Certified Pre-Owned Vehicles

Advertising Supplement

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2003 Volkswagen Beetle

By BOB YOUNG, Advertising Special Sections Writer

Intellichoice rates auto makers’ CPO programs based on their warranties, finance rates and roadside service plans

Not all certified pre-owned programs are created equal — or so says the annual rankings of Intellichoice, a Santa Monica-based independent firm that provides online automotive cost and value analysis for consumers.

Most features offered are the same, but some programs stand out from the pack, measured by consumer response and expert evaluation, said James Bell, publisher of Intellichoice.com.

The result is Intellichoice’s Best Certified Pre- Owned Program Awards presentation, now 7 years old, which ranks the top five certified programs in luxury and non-luxury divisions. Intellichoice bases its ratings on criteria that include quality of warranties, inspection list, special finance rates and roadside service.

“We ask consumers who visit our site for auto research and comparison to give us feedback on what they like and don’t like about certified programs,” Bell said. “Thousands of them respond. We use that data to identify the most important aspects of CPO programs, then our experts do an extensive evaluation, interpreting scores using numerical formulas.”

Intellichoice announced its 2006 CPO winners on Oct. 27 in an award ceremony at the National Remarketing Conference and Used-Car Expo at Disney World Orlando. The high-profile event is a first for Intellichoice — and a sign that the certified market, barely more than 10 years old, is coming of age, Bell said.

“Certified pre-owned programs are rapidly gaining significance among consumers and manufacturers in the used-car market,” he said. “We believe it is important to evaluate all of the programs out there and recognize the manufacturers who have demonstrated exceptional offerings.

“Our annual awards let the industry know what they’re doing right — and wrong — so they can tailor their programs to best serve the consumers, who are the biggest winners,” he said.

The Intellichoice awards provide validation to successful certified programs and are a useful tool for used-car shoppers, said Geoff Cousins, vice president of Jaguar Land Rover North America. “Our luxury customers look to Intellichoice’s annual rankings of certified pre-owned programs for objective information before making an informed decision,” he said.

Now that the awards are accompanied by a lavish, well-attended presentation, Intellichoice expects they will continue to grow in stature, gain increasing recognition and spur more industry competition. After all, America loves award ceremonies. Could a paparazzi-lined red carpet be next?

“Who knows? Maybe Chris Rock will take my job as emcee,” Bell said.

Here’s the lineup of 2006 winners. The envelope, please.

Luxury Division

1. Jaguar
The top three spots were tight, but Jaguar’s Special Edition certified program again took top luxury honors for the fifth straight year. It was a wide-ranging victory but Jaguar scored highest for its six-year/100,000-mile comprehensive no-deductible coverage — winning top luxury-class honors in the Best Warranty category — and Jaguar’s 140-point inspection list finished in a four-way tie for first with Audi, Infiniti and Land Rover.

2. Volvo


	2003 Volvo V 40

Volvo didn’t finish first in any single category, but it knocked Cadillac out of second place with consistently strong marks — and not just for its 130-point inspection list and five-year/100,000-mile warranty. Key factors included high scores for Volvo’s special finance rates and roadside service (including free trip routing and reimbursement if a breakdown occurs on the road). Volvo’s warranty dropped its $50 deductible, which was a key to the company’s rise, Bell said.

“[Its] inspection process reflects [its] attention to safety,” he said.

3. Cadillac
Cadillac dropped from second, but managed to get higher marks for its six-year/100,000-mile bumper-to-bumper warranty while holding steady with its 112-point inspection list. Cadillac’s certified program accepts no vehicle older than four model years or with more than 50,000 miles. If not for Volvo streamlining its warranty, Cadillac would have held on to second, Bell said.

4. Saab
Saab knocked Lexus out of the fourth spot that it held last year, largely because of an upgraded rating on its six-year/100,000-mile warranty and a markedly improved score for its 110-point reconditioning inspection list. Special finance rates offered by Saab earlier in 2005 also factored in the company’s new top-five status, Bell said.

5. Audi
Audi held steady in fifth place mainly because the company went “inspection crazy” in 2005, updating its extensive 300-plus-point inspection list, Bell said. Another strong feature is roadside assistance, which includes a $500-a-day credit for up to three days if a trip is interrupted by repairs under warranty.

Non-Luxury Division

1. Volkswagen
VW finished on top for the second year in a row after surging into the top five for the first time last year. But the battle for the top spot in the non-luxury category was exceptionally close and fierce — especially among the top three, Bell said.

Volkswagen wasn’t a clear winner in any single category — all of which posted significant gains in last year’s rankings — but scored just high enough across the board to maintain its grip. Volkswagen’s 112-point reconditioning inspection is backed by a highly rated two-year/24,000-mile warranty that kicks in following any remaining new-car coverage.

2. Mazda


	2002 Mazda Millenia

A stronger score on its recently extended powertrain protection won Mazda the Best Warranty title in the non-luxury class and boosted it up from third overall. The warranty is a big selling point for Mazda certified vehicles: seven-year/100,000-mile coverage for model years 2000-2002 and eight years/100,000 miles for 2003 models and beyond, from the original in-service date.

But there were minor improvements in the marks for Mazda’s 100-point reconditioning and inspection as well.

3. Honda
Honda’s 150-point inspection list finished in mid-pack, but its seven-year/100,000-mile powertrain warranty — and one-year/12,000-mile non-powertrain certified coverage — received slightly higher marks than in last year’s competition. The only reason Honda dropped a notch from second place is a greater increase in warranty ratings for the top two contenders, according to Bell.

4. Toyota


	2002 Toyota Prius

Finally breaking into the top five — and knocking Chrysler/Dodge/Jeep out of the rankings — Toyota’s certified program showed a solid increase in several categories, most notably its 160-point inspection list. The higher inspection rating was mainly fueled by the growing number of hybrid Prius models in Toyota’s CPO program, Bell said.

5. Ford/Mercury
Ford’s Quality Checked Certified program held tight to the five spot by improving an already strong rating on its 115-point inspection list. The high inspection score helped compensate for a small decline in its warranty category. Even so, Ford’s six-year/75,000-mile powertrain coverage remains highly rated, Bell said.

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