By: Ted Biederman
It’s probably been more than 20-years since General Motors first introduced its Continuous Protection Plan for used cars. Initially it was a three-month or 3,000-mile extended warranty for those used cars that could cut the mustard on a 100-point inspection.

In those days it was a tool to cut in on the profits of outside insurers offering service contracts. Some dealers charged extra for the inspection and “official” warranty, while others simply packed the cost into the price of the vehicle. All-in-all it gave GM dealers
a leg up in the used car market.

The old GM program is certainly a far cry from today’s “certified” used car programs, but there is no doubt that today’s programs have roots in those early schemes.
Created by a glut of low-mileage, late model lease returns, certified used cars has become a way for automakers and their finance arms to turn a problem into a profit center.
The luxury car segment has led the way in modern certified programs. Starmark from Mercedes-Benz and Select Edition from Jaguar are prime examples. But now almost every brand has some sort of certified pre-owned program. And the number of certified vehicles retailed is huge.
According to industry journal Automotive News and Autodata Corporation, a New Jersey based market research company, year to date through July there have been 885,531 “certified” sales, an increase of 24.5-percent over the same period last year.
Automotive News notes that sales of certified vehicles carry multi-faceted importance to manufacturers, among them the rise of off-lease residual values, added support of new car prices and attracting new customers to the brand.
Backed by 140-point (more or less) inspections that have created some of the most brilliant used cars that have ever crossed a curb, the demand for these “creampuffs” continues to skyrocket with willing buyers ready to lay out extra cash that gets them not only a well inspected and reconditioned vehicle but one that usually carries a hefty extended warranty that adds even more comfort to the purchase decision.
The certified business has become so import that many automakers have heavy marketing programs to support the used vehicle ventures.

Jaguar for example has turned to vintage racing to support their Select Edition pre-owned program. Using two classic Jaguar E-Type racecars as rolling high-speed billboards Jaguar will campaign the cars at historic racing events.
While most enthusiasts of the vintage racing circle would probably hope to own the legendary E-Type, Jaguar believes that car loving fans might be attracted to the prospect of owning a pre-owned, heritage rich modern Jaguar that could one day find its way onto the vintage circuit.
Whatever the reasons, be it logic or marketing, certified pre-owned vehicles seem to be the growing choice of savvy buyers.
Or they just might want a “creampuff.”