Credit challenged consumers received some good news last week as Chrysler announced that it was reintroducing its Certified Pre Owned program
It begins with a reliable car
At Auto Net Financial we know that with the cost of new vehicles rising every year, most credit-challenged customers that fill out our bad credit car loan application and get approved will decide that it makes more sense to raise their FICO scores and reestablish their auto credit with a 2 or 3-year-old pre-owned vehicle. With the quality and durability of vehicles at an all-time high, this decision makes sense.
Now those same consumers are faced with another decision: should they buy a regular used car or a certified used car?
Latest news from the Chrysler Group
Yesterday, Chrysler Group LLC announced that it was re-launching its Certified Pre-owned Vehicle (CPOV) program (that had been suspended due to the company’s trip through bankruptcy last year) with a number of improvements designed to give buyers even more peace of mind.
CPO vehicles
If you’ve read any of the previous blog articles here at Auto Net Financial, you know how we feel about certified used cars – generally known in the industry as certified pre-owned or CPO vehicles. The fact is, we believe that, for the most part, these certified used cars are a good choice for credit challenged consumers.
Most CPO programs work this way: if a vehicle meets certain age, mileage and inspection requirements, dealers can use these trade-in or lease turn-in (that have been purchased back from the company) vehicles and sell either one with an extended service contract that is very similar to the warranties found on new vehicles – the only exception being that the number of miles and years can be extended past the original warranty termination date to cover additional months and miles the amount of which depends upon the manufacturer and the program involved.
Because of this built-in, manufacturer-backed warranty coverage and other perks (such as roadside assistance), the dealer can (and usually has to because of the additional cost involved) sell these CPO vehicles at a premium over non-certified used cars – the cost of which is something that bad credit buyers should keep in mind when considering the affordability factor of these vehicles.
In the case of Chrysler Group’s re-launched program, this means that every certified Chrysler, Jeep, Dodge and Ram (Dodge truck) will come with a Chrysler Certified 3-month/3,000-mile (whichever comes first) bumper-to-bumper warranty as well as a fully transferable 80,000-mile/six-year Powertrain limited warranty with 24-hour/365-day “sign and go” roadside assistance.
But wait, there’s more…
Other perks of the program include a free Carfax vehicle history report on your vehicle, a 3-month free trial subscription to Sirius Satellite Radio and a “full range of service contracts, including lifetime warranty upgrades.”
Make sure it is a Chrysler program
Keep in mind that the program we’re talking about here for bad credit car loan customers is part of the manufacturer’s (in this case, Chrysler’s) certification program. Just because a Chrysler, Dodge or Jeep dealer advertises a car as certified does not necessarily mean that it is certified by Chrysler. Any dealer can “certify” a car, since the word, itself, really has no meaning. So make sure that the “certified” car you are buying is certified by Chrysler, itself. If not, you may be required to pay for any repairs up front and submit the receipts to the warranty company for reimbursement – a process that is much less desirable.
Choose the right vehicle
One other thing that we’re more than a little bit nit-picky about around here is keeping your bad credit auto loan payment affordable. Fortunately, many Chrysler vehicles fall into this category – especially since more than a few Chrysler, Dodge and Jeep models have a higher depreciation rate than other vehicles in their categories – which makes their used vehicles that much more affordable after two or more years on the road.
Although the Chrysler 300 and Town and Country as well as the Dodge Challenger, Charger and Grand Caravan are beyond the budgets of most bad credit buyers, the Chrysler PT Cruiser and Sebring sedan as well as the Dodge Avenger and Caliber are all vehicles that may very well work.
In order to qualify, all vehicles must be less than six years old and have 65,000 miles or less. In addition, each goes through a 125-point inspection and reconditioning process using MOPAR parts exclusively.
The bottom line
Keep in mind that certified pre-owned vehicles are usually more expensive than their non-certified counterparts. The costs of an inspection, the required replacement of warn and defective parts as well as a fairly expensive service contract all add to the price of any CPO vehicle. Before buying one, it makes sense for credit-challenged customers to do some research and compare the selling prices of both certified pre-owned vehicles and their non-CPO counterparts (priced with a comparable warranty).
For more information about subprime car loans, go to www.autonetfinancial.com and begin the process of rebuilding your credit by filling out our secure online bad credit car loan application. If you need additional assistance, go to the “About Auto Net” tab and click on the “Contact Us” line where you will find our toll free number. Our customer service representatives are available to answer your questions during normal business hours.
