Are CPO Used Cars A Good Deal?

By

Managing Editor

As CarsDirect’s resident pricing expert, Alex offers must-know analyses of pricing & incentives to those looking to buy or lease a car. His consumer-oriented coverage of the latest trends and breaking news has been featured by The Wall Street Journal, Fox Business, Motor Trend, Automobile Magazine, and more.

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, Managing Editor - January 13, 2022

Factory-certified used cars can be a good deal when there are manufacturer incentives. While used car interest rates are generally higher than new vehicles, some automakers offer CPO car deals that you simply can't get on a non-certified car. In some cases, these can involve financing deals like 0% APR on select models.

Even amid an inventory shortage, Honda is currently offering 0.99% APR on factory-certified used vehicles. The biggest downside is that the best used car deals are often limited to 24 or 36-month loans and require top-tier credit. In Honda's case, the deal is only available with a credit score over 710 on a 2-year loan.

Certified Lexus vehicles now offer an unbelievable 0% APR for 36 months. For comparison, the best interest rate deal on the brand's new car lineup is currently 1.9%. Here, used cars can have better rates than new ones. A year ago, GM Financial offered 0% financing for 72 months on CPO Chevy Volts and Bolts.

Unfortunately, finding a qualifying model may not be easy. In addition to an inventory shortage, new car dealers may not have as many factory-certified cars in stock compared to normal used vehicles. It's also important to keep in mind that there's a difference between factory-certified and dealer-certified used cars.

To get the best deal possible, be sure to shop around and ask your dealer if the car you want is factory-certified or not. Used car incentives change monthly but preowned prices may change constantly due to supply & demand. As a result, it may be possible to pay a premium on a used car but still get a great rate.

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, Managing Editor

As CarsDirect’s resident pricing expert, Alex offers must-know analyses of pricing & incentives to those looking to buy or lease a car. His consumer-oriented coverage of the latest trends and breaking news has been featured by The Wall Street Journal, Fox Business, Motor Trend, Automobile Magazine, and more.

Follow On: Twitter

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