CERTIFIED USED CARS – Is “Certified” the new “Organic?”
“Certified” is one of those ambiguous marketing words like “fresh” or “natural” or “organic.” These adjectives have different meanings for different people, but they all send the same message: “Buy me - I’m better.”
What about “certified” used cars? Who certifies them, and how, and what does that mean? Before we get to the heart of the matter, consumers should know that dealers don’t even call these cars “used” anymore. That would make them “used car dealers,” a phrase that makes some people cringe to begin with. These cars are called “certified pre-owned vehicles” or “CPO’s” in the acronym world of dealer slang.
It turns out that “certified” is about as fluid as “organic” was in the 1990’s. At some point, the term “organic” morphed from being a relic of the hippie sixties, to a label for healthy choices at a higher price. As best-selling food industry author Michael Pollan notes, “The word 'organic' has proved to be one of the most powerful words in the supermarket” generating “an $11 billion industry that is now the fastest growing sector of the food economy.” 
Since 2002, the FDA has restricted use of the term “certified organic” and the "certified" label requires strict independent inspection procedures.
Not so the “certified” used car. While it too is a growing market sector, there is no government agency or independent body certifying cars. Manufacturers set the rules for their own CPO programs. These are really a hidden method of selling extended warranties or service contracts. Edmunds takes a stab at explaining the CPO business here and its collected links to the various manufacturer programs are very helpful. But the lesson to take away is that there is no single definition that supports the uniformly demanded higher price for these cars.
In our law practice at Kemnitzer, Barron & Krieg, we see an enormous number of complaints about certified used cars. While the word “certified” is confusing enough, the real harm comes when the “certification” actually conceals the fact of a pre-sale accident, sometimes as egregious as a salvage or wreck. Even the CARFAX report they give the buyer upon sale may not be a complete history as one would expect.Then the issue is not just the difference in shades of meaning, but outright fraud. The dealer and manufacturer cannot claim ignorance of the previous damage, because they have affirmatively stated they did certain inspections. Jaguar, for example promises a 140-point pre-sale inspection; Honda promises a150-point inspection of their CPO cars. Be sure to get a written copy of the inspection results.
What, then, is the meaning of the mouthful, “certified pre-owned vehicle?” It is not like comparing Macintosh and Granny Smith apples; it’s like comparing a Macintosh apple and a Valencia orange. Or a Meyer lemon. All “organic,” of course.
