One of the problems consumers face when buying vehicles is banks and financial institutions charging a higher interest rate on used cars compared to new ones. The differences can add up to a large chunk of change. However, there is a sizable list of certified pre-owned vehicles that--for a limited time--offer low financing rates for qualified buyers. The savings can be significant.
If you don’t plan on paying cash for your next used car purchase--and not many buyers are doing that these days--a major cost, over and above the selling price, is the finance charges. By taking advantage of incentive rates offered by manufacturers on their certified used cars, savvy buyers can save thousands of dollars over what they normally would pay over the life of a car loan.
But there is a second way used car buyers can save money when buying a certified pre-owned (CPO) vehicle. Before we get to that, it’s important to understand the many benefits a buyer receives when buying a certified car, truck, or SUV.
When I was Internet Manager for a major car dealer, I discovered that one of the most effective things I could do to help most buyers was to steer them towards a certified pre-owned (CPO) vehicle.
When you buy a CPO you get a used vehicle that meets a higher standard. Peace of mind can be priceless. To qualify, a CPO vehicle can only be a few years old with a limited number of miles. It has to pass an extensive mechanical inspection with any problems fixed. Then the manufacturer--not the dealer--adds an extended warranty. If something does go wrong, the buyer is protected.
In addition, there are usually other benefits that can include roadside assistance, trip interruption service, a free vehicle history report, and other goodies.
The secret to buying a CPO vehicle is knowing that the price is determined by the dealer, even though the benefits--including the extended warranty--come from the manufacturer. This means that the benefits of a CPO program can’t be reduced just because you make a good deal. The actual cost for the added value of a certified used car is determined by how good a deal you can negotiate.
Two Ways To Win
So the two ways you can win (and save) by buying CPO vehicle are 1) negotiating a great deal on the selling price and 2) buy one that has incentive financing available from the manufacturer. If you are able to do both, you can save a substantial amount of money on your next vehicle purchase.
Are you wondering where you can find out which manufacturers are offering these added value deals? Tomorrow, a list all current incentive financing offers from the major car manufacturers.