As a nation, Americans are interested in recycling what they use. There is hardly a street corner around that doesn't have a retail store specializing in selling second-hand merchandise, from sporting goods to clothes to household items. It should be no surprise then, that more consumers are purchasing used cars and trucks now than ever before. And for good reason; according to the 2006 Used Car Market Report, made available by Mannheim.com, the average cost of a new vehicle is $24,275, compared to only $8,315 for a used car.

Until recently, buying a used car has been like playing a game of Russian roulette. Used cars and trucks were sold "as is, where is" and there was simply no way for non-mechanically oriented buyers to know the history of the vehicle or what mechanical condition the vehicle is in. Now, with the birth of the certified pre-owned (CPO) vehicle program, this uncertainty has become a thing of the past. A certified pre-owned vehicle is a late model car or truck (usually under five years old), which has been thoroughly inspected by its original manufacturer and approved for resale. CPO prior leased vehicles are popular among luxury car buyers, in particular luxury cars such as Lexus or Mercedes.

Many auto manufacturers offer warranties for their certified vehicles that take effect as the original warranty is preparing to expire. Some also offer benefits such as pick-up/drop-off service, roadside assistance, free scheduled maintenance, free loaner cars for times when the vehicle is in the shop, and even a “3 day return/exchange period.” With this added value, CPO vehicle buyers are not only safeguarded from buying a lemon, they are offered many of the same perks that a new car buyer might expect. You’ll still want to follow the same precautions as the typical used car buyer. Check that the inspection report matches up with the particular car or truck you want to buy and double check that the VIN number is the same both on the paperwork and on the body of the car. Expect to pay about 8% more for a CPO than for one bought blindly off the lot.