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Best Used Car Financing Deals for December 2019

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. With the average price of a new car now exceeding $38,000, according to Kelley Blue Book, purchasing a used vehicle is becoming more and more attractive to buyers looking to save money. For many consumers, paying less for a used car that's similar to a new model makes good financial sense. To entice potential buyers who want to save even more money, automakers tout 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 must go through multipoint inspections at the dealership. 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 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 on CPO vehicles this month come mostly from luxury car brands. BMW has the most attractive CPO incentive this December: 0.99% financing for four years with up to $1,500 cash back. Few rival brands come close to that deal. Acura and Infiniti are each advertising the same rate but with three-year terms, while British automakers Jaguar and Land Rover are offering 0.9% financing for two years. But you don't have to spend an arm and a leg on a high-end vehicle with leather seats and all the options to get a great deal. Mini is also offering 0.99% financing, but with two-year terms.

Even if you don't want a luxury car, there are still several great options out there. Many brands are offering financing with rates lower than 2%, including Ford, Honda, Mini, Nissan, and Subaru. That's not to say that luxury buyers are left out of the savings, with Acura, Lincoln, Mercedes-Benz, and Volvo offering similar rates. Most of these deals have terms of three years. Although the prospect of paying off a three-year-old Honda SUV within three years sounds attractive, it won't work for all budgets. A few incentives have longer terms, with similarly low interest rates offered by Honda and others. You can secure 1.9% financing for six years from Lincoln, but this deal is only available on the brand's pricey Black Label models. Acura and Mini have the next-longest terms of five years with this same attractive rate.

This December, you can get cash back or a credit for your first monthly payment from a few major brands. BMW shines in this department, offering $1,500 cash back on CPO BMW X1 models and $750 back on the 5 Series and 7 Series sedans, as well as the X3 and X5 SUVs. Unlike Nissan, which is offering $450 cash back on select CPO models, BMW allows you to combine its low-interest financing with its cash back incentive.

Although it's not offering cash back in the traditional sense, Mazda is covering the first month's payment on CX-3, CX-5, CX-9, Mazda3, Mazda6, and MX-5 Miata models, but it pays to look at the big picture. Taking Mazda's advertised interest rate of nearly 4% into consideration, this deal is not as appealing as some competing offers.

It just goes to show that not every brand has competitive rates on their sedans, trucks, and SUVs. Toyota is offering financing for five years, but its advertised interest rate of 3.49% is higher than what you can get from other brands. Interest rates can also vary by the loan term, even if they are offered by the same brand. Take Acura as an example. Although its two- and three-year rates are below 2%, the brand's six-year loans have a comparatively high interest rate of nearly 6%.

Check out the best December 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.

Acura: 0.99% for 24 to 36 months, 1.99% for 37 to 60 months, or 5.99% for 61 to 72 months on 2014-2019 CPO RDX and TLX models (Expires 1/2/2020)

BMW: 0.99% for 48 months and $750 to $1,500 cash back on select 2015-2018 CPO 5 Series, 7 Series, X1, X3, and X5 models (Expires 1/2/2020)

Cadillac: 2.9% for 48 months on select CTS sedan, Escalade, and XT5 models (Expires 1/2/2020)

Ford: 1.99% for 36 months on CPO models, including the F-150 full-size pickup truck (Expires 1/2/2020)

Honda: 1.99% for up to 36 months  on 2014-2019 CPO Accord, CR-V, HR-V, Odyssey, and Pilot models (Expires 1/2/2020)

Infiniti: 0.99% for 36 months or 2.99% for 72 months  on most 2014-2019 CPO models (Expires 1/2/2020)

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 1/2/2020)

Land Rover: 0.9% for 24 months or 1.9%-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 1/2/2020)

Lincoln: 1.9% for up to 72 months on select CPO Black Label models or 2.99% for 66 months on all other CPO models (Expires 1/2/2020)

Mazda: 3.99% for 36 months and no payment for the first month on select 2015-2019 CPO CX-3, CX-5, CX-9, Mazda3, Mazda6, and MX-5 Miata models (Expires 12/6/2020)

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 1/2/2020)

Mini: 0.99% for 24 months, 1.99% for 60 months, or 2.99% for 72 months on 2015-2018 CPO models (Expires 1/2/2020)

Nissan: 1.99% for 36 months on 2015-2019 CPO Altima and Leaf models or $450 cash back on 2015-2019 CPO Altima, Sentra, Rogue, and Rogue Sport models (Expires 1/2/2020)

Subaru: Financing as low as 1.99% on all CPO 2014-2019 models, including the Crosstrek (Expires 1/2/2020)

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

Volvo: Financing as low as 1.99% on select CPO models (Expires 1/2/2020)

At the time of writing, there are no advertised CPO deals from Audi, Buick, Chevrolet, Chrysler, Dodge, Genesis, GMC, Hyundai, Jeep, Kia, Lexus, Mitsubishi, or Volkswagen for December.

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 Certified Pre-Owned 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.