Automakers Offering Low Interest Rates on Certified Pre-Owned Cars

Christian Wardlaw | Aug 01, 2017

Auto loan interest rates are typically higher for used cars than they are for new cars. Reasons for this vary, but a significant factor is the greater risk associated with the variability in used-vehicle mileage, condition, and value. Comparatively speaking, new-vehicle mileage, condition, value, and depreciation are predictable, resulting in lower risk to the lender.

Car companies also keep new-vehicle interest rates low. To help spark sales, automakers will offer low-interest or no-interest loans to make payments more affordable and enticing for prospective buyers. This practice also applies to an auto manufacturer's certified pre-owned (CPO) vehicles, which helps to make them more affordable in terms of a monthly payment even if a CPO vehicle is priced higher to cover the costs of certification.

Mercedes-Benz CPO Website screenshot

As a result, interest rates on certified pre-owned cars are sometimes just as appealing as those offered for new vehicles. Keep in mind, though, that to qualify for the best interest rates you must have an excellent credit history and rating, as well as a steady source of income.

To provide consumers with concrete examples of the interest rates on CPO cars, we examined the special offers available from a range of luxury and non-luxury brands. The data was accurate for July 2017, but automakers regularly offer discounted rates and other incentives on their CPO vehicles.


Through the end of August 2017, Audi is offering 2.49% financing for 48 months on all CPO vehicles except for the R8 sports car. Additionally, Audi will pay up to $500 of your first monthly payment.


Until October 2, 2017, you can buy a certified pre-owned Ford and finance it for 66 months at 2.9%.


Apparently, Honda is working through a glut of used Civics and Pilots. Until August 7, 2017, the automaker is offering 0.9% financing for 60 months on CPO Civic and Pilot vehicles.


If you're shopping for a low-mileage Jaguar, now might be a good time to buy. The company is offering 72-month loans at 2.9% for selected certified XF, XK, XJ, and F-Type vehicles. The program expires July 31, but could be continued.

Land Rover

Land Rover seeks to reduce its CPO inventory with 1.9% financing for up to 60 months. The loans apply to specific models, and the program ends July 31, but it may continue or be replaced by something equally attractive.


Through the end of July, Lincoln is offering 2.9% financing for 60 months on its selection of certified pre-owned vehicles. It is likely that this program, or one similar to it, will be available thereafter.


If you're shopping for a used CLA-Class, C-Class, E-Class, or GLK-Class, Mercedes has an appealing offer for you. You can finance one of these models for up to 72 months at 3.49%. Choose a shorter term and the interest rate is lower. The program expires at the end of July but is likely to continue in some form for August.


Nissan's current offer on its CPO cars, trucks, and SUVs is 3.95% for 72 months. The program's expiration date is unknown.


Buy a certified pre-owned Toyota Prius, Prius C, or Prius V before October 3 and you can qualify for zero-interest financing for 36 months. Other CPO Toyota and Scion models are available with 2.9% financing for up to 60 months.


Volkswagen is offering its customers 2.49% financing for up to 60 months, and is willing to kick in up to $500 to cover the first monthly payment. This program ends at the end of July, but is likely to be replaced by a new one with equally appealing terms.

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