Chrysler Program Helps Poor Credit Used Car Buyersby Steve Cypher on Thursday, December 6th, 2012
Car shoppers with poor credit scores are now able to pick from a larger number of certified used cars from different manufacturers at certain Chrysler, Jeep, Dodge, Ram and Fiat dealers that choose to participate in a program from Chrysler.
At Auto Credit Express where, for the past two decades, we’ve been helping applicants with low FICO scores find dealers that can offer them approved car loans, we think this is really good news. We’re speaking, of course, about Chrysler’s enhanced certified used car program that the company rolled out earlier this year.
Certified used cars
Most certified used car programs (the manufacturers generally refer to them as “certified pre-owned” or CPO programs) work this way: First of all, a used car must meet certain age, mileage and inspection requirements. If it does and following the replacement of worn, broken or defective parts, dealers can then sell them with a manufacturer-backed extended warranty (really a service contract) that varies according to the program as well as the make and model.
These used cars can then be sold at a premium over non-certified used cars. The fact is they’re usually priced higher because of the costs involved in the inspection, replacement and reconditioning process as well as the included service contract.
What the service contract does or does not include and cover also varies widely according to the manufacturer, but up until earlier this year one thing was certain: in order buy a specific certified used car model, you had to visit the franchised car dealer that sold them when they were new.
Under Chrysler’s current competitive-make certified used car program, this is no longer the case.
Chrysler Diversified Certified
According to the company, under the Chrysler Diversified Certified program “All competitive-make pre-owned vehicles will be subjected to a thorough certification process and come with a 5-Year/60,000-Mile Maximum Care (full mechanical) Warranty from original in-service date, as well as Certified Pre-Owned program benefits such as towing, roadside assistance and more.”
To qualify for the program, eligible vehicles will have to have less than 48,000 miles on the odometer and be a 2008 model or newer.
The program began in March at all Fiat studios, with Chrysler, Jeep, Dodge and Ram Truck dealers joining the program this past May.
How this affects credit challenged car buyers
It’s a fact that most car buyers with credit issues will choose a used car because they’re more affordable. It’s also true that new cars depreciate in value and a higher percentage of this depreciation occurs in the first few years. This means the price you pay for a newer used car is usually a much better value than a comparable new one.
In addition, Kelley Blue Book has made it even easier for used car buyers to tell if the vehicle they’re considering is priced fairly: their web site at kbb.com now lists the values for both certified and non-certified used cars, giving buyers an even better idea how the one they’re considering matches up to similar vehicles.
As we see it
While the vehicle mileage limits in the Diversified Certified program are fairly low, we hope this move marks the beginning of a new type of certified used car program – ones that allow for a wider selection of certified used cars for all new car dealers, even for car buyers with poor credit scores.
One thing that hasn’t changed, however, is the fact that Auto Credit Express specializes in matching consumers with poor auto credit with new car dealers that can offer them their best chance for car loan approvals.
So if you’re ready to reestablish your car credit, you can begin now by filling out our online car loans application.