CPO Offers Can Make Them Cheaper Than Regular Used Cars

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Senior Pricing Analyst

As CarsDirect’s resident pricing analyst, Alex offers must-know analysis 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 in publications such as Car and Driver, Motor Trend, Automobile Magazine and Autoblog.

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, Senior Pricing Analyst - October 28, 2019

Certified used cars can often command a premium over regular pre-owned vehicles. However, shoppers put off by higher prices may be surprised to learn that buying CPO can often get you access to manufacturer incentives that can translate to a lower overall purchase cost.

For example, Subaru is offering 0.99% financing for 36 months on all factory-certified pre-owned vehicles. In the case of the popular Subaru Crosstrek, that's lower than the 2.9% rate the brand is offering when choosing new instead of used.

According to Kelly Blue Book, a 2016 Crosstrek Premium with CVT has a "typical listing price" of $18,154 for CPO and $17,654 for non-CPO. With a 3-year loan at 5% APR, a non-certified Crosstrek would cost $19,048 before taxes & fees.

However, even though the CPO version is $500 more expensive on paper, the lower interest rate makes it a better buy. At 0.99% APR for 3 years, the certified Crosstrek would come out to $18,432. That's an advantage of $616 in favor of buying CPO.

That said, not every brand offers rates this low on certified cars. It's also worth noting that promotional rates for used are often limited to terms of up to 36 months. If you think you'll need a longer loan, expect to encounter higher rates.

Shoppers should also keep in mind that the premium for choosing a certified car can vary by brand. If you're looking to achieve the lowest total cost, try considering a variety of purchase options. The result may surprise you.

See All Top Certified Used Car Deals »

, Senior Pricing Analyst

As CarsDirect’s resident pricing analyst, Alex offers must-know analysis 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 in publications such as Car and Driver, Motor Trend, Automobile Magazine and Autoblog.

Follow On: Twitter

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