Los Angeles Times, March 17, 2004
WHEELS

Mint? No, it may be lemon

Buyers are burned by cars carrying the 'certified' tag, prompting a bid to change the rules.

By Jeanne Wright, Special to The Times

When Henry Johnson leased his Mercedes-Benz, he recalled that the dealer assured him the used S340 sedan was in such mint condition it had earned the manufacturer's prestigious "Starmark certified pre-owned" label.

But his beloved $62,000 leased Mercedes ended up as an expensive ornament in his Chino Hills driveway, he later alleged in a suit.

Less than a year after he took out a 60-month lease in 2001, he says he discovered the car had been in a serious accident in Florida, resulting in major frame damage.

Johnson had relied on assurances that his Mercedes had undergone a rigorous inspection at Fletcher Jones Motor Cars Inc. in Newport Beach. The Mercedes program is similar to ones offered by dealerships of almost every major brand.

Certified programs have become so popular and resulted in so many consumer complaints that the state Legislature is considering a new law that would be the first in the nation to regulate the practice and define what constitutes a "certified" car.

The idea is to take the guesswork out of buying a used car and prevent consumers from being burned by cars that come with pre-existing defects.

The programs became popular during the mid-1990s, as the trend toward new-car leasing flooded the market with used cars. The number of certified vehicles being sold nationwide has jumped dramatically from 452,829 in 1997 to 1,160,707 in 2002, according to market researchers.

Manufacturers say that the inspection programs cover 100 to 300 items in the cars, ranging from the transmission's performance to the condition of the upholstery.

At best, even top mechanics cannot assure that a car will not develop a problem soon after it is driven off the lot.

At worst, the inspections do not catch existing problems, even ones that represent serious mechanical and safety defects, consumer advocates say.

Rosemary Shahan, executive director of Consumers for Reliability and Safety, said buyers are often given false assurances by certified used-car programs.

Of course, the manufacturers do not inspect cars. That is left to dealerships, which also administer the warranties that are offered on certified cars.