Certified Pre-Owned (CPO) is becoming more popular in the car-buying business. CPO refers to late models, low-mileage used cars and trucks offered for sale by a dealer with warranties extending beyond the manufacturer's initial coverage.

Here's how a typical certified used-car program works. Dealerships acquire used cars when a person returns their vehicle from a lease, or trades in their car to buy a new one. The dealership evaluates the car's condition and considers it for the certified car program. The car must undergo and pass an extensive inspection before it is certified. Each dealer's program may vary a little bit. It is best to compare various manufacturer programs before making a decision, unless you are set on a specific make. The warranty can cover anything from the engine, transmission, brakes, and other components as well. Most certified programs offer: special financing, manufactured limited warranty, 100 point quality inspection, and 24-hour roadside assistance.

DMV Regulations on the Advertising of "Certified" Used Vehicles