Expansion of the WorldAuto certified used car program at Volkswagen dealers could give many credit challenged car buyers more choices
Used cars warranties
Much like a program Chrysler rolled out in early 2012, Volkswagen is also jumping on the bandwagon by offering car shoppers certified used cars from other brands – a trend that we see as one that could help people needing problem credit auto loans.
We also believe it’s a step in the right direction here at Auto Credit Express where, for the past two decades, we’ve been helping car buyers find those new car dealers that can offer them their best opportunities for an auto loan with poor credit.
Understanding certified used cars
So what exactly are certified used cars and how are they different from regular used cars?
Most certified used car programs work something like this: If a vehicle that has been traded in, purchased at auction or comes in off-lease meets certain manufacturer-mandated age and mileage requirements for a dealer inspection, the franchised new car dealer then has the option of having this done.
Following the inspection which includes listing the items that need to be repaired or replaced, the dealer can either choose to have this work performed of not. If all the work isn’t done, the vehicle can either be sold or placed in inventory with the regular used car inventory.
If all the required work is done, the dealer then has the option of selling the vehicle with a manufacturer-backed used car service contract. By having these manufacturer-backed service contracts, dealers can sell these certified used cars (and usually have to because of the added costs) at a higher price when compared to non-certified used cars.
These length and coverage of these service contracts, by the way, vary from manufacturer to manufacturer but in most cases they only cover vehicles from the new car franchise the dealer holds. That means that in order buy a certified used car with a manufacturer-backed service contract you had to visit the a Ford dealer to buy a certified used Ford or a Chevrolet dealer to buy a certified GM used car.
At least that was true up until early last year when Chrysler announced its “Diversified Certified” program covering non-Chrysler vehicles. More news followed later in the year when Volkswagen introduced the latest addition to its “WorldAuto” program.
Volkswagen certified used cars
The new VW “WorldAuto QPO” (quality pre-owned) program is similar to one Chrysler began offering to its dealers this past spring, although Volkswagen dealers in Europe have been participating in the program for the past two years.
To qualify for VW’s program, eligible vehicles have to have less than 75,000 miles on the odometer and be 5 model years old or newer.
According to Volkswagen, non-VW qualifying used cars are subjected to a 112-point inspection process. A Carfax vehicle history report is provided and vehicles come with:
• A 1-Year or 12,000-mile (whichever occurs first) ” limited warranty”
• $100 deductible
• Access to network of 2800+ dealerships
• Travel protection (in excess of 100 miles from home $75 a day or $225 per incident) for overnight repairs
• Rental car coverage at $35 a day for up to 10 days
• Roadside Assistance for one year (no mileage restrictions) of 24-hour roadside assistance
• Coverage for first $50 of emergency towing service, battery jump start, flat-tire service, lockout service, and fuel-delivery service
As we see it
Volkswagen’s WorldAuto QPO program along with Chrysler’s Diversified Certified program represent a new era in certified used cars that offer a wider selection for car buyers with both good and bad credit.
One more thing car buyers, especially those with credit problems, should also be aware of is that Auto Credit Express matches applicants that have experienced auto credit issues with dealers that can offer them their best opportunities for car loan approvals.
So if you’re ready to establish your car credit, you can begin now by filling out our online car loans application.
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