Truth About Certified Pre-Owned Cars

Dealers tout certified pre-owned cars as the better choice because of their extended warranty, near-mint condition, and savings over buying new. Our data supports the assertion that they are indeed better cars.

Our latest analysis shows that vehicles bought as certified pre-owned had about 14 percent fewer problems than other used cars.

“Based on my ongoing analysis, buying a CPO car is often worth the added cost for the increased reliability,” says Steven Elek, who oversees Consumer Reports’ auto data analytics. “But remember to research our reliability ratings first, as some models—CPO or not—can be unreliable in general.”

But not all certified pre-owned programs are the same. A used car may be advertised as certified but it might not have the backing of an automaker’s official certification program. Some dealers “certify” cars themselves or sell third-party certifications. These types of certified pre-owned programs have risks.

For instance, you could be stuck in a paperwork snarl when it comes time to make a warranty claim, especially if you seek work at a different shop or facility.

You need to be aware of the differences in the programs, and you should ask the dealer to provide full, official documentation so that you know what kind of warranty you’re buying. Also, not all certifications may be transferable from one owner to the next. Be aware of that when buying a used car from a private individual.