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E90/E91/E92/E93 (2006 - 2013)
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  #1  
Old 05-02-2013, 07:18 PM
Drewsome Drewsome is offline
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$4,000 just to CPO ?

I'm buying my buddy's 2010 328i coming off lease.

We're having the dealer act as a conduit in the transaction to avoid double taxation. Otherwise there would be sales tax when he buys it from dealer, and then moments later when I buy it from him. All legal and kosher.

But here's the kicker -- the dealer is trying to entice me to let him CPO the vehicle and thus extend the warranty another 2 years. But he wants almost $4k for this certification! And he told me that this wouldn't even include new tires, should the car need them (it doesn't, btw).

Is this the normal CPO charge? Seems quite high.

Plus, wouldn't it be far more economical to purchase an extended warranty (which could add up to 3 years extra coverage) at some point before the car reaches it's 4th year?
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Old 05-02-2013, 07:22 PM
Bubbs Bubbs is offline
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$4,000 just to CPO ?

I bought a 2011 335 that didn't have CPO. After I negotiated the purchase price, the dealer offered the CPO for $1,500. I had stated earlier in the negotiation that I wished it was CPO so he threw it out there. Only difficult part was it took a week to do the inspection. That dealer is trying to take advantage of you in my opinion.


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Old 05-02-2013, 07:32 PM
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Originally Posted by Bubbs View Post
I bought a 2011 335 that didn't have CPO. After I negotiated the purchase price, the dealer offered the CPO for $1,500. I had stated earlier in the negotiation that I wished it was CPO so he threw it out there. Only difficult part was it took a week to do the inspection. That dealer is trying to take advantage of you in my opinion.


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Yeah. I thought it sounded high. And we're talking about a naturally aspirated engine, not the turbo you have. Dealer said it's the same $4k CPO price everywhere, which I found hard to fathom. I understand that they have to pay the tech to check the vehicle up and down, and yes, the warranty extension has value, but for $4k, I was not enticed.
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Old 05-02-2013, 09:30 PM
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sptt144 sptt144 is offline
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They have to make a profit so I would think that the $1500.00 CPO is priced after the trade-in costs are all said and done and you don't know how much money they are into the car for. In this case, you know what he is getting on trade-in so they are adding their profit plus CPO cost ($2500.00 profit+$1500.00 CPO) maybe???
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Old 05-02-2013, 11:46 PM
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Quote:
Originally Posted by Drewsome View Post
Yeah. I thought it sounded high. And we're talking about a naturally aspirated engine, not the turbo you have. Dealer said it's the same $4k CPO price everywhere, which I found hard to fathom. I understand that they have to pay the tech to check the vehicle up and down, and yes, the warranty extension has value, but for $4k, I was not enticed.
$4,000 everywhere......that's an outright lie. The cost to enroll the car in the program is about $1,300. Add to that the cost to do whatever maintenance and/or repairs are needed to bring the car up to CPO standards. Just buying the extended protection plan should be about the same as the cost to enroll the car in the CPO program, because no work has to be performed.
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Old 05-03-2013, 05:37 AM
Bubbs Bubbs is offline
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$4,000 just to CPO ?

Quote:
Originally Posted by sptt144 View Post
They have to make a profit so I would think that the $1500.00 CPO is priced after the trade-in costs are all said and done and you don't know how much money they are into the car for. In this case, you know what he is getting on trade-in so they are adding their profit plus CPO cost ($2500.00 profit+$1500.00 CPO) maybe???
It was a clean deal on my end no trade. I'm looking at a car there fir my wife now and they have indicated $1,500-$2,000 on any car that doesn't have it unless it needs a bunch of repairs which are typically covered by the warranty. My CA says the cost for CPO for them is $1,300 and they look at it as a tool to sell the car, not a profit center in and if itself.


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Old 05-03-2013, 06:55 AM
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Quote:
Originally Posted by Drewsome View Post
Yeah. I thought it sounded high. And we're talking about a naturally aspirated engine, not the turbo you have. Dealer said it's the same $4k CPO price everywhere, which I found hard to fathom. I understand that they have to pay the tech to check the vehicle up and down, and yes, the warranty extension has value, but for $4k, I was not enticed.
Interesting, if they are trying to take you for $4k on cpo, what else are they trying to do? How much are they getting for processing the transaction?

I have heard a few times the concern about double tax but can't you just simply transfer the lease and have the new owner buy the car the same day for exactly $500 all through BMW FS? No dealer required and no double tax? Am I missing something here?
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Old 05-03-2013, 07:12 AM
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Originally Posted by ddeliber View Post
Interesting, if they are trying to take you for $4k on cpo, what else are they trying to do? How much are they getting for processing the transaction?

I have heard a few times the concern about double tax but can't you just simply transfer the lease and have the new owner buy the car the same day for exactly $500 all through BMW FS? No dealer required and no double tax? Am I missing something here?
No
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  #9  
Old 05-03-2013, 09:20 AM
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Quote:
Originally Posted by Drewsome View Post
Yeah. I thought it sounded high. And we're talking about a naturally aspirated engine, not the turbo you have. Dealer said it's the same $4k CPO price everywhere, which I found hard to fathom. I understand that they have to pay the tech to check the vehicle up and down, and yes, the warranty extension has value, but for $4k, I was not enticed.
$4k for a CPO?! How 'bout CP-NO!
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Old 05-03-2013, 09:43 AM
surfcity335i surfcity335i is offline
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Quote:
Originally Posted by Drewsome View Post
I'm buying my buddy's 2010 328i coming off lease.

We're having the dealer act as a conduit in the transaction to avoid double taxation. Otherwise there would be sales tax when he buys it from dealer, and then moments later when I buy it from him. All legal and kosher.

But here's the kicker -- the dealer is trying to entice me to let him CPO the vehicle and thus extend the warranty another 2 years. But he wants almost $4k for this certification! And he told me that this wouldn't even include new tires, should the car need them (it doesn't, btw).

Is this the normal CPO charge? Seems quite high.

Plus, wouldn't it be far more economical to purchase an extended warranty (which could add up to 3 years extra coverage) at some point before the car reaches it's 4th year?
JUST to CPO? No. But he may be including some of the things his dealer often/normally has to do in order to get it up to snuff. Brakes (less than 50% means it needs new), belts, hoses, wiper blades, routine maintenance, etc.
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  #11  
Old 05-03-2013, 09:56 AM
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Originally Posted by surfcity335i View Post
JUST to CPO? No. But he may be including some of the things his dealer often/normally has to do in order to get it up to snuff. Brakes (less than 50% means it needs new), belts, hoses, wiper blades, routine maintenance, etc.
All the maint. they shouldn't charge for because that should be covered under the standard maintenance plan (of course unless there's over 50k miles on the car but, if you're CPOing it, that's not possible). While I admit I'm no expert, in all my time on the forums here $4k has been the absolute highest I've seen. Comes in on the "Dangerous Level" level of my crap-o-meter (see sample below).

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Old 05-03-2013, 10:45 AM
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Here is an interesting little test for your "lets see what we can take this guy" dealer... Go in (or email) the finance manager and tell him that you are interested in a 328i and are curious how much they charge for an extended warranty, specifically the 6yr/100k mi gold and see what they quote you. Then ask the sales guy what they would do and what you would be getting with the CPO that he is quoting you (you already mentioned that the quote didn't include tires). after he tells you, then ask why the difference between the prices (assuming that they didn't quote some ridiculous number for the ex warr). I would be very curious about their reply here.

Just so you know, CPO is an inspection, tires and brakes if less than 50% and clean up and the 6/100 gold ex warr. Nothing more. The LIST price for 7yr 100k mi Platinum is $3.9k (one extra year and coverage of the advanced electronics - radio nav idrive etc). You can do much better than that with a couple emails.
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Old 05-03-2013, 10:47 AM
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Also, does he have to use a local dealer or can he use a board sponsor? That is something to consider.
Since the car has warranty/maintenance it would get those items serviced under that program
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Old 05-03-2013, 10:49 AM
ddeliber ddeliber is online now
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BTW, the attached is a copy of a price list for the LIST prices for each extended warranty option that BMW offers... 6/100 gold is lists for $3040 and it costs them about $1300.
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Old 05-03-2013, 12:25 PM
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All the maint. they shouldn't charge for because that should be covered under the standard maintenance plan (of course unless there's over 50k miles on the car but, if you're CPOing it, that's not possible). While I admit I'm no expert, in all my time on the forums here $4k has been the absolute highest I've seen. Comes in on the "Dangerous Level" level of my crap-o-meter (see sample below).

Quote:
Originally Posted by ddeliber View Post
BTW, the attached is a copy of a price list for the LIST prices for each extended warranty option that BMW offers... 6/100 gold is lists for $3040 and it costs them about $1300.
The Crap-o-meter has been upgraded to "Total Crap"
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Old 05-03-2013, 12:37 PM
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tturedraider tturedraider is offline
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Quote:
Originally Posted by Last Sight View Post
All the maint. they shouldn't charge for because that should be covered under the standard maintenance plan (of course unless there's over 50k miles on the car but, if you're CPOing it, that's not possible).
The maintenance plan only applies to retail owners of the car. The cost of maintenance or non-defect repairs made to the car to bring it to CPO standards are borne by the dealer.
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Old 05-03-2013, 12:40 PM
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The maintenance plan only applies to retail owners of the car. The cost of maintenance or non-defect repairs made to the car to bring it to CPO standards are borne by the dealer.
Could you explain, I don't understand. Isn't the maintenance program transferable? If so, wouldn't they maintenance it under the program under the owners name. Then new buyer gets the remainder of the warrant and maintenance?
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Old 05-03-2013, 12:49 PM
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Originally Posted by furby076 View Post
Could you explain, I don't understand. Isn't the maintenance program transferable? If so, wouldn't they maintenance it under the program under the owners name. Then new buyer gets the remainder of the warrant and maintenance?
That's just not the way it works. For example, they physically measure the brake pads and rotors. If they are below the CPO standard, even though they may very well be above the measurement that would trigger the car's computer controlled Condition Based Service indicator, they must be replaced. The Maintenance Plan that applies to retail owners covers only maintenance needed based on the Condition Based Service indicator (excepting a few items such as wiper blades).
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Old 05-03-2013, 12:50 PM
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Originally Posted by tturedraider View Post
The maintenance plan only applies to retail owners of the car. The cost of maintenance or non-defect repairs made to the car to bring it to CPO standards are borne by the dealer.


When you say "retail owners" what do you mean? Are you trying to say that they can only get the maint. covered if it's for non-CPO purposes? But if you mean "retail owners" as in the person who originally bought the car, I know that's false because I was the 2nd owner on my car and just got maint. performed a few weeks ago. Either way, you could still have it in for maintenance work before purchase and that would lower the cost to the dealer. I also don't see why the dealer couldn't say, "Oh yeah this was maint." and then for the rest say "oh these are repair/CPO costs" The non-defect repair/CPO costs I understand needing to be dealer bourne costs however.
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Old 05-03-2013, 12:51 PM
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Originally Posted by tturedraider View Post
That's just not the way it works. For example, they physically measure the brake pads and rotors. If they are below the CPO standard, even though they may very well be above the measurement that would trigger the car's computer controlled Condition Based Service indicator, they must be changed. The Maintenance Plan that applies to retail owners covers only maintenance needed based on the Condition Based Service indicator (excepting a few items such as wiper blades).
Ahhh...makes sense. Thanks! Although too bad for my late reply...
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Old 05-03-2013, 08:10 PM
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Originally Posted by ddeliber View Post
Interesting, if they are trying to take you for $4k on cpo, what else are they trying to do? How much are they getting for processing the transaction?

I have heard a few times the concern about double tax but can't you just simply transfer the lease and have the new owner buy the car the same day for exactly $500 all through BMW FS? No dealer required and no double tax? Am I missing something here?
They're charging $500 for the transaction. Supposedly it includes some sort of vehicle inspection as well. Guess they want to make sure the car is safe -- CYA maneuver, no doubt.

I thought that BMW does not allow lease transfers in the final few months of the lease term. Can't remember the cutoff, but I'm sure I'm beyond it. That said, even if the lease could be transferred to me, why would BMW FS sell it for "exactly $500" when the residual value is well over $20K?
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Old 05-03-2013, 08:14 PM
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Originally Posted by Last Sight View Post
The Crap-o-meter has been upgraded to "Total Crap"
I'm guessing b/c it's a very low mileage vehicle in perfect condition and that the dealer isn't too happy that he isn't getting the opportunity to sell it for a sizable profit. All he's getting is $500 for the transaction. That is, unless he can fleece me for $4k for the CPO.

If that's the case, it seems short-sighted and somewhat sad. Why not treat me fairly, and then I'll buy my next car from you, and recommend you to others?

Last edited by Drewsome; 05-03-2013 at 08:17 PM.
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Old 05-03-2013, 08:46 PM
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Originally Posted by Drewsome View Post
They're charging $500 for the transaction. Supposedly it includes some sort of vehicle inspection as well. Guess they want to make sure the car is safe -- CYA maneuver, no doubt.

I thought that BMW does not allow lease transfers in the final few months of the lease term. Can't remember the cutoff, but I'm sure I'm beyond it. That said, even if the lease could be transferred to me, why would BMW FS sell it for "exactly $500" when the residual value is well over $20K?
The transaction is $500, you buy the car for the residual. Since the cost is the same (from your later post) then it doesn't really matter. Still curious how they justify the $4k Certification.
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Old 05-03-2013, 09:04 PM
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Originally Posted by ddeliber View Post
The transaction is $500, you buy the car for the residual. Since the cost is the same (from your later post) then it doesn't really matter. Still curious how they justify the $4k Certification.
It can be justified from their perspective, but not mine

While I could challenge the dealer on the price, he's not even in the ballpark, so if he knocks a few hundred or even a thousand off his price, I'm still not interested.

Instead, I'd rather buy an extended warranty for a longer term for far less money. Daniel from Pacific BMW seems to be offering nice deals to members of this forum. I have no affiliation with him, but I've found him to be very upfront and responsive when I've posed questions. Other forum members seem to have good things to say about him as well. So that's the route I'll most likely take.

Just astounding though, how so many dealers will try to take the uninformed for a ride.

Thank goodness for the kind and generous folks on this forum.
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Old 05-04-2013, 12:06 AM
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....the dealer is trying to entice me to let him CPO the vehicle and thus extend the warranty another 2 years. But he wants almost $4k for this certification!

Such a deal!!! Wall Street's doing well....very well....what's $4k to you?

Nothing! Just think of the peace of mind it buys. For what's covered. What is covered?
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