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  #1  
Old 01-09-2014, 11:52 AM
zeddy zeddy is offline
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New CPO warranty rules as of 1/1/2014?

http://www.bmwusa.com/standard/conte.../warranty.aspx

Quote:
New, as of January 1, 2014, the BMW Certified Pre-Owned Protection Plan and the BMW Certified Pre-Owned Elite Protection Plan are not transferable from the original pre-owned vehicle owner or lessee to each subsequent owner or lessee unless the subsequent retail has been performed by an authorized BMW Center.
2 questions:

1. To confirm, this means that CPO only stays with the car if it is subsequently (after it was originally CPO'd and sold to the 2nd owner) sold by an authorized BMW center.
1a. example: lease return to Pacific BMW, Pacific BMW CPOs the car and sells to 2nd owner. Only way CPO remains on the car is if the 2nd owner trades the car into Pacific BMW (or another BMW dealership) and the car is then resold by the BMW dealership.
1b. does this mean that the BMW dealership must recertify CPO?

2. For cars that underwent the CPO process prior to 2014, will the CPO warranty still stay with the car regardless of ownership?
2a. example:
i. 2009 e82 purchased CPO from dealership in 2011. CPO warranty expires 2015 (4 years original warranty plus 2 years CPO extended). The car was thus "CPO'd" in 2011
ii. 2012 car is sold by 2nd owner (person who purchased it as CPO) to the 3rd owner via private party. Car is still CPO per BMW.
iii. 2014 car is sold by 3rd owner to 4th owner. Is the car still CPO? Does BMW automatically terminate the warranty?

My thoughts in defense of BMW regarding the new rule change: BMW has no control over what has happened to the car while under possession of the 2nd owner who has CPO. If the car is subsequently resold X times after it has been CPO'd, who knows what may have happened to the car that may impact the need to exercise the warranty.

My thoughts condemning BMW's new rule change: Pure money grab by BMW. CPO can only be purchased through a dealer going forward. Buyers who paid the premium for CPO and later have to sell the car get ZERO back on that premium. When purchasing an extended warranty for a car, the warranties are typically transferable and thus may have a "residual value", or refundable for the portion used. The CPO warranty is a one time down payment (or rather, premium to the purchase price) that no longer has a residual value as the 2nd owner gains nothing by informing potential buyers the car comes with a BMW warranty (because it no longer does).
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  #2  
Old 01-09-2014, 12:46 PM
chrischeung chrischeung is offline
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Quote:
Originally Posted by zeddy View Post
http://www.bmwusa.com/standard/conte.../warranty.aspxMy thoughts condemning BMW's new rule change: Pure money grab by BMW. CPO can only be purchased through a dealer going forward. Buyers who paid the premium for CPO and later have to sell the car get ZERO back on that premium.
Doesn't this actually hurt the value of BMW CPO cars? Granted this will likely turn into one of those "I didn't know that" fine print items, but for those in the know, wouldn't they generally be willing to pay less for a CPO because of this stipulation? This in effect hurts BMW and it's dealers? Higher selling prices and retained values actually benefit a brand more than the opposite.

I'm more inclined to think the change was brough about due to issues with claims after resales.
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  #3  
Old 01-09-2014, 02:40 PM
brosher brosher is offline
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Buying CPO cars from the second owner has always been a great deal. CPO buyers will certainly have to take a bigger depreciation hit selling before the end of the CPO warranty.
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  #4  
Old 01-10-2014, 10:47 AM
LivinSD LivinSD is offline
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Totally up to BMW how they want to handle it. But from my viewpoint, it's a good reason not to buy CPO and buy aftermarket warranty like route 66 instead, since most transfer to a new owner with just a $50 doc fee.
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  #5  
Old 01-10-2014, 11:02 AM
Fespo276 Fespo276 is offline
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To be honest, I always thought it seemed odd that when I bought a CPO'd 335 from its "third" owner (a random Audi dealership who took it on trade from its second), I was able to drive to the nearest BMW dealership and get a bunch of "free" service and maintenance!! The Audi dealership did not advertise it as such, and I was not even aware it was a CPO when I bought it.

So, I was in essence four times removed from the original purchase, and was still able to extract from BMW thousands of dollars in free service. Just seemed like a deal that was a bit too good to be true, or sustainable by BMW over the long term.


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Last edited by Fespo276; 01-10-2014 at 11:03 AM.
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  #6  
Old 01-10-2014, 11:33 AM
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Campfamily Campfamily is offline
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Be interesting to see if other manufacturers start doing this as well......if not, then the perceived value of a CPO BMW versus other Pre-Owned plans will go down significantly. I just bought a CPO Nissan last July, and the extended warranty is transferable to another owner should I sell the vehicle.

As far as the subsequent owners getting "free" stuff, that's not entirely true. Somebody paid for it, theoretically the original CPO owner who paid more for a car that included that benefit. Otherwise, wouldn't that person be entitled to a refund for the warranty and/or maintenance that isn't used? Also, as far as additional wear and tear of multiple owners, how is that any different than wear and tear from the original CPO owner? It sounds like the argument is that BMW needs to examine and re-certify the car when ownership changes, which doesn't make any sense. Shouldn't matter if 1 person or 10 people have owned the car, a warranty is a warranty. The only real cost when ownership changes is the paperwork transfer.

EDIT: originally typed this before I looked at the link on the BMW website, and upon subsequent investigation, saw that the CPO warranty is transferable from private seller to private seller, for a $200 fee, and a cert that the car has not been totalled. The prohibition seems to be only if the vehicle is sold to a dealer for subsequent resale; if that happens, the CPO doesn't transfer.

Also, appears that BMW now has two tiers of CPO, they've created a "CPO Elite" for vehicles under 15K miles.

Keith
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Last edited by Campfamily; 01-10-2014 at 11:40 AM.
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  #7  
Old 01-10-2014, 12:31 PM
flaggrad00 flaggrad00 is offline
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Wow, can any dealers comment on this? Maybe not since its probably not a good idea to bash bmw on a public forum. I was mildly entertaining the idea of a CPO 335, but why would I pay the extra for a CPO when if i decide to sell it the CPO is non-transferable and basically worthless? I don't think they can retroactively change the CPO warranty on cars that have already been bought though. Not sure what BMW is thinking on this one, sooner or later even non-enthusiast buyers will catch on and the take rate for the CPO's will drop significantly.
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  #8  
Old 01-10-2014, 01:46 PM
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Quote:
Originally Posted by zeddy View Post
http://www.bmwusa.com/standard/conte.../warranty.aspx



2 questions:

1. To confirm, this means that CPO only stays with the car if it is subsequently (after it was originally CPO'd and sold to the 2nd owner) sold by an authorized BMW center.
1a. example: lease return to Pacific BMW, Pacific BMW CPOs the car and sells to 2nd owner. Only way CPO remains on the car is if the 2nd owner trades the car into Pacific BMW (or another BMW dealership) and the car is then resold by the BMW dealership.
1b. does this mean that the BMW dealership must recertify CPO?

2. For cars that underwent the CPO process prior to 2014, will the CPO warranty still stay with the car regardless of ownership?
2a. example:
i. 2009 e82 purchased CPO from dealership in 2011. CPO warranty expires 2015 (4 years original warranty plus 2 years CPO extended). The car was thus "CPO'd" in 2011
ii. 2012 car is sold by 2nd owner (person who purchased it as CPO) to the 3rd owner via private party. Car is still CPO per BMW.
iii. 2014 car is sold by 3rd owner to 4th owner. Is the car still CPO? Does BMW automatically terminate the warranty?

My thoughts in defense of BMW regarding the new rule change: BMW has no control over what has happened to the car while under possession of the 2nd owner who has CPO. If the car is subsequently resold X times after it has been CPO'd, who knows what may have happened to the car that may impact the need to exercise the warranty.

My thoughts condemning BMW's new rule change: Pure money grab by BMW. CPO can only be purchased through a dealer going forward. Buyers who paid the premium for CPO and later have to sell the car get ZERO back on that premium. When purchasing an extended warranty for a car, the warranties are typically transferable and thus may have a "residual value", or refundable for the portion used. The CPO warranty is a one time down payment (or rather, premium to the purchase price) that no longer has a residual value as the 2nd owner gains nothing by informing potential buyers the car comes with a BMW warranty (because it no longer does).
In my opinion, seems like another sales tactic that BMW is using.
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  #9  
Old 01-10-2014, 01:48 PM
zeddy zeddy is offline
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Quote:
Originally Posted by Campfamily View Post

EDIT: originally typed this before I looked at the link on the BMW website, and upon subsequent investigation, saw that the CPO warranty is transferable from private seller to private seller, for a $200 fee, and a cert that the car has not been totalled. The prohibition seems to be only if the vehicle is sold to a dealer for subsequent resale; if that happens, the CPO doesn't transfer.

Also, appears that BMW now has two tiers of CPO, they've created a "CPO Elite" for vehicles under 15K miles.

Keith
Keith,

Good observation, it appears that they've edited the website and revised the language regarding CPO transferability. The quote in my original post was copied directly from the website, which now reads as follows:

Quote:
For Certified Pre-Owned vehicles retailed on or after January 1, 2014, the BMW Certified Pre-Owned Protection Plan and the BMW Certified Pre-Owned Elite Protection Plan are not transferable except within the BMW authorized dealer network or subject to the following condition:
The following condition references a Limited Warranty Transfer Application form, which allows the CPO to follow the car only in the following situations:

1. Private seller to private buyer
2. $200 warranty transfer fee PAYABLE TO BMW of NA (as you pointed out)
3. Notarized seller statement affirming the vehicle is CPO
4. Dealership participation is excluded
5. Buyer must complete transfer within 60 days of vehicle sale.

For cars that were CPO'd prior to 1/1/14, these rules don't apply, which makes sense. The new CPO rules, tiers, and now the CPO Wrap (where you can add an additional year of coverage, or increase your coverage to include audio/navigation aka Platinum warranty), it looks like BMW is becoming a full service warranty provider.

I wonder why they released the initial website language only to substantially revise it a few days later.
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  #10  
Old 01-10-2014, 02:12 PM
Robert A Robert A is offline
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The "private to private" provision isn't so bad. I always sell my cars privately anyway. However, the $200 transfer fee is rather stiff.
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  #11  
Old 01-12-2014, 04:34 AM
brosher brosher is offline
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I'm glad they added the private party transfer. Setup this way it actually benefits the original CPO buyer who needs to sell. There will no longer be loads of CPO cars on eBay and at non BMW dealers to compete with.
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  #12  
Old 01-15-2014, 05:26 PM
iansanderson iansanderson is offline
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I see this as two things: First, cost savings. Second, a jab to non-BMW car dealerships receiving the marketing benefit of selling vehicles with BMW CPO's. It kind of rounds up CPO resales to only BMW dealerships and savvy private sellers.

$200 is still worth it for CPO by the way. My friend bought a used '05 530i from a Chevy dealership in 2010 and I discovered it had CPO *and* MP! The final bill after 2 visits was $6800.. and that was at WARRANTY rates!
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  #13  
Old 02-05-2014, 10:56 AM
PilotAce PilotAce is offline
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So... would any of you buy a previously CPO'd car on 5/2013, today, from a non-BMW dealership??
Again, this was 1st CPO'd prior to 1/1/2014. The used car dealership selling to me is advising me to bring it to a BMW service center the day I get the car (from out of state) and have them put MY name in the computer system for that VIN...

The three local BMW dealerships in the chicago suburban area says CPO follows the car, but who knows if the service & finance managers actually read any memos from BMWNA over the holidays.
BMW NA office is closed today due to weather conditions out East...
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  #14  
Old 02-05-2014, 11:19 AM
timsev timsev is offline
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One of the main reasons BMW has done this is to exclude 3rd party dealers from taking advantage of CPO cars. We run into this a lot and BMW's new guidelines are helping us tremendously. There are several used car dealers in my area that have a habit of buying CPO cars at auction, regardless of condition and prior maintenance. They tell their customers that the car has a warranty, and expect us to pick up the tab when the car breaks down. They are using CPO as a benefit, without doing any of the work. Customers get denied warranty work because the car is junk, and they get angry at BMWNA.

When a private seller or 3rd party dealer uses the term "Certified" and the car isn't up to standards, it cheapens the brand. Many people think CPO is just an extended warranty. They don't realize all the work that goes into a car qualifying to be certified.

The CPO Elite is meant for ex service loaner cars and demos. It closes the gap between new and CPO cars. It will really help out some of the bigger dealers that have tons of service loaners.
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  #15  
Old 02-05-2014, 11:22 AM
timsev timsev is offline
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Quote:
Originally Posted by PilotAce View Post
So... would any of you buy a previously CPO'd car on 5/2013, today, from a non-BMW dealership??
Again, this was 1st CPO'd prior to 1/1/2014. The used car dealership selling to me is advising me to bring it to a BMW service center the day I get the car (from out of state) and have them put MY name in the computer system for that VIN...

The three local BMW dealerships in the chicago suburban area says CPO follows the car, but who knows if the service & finance managers actually read any memos from BMWNA over the holidays.
BMW NA office is closed today due to weather conditions out East...
Call BMWNA and ask them. Don't take anyone's word for it.

Last edited by timsev; 02-05-2014 at 11:24 AM.
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  #16  
Old 02-06-2014, 08:22 AM
PilotAce PilotAce is offline
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I just got off the phone with BMWNA and spoke with "Kyle". I asked generically about the situation, car was CPO'd 5/2013 at BMW dealership, sold to 2nd owner, then then sold back to a non-BMW dealership just 4 months later. Not advertised as CPO now, but wondering if the CPO status would stay if non-BMW dealer sells it to me now, in 2014.

I got a bit nervous when he asked me for the VIN (because they could then change it to non-CPO right then if they wished) and put me on hold to double check with someone....

After 2 minutes, he got back on the phone with me, saying because it was already CPO before the 1/1/14, it would stay CPO even though outside BMW network. Also told me that I should call them after I buy the car and have the ownership set for myself, etc. I suppose I'll need the title in hand, which will be mailed to me after the bank $$$ transfer occurs. Maybe the title will arrive before the car gets shipped from Texas, though!

In the end, 4 local dealerships say it's OK, but checking with BMWNA helps tip the scale in favor of buying this car. Though, I'm probably screwed after CPO expires in 9/2015....
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