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In my own little world
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Discussion Starter #1
So I have my search going for a MY 2014 or later 640i xDrive GC. My current question is should I be looking exclusively at CPO or also at 2nd line dealers (e.g. Audi, MB, Subaru, Lexus etc) who may have had one either traded or purchased from auction to flip?

The car will be under new car warranty (looking at <40k at most, preferably <30k) but trying to figure out if the potentially $5k-10k will be worth it for going CPO? What are the real benefits? I know I get a longer warranty (becomes 6y/100k from new?) but I can buy that as an extension to the new car warranty for x dollars? How much is x likely to be? Would probably want 7/70k instead to be honest.

Any other concerns for non-CPO or big advantages of CPO? Maintenance package?
 

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I expect varying opinions on this.

I bought my 2012 X5d CPO with 36k miles (current mileage 48,000k) and on top of that, I pay an extra $2.5K extra every year for the BMW maintenance/warranty upgrade. I just renewed it this week and it covers me an additional 50k miles or two years--whichever comes first.

I amass a minimum 300 miles per week, and, knowing how expensive this vehicle is to buy/maintain/repair, I want to feel like when (not if) repairs are needed, there's a good chance it'll be covered. A single repair can easily run hundreds of dollars and in my opinion the dealer is always looking for ways to get AROUND the warranty (more $$$). I want to have as much peace of mind as possible knowing that I won't have to make a scene at the dealer when they try to charge for me for service/repair costs.
 

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In my own little world
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Discussion Starter #3
Yeah. But the real question here is if I really need CPO for that. As I am looking at MY14 I believe even the 4 year / 50 k maintenance package is transferrable to me along with the new car warranty. I can then obviously extend it. As I see it the only plus for CPO is the included 2 extra years and miles, but not sure what the dollar value on that really is.
 

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Only the original owner can extend the warranty to 6/100k (and 7/100k).
So if you are buying used, it's either the basic 4yr/50k or a BMW CPO.

Additionally, if you buy certified and almost anything is not working, it will get fixed for free (or $50 deductible).

I always get CPOs, whether it is to keep them longer before they start costing more than I am willing to pay for maintenance, or to sell at a higher value, I can't think pf buying a car other than certified by its manufacturer (I can't deal with 1st owner depreciation either).
 

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In my own little world
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Discussion Starter #5
Interesting, I did not know about the extended warranty only being for original owner, even on 2014. That makes a huge difference! I've always bought CPO in the past if buying used, but it has been a while (been on leased cars for the last 6 years)
 

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In my own little world
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Discussion Starter #6 (Edited)
Are you 100% sure on the non-CPO extended warranty?

The PDF linked to here on the BMW site says "PLATINUM (New, used, and CPO BMW)" for example, or "GOLD (New and used BMW)" and "CONTINUED COVERAGE FOR YOUR NEW, USED, OR CERTIFIED PRE-OWNED BMW."

So that seems to indicate it does not have to be CPO?
 

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Lease return-CPO?

How does it work if you're returning a leased car? Do they charge you a fixed fee for CPO and for the maintenance? How negotiable is the residual?
 

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This appears to be more complex than what seems indicated in the service coverage and warranty descriptions. After having researched more extensively, here are my findings:

New Vehicle Warranty, Original Maintenance and Extended Maintenance used to transfer relatively easily from one owner to another.

In order to help reduce costs, BMW has tightened transferability recently. In their defense, a vehicle that changes hands may no longer be in the same condition as with the original owner, and I do understand the need to increase profit margins as well.

With that said and if BMW is reading this, I would greatly prefer a stringent transfer process, requiring to go to any local Authorized BMW Center, and go through a paid and thorough inspection process for this transfer to take place - up that $200 fee a bit, and further help BMW customers resell their pre-enjoyed vehicles, along with the maintenance contracts.

BMW restricted CPO transferability for any vehicle that received CPO after 01/01/2014, and Maintenance transferability for any MY 2015 (produced on or after 07/01/2014)

Please note, these are the overall guidelines as far as I understand them, and exceptions may arise, although BMW NA may refuse transfers as per the below - they may also accept transfers at their own recognizance.
Please also note this applies to USA only and it appears the rest of the world have differences, including Canada.

To make it simpler to understand, attached are a comprehensive breakdown, for both New Vehicles and CPO Vehicles.

=======================
Additional information and sources:

"All transactions related to the BMW Extended Vehicle Protection program are governed solely by the provisions of the program agreement. See your actual agreement for details of coverage, as well as terms, conditions and costs"


http://www.autoblog.com/2014/08/12/bmw-maintenance-plan-no-longer-transferrable-to-2nd-owner

PRESS RELEASE
The BMW Maintenance Program
For model year 2015 or later vehicles sold or leased by an authorized BMW center on or after July 1, 2014, BMW Maintenance Program coverage is provided for the exclusive benefit of the initial purchaser, owner, or lessee of a new vehicle, sales demonstrator vehicle, Aftersales Mobility Program (AMP) vehicle, or BMW Group company vehicle from an authorized BMW center in the United States (including Puerto Rico). Accordingly, BMW Maintenance Program coverage, with one exception, is not transferable to subsequent purchasers, owners, or lessees. The sole exception to the non-transferability of BMW Maintenance Program coverage is that household transfers - transfers within the United States (including Puerto Rico) to members of the household of the initial purchaser, owner, or lessee of a BMW vehicle from an authorized BMW center - will not terminate BMW Maintenance Program coverage. Household transfers are limited solely to transfers to a current or former spouse or spousal equivalent, child, sibling, parent, grandparent, or grandchild from the initial purchaser, owner, or lessee of a vehicle. In the event of a household transfer, purchasers, owners, or lessees of a BMW vehicle should promptly advise their authorized BMW center to document and confirm the household transfer for purposes of BMW Maintenance Program coverage. The payoff of a loan on a vehicle by the initial purchaser and the purchase of a leased vehicle by the initial lessee are not considered transfers for purposes of BMW Maintenance Program coverage.

http://thegarage.jalopnik.com/bmw-will-un-certify-your-cpo-car-if-you-dont-purchase-1599883541
http://www.bimmerfest.com/forums/showthread.php?t=745828
http://www.bmwusa.com/standard/content/cpo/warranty.aspx

"The Certified Pre-Owned BMW Protection Plan and the BMW Certified Pre-Owned Elite Protection Plan provide specific coverage against defects in material and workmanship; the plan is not a Maintenance Program"
"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:
Private to private consumer transaction, see Limited Warranty Transfer Application."


http://www.bmwusa.com/Standard/Content/bmwmaintenanceprogram.aspx?mobileoverride=true
 

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CPO and buyout at end of lease; make sense?

This was tremendously helpful. Now, the main question is the process the dealer goes through at the end of the lease if you want to buy the car out. Do they have to "CPO it" and, if so, is there a fixed cost for that? Also, do they offer to continue the maintenance per the existing standards and how do they arrive at a cost for that? In conjunction with this, if the dealer can in fact negotiate the residual buyout price, then the difference can be taken up with the CPO Warranty Extension and the continuation of the maintenance. At that point, it does make a lot of sense to purchase the car out of the lease because the owner maintains the same peace of mind for the extension period, the period where it is more likely that something will go wrong. If the car was leased right and the owner took good care of it during the lease period, then there are a lot of good incentives to buy it out if the prices are right.
 

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Regarding transferring the original 4yr./50K maintenance after 7/1/2014; this can be done if you purchase from a BMW Dealership, it's called a refresh and costs the dealer around $200. They will try to mark this up so negotiate wisely. I just did this on my 2015 640i GC purchase.

The other item to keep on mind is the tire and wheel insurance which can be transfered but it's the original purchaser who owns the policy, not the dealer so this is not always easy.

Sent from my SM-G928V using Tapatalk
 

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In my own little world
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Discussion Starter #11
Geek - Excellent writeup, many thanks!
 

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Discussion Starter #12
So I had sent a mail to BMW NA Customer Service and this is the reply:

Dear Kryten:

Thank you for writing to BMW of North America, LLC regarding warranties. We appreciate your inquiry.

Models retailed before July 1, 2014 have BMW Maintenance Programs that are transferable.

The BMW New Vehicle Limited Warranty covers defects in materials or workmanship for the first 4 years or 50,000 miles, whichever comes first. The BMW is protected during the coverage period, regardless of whether you are the first owner or a subsequent owner.

All three of our extended coverage options are available for purchase prior to the new vehicle warranty expiration at 4 years or 50,000 miles (starting from the vehicle***8217;s original in-service date). To help you determine which coverage is right for you, you can view a coverage guide and download a brochure at: http://www.bmwusa.com/Standard/Content/Owner/BMWUltimateProtection/ExtendedVehicleProtection.aspx

Should you wish to purchase extended vehicle coverage, we suggest contacting the finance team at your authorized BMW center. The finance team can also provide you with third-party options should your vehicle no longer qualify for the BMW Extended Vehicle Protection program. For your reference, a list of our authorized BMW centers can be found on www.bmwusa.com; simply select the ***8220;Find a Dealer***8221; link located at the bottom of the page.

For your convenience, the BMW Customer Relations and Services Department is available Monday through Thursday from 9:00 a.m. to 9:00 p.m. ET and Friday from 9:00 a.m. to 6:00 p.m. ET. You can reach us at 1-800-831-1117.

We hope you find this information helpful.

Sincerely,

NAME REMOVED
Customer Relations and Services
Representative

BUILD YOUR OWN ULTIMATE DRIVING MACHINE.
Design the BMW of your dreams at www.bmwusa.com.

-----Original Message-----

From: kryten's email address
Sent: 9/26/2016 12:00:00 AM
To: [email protected]
Subject: Extending original warranty on non-Certified Pre Owned vehicle

I am currently looking at purchasing a pre-owned BMW 640 xDrive Gran Coupe and looking at 2014-2015 model year. I am wanting to know the following for both purchasing certified pre-owned and from a non-BMW CPO Dealer:

For MY 2014 cars:

Is both the new car warranty and the 4 years maintenance transferrable? I am aware from MY 2015 that the maintenance is non-transferrable, but I believe that for 2014 it is?

For MY 2015 cars:

Is the new warranty transferrable?

For both, am I able to purchase the Gold or Platinum extended coverage packages if the car is purchased from a non-BMW CPO Dealership?

Regards,

Kryten
So there was no mention that this could not be done if you purchase a non-CPO car. Now I am confused again!
 

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I think you're over-complicating things, Kryton. Forget what everyone else wrote and focus on what the BMW rep told you. You want to buy a BMW warranty, you can as long as the original 4 yr/50K warranty has not expired. That's what I got out of it.

The other stuff doesn't apply to you, since you are not a current lessor. Or lessee. Whatever.

Based on your original question, I'll suggest that if you buy a CPO car from a BMW dealer, that is preferable to buying a car at Lexus that was bought at auction. The auction cars are generally (if < 4 years old) sold by BMW Finance or a BMW dealer that took it on trade, and for whatever reason they can't or won't CPO the car and are dumping it.

The exception would be a Lexus dealer that took it in on trade. That may be OK. Carfax is your friend to figure out which it is.

Me personally, I don't like warranties that I have to pay for, be it CPO or aftermarket, but then I don't keep cars real long anyway. But I figure the odds are with me, since they do make money on warranties. But if you're not comfortable with taking a chance on a multi-thousand dollar repair that may crop-up, then by all means, buy a warranty!
 

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In my own little world
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Discussion Starter #14
Thanks! The general cost of repairs is not the issue, it is the res of them happening on what would originally be around a $100k car after 4-7 years old. CPO would solve that and is my preference. I have seen several cars that this CarFax shows they were CPO but did not sell so went to auction, or that they were lease return that went to a 3rd party dealer via an auction. Some have been traded in (e.g. ones I have seen at Porsche, Audi, Lexus, Merc dealers etc) but those are fewer as I imagine several of those dealers also have BMW dealers in their local group and would send then there for higher profit margin?
 

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Yeah. But the real question here is if I really need CPO for that. As I am looking at MY14 I believe even the 4 year / 50 k maintenance package is transferrable to me along with the new car warranty. I can then obviously extend it. As I see it the only plus for CPO is the included 2 extra years and miles, but not sure what the dollar value on that really is.
Hi Krysten,

So I've owned 2 BMWs 2004 E60 and currently a 2016 F06 ( ironicly from the same dealer) neither was CPO but they were all 1 owner leased and I got them both at ~13K miles and was still covered by 4/50. BMW's 4/50 maintenance warranty was/is amazing for me. I owned my E60 for over 7 years kept up up with the warranty maintenance and then paid out of pocket (mostly oil changes) when warranty expired without a hitch. Traded in E60 for Audi Q5. My experience with other car manufacturer 4/50 maintenance warranty had not been close to BMW's. Hence when I was looking for second car is why I bought F06 last week. That and oh did I mention BMW just make great cars! ( this is after test driving 45 and 63 AMGs and Maserati Ghilbi and QP and months of contemplation) BMW won again -just my opinion-
 

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Here is my opinion, though it is probably too late for your decision. Please see my post Laurel BMW of Westmont issue with CPO car

I think the idea of the CPO program is great, but it can fail miserably if the dealership doesn't uphold their end of the deal. Extended warranty doesn't matter one iota on items that should have been inspected, but are not normally covered on the warranty. The only thing that matters is a reputable dealership, and in my situation, they have failed miserably. Also, it should not be incumbent on the buyer to go have the car inspected again before making the purchase.
 

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In my own little world
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Discussion Starter #17
I have settled on CPO only. Still looking for my unicorn though. Hoping to get one by end of month, otherwise got to put tires on and service gf's car that we are trading/selling and that will put the hunt on hold for a few months so can recoup the cost there somewhat.
 

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In the same boat. I'm shopping around for a '14 640/650. Still indecisive regarding CPO. My current car has the N55 and was a CPO which was relatively low maintenance but I do remember my air con went out twice and the drivetrain malfunction appeared, both situations after the original warranty had expired so CPO saved my thousands in repair.
 

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Just joined the F06 club! Found a 14 CPO 650i in Carbon Black with black interior and BO system. Hard car to find in the northeast. Was only looking at CPOs. Good debate on CPO here, I view it similarly to insurance
 

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Just joined the F06 club! Found a 14 CPO 650i in Carbon Black with black interior and BO system. Hard car to find in the northeast. Was only looking at CPOs. Good debate on CPO here, I view it similarly to insurance
Nice. I guess, depending on the mileage but what price range do you think would be fair for either a 640 or 650 CPO? Around here in Southern California, a 640 CPO looks to be around $49k and a 650, around $53k, for Msport. Non CPO's from rando car lot are about 3-4k less.
 
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