How much does it cost the dealer to get CPO on the X5?

movva929 · #1 06-30-2008, 01:08 PM

I laid deposit on 2006 3.0 X5 Sterling Gray/grey 25K miles CPO for $30K with BMW dealerand yesterday with the help of carfax I determined that the dealer has bought it in auction and with the help of member blk133 we found that he bought it for $25K and just curious how much it would cost the dealer to get the X5 certified. I assume the total cost for the dealer is $25K+$500(auction cost)+$2500(for getting it certified)= $28K. I assume he is making a profit of $2K.
Just curious how much it would cost the dealer to get the X certified and can he certify a car which he bought in auction with average rating?

movva929 · #2 06-30-2008, 02:57 PM

Bump

motordavid · #3 06-30-2008, 04:26 PM

No idea, ever reading about the "cost" to CPO a car...from reading
here, and my "wonderful" experiences at Stlrs, I would guess they put
it on a lift, have a coffee, wash it and slap a CPO sticker on it. That
auction buy may induce that dlr to be more thorough in their "inspection",
or not.

Doubtful if they go through a thorough check list...since CPO is really
only "2 extra yrs or 100K miles total", I suspect they are betting nothing
huge goes wrong; they are reimbursed from BMW anyway, for repairs.

I really can't see a dlr "spending" $2500 worth of time/parts/stuff to
CPO a car...I'd lowball them and see what they say; BMW stlr lots are
packed with X5s, imo.
GL,mD

jvit27 · #4 06-30-2008, 11:51 PM

Quote:

Originally Posted by motordavid

No idea, ever reading about the "cost" to CPO a car...from reading
here, and my "wonderful" experiences at Stlrs, I would guess they put
it on a lift, have a coffee, wash it and slap a CPO sticker on it. That
auction buy may induce that dlr to be more thorough in their "inspection",
or not.

Doubtful if they go through a thorough check list...since CPO is really
only "2 extra yrs or 100K miles total", I suspect they are betting nothing
huge goes wrong; they are reimbursed from BMW anyway, for repairs.

I really can't see a dlr "spending" $2500 worth of time/parts/stuff to
CPO a car...I'd lowball them and see what they say; BMW stlr lots are
packed with X5s, imo.
GL,mD

Actually, BMW takes their CPO program quite seriously. The car has to meet a number of 'minimums' and the tech must sign his name on the inspection form - if there is anything that goes wrong, he is liable. There are many factors that can make a car ineligible to be CPO'd and the dealer must pay to bring it up to spec before it can be certified.

Dealer cost to CPO a car is between $1500-2000, depending on what model.

Wagner · #5 07-01-2008, 04:48 AM

Quote:

Originally Posted by avanti27

Actually, BMW takes their CPO program quite seriously. The car has to meet a number of 'minimums' and the tech must sign his name on the inspection form - if there is anything that goes wrong, he is liable. There are many factors that can make a car ineligible to be CPO'd and the dealer must pay to bring it up to spec before it can be certified.

Dealer cost to CPO a car is between $1500-2000, depending on what model.

Not entirely accurate. I've had two CPO'd vehicles, both of which had huge numbers of issues, nobody was held liable. The only person that took any flak was the salesperson and that was simply because BMWNA wanted to know why a CPO purchaser was complaining.

They do go through a comprehensive "list" and sign it, but that is about it.

jvit27 · #6 07-01-2008, 12:43 PM

Quote:

Originally Posted by Wagner

Not entirely accurate. I've had two CPO'd vehicles, both of which had huge numbers of issues, nobody was held liable. The only person that took any flak was the salesperson and that was simply because BMWNA wanted to know why a CPO purchaser was complaining.

They do go through a comprehensive "list" and sign it, but that is about it.

By liable, I mean if the car was signed off and something did not meet the criteria, the dealership can get flagged with NA and the tech who did the inspection will be in trouble.

I have many close friends that are bmw tech's, including master certification and shop foreman. To be CPO'd, the cars cannot have any paint or bodywork(minor touchups must be approved), minimum tire tread depth on OE approved tires(so even if the car has brand new tires, if they are not the OE ones the dealership must replace them), minimum brake pad thickness, no curb rash on the wheels, no aftermarket parts(if it does, the dealership must remove them and put OE components back on), under 50k mi, no scratches or rock chips, and if anything else is wrong with the car it must be inspected and repaired. Basically the car must be in identical condition to a new one besides the odometer.

There have been some dealerships in the past that certified non-eligible cars. Once NA found out, those dealerships were penalized pretty heavily so it's not just a quick wash and lookover.

Boston X5 4.4 · #7 07-01-2008, 12:59 PM

Quote:

Originally Posted by avanti27

By liable, I mean if the car was signed off and something did not meet the criteria, the dealership can get flagged with NA and the tech who did the inspection will be in trouble.

I have many close friends that are bmw tech's, including master certification and shop foreman. To be CPO'd, the cars cannot have any paint or bodywork(minor touchups must be approved), minimum tire tread depth on OE approved tires(so even if the car has brand new tires, if they are not the OE ones the dealership must replace them), minimum brake pad thickness, no curb rash on the wheels, no aftermarket parts(if it does, the dealership must remove them and put OE components back on), under 50k mi, no scratches or rock chips, and if anything else is wrong with the car it must be inspected and repaired. Basically the car must be in identical condition to a new one besides the odometer.

There have been some dealerships in the past that certified non-eligible cars. Once NA found out, those dealerships were penalized pretty heavily so it's not just a quick wash and lookover.

Maybe the dealership you have experience with is like that but this really is the exception rather than the rule. They will check certain things like tire thread, have cursory look at the brakes etc. ..... 'no rocks or chips' or 'identical to a new one' is not the requirement.

For those of you looking to get a CPO, I wouldn't let this dissuade you because it is still an OEM warrany covered by the mother ship and is certainly better than riding bare back without a warranty - just don't think that a CPO car goes through the full checklist or 'guarantees' anything like the brochure would lead you to believe.