How is CPO warranty price determined?

Sorry if this has been answered elsewhere, but I did not find a satisfactory answer using the search tool.

Is there a list price sheet for CPO options by model, or model year? That is, if a potential buyer is trying to determine the cost he will need to pay for CPO vs. non-CPO on otherwise identical vehicles, what reference point other than a dealer quote is available?

Originally Posted by Zeke77

Sorry if this has been answered elsewhere, but I did not find a satisfactory answer using the search tool.

Is there a list price sheet for CPO options by model, or model year? That is, if a potential buyer is trying to determine the cost he will need to pay for CPO vs. non-CPO on otherwise identical vehicles, what reference point other than a dealer quote is available?

The dealer pulls it out of his ass.

There is no guideline, some dealers just take what they paid for the car and add $x,000 for profit, reconditioning costs, CPO cost, etc. Others actually look at pricing guides like KBB, NADA, Edmunds, etc. and base the price off of that.

Originally Posted by SARAFIL

The dealer pulls it out of his ass.

There is no guideline, some dealers just take what they paid for the car and add $x,000 for profit, reconditioning costs, CPO cost, etc. Others actually look at pricing guides like KBB, NADA, Edmunds, etc. and base the price off of that.

Thanks, but let be more specific: It is only the CPO cost that I am trying to understand. Is that a published price separate from the base vehicle price? Is it the same on any BMW vehicle that qualifies (under 60k miles, etc.) or does it vary by mileage, year, or model?

like he said... it's pretty much hmm... what can we get for it... but typically, it's about 2-3000 more than a non-cpo car... at least on paper. don't pay it though.

Thanks KJB and Sarafil...That's kinda what I thought, but really wanted to confirm there was no science behind it. I figure that some part of BMW must underwrite the warranty risk for an extra two years, so the dealer must have to work upwards from some sort of "invoice" cost on adding CPO to a vehicle.

There is no "retail MSRP for a CPO" simply becuase it cannot be sold to an end owner.

BMW only allows the DEALER to buy it when they own the car, add it to the car, then sell it to you.

It wouid be VERY helpful to know what CPOs cost the dealer (when I added one to my E39M5 it was $1700)... I would be SHOCKED if any of our helpful dealer buddies on this forum gave you this info. Try a PM.

All dealers CERTAINLY know what they pay BMW for the CPO warranty.... and price the car accordingly. Rots of ruck trying to get a (honest) number from them.

I am guessing $2k, maybe 2500 now.

Actually my dealer told me that his cost to CPO a car was $1,800 - and I think that's the starting point. Now if they need to do anything to it, like change tires, brakes, add fluid, whatever, that all adds to the price. I venture to guess that his $1,800 "cost" is inflated by at least a few hundred. There has to be a cost associated with extending the warranty for two years, plus labor just to perform the inspection. Good luck!

BMW publishes a list for the dealers that says how much the warranty "cost" is (what BMW will charge them for the warranty when they sell the car). How much they add to the price the customer pays is up to the dealer.

The cost is the same regardless of mileage (5k or 50k), but it does vary for each model (3, 5, 7, etc.) and there are extra fees for AWD, Turbo, Diesel, and M models.

CPO cost will depend on the year and model. I was told $1400 for a 2007 525i. That is just the warranty part. All reconditioning, etc, is extra. Typically, it looks like about $2500-3000.

CPO is not a warranty, it is a process. The technician performing the CPO checklist is one part of the cost, the reconditioning cost is another part, and the warranty cost is the last part. All THREE put together equal the certification cost. It's not that you can't find out the warranty cost for a particular BMW model, it's that the warranty cost alone isn't the certification cost. EVERY vehicle is different.

Originally Posted by BMWofBloomfield

CPO is not a warranty, it is a process. The technician performing the CPO checklist is one part of the cost, the reconditioning cost is another part, and the warranty cost is the last part. All THREE put together equal the certification cost. It's not that you can't find out the warranty cost for a particular BMW model, it's that the warranty cost alone isn't the certification cost. EVERY vehicle is different.

True.

So what is the cost of the CPO warranty/CPO fee that is paid to BMW? This *IS* the same for every model (Every M5, every 335i, ever 750...)right?