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Best Used Car Financing Deals for January 2020

The average new car sold for just under $39,000 last month, marking an increase of nearly 2% from December 2018, according to Kelley Blue Book. Depending on the market segment and the age of the vehicle, the average used car costs between one-third and two-thirds the price of a new car.

Purchasing a used vehicle is becoming more and more attractive as more buyers look to save money. For many consumers, it makes good financial sense to pay less for a used car that is similar to a new model. To entice potential buyers, automakers offer low interest rates and cash back incentives on their certified pre-owned (CPO) vehicles.

For a pre-owned vehicle to be certified, most automakers require it to be less than five or six years old and have fewer than 60,000 to 80,000 miles on the odometer. Additionally, these models also undergo multipoint inspections at the dealership level. CPO vehicles often come with added benefits, though these perks vary by the automaker. Some of the best programs offer 10-year/100,000-mile warranties, roadside assistance, rental car reimbursement, a free Carfax report, and free scheduled maintenance from the dealer for a set period.

With these higher standards and added benefits, you won't have to worry as much about mechanical problems or the previous owner's inattention to maintenance. If a trade-in vehicle is old, has issues, or has too many miles, that car won’t be accepted by the dealer into the CPO program. To learn more, read How CPO Programs Work and check out our list of the Best CPO Programs.

Monthly CPO car deals mostly consist of low-interest financing that comes directly from automakers. Some brands offer interest rates that are lower than the national average rate for used-car loans. With a lower interest rate, you'll pay less over the course of the loan. Although CPO vehicles tend to cost more than uncertified pre-owned models, the lower interest rates can help offset the higher price of buying a certified model. For more information on how lower rates save you money, read How to Finance a Car and Get a Car Loan, and check out current Average Used Car Loan Rates to see just how much you can save at the dealer.

The best deals with the lowest interest rates on CPO vehicles come from luxury car brands like Lexus and BMW. This month, you can get financing with an interest rate lower than 1.5% on select CPO BMW models or lower than 1% on select CPO Jaguar, Land Rover, and Lexus models. Jaguar and Land Rover are offering this low rate for two years. But these terms are too short for some shoppers. Those who want a longer term should check out BMW's financing deal, which features an interest rate of around 1.5% for four years. Lexus has a similar rate with a five-year term, making it one of the best CPO financing deals this January.

You don't have to get a fancy luxury car with leather seats and all the latest options to get a good bargain. Many nonluxury brands are offering low-interest financing deals with three-year terms. Ford and Nissan are offering 1.99% financing for three years on their sedans, trucks, and SUVs. Although the prospect of paying off a three-year-old Ford SUV within three years sounds attractive, it doesn't work for all budgets. A few incentives have longer terms, but these rates aren't as low as those offered by Nissan and others. This month, Toyota is offering 3.49% financing for five years on select CPO sedan, hatchback, and SUV models.

Ford and Nissan aren't the only brands with interest rates around 2% this December. Infiniti, Lincoln, Mercedes-Benz, and Subaru are offering competitive rates around 2% as well. For Lincoln, you can get terms of up to six years, but this deal is only available on the brand's top-level Black Label models.

At the time of writing, there are no advertised CPO deals from Audi, Acura, Buick, Chevrolet, Cadillac, Chrysler, Dodge, Genesis, GMC, Honda, Hyundai, Jeep, Kia, Mini, Mitsubishi, Volvo, or Volkswagen for January.

Check out the best January CPO financing offers to make the right car-buying decision for you. If you’re looking for great deals on cars not covered by these CPO deals, check out these other used car financing offers.

BMW: 1.49% for 48 months on select 2016-2018 CPO models (Expires 3/2/2020)

Ford: 1.99% for 36 months on all CPO models, including the F-150 full-size pickup truck (Expires 4/1/2020)

Infiniti: 1.99% for 36 months or 3.49% for 72 months 1.49% for 48 months on most 2014-2019 CPO models (Expires 3/31/2020)

Jaguar: 0.9% for 24 months or 1.9% to 2.9% for 36 months on select 2016-2018 CPO E-Pace, F-Pace, F-Type, XE, XF, and XJ models (Expires 1/31/2020)

Land Rover: 0.9% for 24 months or 1.9 to 2.9% for 36 months on select 2016-2018 CPO Discovery, Discovery Sport, LR4, Range Rover, Range Rover Evoque, Range Rover Sport, and Range Rover Velar models (Expires 1/31/2020)

Lexus: 0.9% to 1.9% for 60 months on select 2016 and 2017 CPO ES, ES Hybrid, IS, RX, and RX Hybrid models (Expires 3/2/2020)

Lincoln: 1.9% for up to 72 months on select CPO Black Label models; 2.99% for 66 months on all other CPO models (Expires 4/1/2020)

Mazda: 3.99% for 36 months and no payment for the first month on select 2015-2019 CX-3, CX-5, CX-9, Mazda3, Mazda6, and MX-5 Miata models (Expires 1/6/2020)

Mercedes-Benz: 1.99% for 36 months on select 2016-2018 CPO models, including multiple body styles of the C-Class, CLA, E-Class, GL, GLA, GLC, GLE, GLS, and S-Class sedan (Expires 3/2/2020)

Nissan: 1.99% for 36 months on select 2015-2019 CPO Altima and Leaf models, or $450 cash back on select 2015-2019 Altima, Sentra, Rogue, and Rogue Sport models (Expires 1/31/2020)

Subaru: Financing as low as 1.99% on All CPO 2015-2020 models, including the Crosstrek (Expires 1/31/2020)

Toyota: 3.49% for 60 months on CPO Camry, Camry Hybrid, Corolla sedan, Corolla Hatchback, Corolla iM, Matrix, RAV4, and RAV4 Hybrid models (Expires 1/6/2020)

Looking to buy a used car? Check out our Used Car Rankings, where you can read our car reviews and compare used cars by class, model year, and budget. Also search our Used Car Listings, where you can browse used vehicles for sale in your area using various search criteria. While we work to keep used-car deals up to date and accurate, the best source of current discounts and incentives on a used or certified pre-owned car is your local dealer.

Interested in a new car? Check out our Best Car Deals this month, as well as our Best Lease Deals.