The certified pre-owned car market is small but growing. Certified pre-owned (CPO) cars are used cars that have been certified by a manufacturer or dealership. Certification means that these vehicles are in very good or excellent condition and have passed an inspection by a trained technician, and it often means that these vehicles are under a certain amount of mileage or under a certain age. CPO cars often come with a factory- or dealer-backed warranty, a roadside assistance plan, a service plan, or some combination thereof. They are also often regarded as being better-maintained by the first owner than most used cars.

Because CPO cars provide both an intriguing alternative to new luxury vehicles – a CPO luxury vehicle will often be priced lower and at only a few years old will still offer many modern features – and because CPO cars often offer more peace of mind than a standard used car – few of which are sold with a warranty or service plan – the CPO market is an interesting slice of the total new- and used-vehicle market.

While the CPO market is small, with the overall vehicle market rebounding strongly after the recession, this report focuses on where the CPO market is today, where it can go (and grow) from here, how it can get there, and what might be standing in the way of future growth.

This report examines the US market for certified pre-owned (CPO) vehicles. Mintel defines CPO vehicles as:

• Having been inspected by an automaker or dealership

• Having a factory-backed warranty, and/or service plan, and/or roadside assistance plan

• Sometimes having a mileage cap

• Sometimes being under five years old

Mintel also defines a certified pre-owned car as a pre-owned vehicle that has been certified by an automaker or dealership as being in excellent condition.

For the purposes of this Report, Mintel has used the following definition:

Franchised dealerships

• A new- and/or used-car dealership that has a franchise agreement with a major automotive manufacturer.