda with an 84 month /100000 mile power train warranty from the original in-service date. If the car is purchased before the end of the new car warranty there is a comprehensive coverage of 48 months/48000 miles from the original in service date. Honda also won in the category of Best Certified Pre-Owned Warranty. The Oscar for the Best Certified Pre-Owned Inspection went to Lincoln’s Premier Certified Pre-Owned program. IntelliChoice scored Lincoln’s inspection at 97% as opposed to 62% for Cadillac and 64% for Mercedes-Benz.

Toyota did not win in any category yet is considered by many in the industry to be one of the best programs. Toyota earned a score of 73% for inspection, the same as winner Honda. We asked Mr. Norm Olson, who describes himself as the Chief of the Toyota Certified Police, what is required for a car to get a Toyota Certified Sticker. Olson said every car is checked with a CAR FAX and AUTO CHECK vehicle history report. The car can not have been involved in a lemon law dispute, branded title, or any repair that requires discloser to the consumer. Toyota allows some repainting but excludes a car with excessive body repair or poor color matching. Repaired bumpers are allowed. Rust or sludge in the engine disqualifies the car. It must pass a 128 point inspection and reconditioning.

We asked how Toyota knows the dealer actually brought the car up to “Certified” standards. Olson said that Toyota has a unique program where independent inspectors randomly inspect certified cars. A Toyota dealer never knows when the Certified Police will be at his door. Two weeks after the purchase Toyota mails the buyer a confirmation.

Not all certification programs are created equal. Before you buy, find out if the plan is covered by a manufacturer’s program or by a risky third party program. Compare certification programs on-line at IntelliChoice.com. Get the exact terms of what is covered in writing from the dealer. Find out what has been repaired. Where will in-warranty repairs be done. Is there a deductible? Assume nothing. Compare the prices with non certified cars. The Certified sticker is an added value provided it is issued after a bona fide inspection, reconditioning and actually backed by a car maker.