Where can you get a thoroughly inspected and reconditioned vehicle that comes with an extended manufacturers' warranty and, in many cases, new-car services like oil changes for the length of the warranty? And where can you get this close-as-you-can-get-to-a-new-car for a lot less, possibly at a special financing rate? Don't expect to get a vehicle like this from a private party or a used-car dealership. You'll only find these vehicles at a franchised new-car dealership.

The vehicles under discussion belong to what carmakers call certified pre-owned (CPO) programs. Basically, participating new-car dealerships pick out used vehicles in good condition made by the manufacturer whose models the dealers also sell new. CPO vehicles, which usually have some of their original warranty left, receive vigorous inspections, generally covering at least 100 points and often a lot more. The vehicles are then thoroughly repaired with manufacturers' parts, and serviced and reconditioned by technicians who are trained on and very familiar with the vehicles. The manufacturer extends the CPO vehicles' warranty, a warranty all of that carmaker's dealers will honor.

The advantages of CPO programs for consumers are obvious. Stress is taken out of the purchase process and buyers drive away with peace of mind, knowing that if their CPO vehicle has problems, it's under warranty. Of course, there's a price for all this. Manufacturers and dealers can hardly be expected to do all the inspections and reconditioning and offer extended warranties for free. So CPO vehicles can cost anywhere from $300 to more than $3,000 more than "regular" used vehicles of the same year, make and model. But CPO vehicles also cost less than new vehicles, often thousands less, and consumers have the chance to drive a more luxurious, almost-like-new model at a used-car price.

Given CPO programs' strong peace-of-mind factor, it's not surprising that 1.7 million CPO vehicles were sold in the U.S. last year, according to the Kelley Blue Book. That was a 2 percent increase over 2006 CPO sales but the 2007 figure was more than three times higher than the number of CPO vehicles sold in 2000. And CPO vehicles' share of the used-car market is closing in on 40 percent of the nationwide total.

Because CPO programs vary, consumers need to do their research before buying. Luxury brands offer the most extensive programs, doing more significant inspections and providing more perks like roadside assistance. Extended warranties on CPO luxury vehicles, usually for 100,000 miles, are generally twice the mileage of the warranty extensions offered on less expensive vehicles.

CPO programs offer consumers a third choice between new and used. While CPO vehicles cost more than non-certified used vehicles, CPO programs allow consumers to buy a nice vehicle for less than they'd pay for a new vehicle. This third choice can only be found at one place - franchised-new car dealerships.