CPO vs non CPO w/mfr warranty

[frank1966]

I see that most cars with CPO are about 4-5k more than non-cpo from dealer but still have mfr warranty. i saw a 2007 550i with 27k, with warranty til 50k, is it necessary to look only for a CPO? isnt it the same if i buy an extended warranty for 4-5k at 50k if i wanted to extend it to 100k?
Frank

[skylolow]

CPO warranty is usually more extensive then the after market warranties I've seen. Plus your never going to have the question of how does the bill get paid. Remember there is a lot of mark up on these cars used. Chances are most you see are marked up around 5k and then some in many cases.

On the 07 you saw I'd kind of wonder why it wasn't CPO'd if it was at a BMW dealership.

[drizzy]

I just went through all of this. There are tons of "deals" out there for extended warranties, but for my 2007 550i with 22000 miles on it a warranty that covers 5 more year up to 100k miles total and 0 deductable is $5700. So the warranty is going to cost you no matter what. The question you have to ask is how long am I going to keep the car. For me 5 years, 2 of which are covered by the original warranty. So is it worth it to me to pay six grand for three years of coverage? I am going to save the money hope for the best.

[drizzy]

OBTW the $5700 was from warrantydirect.com. I decided on them because when you take your car in to the dealer the dealer calls them and warrantydirect gives the dealer a credit card to pay for the repairs. Don't go with any other type of warranty. Otherwise you will have to pay the bill and fight with the company to get reimbursed.

[frank1966]

Oh, it wasnt from a BMW dealership. i saw the car today and test drove it. I didnt get a good feeling from the dealer or from the car, something didnt feel right, first of all the car needed a wheel alingment bad, second he wasnt very forth coming on the histroy of the car. i just wanted to test drive it, that was my first time driving a BMW. This is probably true with a high torque car, when you let off the gas you really feel the car holding back, is that because its a V8? or does the 535i do the same thing. I do notice the slight delay everyone talks about, but it picks up very quick. It feels like iam riding a stick shift car and iam in 4th gear at 2:1 or 1:1 ratio tranny gear. it does not feel like the OD in acura or lexus where you are gliding when you let off the gas. One more question, can you put all season tires on these 18inch wheels with a 225 or 235/50 with the sport package? i think iam going to stick with a CPO car.

[drizzy]

Yes there are tons of all season run flat and non run flats you can use. If you do a search on the forum you will find lots of recommendations. I would follow your feelings on the car and dealership. If they don't immediately offer the carfax report when asked you should walk away.

[skylolow]

Sounds like a few issues with that car.

Head over to the BMW dealership and get behind the wheel of nice 06 or 07 550i CPO. I think you'll feel much better and get a more true feeling of the car. Sport package to many of us is almost a must have option so I'd recommend looking for it.

May even want to look at a 05 545i CPO if your looking at saving a few bucks and not really lose much. Like I said before many BMW dealers really pad the price on these cars. For example 05 545i's sell through the auctions at about 24K give or take about 2K depending on miles and condition. So many BMW dealears will buy them for about 24-25K and then CPO them (obiviously they usally put some money into these cars to get them back to new condition in most cases to CPO them, good estimate would about 2K to 3K to do this). So the dealers may only have around 26-28K in the car yet it sits on there lot for $33,500. So don't get sticker shocked. Just be a smart consumer and know you got a few thousand dollars to play with usually.

Also check out bmwusa.com and search for a CPO 550i around the country. Give you a good idea of what dealers are asking. You'll see what I'm talking about above when you do it. One dealer will have the same car with almost same miles yet the price is 4K difference then the other one.

[bobajoul]

The internal BMW cost for a CPO warranty is about 3K according to dealer. You can check my posts about my CPO 5 wagon to determine what that warranty really means, but I would say that the warranty is the warranty, the CPO process is no better than the dealer's effort, despite what they tell you. As long as the warranty is honored with a minimum of fuss (check the details) there should not be too much of an issue. And use the existing manufacturers warranty to fix the niggling issues, that is what it is for.

[cubsko]

I'm going thru the same process right now of looking at both 545i and 550i. I concur with the others, for me go to a BMW dealer and look at CPO ones. I think its fair to ask for service history, their cost (i.e. price they paid at auction and cost to CPO, which as bobajoul indicated is around $3k), and offer them cost + $500 -1k in dealer profit. All those prices on BMWUSA are really over inflated. Any dealer that won't provide the basic info on the car just move on -- as drizzy indicated there are a ton of these around and not moving terribly fast. On the warranty issue, for me it depends on mileage and how much original warranty is left. Like drizzy said if I found one that had 2 years left no sense in paying up today for extended warranty. I rather squirrel the $$ and reinvest it for now.

[frank1966]

The CPO are very overinflated, i saw a 2008 550i for <50k with 8K miles on the internet. A car with no accident history or a buyback, is hard to decide, should i just wait for a CPO with <20K miles? I guess the guys who turn these cars in are not always going to BMW, they go to other dealers because they buy the car for more money? and that dealer is not going to spend the money or sell it to BMW to CPO it. I still dont know if CPO is worth it, the prices on bmwusa are so high. I agree that these cars are not fast movers especailly the way gas prices are.

[Sirius Black]

As an insider in the car business, YES, we do make money on Extended Service Contracts. Some more than others, but it's definately worth a few thousand dollars. The $5700 policy sounds extremely high to me. The policy I purchased for my E39 540i had a cost of $2250 for 4yrs/48000 of the highest level of coverage. I probably would have asked from $2995-$3495 for it retail. However, after a Transmission replacement $5800, Rear Wheel Bearings $640, a new Radiatior/Thermostat $999, and a new Low Beam Control Module $511 (coolant from Radiator shorted it out) that were all coveded with no questions asked, paid for up front, included towing, and rental car. I'd have to say that even if I paid the dealer a few hundred to a thousand in profit, I'd still be in pretty good shape.

Just picked up an E61 530xiT for the wife yesterday with 21K, but only 11 months left on the factory coverage. Will be getting a 6yr/72000 Platinum coverage Service Contract for it for less than $2000. And that's 6 yrs from today, and 72k more than the existing mileage.

Yes there's a cost, yes dealers make a profit, but why be exposed to the high cost of repairs for our cars?

[frank1966]

I dont mind buying an extended warranty before the original warranty expires, but iam not sure if i should hold out for a CPO or find something alot less cheaper with at least 30k on the orig warranty, then purchase an extended later. If of course the car has not been in an accident or lemoned. But on the other hand the CPO gives you more confidence that the car is the closest to new as possible - still not sure i have 6 months to figure it out. I will go to a dealer and drive some CPO's and see how they feel.

[Sirius Black]

Just some food for thought for those who like to wait until the factory coverage is almost up to purchase an Extended Service Contract........The closer you are to the end of your coverage the more expensive the Extented Coverage will be.

They are cheapest when buying it on a new car, and increase in price as the time and mileage increase on the car.

[drizzy]

Sirius Black where did you get the platinum coverage at that price?

[skylolow]

As an insider in the car business, YES, we do make money on Extended Service Contracts. Some more than others, but it's definately worth a few thousand dollars. The $5700 policy sounds extremely high to me. The policy I purchased for my E39 540i had a cost of $2250 for 4yrs/48000 of the highest level of coverage. I probably would have asked from $2995-$3495 for it retail. However, after a Transmission replacement $5800, Rear Wheel Bearings $640, a new Radiatior/Thermostat $999, and a new Low Beam Control Module $511 (coolant from Radiator shorted it out) that were all coveded with no questions asked, paid for up front, included towing, and rental car. I'd have to say that even if I paid the dealer a few hundred to a thousand in profit, I'd still be in pretty good shape.

Just picked up an E61 530xiT for the wife yesterday with 21K, but only 11 months left on the factory coverage. Will be getting a 6yr/72000 Platinum coverage Service Contract for it for less than $2000. And that's 6 yrs from today, and 72k more than the existing mileage.

Yes there's a cost, yes dealers make a profit, but why be exposed to the high cost of repairs for our cars?

Since your in the business could you please list some good extended warranties. Seems like every other week someone is asking what company to go with. Also what pitfalls to watch out for when chosing an extended warranty.

Thanks, I'm sure many members will be thankful for it.

[BMW Rookie]

I just purchased a "Portfolio" full warranty (First Extended Service Corp) today for my 2007 530i w/ 28,000 miles. The warranty covers just about everything and cost me $2,800 for 7yrs/100,000 (beginning on in service date).

I just purchased at the BMW dealer today after they said I could NOT extend the mfg. warranty because I was not the original owner. Do you guys know if this is a reputable warranty. The dealership swore by them...

[Sirius Black]

Sirius Black where did you get the platinum coverage at that price?

I did my paperwork myself, I am a Finance Mgr at a Dealership.

[Sirius Black]

Since your in the business could you please list some good extended warranties. Seems like every other week someone is asking what company to go with. Also what pitfalls to watch out for when chosing an extended warranty.

Thanks, I'm sure many members will be thankful for it.

I use, and sell JM&A Group - Fidelity Warranty Services Policies, having dealt with many different companies in the past I've found this protection to be about the best out there. I've litereally had NO complaints about them not covering something, or giving bad customer service.

To avoid pitfalls, just go with the top level of coverage. Our cars have a lot of high tech features that need to be covered. Make sure the policy covers related part failure.....Part A made Part B, and C go bad. Make sure the ploicy covers diagnostic time, towing, roadside assistance, 1st day rental car coverage, related fluids,and that theres one deductable per occurance, not per item.

[frank1966]

So iam trying to understand, if the car has 30k miles left on the orig warranty and the car checks out with no issues from carfax, and the dealer knows the cars histroy well, then i dont need to look for a CPO car because i can buy a separate extended warranty?

[LoneStar5]

So iam trying to understand, if the car has 30k miles left on the orig warranty and the car checks out with no issues from carfax, and the dealer knows the cars histroy well, then i dont need to look for a CPO car because i can buy a separate extended warranty?
Yes, you can buy an extended warranty from independent firms. Review their terms carefully.

[drizzy]

So Sirius Black if you are a manager can you sell warranties to me? If so my details are below and the car has 22.5k miles on it. Original title date May 06. How much would it run for the best coverage. I would like the coverage for 5 years from now 100k miles total so 79k more.

[skylolow]

So iam trying to understand, if the car has 30k miles left on the orig warranty and the car checks out with no issues from carfax, and the dealer knows the cars histroy well, then i dont need to look for a CPO car because i can buy a separate extended warranty?

You sure can. Just make sure you get a good car and warranty company. In the end you may find out your not saving much.

Thing is with CPO's is usually the dealer(a good one) has done what it can to bring the car back to like new condition. So chances are new brakes, tires, and any little things all taking care of. Plus the CPO. In the end its not uncommon for a dealership to stick 3K plus into the car.

Remember the dealers usually mark these cars up qutie a bit. A 5 series CPO they may have 27K in it might sit on the lot for 33.9K. So alot of play money. Much more then many used cars out there (ie: Pontiac Grand Prix). Also I've notice prices really vary on these cars in the market. Do a serach on bmwusa.com under the CPO and you'll see what I mean. A 05 545 with 30K will be 31K at one dealer, next one similar will be 36.5K, and another one similar will be 34K. Just always seems to be quite a spread on $$$$ side with any model. Some dealers want to make a killing on every sale and others rather mover more volume. Also some may just have more intial money in them. But don't be afraid to travel a state over to get the car you want and save a few thousand if you can't find a good deal locally.