For car buyers with less-than-perfect credit seeking affordable and reliable transportation, the used car market often presents the most viable options. Beyond the typical used vehicles and certified pre-owned (CPO) cars, there’s a lesser-known category that savvy buyers should consider: program cars, also known as executive cars.
Understanding Program or Executive Cars
Program cars, sometimes referred to as factory executive or “brass hat” vehicles, are essentially used cars with a unique history. These vehicles were originally owned by the automotive manufacturer and were primarily utilized for a short period, typically between 6 to 12 months. Manufacturers provide these cars to their executives, employees, or for specific company programs. As a result, program cars generally have very low mileage, often under 10,000 miles, and are in excellent condition. Similar to demonstrator cars, program cars are not always readily available but offer distinct advantages when found.
It’s important to note that program cars are different from standard used cars and even certified pre-owned vehicles. While resources like Kelley Blue Book or NADA Guide provide valuations for used and certified cars, program car values are less commonly listed due to their limited availability and unique nature. However, because they retain a significant portion of the original manufacturer’s new car warranty, program cars often represent a sweet spot in value, typically falling between traditional used cars and more expensive certified pre-owned options.
A crucial point of caution: some dealerships might mistakenly or intentionally classify rental cars as program cars. It’s vital for buyers to differentiate between the two. Rental cars usually have higher mileage, often exceeding 10,000 miles, and may have experienced more wear and tear. To ensure you are purchasing a genuine program car, always request a vehicle history report. A true program car’s history report will list the manufacturer as the initial owner. If the vehicle history is clean and aligns with the characteristics of a program car, the next essential step is to have the vehicle thoroughly inspected by an ASE Certified Master Mechanic and a frame specialist. This inspection will help uncover any potential hidden damage and provide peace of mind before you finalize the purchase.
The Value Proposition of Program Cars
For buyers with credit challenges looking for a nearly-new vehicle at a more accessible price point, program cars present a compelling third option in the used car market. They offer the benefit of low mileage and recent models, often with remaining factory warranty coverage, potentially bridging the gap between the affordability of older used cars and the premium price of certified pre-owned vehicles.
To make an informed decision, always verify the vehicle’s history with a vehicle history report and invest in a pre-purchase inspection by qualified professionals.
If you’re seeking to establish or re-establish your car credit and are interested in exploring financing options for a program car or other vehicles, Auto Credit Express specializes in connecting individuals with auto credit challenges to dealerships that can offer favorable car loan approvals. You can start the process today by completing our online car loan application.
