Is Certified Pre-Owned the way to go?

[gnatty8]

Originally Posted by Douglas

Obviously, yes, this is all about risk. But I'm just not convinced that the deal you get from a CPO program is all that safe. I haven't looked at what's on offer lately, but it always seemed to me that you ended up with only a mildly extended warranty (~1 year) unless you paid for more, which brought the relative pricing even closer. I wasn't so sure, last I looked at it, that you wouldn't be better off in a private sale with a 1-owner car that you really took a close look at. And there are aftermarket extended warranties you can buy, too, to mitigate your risks.

I chose to lease my car (BMW 3-series coupe) with the intention of buying it. Because they were running a lease promotion, I pay 40% of the value of the vehicle at 0 interest, and when my lease term is up (end of this year) I've got plenty socked away in the meantime to buy the car out. In the meantime, I've coasted 3 years without any paying any maintenance costs, and I could even finance the rest of it, albeit probably not at some 2.9%ish teaser rate like I might have been able to otherwise.

I guess I just haven't felt like, at the price delta between new and CPO, that the dealer was accepting enough risk for my tastes, but that's a decision you have to make on your own, I guess. I'm a bit colored by the fact that my GF bought a CPO Volvo that hasn't run right since day 1 and between her not getting ****** enough and the dealer being a scumbag, she's gotten royally screwed, having paid 80% of retail for a car nobody in their right mind will ever buy because the suspension and steering are fucked.

Full disclosure, I have no idea what the CPO warranty does or does not cover. My assumption was that it was an extension of the same terms of the original factory warranty.

 

[xpress]

I currently have a 2004 RX8... and while not German, repairs can be expensive...

When the warranty was near the end, I did some serious research, and found a few after-market warranties which were equivalent, if not superior to the in-house warranty programs. (For less money)

Before any after-market warranties are even considered, try and do AS MUCH research as you can... there are some pretty shady companies out there...

But its an option!

 

[Rambo]

Originally Posted by gnatty8

Full disclosure, I have no idea what the CPO warranty does or does not cover. My assumption was that it was an extension of the same terms of the original factory warranty.
I decided to do some digging. Here's the link to BMW's CPO page. http://www.bmwusa.com/standard/content/cpo/default.aspx \tWarranty In general : The Certified Pre-Owned BMW Limited Warranty is designed to protect owners from defects in materials and workmanship on covered parts and components. The broad coverage includes the parts and systems listed below except where specifically noted in the 'Not Covered' section of The Certified Pre-Owned BMW Protection Plan Consumer Information Statement (available for examination at your BMW center) \tEngine Automatic/Manual Transmission Front Suspension Rear Suspension Steering Brakes ABS Brake System \tElectrical Air Conditioning/Heating System Cooling System Interior/Exterior Fuel System Final Drive Assembly, Propeller Shaft NOT COVERED: Upkeep Items Maintenance; engine, transmission, and body adjustments; wheel alignment, balancing or rotation; wiper blade inserts; engine drive belts; spark plugs; filters; fuses; all batteries; all hoses and clamps (except air conditioning and power steering); oils, lubricants, fluids, refrigerants and coolants (except as required in the course of a covered repair); brake pads and rotors; brake shoes and drums; manual transmission clutch assemblies; suspension dampers (shock absorbers/strut elements); exhaust systems; tires. Wear and Tear All wear and tear items as defined in The Certified Pre-Owned BMW Protection Plan Consumer Information Statement (including all suspension parts and components). Body and Interior Paint; glass; headlamps; bulbs (except instrumentation); mirrors; lenses; body and chassis; body seals and gaskets; interior and exterior trim, moldings, and fasteners; upholstery, headliner, carpeting, floor and trunk mats; convertible top (all components except electronics); air or water leaks; wind or body noises; wheels; damage due to rust, corrosion, or contamination, except as covered by the BMW New Vehicle Rust and Corrosion Perforation Warranty. Accessories Radio/cassette player, telephone, navigation system, CD changer, or any components of those systems; non-original equipment parts, components or accessories. TERMS AND CONDITIONS: Handling Charge There is a $50.00 handling charge (per repair visit) that must be paid by the customer for any repairs covered under the terms of the Certified Pre-Owned BMW Limited Warranty. Transfers The Certified Pre-Owned BMW Protection Plan is fully transferable from the original Certified Pre-Owned BMW purchaser or lessee to subsequent owner(s) or lessee(s). Repair Services While you may elect to use a non-approved repair facility for maintenance or repairs, BMW is not obligated to pay for any such repairs (even if covered under the Certified Pre-Owned BMW Limited Warranty). To obtain service under the Certified Pre-Owned BMW Limited Warranty, the vehicle must be delivered to an authorized BMW center. Moreover, the Certified Pre-Owned BMW Limited Warranty does not cover additional expenses related to a breakdown such as, but not limited to, car rental, lodging expenses, loss of pay or telephone charges, except as covered by BMW Roadside Assistance According to the downloadable PDF, the warranty tacks on an additional 2 years/50000 miles to the end of the original 4 year/50000 mile warranty.

 

[JayJay]

Originally Posted by xpress

I currently have a 2004 RX8... and while not German, repairs can be expensive... When the warranty was near the end, I did some serious research, and found a few after-market warranties which were equivalent, if not superior to the in-house warranty programs. (For less money) Before any after-market warranties are even considered, try and do AS MUCH research as you can... there are some pretty shady companies out there... But its an option!
I've found the manufacturer warranties to work really well; however, I've not been impressed at all with after-market warranties.

 

[CodeRed]

I had heard that many of the CPOs dont cover many of the most expensive systems to fix in BMWs like the iDrive...unlike the original warranty.

 

[brewstafari]

I am pretty sure that is incorrect. I have used the BMW & Audi CPO programs and both cover everything except cosmetic damage and standard wear & tear.

I am a firm believer in leasing. Purchase the asset that at least has a chance to appreciate (real estate - no i didn't buy 3 years ago I'm looking at some now) and rent the item that is guaranteed to depreciate - the car.

However, if you're going to purchase - absolutely go CPO, and do not use the aftermarket warranty programs.

German cars are the best (unless you can afford high-end italian...although Lamborghini is really german), but their durability is generally not as good as some of the Japanese brands and long-term maintenance costs can be high. I would really suggest looking into a lease program for a BMW.

 

[CodeRed]

^ I was told so by a BMW service rep while the oil was being changed in my car, so before you buy a CPO BMW sure is worth a little DD.

 

[constant struggle]

Originally Posted by Douglas

Obviously, yes, this is all about risk. But I'm just not convinced that the deal you get from a CPO program is all that safe. I haven't looked at what's on offer lately, but it always seemed to me that you ended up with only a mildly extended warranty (~1 year) unless you paid for more, which brought the relative pricing even closer. I wasn't so sure, last I looked at it, that you wouldn't be better off in a private sale with a 1-owner car that you really took a close look at. And there are aftermarket extended warranties you can buy, too, to mitigate your risks.


I chose to lease my car (BMW 3-series coupe) with the intention of buying it. Because they were running a lease promotion, I pay 40% of the value of the vehicle at 0 interest, and when my lease term is up (end of this year) I've got plenty socked away in the meantime to buy the car out. In the meantime, I've coasted 3 years without any paying any maintenance costs, and I could even finance the rest of it, albeit probably not at some 2.9%ish teaser rate like I might have been able to otherwise.

I guess I just haven't felt like, at the price delta between new and CPO, that the dealer was accepting enough risk for my tastes, but that's a decision you have to make on your own, I guess. I'm a bit colored by the fact that my GF bought a CPO Volvo that hasn't run right since day 1 and between her not getting ****** enough and the dealer being a scumbag, she's gotten royally screwed, having paid 80% of retail for a car nobody in their right mind will ever buy because the suspension and steering are fucked.

Lets say for a lease you pay for the extra miles you put on, does this lower your cost of when you are going to buy the car out.
Lets say after a 3 year lease, the 3 series costs 20K, you pay 3K in extra miles
Is the car only going to cost 17K?
If so that is an attractive deal to a degree, can you purchase extra 100K worth of maintance right there?

 

[eqpablon]

Originally Posted by Douglas

Obviously, yes, this is all about risk. But I'm just not convinced that the deal you get from a CPO program is all that safe. I haven't looked at what's on offer lately, but it always seemed to me that you ended up with only a mildly extended warranty (~1 year) unless you paid for more, which brought the relative pricing even closer. I wasn't so sure, last I looked at it, that you wouldn't be better off in a private sale with a 1-owner car that you really took a close look at. And there are aftermarket extended warranties you can buy, too, to mitigate your risks.

I chose to lease my car (BMW 3-series coupe) with the intention of buying it. Because they were running a lease promotion, I pay 40% of the value of the vehicle at 0 interest, and when my lease term is up (end of this year) I've got plenty socked away in the meantime to buy the car out. In the meantime, I've coasted 3 years without any paying any maintenance costs, and I could even finance the rest of it, albeit probably not at some 2.9%ish teaser rate like I might have been able to otherwise.

I guess I just haven't felt like, at the price delta between new and CPO, that the dealer was accepting enough risk for my tastes, but that's a decision you have to make on your own, I guess. I'm a bit colored by the fact that my GF bought a CPO Volvo that hasn't run right since day 1 and between her not getting ****** enough and the dealer being a scumbag, she's gotten royally screwed, having paid 80% of retail for a car nobody in their right mind will ever buy because the suspension and steering are fucked.


Quick and simple. Go to www.bimmerfest.com. When you come off your lease and purchase your 3 series, pay the $1500 for the CPO inspection. It costs your dealership $1500 (they pay that to BMWNA) to certify your car as CPO. You then get the warranty extended to 6 years 100k miles. It's cheap, and yes the dealer will do it at his cost. Also on bimmerfest, check out the ask a dealer forum you will notice that many people are getting good/better than expected deals purchasing their lease at lease turn in time.

 

[Piobaire]

Originally Posted by constant struggle

Lets say for a lease you pay for the extra miles you put on, does this lower your cost of when you are going to buy the car out.
Lets say after a 3 year lease, the 3 series costs 20K, you pay 3K in extra miles
Is the car only going to cost 17K?
If so that is an attractive deal to a degree, can you purchase extra 100K worth of maintance right there?

If you buy the car out, you pay the residual price agreed to at lease inception, and they then don't give a damn about the extra miles. They only care about the extra miles if you toss them the keys at lease end.

 

[Mauby]

 

[blackplatano]

Originally Posted by Mauby

Wow

 

[Tck13]

Originally Posted by Douglas

I'm going to disagree with essentially everyone in this thread, but I think CPO is a joke.

The reason you see so many attractive leases on BMWs and Mercedes Benzes (and other luxury lines) is that they take these things back with moderate mileage (30-40k), they do absolutely nothing to them besides a quick detail, and then sell them again at 80% (or more) of retail, having already collected 40% of the car's value from the lease payments. You don't necessarily get the full warranty, and there's not any guarantee that the car hasn't been in an accident. CPO is a huge money-maker for dealers... which is reason enough to see why it isn't a great deal for customers.

I'll agree with Douglas on this one. I'll save my own money and fix the repairs on my own as opposed spending more for the CPO warranty B.S.

 

[xpress]

Originally Posted by Mauby

I've never seen that before... LOL'd!

 

[Douglas]

She is unbelievable. Would hit if I were the 1,000th.