Newb X5 shopper - CPO price questions

[Puddlejumper]

Originally Posted by X5 Meister

CPO from BMW is worth more than $2000. Say if you are the original owner and you buy their CPO for your car (called something else can't remember what) that retails for $3249.

I guess if it makes you warm and fuzzy otherwise its a rip off. Consider you just paid your 3249 price and you total it on the way out of the lot. I don't think the insurance company will even consider giving you that money. Its a bad investment.

[X5 Meister]

Huh? I don't get what you are saying. My point is simply that if you get a CPO car, the CPO wasn't $2000, but more like $3249. What it's really "worth" is debatable and has been a topic of half the threads on this board!

[HuskerX5]

OK,
Just bought a fully loaded CPO 2005 X5 4.4i in November with 28k miles. Window sticker was $66k when new, happy to post a photo. X5Meister is correct, the certification for the 4.4 X5 can be $3200 if they have to install new tires etc. Mine did not need tires as the Previous leaser bought new ones before turning it in,so it was closer to $2400 for the CPO. My deal was for $29k with the certification, $26,600 without. Also they added tint, clear bra, new summer and winter mats. Took advantage of BMW's 1.9% interest for 60 months and first two payments paid promotion.

For me, at the end of the loan I will be money ahead with the difference in the 1.9% and the almost 5-7% used car loans I was looking at with outside financing. That is including the Certification. Made total sense. Also, in my opinion, with vehicles that are this expensive and lose that much initial value in the first few years, if you don't buy the GAP insurance, you are foolish. $500 is nothing if you total out the vehicle like what puddlejumper described. This additional GAP policy ensures no matter what the difference (gap) between what you owe compared to what the totaled vehicle is worth, it is paid off and you are free and clear. It is tied to the overall loan amount, not the vehicle value alone. And yes, I sleep better at night knowing I have this coverage.

Just my experiences, and my $0.02

[jaylaforte]

Thanks everyone for your input. Definitely some good insight gained from this. I'm going to search the forum for opinions on the CPO warranty but as of now it seems to be a good idea to get the warranty with the costs of parts/labor. As enticing as saving several thousand dollars is by buying private party, I know I probably wouldn't be disciplined enough to put aside the money saved in case repairs were needed. I can think of the CPO warranty as a piggy bank...

Hopefully I'll be ditching my tC for an X5 soon!

[Ski-me]

As you can tell from the number of posts I have....I'm pretty new to the BMW arena. I do know Chevy Suburbans quite well though!

Anyways, I would also have to say the CPO is worth about $3,000 more than a thrid party purchase.

We just walked away from a sale because of the mechanical history on the vehicle. In awesome shape, just had some past history I didn't want to deal with.

At a BMW dealer:
2006, 4.4, Cold Weather, No NAV, No Sport edition, rear heated seats, heated steering, comfort seat option, rear sliding trunk, no door dings, and interior in great shape! 29,500 miles, CPO to 100k, price $33,500.

Although we returned the vehicle, I did learn that the CPO process costs the dealer about $2,000 plus any necessary equipment that may need to be added. The only thing I can think of would be tires. The 50k maintenance covers everything else (including brakes).

Hope this helps in your decision process. And yes, they push the financing because they make more money from the sale. Apparently, cash does not "talk" anymore with dealers.

[Puddlejumper]

Originally Posted by HuskerX5

OK,
Just bought a fully loaded CPO 2005 X5 4.4i in November with 28k miles. Window sticker was $66k when new, happy to post a photo. X5Meister is correct, the certification for the 4.4 X5 can be $3200 if they have to install new tires etc. Mine did not need tires as the Previous leaser bought new ones before turning it in,so it was closer to $2400 for the CPO. My deal was for $29k with the certification, $26,600 without. Also they added tint, clear bra, new summer and winter mats. Took advantage of BMW's 1.9% interest for 60 months and first two payments paid promotion.

For me, at the end of the loan I will be money ahead with the difference in the 1.9% and the almost 5-7% used car loans I was looking at with outside financing. That is including the Certification. Made total sense. Also, in my opinion, with vehicles that are this expensive and lose that much initial value in the first few years, if you don't buy the GAP insurance, you are foolish. $500 is nothing if you total out the vehicle like what puddlejumper described. This additional GAP policy ensures no matter what the difference (gap) between what you owe compared to what the totaled vehicle is worth, it is paid off and you are free and clear. It is tied to the overall loan amount, not the vehicle value alone. And yes, I sleep better at night knowing I have this coverage.

Just my experiences, and my $0.02

So now you paid more than its worth and you justify this by purchasing GAP insurance. So now your insuring the insurance policy for maintance. Yep, clear as mud.

[HuskerX5]

Pjumper, with all respect, in my opinion you haven't thought this through, nor do you know the full circumstances of my transaction. Allow me to "thin" the proverbial "mud" for you. The CPO certification is not like adding rustproofing, a dentless repair package, tire/wheel protection and other worthless "add-on" dealership crap at the time of sale.

The whole concept of the CPO program is you are, in essence, buying an extended warranty plan from the manufacturer instead of some independent provider. The independent annual warranty costs can eclipse the CPO Certification, in many instances, for the same coverage time frame. I am further guaranteed continued OE parts and BMW service where I might not if I bought plan "X". Bottom line, I WANTED the extended warranty and would have bought it anyway, if not available from BMW.

Buying my X5 with the CPO Certification I also took advantage of 2.9% BMW financing and the first two payments paid ($1,000+). NO bank was loaning anywhere near 2.9% for a "used" vehicle, so I also, after doing the math, am paying LESS OVERALL, than if I had bought it outright without $2400 CPO certification. Hell, subtract the $1,000 for the "2-payments" promotion and CPO was only $1,400.

Since numbers speak volumes, had I bought outright at $26,600 and acquiring a standard used car loan, between 5.9% and 7.9% at the time, I would have spent $2k to $3.5k in additional interest over the life of the loan not choosing CPO and BMW Financing. No matter how you add it up...less is less.

As for the $500 GAP insurance, how is guaranteeing full payout/payoff of my loan, should I incur a total loss, a bad thing? What is the downside? If I had gotten in a wreck on the way off the car lot after signing the papers, or even tomorrow, and the vehicle is a total loss, it would be paid off fully and I start over clean with no residual debt. I am only out the $500 for the policy. Of course this policy only makes sense when you are upside down on your loan to vehicle value ratio.

Lastly, I do not think $26,600 for a 2005 4.4i with 28k miles was too much to pay. I know the original owner personally (fellow BMW CCA member), know the mechanics at the dealership that maintained it since day one, I saw/rode in it on a regular basis and it was in brand new condition. How much is that worth?? To me $26,600 plus CPO certification apparently.

[meandmyX]

i picked up my 05 black, "meticulously taken care of", engine/ engine bay you could eat off of, 58,500miles (all highway) for 21,500 no warranty

[X5 Meister]

Today? Post some pics.

[HuskerX5]

Originally Posted by meandmyX

i picked up my 05 black, "meticulously taken care of", engine/ engine bay you could eat off of, 58,500miles (all highway) for 21,500 no warranty

Again, that is a good deal if it is a 4.4i, and depending on the options it has. If it is a 3.0i, then maybe not as much a good deal, but more in line. Without knowing these vehicle details, within your post, it really is impossible to judge. Now if it was a 4.6is, you got a smokin deal. I have been around enough to know, there is compromise in every deal, buyer or seller. How much compromise, big or small, you can live with is the true decision.

The bottom line is, are you happy with the deal? Are you confident in your purchase decision? If so, who cares what anyone else thinks. Go out and enjoy that thing.