Who knew? It seems that Millenials are showing noticeable favoritism towards used cars over new cars, and they’re especially interested in certified pre-owned vehicles.
What’s so great about a certified pre-owned car? In many ways, you get the best of both worlds with a CPO vehicle. They’re generally “like new,” but much less expensive than brand new cars. They also come with warranties.
When is a bargain car not really a bargain car? When there is no certainty that the vehicle you’re purchasing will actually be reliable and problem-free. And while no used car purchase is completely risk free, buying from a dealer is a lot safer than getting a car from a private seller.
It is very difficult getting approved for a car loan on a 10-year-old vehicle with more than 100,000 miles, especially if the buyer has bad credit. Although an older car with higher miles might seem affordable, subprime lenders perceive these vehicles as high risks for breaking down (a real issue especially for a high-performance car like a WRX STI).
According to the latest market report from Edmunds.com, used subcompact, compact and midsize cars, many of which are ideal vehicles for credit-challenged borrowers, should be even more affordable this year. With this in mind, consumers who know their credit scores and reports and have a decent down payment might want to seriously consider pulling the trigger on a “nearly new” car.
Although pricing in the used car market remains strong, the affordable vehicles that are most appropriate for borrowers with bad credit are, at least at this point, more affordable than they were last year. This being the case, now might be a good time for buyers with tarnished credit to pull the trigger on buying a subcompact, compact or affordable midsize used car.
Credit-challenged consumers who want to cash in their current vehicle might want to consider doing so at a dealership as opposed to a website like Craigslist. Even though they might not get top dollar for it, the extra money might not be worth the hassle or the chance of becoming involved in a car buying scam.