CPO OR NOT?? Advice needed.
 

We are searching for an '08-'09 (3.0l or 4.8l) to replace my wife's '02 3.0l. I would like to know from experienced owners if in your opinion the certified warranty that adds 2 years and 50k miles to the factory warranty is worth the premium that dealers add to these vehicles.

My issue is this, I feel the warranty adds great piece of mind, especially with the BMW Care, since we are not buying new. We can get an '08 in our price range with CPO coverage until 2014 or 100k miles which is pretty damn good for a 4 year old vehicle. BUT, the dealers tack on $3-$5k for the CPO cars. I have heard from multiple dealers that BMW charges a dealer $2500 just to certify the vehicle, plus the money the dealer has to spend for brakes, tires, etc, to meet the CPO specs from BMW. It's a nice feeling to drive off a BMW lot in a cerified vehicle you know has been looked over and brought up to "like new" condition. Most the uncertified vehicles are not at BMW dealerships.

We don't typically put more than 10-11k miles per year on our vehicles, so we always "time out" before going over mileage. Wondering if I should be looking for the lowest mileage uncertified vehicle and take my chances when the warranty is up earlier, or spend a little more for the coverage. I am finding '08 4.8's with 28k miles uncertified for the same price as '08 3.0l CPO vehicles with 44k miles.


We've owned vehicles with and without CPO coverage but this time I'm torn. Her current X5 was CPO and within the warranty coverage term I think we used it one time to replace some weatherstripping on the drivers door. However, the E70's are loaded with more electronics than ours is (parking brake, comfort access, shifter, etc) and more to go wrong and $$ to fix.

Have most of you used your warranties to fix common E70 things that I may have to pay for out of pocket? I would appreciate input from owners of multiple BMW's with and without CPO coverage, and your opinions of repairs.

Thanks!

I have a CPO and I haven't used the CPO portion of it. I used the new car warranty to sort everything out. I'm concerned about the electronics, such as the idrive, rear entertainment etc and CPO doesn't cover that so it doesn't matter to me.

You can ask the dealership to not-certify the car and see how much that will save you, ~2k. When they certify, they just click a button on the computer to activate the warranty. The 'inspection' is lame. If they replaced a part such as a tire, it's already built into the price of the car.

1. BMW now sells an extended warranty, called the "BMW Gold Plan' which is precisely a "CPO" warranty. Prices vary, but 3700-4500 seems the range...i'm not in the market, so I've not priced them carefully.

2. Dealers tack on 3-5k for the CPO, but an additional 5-8k over what a private party sale is. The ONLY reason to buy from a dealer is the wwarranty...and ONLY if you can get it priced right.

3. Find someone doing a lease return, or wanting to trade up, buy it privately (act like a mature, non-crazy buyer who will be easy) and add the Gold plan. AND GET A PPI.

Get a PPI... even if you buy a CPO, you cannot trust the BMW Dealer.

A

So the electronics aren't covered by the CPO? Seems they would be the most likely to fail and cost a lot to repair/replace, and like you the electronics are what I'm concerned about.

Do you know if this "Gold Plan" needs to be purchased before the expiration of the factory warranty? Seems I've heard of this being the case. Does it cover the electronics (iDrive, etc) like the factory warranty or is it basically a CPO plan?



Ominous words about not trusting the dealer :confused:......sounds like there's a stroy there!

ard is right on, imo...
And, if the OP is curious, some CPO links on what/what's not covered.
Good luck on interpreting the boilerplate, and 'the maybe yes, maybe no' disclaimers.
GL, mD

BMW Certified Pre-Owned - Warranty - BMW North America

Not Covered...
BMW Certified Pre-Owned - Warranty - Not Covered - BMW North America

Covered...
BMW Certified Pre-Owned - Warranty - Covered - BMW North America

I checked out your links, thanks. I see what you mean, it seems to me the only things covered with some certainty are the engine and tranny. Major electrical seems to be covered also, just not the stereo or nav.

It's really a case by case it seems. If you really think about it, it's just BMW selling you insurance. Most of the major engine/tranny/electrical problems don't show up until the mileage is higher (usually). We put low miles on our cars, so most likely the CPO we pay more for will expire before we have a major problem and wouldn't be covered anyway.

Am I off in this conclusion??

No I think that is a fair analysis. But it's nice to know you have the coverage in case something does go wrong. Just shop around there are deals to be had even on CPO's--dealers eventually have to move them.

You should look at the BMW Gold plan and the Platinum plans. Platinum adds the nav and entertainment systems.

People that think the warranty is only for major and catastrophic events are shortchanging it's value. I paid $1800 for a CPO warranty on my M5, and got a over $3k in misc stuff..rear main seal, valve cover gaskets, power steering pump and bracket, window regulator....The PS pump alone is an $800 job, Valve covers 3-400 per... RMS, 1200

Now, at 1800 it was an easy decision. At 3500 it'd be hard. Given that I personally enjoy wrenching, have a garage, and multiple cars, I can afford to have a car sit for two weeks until I get it done.

Talk to some sponsors here and on bimmerfest for better deals on the warranties too.

A

PS Warranties are not just based on 'what part failed' but also on 'how it failed'... the problem is that many dealers, and BMW themselves, tends to base coverage on 'the part' and not on 'failure mode'. For example a brake rotor that explodes (ie total mechanical failure) is covered- but not brake pads or rotors that wear out. Just fyi

Don't disagree...but, it's all about one's mental health in having some kind of safety net. I suspect most knowledgeable people, with CPO, like the fact that it should cover the trans, which seems to be the biggest/costliest boogie man that comes up with some frequency.

But, the low mileage driver is really rolling the 'cost of CPO' dice.
GL, mD

I've just bought my '09 CPO X5 and before that I had a CPO car as well.

The way I look at it, dealerships get tons of lease returns (and I bought my car at one of the largest NY BMW dealerships). There are only so many of these returns they can sell - they keep whatever appears to be in better shape, has better options and is mechanically sound and CPO them; the rest of the cars are sold at the auction to smaller dealers. There must be something that goes into CPO labeling - if nothing else it would be a simple change of fluids, brake pad replacement and some diagnostics on major components.

And as for prices... I don't think I overpaid much, if at all. My purchase price is inline with CarMax prices, but car has lower mileage. It's also exactly what is being asked for similar cars (but again for cars with higher mileage) on Ebay and by local craigslist dealers... And on top of that, I was able to trade-in my older car at a price I would have problem getting anywhere else - whatever discount I could have gotten from smaller dealers is compensated by the higher trade-in price I got.

I would have to agree with this statement. My CPO was a 2 year lease return in Los Angeles, only had 16K miles on it and has every option except HUD and Active Steering.

Hey guys, let me chime in on this one, since I just purchased an 08 CPO X5 4.8....
Actually, My 06 X3 has 82,000 miles and it is and was a CPO w/ Maint Plan, I have only spent about $100 (YES One HUNDRED) on the car after the factory Warantee has been out... But Not only does a car have to have the "Cpo" but also an optional maintenance plan with the CPO is the way to go... They have taken care of all of the oil changes, any little noise, radio, ANYTHING! Actually, they just replaced my Brakes and Rotors at 72,000miles... with a $50 deductible... Now that is something else...

If you want CPO, that is perfectly fine, but if you add the 2 year or 50,000 mile maininence plan, this will basically give your car/truck a 6/100,000 miles of worry free driving... and I believe the Maintence plan is an additional $2,250 above and beyond the price of the X5, all cars are different price, but I can only imagine what the Brakes, rotors, etc will cost at the end of the day... and Believe me, you will use it.... Let me know if you have any additional questions, I will try to answer;)

AND I QUOTE:

Buying a BMW isn’t just an expensive proposition on the MSRP front, many first-time luxury-car shoppers worry about maintenance costs. For years now, BMW has offered free maintenance on new-car purchases; it picks up the tab for the first four years or 50,000 miles, whichever comes first. Now, the company is offering an extended plan of six years or 100,000 miles, whichever comes first, at an additional charge of between $1,395 and $2,995. The plan excludes the limited Alpina B7, but it does include all M performance models and diesels. Any current owners under the four-year/60,000-mile plan can add the service.BMW recommends service every 15,000 miles on new models.



Thanks \
AK.

So do I understand you correctly that I can purchase say an '08 that is still under the factory warranty period and instead of purchasing a CPO warranty, I can purchase the 2 year maintenance plan and be covered? Wouldn't this plan just cover the oil changes/brake pads/fluids? This plan does not offer the same protection for engine or trans problems as the CPO warranty does it? Are you simply saying the ROI is better on this plan because there's a better chance I'll need brakes replaced within those two years than a trans?

Or are you saying the best protection is CPO with the 2 year maintenance plan? Obviously true but who wants to spend $5-6k on "plans" over the cost of the vehicle. I'd rather put that in the bank in case s--t happens.

I really enjoyed the peace of mind our CPO warranty provided on our current E53, but this one being our first X5 and 2nd BMW ('01 330i) I don't want to assume I have to insist on a CPO for our E70. And again, we didn't even need it and really still haven't far after it's expiration. :confused:

S4,

I believe the answer is yes, to most! and correct me if I am wrong, (anyone) but the maint. plan is another option you have. And yes, the maint. plan is just that, maint. of the car, nothing else. On my x3 and x5, I have cpo and maint. Plans, but I am close to 99.9999% that the car has to still be under factory warantee in order to qualify, or be a cpo... I will talk to my service advisor tomorrow to get a proper answer... And if you tell me which make, year, etc of the car you are looking at, I will be able to get you a realistic number on how much it is... Look up "BMW maintenance plan" and there is good info on the net and other forums.

Ak

Oh, one more thing I forgot to say.... I guess for me, it's knowing that you have it.. Then again, you might not use it and the money in the bank is always good.. So you don't have to get it immediately, as long as the car is under warantee. A cpo'd car gets all things replaced, fixed, etc.... Mine will have new tires, rims, brakes, rotors, wipers, etc.... Just to become cpo, they have a pass a checklist.... So it will be good as new, as you already know...

Ak

The maintenance plan is a sucker play. IMO

It is justified by dealers (and owners) who use super-retail BMW pricing to paint a picture of high maintenance costs... indeed, people constantly confuse 'maintenance' versus 'warranty' and just get fearful and upset when they visit the dealer. So they go for the plan, justify it with "I can finance it" and "I just don't like worrying". Dealers just LOVE that.

The maintenance plan ONLY covers the very limited maintenance BMW recommends. Between year 4/50k and year 6/100k, you need to consider WHAT maintenace you will need. Uusually it is a few oil changes, a brake flush, a coolant flush and MAYBE a brake job. Seems like alot, no?

But not really- The trick is to find a decent indy to do your maintenance. Oil change is $100, brake and coolant $200, and a brake job is 2 hours and <$500 in parts, per axle. (The trick is to make this calculus when you hit45k miles and you know you wear/maintenance pattern.)

Dealers are asking $2200, 2500 for maintenance now. And unlike a warranty you know almost perfeclty what maintenance should cost over your ownership period....

A

I agree an Indy is key and used one on my '01 X5 for 6 years after the warranty expired But I did purchase the Maintenance program on this one because it blows through brakes. Right now I have 28K miles--it has gone through 2 front brake jobs (one just recently), 1 brake job on the rear (and the rear is showing it needs to be done again in 6K miles). I figure during the 2 years of the Maintenance program I purchased I will need at least 2 front brake jobs and also a rear (maybe 2 if I get close). And I don't beat on my cars at all.

I change the oil on our vehicles myself and on our E53 it's a piece of cake, costs me about $60 for both an OEM filter (Bavarian Auto) and Castrol Full Synth (Walmart) and about 45 mins of my time on a weekend. We just did the brakes (have a great local mechanic) for about $700 for new rotors, pads, fluid, (Bavarian Auto) and labor.

For me the maintenance plan is not worth the money either, the CPO is nice both from the piece of mind it offers for major engine or trans issues, but also because of the reconditioning they do before they can certify it. A private party or dealer selling as-is without a CPO probably hasn't gone through the "checklist" mentioned that is required by BMW USA.

What I'm coming up against is that I'm finding non CPO vehicles with 20k less miles for the same price as CPO vehicles. So I could pay the same price for a non certified '08 4.8 with 26k as I would for an '08 CPO with 44k. Debating about getting a lower mileage non-CPO vehicle because we will time out on the CPO before we ever hit the mileage and if I get one with 26k, I'd have a vehicle with 20k less miles in two years when the CPO vehicle expired.

If the mileage is low I would take the risk of buying a non-CPO.
I just bought a late 2008 X5 nonCPO at a Porsche dealership, 24k miles, loaded and in mint condition, and I couldn't be happier. It's still covered under factory warranty up to Nov. 2012 and I was able to negotiate the price down to 35K.
A comparable car but CPO I could find only around 39-40K.

I believe we are all correct in this, in the fact that it definately is a preference, and the forum is correct in stating that you can find a local guy to do the oil changes, brakes, etc... by my experience, and as you can tell, i have had a lot of cars, some have been "dealer only" and some have not...

But the point I am making is that the local expert(which I took one of my Porsches and a Bimmer) is good until you have a major problem with them, they can stand behind there work to a point, as to a BMW dealer will be accountable for the dealership name, reputation and work.

My Experience is that this can become trouble free driving ownership, for a high end car, meaning a convenience factor in, loan cars, ($100 coffee) lol, when yours is in the shop and a dealership will stand behind there product.

The other guys are good, don't get me wrong, but when $hit hits the fan, (again, experience) and you question there work, or if you are not happy, guess who will be the one left behind? and of course these are My facts and my experience... But at the end of the day, to each it's own, this is why we have these forums, to share experiences, whether they are good or bad...

Also, there are somethings you just don't get at the dealership, such as replacement tires, window tint, car detail....etc...

Also, remember you do have up to the time the original factory runs out, so if you were to buy a car, NON CPO with Low miles, and want to get a Main. Plan, you still can do so... at a later date...

ak.

CPO is worth it IMO. it'll cover the engine/trans but not the 'wearable' items and acessories.we bought our E70 CPO.

I had a 2002 x5 4.4. I got estimates to r/r valley cover, valve cover gaskets, etc and it seems the dealer wants $1.5 - 2k for just about anything. I ended up doing the work myself.

dealer tried to sell you prepaid service. it's just crazy how they justify a $2000 front/rear brake job.