# It looks like BMW just reduced the CPO warranty from 2 years to 1!



## quackbury (Dec 17, 2005)

Has anyone who finds this a deal breaker actually bothered to ask what the cost would be for the 6th year? And then negotiated that into their deal? Or is it just more rewarding to gey one's knickers in a knot, take on a sense of righteous indignation and storm out?


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## aquatiger (Sep 2, 2017)

Hey thanks for your input. 

I think the issue is that in my mind the price is the same as it was 3 days ago but with 1 less year warranty. And that's a tough one to swallow mentally, plain and simple. 

As far as the sale I've tried looking up typical used car mark ups to see what the real sale price is vs internet asking price, but I've seen numbers all over the board. I know they run a for profit business and want to make a dollar, but I run a for-my-profit house and want to save a dollar. I pretty much suck at this negotiating game though.

I'm going to sit and see what happens. I don't need the car immediately, not financing so I can pull the trigger whenever the right price comes, and we'll see. I'm happy to lose this car in the end if the price is wrong.

This site is awesome and as a long time lurker I appreciate all your input.


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## aquatiger (Sep 2, 2017)

quackbury said:


> Has anyone who finds this a deal breaker actually bothered to ask what the cost would be for the 6th year? And then negotiated that into their deal? Or is it just more rewarding to gey one's knickers in a knot, take on a sense of righteous indignation and storm out?


Yes, I asked today and the guy said $2500 for the 6th year. So again in my mind, correct or not, it just seems like the price went up $2500, or the value went down $2500 in 3 days. Just bad timing on my part.

To be fair, I have not talked final numbers with them or asked about throwing in the 6th year. I took my kids to 2 places today just to make sure they fit in the back without elbowing the crap out of each other.


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## beware_phog (Mar 7, 2003)

Der_Kommissar said:


> I have to say, if this is true, this may well be my last used BMW. No way would I ever own a BMW out of warranty, and every CPO BMW just lost one year of warranty. I may pony up for a new one at some point, but the value proposition of the CPO market has just been cut in half. Somehow I doubt that the savings in CPO costs will be transparently passed onto the consumer. It may be possible to get a CPO cheaper now, but it will be up to the consumer to fight for it.
> 
> I've always felt that there was good value in finding a CPO with a year or so left on the original warranty in the mid to lower 20k range. Three years of warranty goes a long way in my book to making used BMW ownership more palatable. No longer.


I've owned several BMWs out of warranty and it's not as scary as everyone makes it out to be. A 3-4 year old luxury car is still a better financial deal than buying new.


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## quackbury (Dec 17, 2005)

aquatiger said:


> I think the issue is that in my mind the price is the same as it was 3 days ago but with 1 less year warranty. And that's a tough one to swallow mentally, plain and simple.


The ADVERTISED price is the starting point for negotiations, just like a new car's MSRP, where the S stands for "Suggested".

A while back one of our dealer friends posted that the optimum time to make an offer on a used or CPO is when the car has sat on the lot for 60 days. Food for thought.

There are lots of threads on here about CPO-ed cars that had problems, in some cases major problems. So the CPO process may not add much, except new tires and brakes if the car needed them. With that thought in mind, maybe your best bet would be to find the car you want from a private party, and just buy the extended warranty. (I would avoid buying from a used car dealer, because you never know where those cars came from, and what "stories" they may have. Expect some cars that were impacted by Harvey to start showing up later this month at Friendly Eddy's Used Car Emporium, Tattoo and Bait.


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## aquatiger (Sep 2, 2017)

quackbury said:


> With that thought in mind, maybe your best bet would be to find the car you want from a private party, and just buy the extended warranty.


Yeah, I think that option is now in consideration. Previously the dealer car with a 2yr/50,000 extra warranty was a big seller for me, from just a peace of mind perspective. Now that this is gone it opens up the market.

I realize plenty of people will say you don't need the warranty, but I know plenty of people who dont need health insurance....until they need it. Then it's a sh*t show. Might be dumb of me but again, peace of mind.



quackbury said:


> Expect some cars that were impacted by Harvey to start showing up later this month at Friendly Eddy's Used Car Emporium, Tattoo and Bait.


When the Harvey cars start showing up that will be a real mess...


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## GMCfourX4 (Aug 21, 2017)

quackbury said:


> Has anyone who finds this a deal breaker actually bothered to ask what the cost would be for the 6th year?


Just was told the 6th year on the 750Li I was looking at would bee an additional $3600 (no negotiation thus far). Definitely changes the playing field, that seems pretty steep. The rep told me that some of his inventory was grandfathered in, some wasn't, and seemed a bit unhappy about the change.

-Chris


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## Kamdog (Apr 15, 2007)

aquatiger said:


> When the Harvey cars start showing up that will be a real mess...


Yeah, Harvey is going to make a lot of cars dirty, so those cars are going to need a good washing to sell. Interior upholstery, trunk liners, carpets, titles, engine bays, everything.


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## 1968BMW2800 (Aug 13, 2016)

In the case of 7 series cars, unless one loves the prior version, there are, or soon will be, many 2016/2017's (and next calendar year in a few months 2018's probably) available for resale. A load of exec low mileage cars just went through a month ago. Basically fully-kitted, near-new, at scary discounts from original MSRP.

On these top tier cars, there are deals and, if one is careful, there are deals on the right cars (NOT Texas flood cars!!). Back in 2010 I bought a 2008 Jag. CPO, 13K local easy miles (all documented), brand new Pirellis, every bell and whistle, less than 50% of original MSRP out the door and delivered to my home. The other day I looked at a spotless 2009 Bentley, of all things. Car was someone's beautiful garage queen, and now for sale at a fraction of what someone paid new. 

Take your time. Reach out to local dealers that posters like quack can tell you about as well as West Coast sponsors. PM them all. Tell them what you want and tell them the conditions under which you are prepared to buy today. If there's something out there, they will find it for you. And savings may be such that having the car checked out by a trusted sponsor and delivered to you may still be quite cost-effective.

Sure there are post-warranty risks. That risk is baked into any offer one makes, or hedged with an ESC negotiated into the total drive off deal. If extended protection is your risk-mitigation approach, then I would advise not getting into intense negotiations regarding how much the dealer needs to charge for the ESC. Just focus on the total drive off/delivered cost of the car packaged as you wish it to be.

A mistake dealers and customers often make is they treat high line deals as if it was a Chevy they were selling/buying. I expect the dealer to treat the negotiation for what it is -- a transaction between a sophisticated, demanding prospect and a dealer who knows how to create a proper value proposition for that prospect. Make the dealer rise to your high expectations. If they want to sell you a car, packaged to your requirements, they will find a way.

Good luck and keep us posted. No compromises. No need to.


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## GMCfourX4 (Aug 21, 2017)

1968BMW2800 said:


> In the case of 7 series cars, unless one loves the prior version, there are, or soon will be, many 2016/2017's (and next calendar year in a few months 2018's probably) available for resale. A load of exec low mileage cars just went through a month ago. Basically fully-kitted, near-new, at scary discounts from original MSRP.


I like the newer body style, but we're trying to stay in the 40's price-wise. Do your think there's any chance of finding a '16 or '17 with B&W and ACC for $50k or less? I've focused on the 2014s b/c they seem to be priced within my budget.

-Chris


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## 1968BMW2800 (Aug 13, 2016)

GMCfourX4 said:


> I like the newer body style, but we're trying to stay in the 40's price-wise. Do your think there's any chance of finding a '16 or '17 with B&W and ACC for $50k or less? I've focused on the 2014s b/c they seem to be priced within my budget.
> 
> -Chris


I would think 40's may be a bit too soon, 50's possibly.

Depends on equipment, color, region, etc.

August sales data tells us they're not selling a lot of new 7's these days, so there won't be tons hitting the market -- but there will be cars available. Always are.

2 things.

1. It comes down to what a willing buyer will pay and a willing seller will take. One never knows until the deal goes down. On that Jag deal I referenced, the dealer said their offered price was fixed and non-negotiable because it was based on their regional market analysis, blah, blah. The final delivered price, with tax and the CPO, was less than their original advertised selling price. I was a returning customer ready to buy today. They moved a unit.

2. Get all the right people in the hunt for you. Reach out to those who do this every day, tell them what you will say yes to, and give them the opportunity to make it happen.


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## F10 Tea (Jun 9, 2017)

Der_Kommissar said:


> A mini salesperson over on r/askcarsales is saying they have reduced the pricing on their 2y CPO cars to match the elite prices, and that they are going to learn what the wrap costs today. I personally think that reduction is just going to be trunk money to negotiate for at most places. 2y CPO had to be loosing them money, OR they think 1y unlimited w/no deductible is easier to sell. Or both. It's probably both.
> 
> Sure, more stuff is covered now, but what are the odds that your radio is going to go out in year 5 vs one of 10 reasons your engine could leak oil in year 6? I'm sure the probabilities favor BMW with this change (as one should expect in the free market)- the expected utility of the plan has been reduced.


Probably the latter in that it's easier to sell to other customers because of other dealer CPO programs

I think headlights are included too with the radio and nav now, but losing out on that 6th year when there's more of a chance for something to go wrong is more valuable.



aquatiger said:


> Yes, I asked today and the guy said $2500 for the 6th year. So again in my mind, correct or not, it just seems like the price went up $2500, or the value went down $2500 in 3 days. Just bad timing on my part.
> 
> To be fair, I have not talked final numbers with them or asked about throwing in the 6th year. I took my kids to 2 places today just to make sure they fit in the back without elbowing the crap out of each other.


That's a hefty charge for what would've been included for a CPO just a few days ago. If they drop current prices to accommodate the difference to wrap the 6th year then it should be alright. At the same time, now customers can't get that 7th year of coverage.


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## GMCfourX4 (Aug 21, 2017)

Just spoke to a different dealer in a different state about another 750Li x-Drive (which had been CPO Elite) and was quoted $4,000 for year 6.


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## misterjim (Jan 24, 2009)

aquatiger said:


> Yes, I asked today and the guy said $2500 for the 6th year. So again in my mind, correct or not, it just seems like the price went up $2500, or the value went down $2500 in 3 days. Just bad timing on my part.
> 
> To be fair, I have not talked final numbers with them or asked about throwing in the 6th year. I took my kids to 2 places today just to make sure they fit in the back without elbowing the crap out of each other.


I was told by a NJ BMW dealer that sells mostly non-CPO cars (at a reduced price compared to other dealers that sell CPOs) that it costs $2500 to CPO a car and that was under the old 2 year plan. So $2500 for an additional year seems ridiculous to me. Not sure what BMW is up to... :dunno:


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## Alpine300ZHP (Jan 31, 2007)

quackbury said:


> Has anyone who finds this a deal breaker actually bothered to ask what the cost would be for the 6th year? And then negotiated that into their deal? Or is it just more rewarding to gey one's knickers in a knot, take on a sense of righteous indignation and storm out?


Agreed. As one who drives 30k miles a year, I would be all over a CPO with 6 years and unlimited miles(even if the extra year is a couple grand).

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## Alpine300ZHP (Jan 31, 2007)

misterjim said:


> I was told by a NJ BMW dealer that sells mostly non-CPO cars (at a reduced price compared to other dealers that sell CPOs) that it costs $2500 to CPO a car and that was under the old 2 year plan. So $2500 for an additional year seems ridiculous to me. Not sure what BMW is up to... :dunno:


IIRC, the real cost is closer to 1500 for the CPO. That dealer is probably rolling in reconditioning costs as well which is usually 4 new tires.

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## Alpine300ZHP (Jan 31, 2007)

GMCfourX4 said:


> Just spoke to a different dealer in a different state about another 750Li x-Drive (which had been CPO Elite) and was quoted $4,000 for year 6.


I wonder what the bump is from CPO to 6 years? I imagine the bump is more on a CPO elite. I also wonder if the bump fee varies based on the model. If so, the 7 will likely get the highest bump fee.

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## ard (Jul 1, 2009)

Just like the CPO elite was a major discount to the DEALER, it is my belief that this new CPO includes a MAJOR discount to the dealer as well.

"We have reducted initial CPO enrollment costs to you, AND provide you with a great upswell opportunity to bend over a buyer at the same time"

I might have some of the language wrong from the playbook, but probably pretty close.


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## GMCfourX4 (Aug 21, 2017)

Alpine300ZHP said:


> I wonder what the bump is from CPO to 6 years? I imagine the bump is more on a CPO elite. I also wonder if the bump fee varies based on the model. If so, the 7 will likely get the highest bump fee.


I have had my eye on 2 similar 2014 750Li x-Drive's.
Last weekend:
Car A) CPO 6yrs/100k mi currently @ 49k list: $47,500
Car B) CPO Elite 5yrs/75k mi currently @ 15k list: $49,900
Today:
Car A) CPO 5yrs/unlimited $47,500
Car B) CPO 5yrs/unlimited $49,900

Both cars lost a year of coverage (for anyone who drives 15k mi/yr or less). 
Quoted prices to extend to 6th year:
Car A) $3600
Car B) $4000


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## quackbury (Dec 17, 2005)

Reducted? Man, I get all warm and tingly when you talk like that.

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## 1968BMW2800 (Aug 13, 2016)

namelessman said:


> The checklist itself, given if issues are discovered after delivery on the "ticked" items, service needs to fix those per signed checklist.


Well... we have learned that a signed-off checklist is a piece of paper that may or may not have much value after the sale. Depends on the dealer, depends on the issue, depends on the ability to attain agreement as to whether or not the issue was, in fact, pre-existing or occurred/emerged after the sale.

To my thinking, the BMW CPO links the used BMW buyer into a certification system that all BMW dealers are supposed to honor and there is some possibility of recourse through BMWNA if there is a dispute or issue with the car during the CPO period -- and issue the selling dealer can't/won't resolve. there is some value in that, I think.

The question becomes, _how much _value remains in the BMW CPO imprimatur? And at what price?

And I think the answers vary depending on the customer, the car, the mileage, and, of course, the price paid for the car.

As always, dealing with the right CA/manager at the right dealership, while guaranteeing nothing, certainly improves the likelihood of a good outcome in a CPO transaction.

To repeat my favorite MJB quote, "Buyer Beware." Good advice, I think.


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## ard (Jul 1, 2009)

MJBrown62 said:


> The checklist, I think.
> 
> More specifically, the _*requirements *_of the checklist. There is a reason why the average repair order for a CPO BMW is about $2,000, before the cost of the warranty. It's the relative stringency of the CPO requirements.
> 
> All an independent needs to have is a safety inspection.


You have a checklist AND you have the wirtten criteria that are to be applied. Both documents are available.

So an indy can surely 'run the CPO inspection and report the conditions found'

Michael- love ya bud, but 'stringent CPO criteria'??? Dont make me laugh

I recommend a CPO inspection PLUS bodywork PLUS dump the DME for codes and history (say, BMW never looks to see if there are pending codes, when codes were reset, if the software was flashed....shocker. You could buy a used CPO, prior owner had flashed thew DME, the dealer could then deny warranty work.)

There is "doing a CPO inspection on a car' there is 'repairing a car to pass all CPO criteria'. two different things.

Rims, nicks and dings and scrapes, chipped glass. What moron needs a dealer to do that inspection?!?! Do people NOT have eyes??

Whats left? Body work, services, brakes and tires, leaks.

These are not magical, mystical criteria- they are simple straightforward stuff. And when it comes to body work and repairs there can be quite a bit of slop on the part of dealers as to what 'meets BMW standards'.



namelessman said:


> The checklist itself, given if issues are discovered after delivery on the "ticked" items, service needs to fix those per signed checklist.


What? So if the CPO checklist says 'no damage on the A pillar' and you find it was damaged, are you saying BMW will 'fix' it? L O L

Or the tires are at 55% on the CPO but a week later you find one is bad, BMW standing behind that?

There is almost noting a dealer will do if items are 'missed' on a cpo checklist. Maybe withn the first 48 hrs, even then ...


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## Der_Kommissar (Aug 16, 2016)

Ibiza said:


> I know that this was directed to MJB, but this is an open ended question with multiple answers due to the unknown variables such as time frame of ownership, model, engine, budget, lifestyle, significance of warranty, etc. My personal opinion, that has been expressed on Bimmerpost, is that this change in policy will probably drive used car sales to the independent dealership, and away from the BMW Center. The independent service centers will also benefit. I would not want to either be a owner or senior management of a BMW Center these days.


Can you post the link to that discussion on bimmerpost? I can never find anything over there.


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## namelessman (Dec 23, 2004)

ard said:


> What? So if the CPO checklist says 'no damage on the A pillar' and you find it was damaged, are you saying BMW will 'fix' it? L O L
> 
> Or the tires are at 55% on the CPO but a week later you find one is bad, BMW standing behind that?
> 
> There is almost noting a dealer will do if items are 'missed' on a cpo checklist. Maybe withn the first 48 hrs, even then ...


A couple of days sound reasonable.

A friend was able to get a new set of tires when the indy's tread measurement was worse than specified in CPO checked/ticked list.

Also another coworker caught a WS star crack while driving his CPO off the lot, and the dealer replaced it for free.

It is true that the checklist can be brought to indies too, but local indies charge more for CPO checklist than PPI, say, $250-300 instead of $150.

Obviously buyer's due diligence is always preferred, esp. for body work and such.


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## Ibiza (Jun 15, 2007)

Der_Kommissar said:


> Can you post the link to that discussion on bimmerpost? I can never find anything over there.


Der,

Here you are: BMW CPO Warranty Reduced to 1Year 
http://www.bimmerpost.com/forums/showthread.php?t=1418718

However, this post was created days before.


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## ard (Jul 1, 2009)

My point is that those selling CPOs have a vested interest in (and have been trained to believe) that a car that has undergone a "CPO process at a BMW dealer" is somehow greater than the same car, with the same things done to it- but not by a BMW dealer.

It is a physical object; it is inspected by qualified humans; known, quantifiable issues are identified and corrected. 


The point is that whatever differential in maintenance level- be it curb rash on tires, glass, brake pads, etc, can all be 'discovered' in an inspection and allowance made

A thought about the "2K average cost to CPO a car". WHO is paying that? the last lessee, who got dinged for a bumper, 4 wheels, 2 tires and windshield? If it is "$2k out of the dealers pocket on average, over and above what gets charged back to BMWFS and the lessee" that is one thing- (which I doubt.) That number is used to support the 'value' of a CPO, but if that number is actually being funded with lease return dollars, it really doesnt represent a dealership cost. For example a dealer pays $2000 in repairs, but the lessee was charged 1800 in fees, the dealer shouldnt say 'Our CPO costs more cause we spent 2k getting it to pass CPO'. Right?

Sorry I am a dog with a bone on this CPO stuff...


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## Ibiza (Jun 15, 2007)

ard said:


> You have a checklist AND you have the wirtten criteria that are to be applied. Both documents are available.
> 
> So an indy can surely 'run the CPO inspection and report the conditions found'
> 
> ...


Regarding the history of a prior DME flash, that is a must for a M2/M3/M4, 340/440, otherwise you might as well purchase a used Performance Center low mileage M. Prior piggy back tune should be checked for, but this is challenge (I turned in a 2007 335 cabrio that I had a Proceed piggy back tune that would throw limp codes, the local dealership re-sold as CPO). I'm just pointing this out as an example that the CPO customer has no idea what mods the previous owner did with the vehicle, nor will they ever meet them. An other example that prior E93's (2007&2011) both had passenger side hardtop window leaks, as I actually meet the gentleman who purchased (MY 2011 335is cabrio) at the dealerships service center and the vehicle was still leaking despite the CPO. I would never buy a retractable hard-top CPO, these are issues that original owner knows that the CPO customer will never find out


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## Ibiza (Jun 15, 2007)

ard said:


> My point is that those selling CPOs have a vested interest in (and have been trained to believe) that a car that has undergone a "CPO process at a BMW dealer" is somehow greater than the same car, with the same things done to it- but not by a BMW dealer.
> 
> It is a physical object; it is inspected by qualified humans; known, quantifiable issues are identified and corrected.
> 
> ...


Ard,

The lease return damage is paid back to BMWFS. Another convertible example, my prior 2011 335is cabriolet had a pre-teen in inspection with zero damage. Car is dropped off at local dealership, 2 weeks later BMWFS bills me approx $1,500 in damages as the stealership days after turn-in did a 2nd inspection. The car was then CPO in the used car section, as the damages that BMWFS attempted to bill me for was never repaired, eventually the damage charge was dropped by FS. I'm not sure if FS paid the dealership for the repairs, as if so I hope the money was returned to FS when it was pointed out the initial inspector considered normal wear and tear.


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## namelessman (Dec 23, 2004)

ard said:


> My point is that those selling CPOs have a vested interest in (and have been trained to believe) that a car that has undergone a "CPO process at a BMW dealer" is somehow greater than the same car, with the same things done to it- but not by a BMW dealer.
> 
> It is a physical object; it is inspected by qualified humans; known, quantifiable issues are identified and corrected.
> 
> ...


It makes sense damages/repairs uncovered during CPO cert can be charged back to last lessee. In general, before the recent 1-yr/unlimited "upgrade", the price difference of CPO versus non-CPO is usually $2k, which is close to the cost paid to BMWNA for the CPO warranty(gold level ESC, right?).

Compared to a non-CPO that is not vetted by the CPO checklist to uncover items chargeable back to the last lessee, non-CPO buyer can be at a disadvantage to CPO one, right?

Also, the tie-in of CPO inspection plus CPO warranty itself provides additional benefits, e.g. any item missed by CPO inspection but covered by CPO warranty can be dealt with(minus $50 per occurrence).

So basically CPO buyer can focus on body/frame, glass, tires, and other non-covered wear and tear(e.g. belts, upholstery?), and leave the rest to the CPO warranty.

Such "tie-in" may be possible with PPI plus BMW ESC, but ESC tends to be a bit pricier than CPO, right?


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## socal59 (Oct 24, 2004)

With this newest news about CPO reduction, PPI's, Flash this or that, CPO vehicles that squeek by as CPO, when they are not, seems to just leave leasing as the only option. If you can't afford that, get a more economical brand. 

For years Lexus and Acura reversed engineered BMW, Mercedes etc, maybe BMW should start reverse engineering Lexus for reliability? It would solve many of the resale issues for them, not to mention the huge amount of money BMW ponies up on defective warranty work.


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## MJBrown62 (Jun 15, 2016)

Yep, we'll agree to disagree on the dealer-by-dealer quality of the CPO inspection and work done.

As in everything, the bell curve is at play when a client turns in a lease. The tires could be juuuuust above the excessive wear mark, and we'll pass it to move to a next sale with them. But then it hits the CPO inspection which will require more tread, it fails, and then we are paying for 4 new tires.

And we have trade ins as well, and those costs to CPO don't get reimbursed.

That's why I said we average $2k. I've had some trade ins that needed 4-tires a windshield and a bumper fix, and the shop bill is $3000.

I've had some CPO cars with so much work to be done that after about a 1½% discount, I'm making a mini.

But again, bell curve of life.

mjb



ard said:


> My point is that those selling CPOs have a vested interest in (and have been trained to believe) that a car that has undergone a "CPO process at a BMW dealer" is somehow greater than the same car, with the same things done to it- but not by a BMW dealer.
> 
> It is a physical object; it is inspected by qualified humans; known, quantifiable issues are identified and corrected.
> 
> ...


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## Der_Kommissar (Aug 16, 2016)

namelessman said:


> It makes sense damages/repairs uncovered during CPO cert can be charged back to last lessee. In general, before the recent 1-yr/unlimited "upgrade", the price difference of CPO versus non-CPO is usually $2k, which is close to the cost paid to BMWNA for the CPO warranty(gold level ESC, right?).
> 
> Compared to a non-CPO that is not vetted by the CPO checklist to uncover items chargeable back to the last lessee, non-CPO buyer can be at a disadvantage to CPO one, right?
> 
> ...


Keep in mind also that most CPO cars have at least a year or more of factory warranty to use to "get the bugs out", so to speak. I would never buy a CPO with less than 1 yr of original warranty left, as I want that time for piece of mind. They used to have at least one year of factory maintenance too, but we see where that has gone, so maybe the 4 y original warranty is on the table for changes too.


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## Alpine300ZHP (Jan 31, 2007)

Ibiza said:


> I know that this was directed to MJB, but this is an open ended question with multiple answers due to the unknown variables such as time frame of ownership, model, engine, budget, lifestyle, significance of warranty, etc. My personal opinion, that has been expressed on Bimmerpost, is that this change in policy will probably drive used car sales to the independent dealership, and away from the BMW Center. The independent service centers will also benefit. I would not want to either be a owner or senior management of a BMW Center these days.


We are in agreement. I don't tend to buy CPO cars
or used cars in general, but if I were to buy a used BMW, I would certainly not buy a high priced CPO with minimal warranty.

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## namelessman (Dec 23, 2004)

Der_Kommissar said:


> Keep in mind also that most CPO cars have at least a year or more of factory warranty to use to "get the bugs out", so to speak. I would never buy a CPO with less than 1 yr of original warranty left, as I want that time for piece of mind. They used to have at least one year of factory maintenance too, but we see where that has gone, so maybe the 4 y original warranty is on the table for changes too.


It is true both CPO and non-CPO 3-year old will have the same extra year to flush out the bugs. Before the 3-yr/36k change 3-year old also can catch up on free maintenance within a year, but that's now out-of-pocket on both CPO/non-CPO(with extended maintenance package).

The value of competitively priced CPO add-on will be catching the tire treads, WS cracks, body/frame, missing maintenance issues during CPO inspection, plus the CPO warranty/ESC after the new car warranty expires.

So what is the price premium for 1-yr/unlimited now? $1000?


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## Alpine300ZHP (Jan 31, 2007)

namelessman said:


> It is true both CPO and non-CPO 3-year old will have the same extra year to flush out the bugs. Before the 3-yr/36k change 3-year old also can catch up on free maintenance within a year, but that's now out-of-pocket on both CPO/non-CPO(with extended maintenance package).
> 
> The value of competitively priced CPO add-on will be catching the tire treads, WS cracks, body/frame, missing maintenance issues during CPO inspection, plus the CPO warranty/ESC after the new car warranty expires.
> 
> So what is the price premium for 1-yr/unlimited now? $1000?


Agreed except for the free maintenance. You may have forgotten that the free maintenance does not pass onto the second owner on cars with a build date after, I think, 6/15. I am not 100% on the build date, but it is around that time. With all of these changes, the value of a CPO is going to be best on a young and high mileage CPO that has depreciated significantly. In the alternative, high mileage drivers like myself (30k per year) may see added value in a young CPO over a new lease since it is theoretically possible to buy a 2 year old CPO and drive it for 3 years with a decent warranty and rinse and repeat. That may be cheaper than leasing every 3 years, buying an extended warranty and paying for the miles.

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## Alpine300ZHP (Jan 31, 2007)

MJBrown62 said:


> Yep, we'll agree to disagree on the dealer-by-dealer quality of the CPO inspection and work done.
> 
> As in everything, the bell curve is at play when a client turns in a lease. The tires could be juuuuust above the excessive wear mark, and we'll pass it to move to a next sale with them. But then it hits the CPO inspection which will require more tread, it fails, and then we are paying for 4 new tires.
> 
> ...


Mike. I am curious. Does the warranty change have any change on the maximum mileage to make a car eligible for a CPO? For example, if I traded my m4 with 65k miles on it, could you certify it? If so, that will increase the value of high mileage lease returns and trade ins.

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## MJBrown62 (Jun 15, 2016)

Alpine300ZHP said:


> Agreed except for the free maintenance. You may have forgotten that the free maintenance does not pass onto the second owner on cars with a build date after, I think, 6/15. I am not 100% on the build date, but it is around that time. With all of these changes, the value of a CPO is going to be best on a young and high mileage CPO that has depreciated significantly. In the alternative, high mileage drivers like myself (30k per year) may see added value in a young CPO over a new lease since it is theoretically possible to buy a 2 year old CPO and drive it for 3 years with a decent warranty and rinse and repeat. That may be cheaper than leasing every 3 years, buying an extended warranty and paying for the miles.
> 
> Sent from my iPhone using Bimmerfest mobile app


Not the build date, but the inservice (retailed) date after 6/30/2015.

Keep in mind that BMW Centers can pay BMW a fee to re-instate the maintenance plan (we do it here on all CPOs.) Off-brand dealers cannot. So another slight advantage to us.


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## MJBrown62 (Jun 15, 2016)

And the $50 deductible/handling fee per claim has been eliminated

MJB


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## Alpine300ZHP (Jan 31, 2007)

MJBrown62 said:


> And the $50 deductible/handling fee per claim has been eliminated
> 
> MJB


Hmm. Good info. Can you answer my other question about CPO eligibility and mileage on the car?

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## MJBrown62 (Jun 15, 2016)

Alpine300ZHP said:


> Hmm. Good info. Can you answer my other question about CPO eligibility and mileage on the car?


Sorry, I missed that one ...

As of today, no change to the eligibility miles.


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