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There are some great deals on certified pre-owned (CPO) models across the country this August, as automakers strive to one-up each other. Before you head to the dealership for a test drive, check out this month’s CPO finance deals.

Certified Pre-Owned Deals in Response to the Coronavirus Pandemic

This month, several automakers are offering additional incentives on CPO vehicles to help car buyers during the coronavirus pandemic. Mazda, Buick, Chevrolet, Lexus, BMW, and Mercedes-Benz are deferring payments for three months on select CPO models. Keep in mind that your vehicle loan may continue to accrue interest during the deferment period, so be sure to read the fine print.

As COVID-19 continues to have a growing impact on our economy, you can trust U.S. News & World Report to help you navigate these troubling times. We answer tough questions like What Should I Do if I Can't Make My Car Payment? Check out Coronavirus and Cars: What You Need to Know for all the latest coverage and answers to your questions.

Best Certified Pre-Owned Deals for August 2020

Several automakers are in the running for the best deal this month. Volkswagen and Mercedes-Benz are offering 0% financing on select used models, and it's hard to beat no-interest financing. Still, these are not the only brands with good incentives this month.

Subaru, BMW, Jaguar, and Land Rover all have interest rates under 1%, and BMW is even offering cash back on select models. Plenty of other brands have slightly higher rates that check in around 2%, including Audi, Ford, and Lincoln.

There's considerable variance in the loan length of some of these CPO financing deals, which is something you'll want to keep an eye on. Some of them, such as the low-interest offers from Jaguar and Land Rover, run for a mere two years. Lincoln, on the other hand, is extending six-year loans on its Black Label models. However, the vast majority of these finance offers run from three to five years.

Here is a list of the best CPO deals for August 2020:

 

Audi: 1.99% for 66 months on select 2017-2019 CPO models (Expires 8/31/2020)

BMW: Deferred payments for 90 days plus 0.9% for up to 36 months on select 2016-2018 CPO models, and $500 to $1,000 cash back, depending on the model (Expires 8/31/2020)

Buick: 2.9% for 60 months plus deferred payments for 90 days on select Encore models (Expires 9/30/2020)

Chevrolet: 2.9% for 60 months plus deferred payments for 90 days on select Silverado, Equinox, Trax, Cruze, and Malibu models (Expires 9/30/2020)

Cadillac: 2.9% for 60 months on select CTS sedan, Escalade, and XT5 models (Expires 8/31/2020)

Ford: 1.99% for 36 months on select CPO models, including the Ford F-150 full-size pickup truck (Expires 8/31/2020)

GMC: 2.9% for 60 months plus deferred payments for 90 days on select Sierra and Terrain models (Expires 9/30/2020)

Jaguar: 0.9% for 24 months or 1.9% for 36 months on select 2016-2018 CPO E-Pace, F-Pace, F-Type, XE, XF, and XJ models (Expires 8/31/2020)

Land Rover: 0.9% for 24 months or 1.9% 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 8/31/2020)

Lexus: Deferred payments for 90 days on select IS, NX, and RX models (Expires 8/31/2020)

Lincoln: 1.9% for up to 72 months on select CPO Black Label models (Expires 8/31/2020)

Mazda: 2.9% for 60 months plus deferred payments for 90 days on select 2015-2020 CPO models (Expires 8/31/2020)

Mercedes-Benz: 0% for 36 months plus deferred payments for 90 days on select 2019 A-Class and 2017-2019 C-Class, GLA, and E-Class models; 1.99% for 36 months on select 2017-2019 CLA, GLC, GLE, S-Class, and GLS models (Expires 8/31/2020)

Subaru: Financing as low as 0.99% on all 2015-2020 CPO models, including the Crosstrek and Ascent SUVs (Expires 8/31/2020)

Toyota: 2.99% financing on select CPO Camry and Camry Hybrid models (Expires 8/31/2020)

Volvo: 1.99% financing for up to 60 months on select CPO S60, V60, XC60, and XC90 models (Expires 8/31/2020)

Volkswagen: 0% for up to 36 months on select CPO models (Expires 8/31/2020)

If you’re looking for great deals on cars not covered by these CPO incentives, check out these other used car financing offers.

What Is a Certified Pre-Owned Vehicle?

For pre-owned vehicles to become certified by an automaker, they must be less than five or six years old and have fewer than 60,000 to 80,000 miles on the odometer. These vehicles also undergo multipoint inspections at the dealership.

CPO vehicles often come with additional perks, though these benefits vary by the manufacturer. Some of the best programs feature 10-year/100,000-mile warranties, complimentary scheduled maintenance from the dealer for a set period, a free Carfax report, rental car reimbursement, and roadside assistance.

With these rigorous inspections and added benefits, you won't have to worry as much about mechanical problems or the previous owner's inattention to maintenance. A trade-in vehicle that is old, has issues, or has too many miles won’t be accepted by a dealer into its CPO inventory.

To learn more, read How CPO Programs Work and check out our list of the Best CPO Programs.

Why Should I Buy a Certified Pre-Owned Vehicle?

Buying a used car is becoming more and more appealing as buyers look to get a good deal to save money, especially during hard times. 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 the certified pre-owned inventory that is on dealership lots.

Monthly CPO car specials mostly consist of low-interest financing offers that come directly from the automakers. Some brands tout 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 other used cars, securing a lower interest rate helps 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 how much you can save at the dealer.

Looking to buy a used car, truck, or SUV? Check out our Used Car Rankings, where you can read our car reviews and compare used cars by class, model year, body style, and budget to help you get a great deal and make the best car-buying decision. Also search our Used Car Listings, where you can browse vehicles for sale in your area using various search criteria to find a low price. While we work to keep used car deals up to date and accurate, the best source of current discounts and specials 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.