What to know about shopping for a certified pre-owned vs. used car

• Most automakers offer a certified pre-owned option.
• Buying without the certified pre-owned label might cost less, but you're probably taking more of a risk with your car purchase.

“Certified pre-owned” might sound like simple rebranding from a salesman, but the difference between a certified pre-owned vehicle and a used car is more than clever wordplay.

It’s all about assurances.

When a vehicle is designated as certified pre-owned by a car company, that vehicle has passed a set of criteria, according to Brian Moody, executive editor for Autotrader. A used car, bought from a neighbor or a local car lot, might turn out to be just fine, but it’s not “certified pre-owned” and won’t get the equivalent of the manufacturer’s seal of approval.

Vehicles with frame or fire damage or which came from salvage won’t make the cut, he said, describing certified pre-owned vehicles as lightly used and probably not more than five years old.

“You’re getting a minimum of ‘at least it’s this good,’ whereas if you buy one from elsewhere, you don’t know,” Moody said. “There’s a good chance you’re getting a great car from your neighbor, but you have to do a little bit of extra work just to make sure.”

Moody noted that vehicle history reports don’t tell the whole story.

So what are the pros of certified pre-owned vehicles?

The car has been vetted, for one thing.

“You’re taking a very low risk in terms of the quality of the car, the history of the car, the likelihood of problems,” according to Moody. “It’s still used, but you eliminated a lot of the risk.”

Consumer Reports found that “vehicles bought as certified pre-owned had about 14 percent fewer problems than other used cars.”

Plus, there are the perks, depending on the manufacturer — an extended warranty, perhaps new car financing, maybe even three months of satellite radio.

General Motors, for instance, lists not just extra warranties but also roadside assistance, a scheduled maintenance program and 172-point inspection among 10 benefits its certified pre-owned program provides compared with basic used cars.

A quick Internet search shows the majority of automakers have their own certified pre-owned programs, many of which have been around for years.

And the cons of certified pre-owned?

The primary issue is cost. Moody noted that the added expense, say it costs you an extra $2,000, isn’t likely to increase the value of the vehicle down the road, such as the next time it’s sold.

Still, Moody said good used cars are available, whether certified pre-owned or not.

“I don’t think there’s any one answer for anyone. You can find good used cars, and they can come from a variety of places,” he said.

Contact Eric D. Lawrence: [email protected]. Become a subscriber. Submit a letter to the editor at freep.com/letters.