Negotiating a CPO At The Dealer

[heatmizr]

You were told a Total Lie. One year ago I got a 2012 CPO model reduced $1,400. Just by asking.

The advertised prices on the CPO site are set by the individual dealers making the sale. Its totally up to the dealer selling it if they want to deal or not.

I had talked with the sales rep for a bit, he knew I was serious. I was paying cash, so they weren't getting any financing out of me (though I can't recall if I told them that before hand or not). This was a long-distance deal so I had him send me extra pics from his cell phone, above what was on the CPO website. The vehicle was low-mileage, and CHERRY; but also overpriced in my mind.
After I had all my questions answered I told him I would make an official offer; I wrote an email with what I wanted to pay. He sent me a reply the next day full of a bunch of BS that he had to pull for me with the sales manager, and they thought the car was worth more, blah blah, but in the email he accepted my offer. I still paid more than most would have, but that was my choice to get such a nice vehicle. Besides, the major work for the Customer Care package had been completed by them and brand new tires installed to boot, to ready it for sale.

All that said, the above comments are accurate, about this being a seller's market, so if you get any reduction in your bargaining, consider that decent.

Oh, final note, the vehicle had a year left in the factory warranty, and the CPO hadn't even started yet, so I chose NOT to get it inspected by an indie shop. I DID ask for and review all the CPO inspection paperwork though. Its fairly thorough.

[Jyohay]

couple things
1. CPO is def worth it, the n55 and N63 engines do have their stupid problems.
2. there is not alot of margin in used cars anymore because of the internet....especially with CPO. your expectation of them coming down $2000 is way off. your lucky to get the $500 off.
3. They cannot CPO the car if the tires are too low, so if it passed CPO, they arent going to just throw in new tires.... as the truck doesnt need it.
4. The computer tells them when the truck needs new brakes, they wont just change them under CPO. brakes are included in the maintenance of CPO.... so why not just get them when the car needs them

[Proflyer]

How did you come up with $2000? Is that research based or did you just think it sounded like a good number?

A good friend of mine's family owns a large auto group here in Denver and their flagship store is BMW. With the advent of this thing called the internet the days of 'marking it up to mark it down' are over. They'll get zero views. Auto search sites comb their listings and it's too easy to 'sort by price' anymore. Margins are very thin. They look at each lease return and then determine if adding the CPO is a good call or not--each car is a bit different. The CPO costs a bit of money (1500+ I think) so it's a call they have to make, but to just think that you need 5% off without any reasoning is callous.

Now, that doesn't mean you can't negotiate a deal. Will they be your servicing dealer? That is actually HUGE now. Their entire service department is employed due to CPO, so if you'll bring it to them for all the covered repairs and maintenance then that's some extra money they'll be able to make and they'll be able to keep their guys employed.

Do you have a trade-in? Honestly, they likely don't want it unless it's a BMW or something very new and in high demand. You might be able to get a little more $ out of your trade, but the net figure is what matters anyway. Killing you on the trade is where they'll make their money NOT on the price of the CPO.

[Kostyan]

I got a CPO and order a third party pre-purchase inspection where a local guy came to the dealership and personally inspected it. Just search on the internet for provider and it is doable.

In my situation where a search took well over 6 months, the dealer discounted somewhere in the neighborhood of 1500-2000 for what I consider a high demand model. Got my X5 from Palm Beach FL trucked in to Baltimore MD without seeing it in person.

[ard]

Originally Posted by thesurg3on

I'll be honest. I'm new to the community, a new future BMW owner, and this is my first time buying a car from a dealer.

What kinds of things can I negotiate with the dealer on a Certified Pre-Owned? Should I demand new tires, brakes, and stuff like that?

I am going to have a third party mechanic review the car even though it is a CPO.

Also, the dealer told me that the internet price from BMW.com >> Certified Pre-Owned in my area is not a negotiable rate. He said, "these things are a commodity, and you wont find any dealer around us that will budge on the price on a certified pre-owned".

I'm in technology sales at a large Fortune 100, and we get beat up on price all the time. Is his statement true? I think he knows I want a CPO X5 2013 Badly. I mean, at the end of the day, if he won't come down $2,000, I won't do the deal. Am I being too strict? Are dealers flexible? Its a 35i Premium, 29K Miles, $39.8K.

I appreciate any help in navigating this transaction.

well, they do say salesmen make the best customers....

As was said earlier, letting them know you want it will cost you dearly.

They DO NOT CARE if you buy the car....they know if they drop it $5k in two weeks it will be snapped up, so they are more than happy to brutalize you for the next 13 days at their asking price.

The more you engage with them, the less they will flex.

Everything is negotiable- BUT...if you were to call him and say "bought one elsewhere, they gave me $2k off", he'd say 'good for you' and immediately think about the next buyer.


Also you cannot 'demand' new tires, stuff like that. If it meets the CPO criteria, thats that. I suppose you can demand new tires and they'll say 'sure, for $1500 more'

Originally Posted by thesurg3on

My fear is that is a private party, I am spending too much time hunting, and taking it to a private mechanic for verification (costs that can add up at $175/check)...

Most of my BMW friends and work colleagues tell me to go CPO all the way just because of the maintenance. But at the end of the day, computers and programming are my thing and not cars...

Huh. So here is that odd contradiction: too busy making bank selling fortune 100 product to be able to shop private, but $2k on the deal is a dealbreaker? Just saying. Personally I can afford to write checks for new cars, yet I will still shop private sales, do the leg work, and set prices which are based on my own valuation. My point is not to be snarky, but understand what your real motivation is...IMO you are buying into the big lie of the CPO: that is is somehow a careful refurbishment of the car to factory standards and represents a 'cut above'... you want to mitigate your risk by buying a CPO, (because you are a bit out of your technical comfort zone), which is a false proposition. Its a nice used car with tires and brakes over 50%. (and a BMW Gold Plan warranty added on)

And I have no idea what your friends are talking about with CPOs and 'just because of the maintenance'


People here are car guys, not computer and software guys...listen to them.



Finally, the best way to get a great price? Know what you want; know the market value; be prepare when it pops up: private or CPO. Offer what its worth. Dont care where you buy it, and be patient. If you dont have the luxury of time, pay asking (or close to). Pretty simple at the end of the day.

[thesurg3on]

Thanks Ard for your advice. Actually, too much time as in, I have a newborn baby, lack of sleep and scouring the web and going to multiple private sellers took away from family time.

[thesurg3on]

A funny thing happened. So I was test driving this CPO, and the blinking AC did not work. It was a hot day. I said to the dealer, what would have happened if we were test driving in the Winter and what is not cold now felt cold in the winter, and I noticed this wasn't working in the summer. He said, well, you would be on the hook for it; not the dealership.

[motordavid]

The myth of CPO, and dealer geniuses...

[cdlaine]

to the OP....

Jan. of this year.... purchased a BMW X5 35 i , 6 cyl. , AWD, turbo, fully loaded. Previously owned (2013) , 46k miles. Seems to have every bell and whistle possible. Very clean. Clear CARFAX. Original warranty expires Oct...then Certified pre-owned warranty kicks in... for 2 more years. Paid $39800. Got 4 new tires... balancing and alignment, tried to get a new windshield, no luck. Not much wiggle room in negotiations. But, thankfully, they took a our dog of 2008 328i off our hands in trade ...we were happy to get rid of it, (and they just did it by age, mileage , and prior air-bag wreck).

Lots of better experts here , but that was our true story. Too date , no issues.
The real question...could we have gotten a better deal.... maybe, but, $1-2k over the (hopeful) life of the vehicle would not have been a deal breaker.

Good luck

Charles

[thesurg3on]

Originally Posted by cdlaine

to the OP....

Jan. of this year.... purchased a BMW X5 35 i , 6 cyl. , AWD, turbo, fully loaded. Previously owned (2013) , 46k miles. Seems to have every bell and whistle possible. Very clean. Clear CARFAX. Original warranty expires Oct...then Certified pre-owned warranty kicks in... for 2 more years. Paid $39800. Got 4 new tires... balancing and alignment, tried to get a new windshield, no luck. Not much wiggle room in negotiations. But, thankfully, they took a our dog of 2008 328i off our hands in trade ...we were happy to get rid of it, (and they just did it by age, mileage , and prior air-bag wreck).

Lots of better experts here , but that was our true story. Too date , no issues.
The real question...could we have gotten a better deal.... maybe, but, $1-2k over the (hopeful) life of the vehicle would not have been a deal breaker.

Good luck

Charles

Charles. Thanks for the information. I appreciate the story and it is certainly helping direct me and making me feel more comfortable with my choices. At the end of the day, $40K is a lot of money to spend and I'm sure I'll feel great knowing I'm trying to be as thorough as possible.