Save Money On CPO Vehicles With Incentive Financing

July 11, 2010

Yesterday we discovered that there are two ways to win (and save) when buying a certified pre-owned (CPO) vehicle. First, negotiate a great deal. Making a good buy doesn’t diminish the many value-added benefits of CPO programs. Topping the list of benefits includes a vehicle that meets a higher standard and an extended warranty at no extra charge.

The second way to win is by buying a CPO vehicle that also has incentive financing from the manufacturer. Other than the purchase price, a major expense for buyers over the term of their car loan is the interest paid. The higher the interest rate, the more money you pay out of pocket. If you can get a lower interest rate it can significantly reduced your cost over the life of the loan. This can add up to hundreds, even thousands of dollars depending on the amount and term of the loan, and the interest rate actually paid.

Who Has Incentive Financing on CPO Vehicles
Here are current offers from major manufacturers:

  • Chevrolet Impala. GMAC offers a rate down to 1.9 percent. Valid until 9-30-10.
  • Most Hyundai models. Hyundai Motor Finance offers a rate down to 2.9 percent. Valid until 9-30-10.
  • Many Infiniti models, from the FX35 to the G35 and M45, plus others. IFS offers rates down to 1.99 percent. Valid until 9-30-10
  • A variety of Mercedes-Benz models. M-B Financial offers a rate down to 1.99 percent. Valid until 8-31-10.
  • Nissan Altima, 2007-08 models. NMAC offers rates down to 0.9 percent over 60 months. Valid until 9-30-10.
  • Pontiac G6 models. GMAC offers rates as low as 1.9 percent. Valid until 1-3-11.

Not all buyers will qualify for loans or for the special rates. Buyers generally need an excellent credit score to get them. However, even if you don’t qualify for the lowest rate, chances are the rate you get through an incentive program will be lower than the rate you would normally qualify for through your bank, credit union, or online lender. In other words, higher rates may apply for buyers with lower credit ratings. Even so, chances are the savings can still be substantial over the term of a loan. You need to check with the dealer for specific details.

Just In Case
It’s always a good idea to arrange your own financing prior to seeing a dealer. This includes dealers who are offering incentive financing. This keeps the dealer honest in two ways. By knowing your credit score prior to seeing the dealer, you will have a better idea which rate you qualify for through the manufacturer incentive program. Also, if the dealer attempts to bump you to a rate that is too high, your back up financing may be the better deal.

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