Automotive cost analysis company IntelliChoice announces its awards for the best certified used car programs
Used Cars and Poor Credit
Despite the fact that most subprime lenders programs include new vehicles, because they're more expensive than their pre-owned counterparts, most borrowers with bad credit choose to finance a used car. This isn't necessarily a bad thing as the current crop is more reliable than ever.
Combine this with the fact that the average new car loses between 15% and 30% of its value as soon as you drive it off the lot and it's easy to see why it's far easier to be pre-approved for a used car as well as more cost effective to finance a 2 or 3 year old vehicle.
Certified Used Cars
Certified used cars, for their part, fall somewhere in between new cars and traditional used cars.
Once a manufacturer's age and mileage requirements are met, these vehicles then go through an inspection and certification process that involves replacing worn and broken parts in order to qualify them for factory-sponsored certified pre-owned (CPO) vehicle status.
Due to these requirements, buying certified used cars can be more expensive than regular used cars. The costs of an inspection, the required replacement of warn and defective parts as well as a service contract all add to the price of a CPO vehicle.
But even given the additional costs, many buyers find it hard to put a price on the peace of mind these vehicles bring.
IntelliChoice CPO Ranking
With that in mind, IntelliChoice.com has just published the winners of its 14th annual ranking of manufacturer-sponsored CPO programs. IntelliChoice ranks both luxury (Premium) and non-luxury (Popular) brands, but we've listed just the Popular category, since these vehicles are the most affordable for credit-challenged car buyers.
This year, there were 14 Popular Brands included in the study.
IntelliChoice 2015 CPO Award Winners
While the Hyundai and Kia programs are very similar, Hyundai edges out the top spot through a stronger used car brand value and CPO sales. Also in the Top 5 were Kia, Mini, Ford and Toyota.
Based on our annual analysis of CPO manufacturer programs, MINI has had the best Popular Brand Warranty since 2008. The brand was also the winner of the Popular Program award from 2009 to 2011 and has been in the Top Five since 2008.
Based on the results of our annual study the Honda CPO program was the best Popular Program from 2000 to 2004 and has been in the Top Five for the 14 out of 16 years of our analysis. Honda also won Best Popular Brand in Used Car Ownership Costs for 2013 and 2015.
The Bottom Line
Credit-challenged consumers have to decide for themselves if the added price of a certified used car makes sense. The information contained in the IntelliChoice report, however, should serve as a guide for those borrowers considering a certified pre-owned vehicle.
One more tip: Auto Credit Express specializes in placing applicants that have poor credit with dealers that can offer them their best chance at getting approved for a car loan.
So if you're ready to begin rebuilding your credit, you can begin now by filling out our online auto loan application.