If you’re thinking of financing a used car instead of a brand new one, then you’re on the right track. With the depreciation of new cars 20-25% in the first week of ownership, a used car offers a more favorable cost-to-value ratio. This is especially important if you need to finance a car with bad credit, as it keeps you from going upside down on your car loan.
Reliability & The Rise of the Used Car Market
Used cars are especially popular these days not only because of their lower price tag, but also because of greater reliability. Cars these days are expected to last well beyond the 100,000 mile mark. At the same time long-term auto loans have become more common, with 60 month auto loans stretching to 72, 84, and even 96 months, as minimized maintenance costs over the life of the vehicle have enabled drivers to keep making payments on higher mileage vehicles.
Certified Pre-Owned vs Used
If you are in the market for a used vehicle, you now need to ask yourself: Pre-owned vs Certified Pre-Owned (CPO)? Which is better? And are there really advantages to buying a certified pre-owned car vs. buying a used car off the private market?
Certified Pre-Owned Vehicles: Details & Advantages
- These vehicles are acquired by a dealer via trade-in or returned vehicles after leasing. To qualify, these cars must be of a certain year and mileage bracket, plus undergo rigorous inspections and repairs.
- Certified pre-owned vehicles typically cost more than other used cars, but because of the program requirements, you are likely getting a better car in better condition.
- Another advantage of buying a CPO car is that they typically come with a manufacturer’s warranty or dealer service contract that may help cover repair costs.
- To find out if you qualify for an auto loan for a certified pre-owned car, submit a quick credit application to our network of pre-owned car lenders and dealers. It takes less than 3 minutes.
Now that you’re sold on financing a certified pre-owned car, what should you look for? Do certain brands stand out? IntelliChoice rates CPO programs based on several factors ranging from brand value to certified inspection process.
Best Non-Luxury CPO Programs
- MINI and Volkswagen tie as overall winners based on total criteria.
- MINI wins out in the warranty category.
- For inspection score Ford, Mercury, Nissan and Suziki win.
- And the for brand quality, General Motors and Honda are tops.
For consistent quality in their pre-owned vehicles, Volvo, MINI and Volkswagen lead the pack. Kia and Hyundai are also quickly catching up.
Ready to get approved for CPO financing? Apply online today!