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Automakers are competing for every dollar they can get in this market, so there are some great deals on certified pre-owned (CPO) models across the country this May. Before you head to the dealership for a test drive, check out these May 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. BMW, Infiniti, Lexus, Mazda, Nissan, and Toyota 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 May 2020

The best deal this month comes from Volkswagen, which is offering zero percent financing for five years on select CPO models. This is not only the lowest rate available this month, but it's also one of the longest loan terms available on CPO vehicles.

While other automakers aren’t offering interest-free financing, you can get rates lower than 1% from a few brands, including affordable ones like Subaru. Acura, BMW, Jaguar, and Land Rover are also offering rates below 1%. These specials are typically available only with two to three years of financing, though that's not the case with BMW, which is advertising 0.9% financing for up to 60 months on select CPO models.

Speaking of longer loan terms, a number of brands are offering five- and six-year financing this May. Acura, BMW, Cadillac, Honda, and Lexus all have competitive five-year financing rates, while Lincoln is advertising six-year loans on its Black Label models.

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

Acura: 0.99% for 24 to 36 months or 1.49% for 37 to 60 months on 2015-2020 RDX and TLX models (Expires 6/1/2020)

BMW: Deferred payments for 90 days plus 0.9% for up to 60 months on select 2016-2018 CPO models, and $500 to 1,000 cash back, depending on the model (Expires 6/1/2020)

Cadillac: 2.9% for 60 months on select CTS sedan, Escalade, and XT5 models (Expires 6/30/2020)

Ford: 1.99% for 36 months on select CPO models, including the Ford F-150 full-size pickup truck (Expires 6/30/2020)

Honda: 2.99% for 60 months on all 2015-2020 CPO Accord, Civic, and CR-V models (Expires 6/1/2020)

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 6/1/2020)

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 6/1/2020)

Lexus: Deferred payments for 90 days; 1.9% for up to 60 months on select 2016 and 2017 ES models; 2.9% for up to 60 months on select 2016 and 2017 NX models (Expires 6/1/2020)

Lincoln: 1.9% for up to 72 months on select CPO Black Label models (Expires 6/30/2020)

Subaru: Financing as low as 0.99% on all 2015-2020 CPO models, including the Crosstrek and Ascent SUVs (Expires 6/1/2020)

Toyota: Deferred payments for 90 days on CPO models; 3.29% for up to 60 months on select CPO 4Runner, Camry, Camry Hybrid, Highlander, Highlander Hybrid, RAV4, and RAV4 Hybrid models (Expires 5/4/2020)

Volkswagen: 0% for up to 60 months with zero down on select CPO models (Expires 6/30/2020)

At the time of writing, there are no advertised CPO specials from Audi, Buick, Chevrolet, Chrysler, Dodge, Genesis, GMC, Hyundai, Jeep, Kia, Maserati, Mercedes-Benz, Mini, Mitsubishi, or Volvo this May.

If you’re looking for great deals on cars not covered by these CPO deals, 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?

In April, the average price of a new car was just over $38,600, according to Kelley Blue Book. That's a 2% increase from April 2019 and only a 0.3% price decrease from this past March. Depending on the market segment and the vehicle's age, the price of an average used car is between one-third and two-thirds the price of a new car.

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.