Pulled the upgrade trigger today (already having my first problem)

[ABMW]

No, it's a BMW option in the U.S. whereby BMW will guarantee a used vehicle if it falls within certain parameters, after they've given it minor overhaul. They usually give it a full detailing, change brake pads, fluids, inspect the car thoroughly (or at least they are supposed to). They give you many of the same amenities one receives when buying a new vehicle, like a warranty, road side assistance, etc. They then price the cars about 25 to 30% below new vehicles with attractive lease rates. Personally, I've never found it to make financial sense for this exact reason, as for $10 or 15k more you can buy a new vehicle, knowing its full mechanical history, etc. But in some cases, you can get a nice deal if a car has been sitting on the lot. Again, this is my personal opinion only, but CPO programs make more sense when dealing with vehicles that are extraordinarily reliable such as Infinitis, Lexus, and Accura (jury still out on the Lexus/Toyota models, but in general they're "were" fine until a few months ago).

The vehicle must be under a certain, age, within certain mileage limits, etc. Many dealers in the U.S. offer Certified Pre-Owned Programs, at least mid to high range lines, such as Accura, Infiniti, etc.

[RJRDenver]

I disagree slightly on the comment about paying 10-15k more for something new vs. going with a CPO. In my case, I got a 2008 with 17k miles on it and paid almost 30k less than it would have been brand new. Its fully loaded with every imaginable feature. The depreciation that occurs in the first three years is horrible and so that's what makes CPO attractive. You are right that you must find a good ride while doing so, but it only took me about 4 weeks from the time I decided I was going to pull the trigger. My factory warranty is still good for 2 more years and then I get the CPO warranty for an additional 2 more years or 100k miles, so I essentially got the 4 year warranty that a brand new model would come with. My previous X5 was also a CPO purchase. I'll continue purchasing CPO well into the future because of the benefits and cost savings.

Originally Posted by ABMW

No, it's a BMW option in the U.S. whereby BMW will guarantee a used vehicle if it falls within certain parameters, after they've given it minor overhaul. They usually give it a full detailing, change brake pads, fluids, inspect the car thoroughly (or at least they are supposed to). They give you many of the same amenities one receives when buying a new vehicle, like a warranty, road side assistance, etc. They then price the cars about 25 to 30% below new vehicles with attractive lease rates. Personally, I've never found it to make financial sense for this exact reason, as for $10 or 15k more you can buy a new vehicle, knowing its full mechanical history, etc. But in some cases, you can get a nice deal if a car has been sitting on the lot. Again, this is my personal opinion only, but CPO programs make more sense when dealing with vehicles that are extraordinarily reliable such as Infinitis, Lexus, and Accura (jury still out on the Lexus/Toyota models, but in general they're "were" fine until a few months ago).

The vehicle must be under a certain, age, within certain mileage limits, etc. Many dealers in the U.S. offer Certified Pre-Owned Programs, at least mid to high range lines, such as Accura, Infiniti, etc.

[Thunder22]

Originally Posted by RJRDenver

I disagree slightly on the comment about paying 10-15k more for something new vs. going with a CPO. In my case, I got a 2008 with 17k miles on it and paid almost 30k less than it would have been brand new. Its fully loaded with every imaginable feature. The depreciation that occurs in the first three years is horrible and so that's what makes CPO attractive. You are right that you must find a good ride while doing so, but it only took me about 4 weeks from the time I decided I was going to pull the trigger. My factory warranty is still good for 2 more years and then I get the CPO warranty for an additional 2 more years or 100k miles, so I essentially got the 4 year warranty that a brand new model would come with. My previous X5 was also a CPO purchase. I'll continue purchasing CPO well into the future because of the benefits and cost savings.

Wait ..... You got a 2 year old X5 with 17k on the clock for $30k less than the original MSRP? I just checked Edmunds and 08 V8's with under 30k miles on them are going for ~$60k.

[Xtony]

Originally Posted by Thunder22

Wait ..... You got a 2 year old X5 with 17k on the clock for $30k less than the original MSRP? I just checked Edmunds and 08 V8's with under 30k miles on them are going for ~$60k.

I just recently paid $50K for an '08 X5 4.8 sport with 24K miles on it, fully loaded except for third row and rear entertainment.

[Thunder22]

Originally Posted by Xtony

I just recently paid $50K for an '08 X5 4.8 sport with 24K miles on it, fully loaded except for third row and rear entertainment.

What was the original sticker price? Can't be $80k. The other poster said he got $30k under MSRP on an 08.

EDIT: I just built a 2010 4.8 on BMWUSA with every option to see what a fully loaded 4.8 is going for and the total MSRP was $78k (no 3rd row and no rear entertainment). I guess I've never "loaded one up" before because I'm surprised a loaded 4.8 is that expensive, even though they were less expensive in 08.

I'm really surprised that 2 year depreciation is that severe.

[BGM]

Originally Posted by RJRDenver

I disagree slightly on the comment about paying 10-15k more for something new vs. going with a CPO. In my case, I got a 2008 with 17k miles on it and paid almost 30k less than it would have been brand new. Its fully loaded with every imaginable feature. The depreciation that occurs in the first three years is horrible and so that's what makes CPO attractive. You are right that you must find a good ride while doing so, but it only took me about 4 weeks from the time I decided I was going to pull the trigger. My factory warranty is still good for 2 more years and then I get the CPO warranty for an additional 2 more years or 100k miles, so I essentially got the 4 year warranty that a brand new model would come with. My previous X5 was also a CPO purchase. I'll continue purchasing CPO well into the future because of the benefits and cost savings.

The financial savings gap from buying slightly used vs. new in this market has shrunk dramatically---you can get a new one at almost invoice and the low APR rates BMW was offering really offsets the savings. Rates on used are higher generally-- so for example with $0 down: your payment on $50K on a 5 year note with interest is @$900 probably. New car payment on $65K is probably $1,200. So buying used you are saving $18,000 ($72K vs. $54K) over those 60 months. But if you keep your cars 8 years you have 3 years of no payments on new which puts $43K back in your pocket vs. on the used one you only have one year of no payments left ($10K in your pocket). So, effectively new only cost you $29K ($72K - $43K payment savings) over the 8 years while used cost you $44K ($54K - $10K payment savings). Plus not to mention the new car will be worth more at the end of 8 years of probably $5-$10K. Now, if you keep your cars for shorter time periods then that changes this

[ard]

Originally Posted by ABMW

No, it's a BMW option in the U.S. whereby BMW will guarantee a used vehicle if it falls within certain parameters, after they've given it minor overhaul. They usually give it a full detailing, change brake pads, fluids, inspect the car thoroughly (or at least they are supposed to). They give you many of the same amenities one receives when buying a new vehicle, like a warranty, road side assistance, etc. They then price the cars about 25 to 30% below new vehicles with attractive lease rates. Personally, I've never found it to make financial sense for this exact reason, as for $10 or 15k more you can buy a new vehicle, knowing its full mechanical history, etc. But in some cases, you can get a nice deal if a car has been sitting on the lot. Again, this is my personal opinion only, but CPO programs make more sense when dealing with vehicles that are extraordinarily reliable such as Infinitis, Lexus, and Accura (jury still out on the Lexus/Toyota models, but in general they're "were" fine until a few months ago).

The vehicle must be under a certain, age, within certain mileage limits, etc. Many dealers in the U.S. offer Certified Pre-Owned Programs, at least mid to high range lines, such as Accura, Infiniti, etc.

Originally Posted by London Lad

Oh OK thanks. Like second hand with a warranty ?

CPO is pretty much a scam. It is a used car with a warranty backed by BMW.

On the ASk a Dealer forum elsewhere you hear a regular recitation of the party line concerning the 'careful inspection and refurbishment' that CPO entails, and the 'fact' that only a few rare examples pass the CPO insoection.

BS

Unfortunately people believe a CPO affords them some level of BMW assurance- IT DOES NOT.

You can buy a car that has been abused, that has actual data in the DME that it was abused- and BMW will never look at that....yet when you make a warranty claim they dump the dme and say "oh, it has been abused- sorry, no coverage". The CPO inspection has NO requirement that they actually confirm the car has not been abused (in terms of over-reving the motor) or even if the DME has been flashed or tampered with!!

Cars have been damaged and repaired poorly. Items that are not covered by the CPO warranty mayl be 'missed' by the CPO inspection and the new owner pays.

Odds are better with a CPO, but is is no guarantee. People thing "Well, the CPO might cost $10k more but if anything goes wrong I am covered"> WRONG

There are plenty of links to the actual CPO inspection criteria as well as the CPO warranty.

You are buying a used car, with no major frame damage, with an oil change and detail, all lights, and accessories working, and brakes and tires over 50%. THAT'S IT. Nothing else.

I always recommend a PPI on a used car, and a "CPO" is no exception.

A

[BGM]

Originally Posted by ard

CPO is pretty much a scam. It is a used car with a warranty backed by BMW.

On the ASk a Dealer forum elsewhere you hear a regular recitation of the party line concerning the 'careful inspection and refurbishment' that CPO entails, and the 'fact' that only a few rare examples pass the CPO insoection.

BS

Unfortunately people believe a CPO affords them some level of BMW assurance- IT DOES NOT.

You can buy a car that has been abused, that has actual data in the DME that it was abused- and BMW will never look at that....yet when you make a warranty claim they dump the dme and say "oh, it has been abused- sorry, no coverage". The CPO inspection has NO requirement that they actually confirm the car has not been abused (in terms of over-reving the motor) or even if the DME has been flashed or tampered with!!

Cars have been damaged and repaired poorly. Items that are not covered by the CPO warranty mayl be 'missed' by the CPO inspection and the new owner pays.

Odds are better with a CPO, but is is no guarantee. People thing "Well, the CPO might cost $10k more but if anything goes wrong I am covered"> WRONG

There are plenty of links to the actual CPO inspection criteria as well as the CPO warranty.

You are buying a used car, with no major frame damage, with an oil change and detail, all lights, and accessories working, and brakes and tires over 50%. THAT'S IT. Nothing else.

I always recommend a PPI on a used car, and a "CPO" is no exception.

A

I don't think most people like the CPO because BMW might or might not have gone over it with a fine toothed comb but more because of the assurance that if there are any kind of mechanical components that fail you are not hit with the expense of it.