Is buying a certified preowned vehicle worth the additional cost?

This is a definitely-maybe sort of answer, but it really depends. When you pay extra to buy a certified preowned vehicle, what that extra upfront cash really buys is peace of mind.

Preowned is simply a politically correct way of saying used. Consumers may feel a little better about a used vehicle because it's not really used, but preowned Semantics, however, provides little assurance that a preowned vehicle is going to perform any better than a used one. The words "certified preowned" attempt to provide that assurance.

There are basically two types of certification: factory-certified and dealer-certified. Usually dealer certification doesn't add much, if any, additional cost to the sale price. The dealer inspects a preset number of areas of the vehicle, fixing any problems found, and then usually provides a limited warranty on that vehicle for a specified period (typically no more than 90 days), during which time that same dealer will make repairs under the terms of the limited warranty. Without the factory overseeing the diligence and execution of the inspection or repairs, it is still up to the consumer to make sure the vehicle is sound. This will usually entail a trip to a trusted mechanic in addition to the dealer's certification. All the consumer really receives with a typical dealer certification is a short-term limited warranty. Longer protection will require paying for an aftermarket extended warranty -- another can of worms entirely.

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Factory certification is policed by the sponsoring manufacturer. The factory decides what areas of the vehicle are inspected, overseeing the inspection and the repairs. Although some factory-certified limited warranties extend for months rather than years, others can be as extensive as the original factory warranty when the vehicle was new. Some include roadside assistance and free loaner vehicles when warranty repairs are needed. Because the factory underwrites the warranty, repairs can be made at any of its franchised dealers.

The factory certified preowned programs vary wildly, but you can find out more about individual programs on Edmunds.com or Cars.com. A factory-certified preowned plan can add as much as 5 percent to the selling price of a used vehicle. You have to decide how much money more peace of mind is worth to you.

If you have a car question, e-mail it to us at Driving for Dollars.