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The Lexus dealership has to invest 'x' amount of money into the vehicle for reconditioning in order to bring the vehicle up to Lexus Certification standards.. This may cost anywhere from typically a few hundred dollars to maybe a couple thousand dollars. But first the Lexus dealership must pay Lexus Corporate $1,500 to cover the CPO extended warranty and the maintenance services Lexus will provide the owner of the vehicle. So, the dealership has an automatic cost of $1,500 that they must recover when they sell the car, plus the additional expense (~$500 - $2,000) for reconditioning to meet the minimum certification standards - so the total dealership outlay is usually in the area of ~$2,000 - $3,500 ... most of time toward the higher amount.
For instance, on CPO vehicles the dealership will almost always change engine oil and filter, replace the cabin air filter and engine air filter, change brake fluid, clean-up the engine bay, remove dings/scratches and detail the car, which will costs say $500 - $1,000... The dealership may also need to install new tires, brake pads, rotors, do one of the major services, repair torn weather strips, replace scratched interior parts, repair or replace curbed or bent wheels, repair any mechanical issues, paint bumpers and replace a missing tool in the trunk, etc. that could cost an additional $1,000 - $1,500 or so. With all this done, now we are up to $4,000 invested, which is too much for most dealers to try to recovered when the dealership sells the vehicle. That said, there is a point where spending too much money can not be recovered when the car is sold...so most dealerships like to keep the total added cost to CPO a vehicle around $3,500 or less - otherwise the vehicle sits on the lot too long and/or they end up selling it at no profit or taking a loss. A Lexus Certified Pre-Owned vehicle could have a true added value of $3,500 or more when compared to a non-CPO Lexus vehicle - all depending on what the Lexus dealership did to the vehicle versus a similar non-CPO vehicle. That's why most Lexus Certified Pre-Owned vehicles are normally a few thousand dollars more than non-Lexus certified vehicles...and rightfully so.
Personally, I like the confidence knowing that when I buy a Lexus CPO vehicle and find that a feature or option doesn't work or a part is missing or broken, that I can expect it to be corrected...unlike if the vehicle was bought from some other car brand's used car lot. Bent wheel, tire has a thump, rear sunshade making scraping noise, leaking strut, wipers don't spray, sunroof clanks, driver's seat lumbar won't inflate, trunk liner missing, drive mode button stuck, radio button stuck, AC smells, windshield spray not working, buzzing from the radio, USB port not working, etc., etc. - no problem! That's not necessarily true if you buy the Lexus vehicle from a KIA dealership or Lucky Lou's Auto down on the corner where they are also setup to sell drugs to the local addicts, hustle illegal sports bets and take care of money-laundering for stolen goods.
Lastly, buying a used Lexus with a [so-called] 'certified warranty' (often referred to as CPO) from a non-Lexus dealership does not mean that the extended warranty beyond the basic Lexus warranty is with Lexus - it's usually with third-party warranty providers, which can be scams.
I failed to mention (in my above post) that CPO vehicles are often cherry-picked, have lower miles, and are cleaner vehicles with a clean history. Manufacturers such as Lexus typically offer a handful of other perks that come with buying a CPO vehicle, including free loaner cars, roadside assistance, free satellite radio (for a limited time), and discounted finance rates on loans.
I bought my F sport CPO and noticed they tried to fix a huge scratch on the driver’s door. I had them re-paint the entire door before I signed off on it. They fixed curb rash and replaced a piece of exterior trim that got cracked somehow. Getting the rims, trim, and door painted for free helped me justify being CPO. Lol plus a used car dealer was eyeing my G37 as they appraised it, so magically they gave me $1500 more on my trade.
I know you already got your car and congrats ! That’s a great price I’ll be sharing this for those looking for a car in the future.
I went CPO because I noticed the cars were in a tad nicer condition coming from the dealerships here in Las Vegas. I liked the existing remaining warranty plus the 2 year extended, 5 free oil changes, and most of the vehicles around the 28-32k mile range. I have already had my mirror glass replaced due to it fading blue and a brand new battery. I liked the extra price of mind that the extended warranty will be through Lexus as stated in previous posts above. For some it may be worth it depending on the vehicle for others it may be better off going third party dealer or private party. The car itself, your location, and of course cost will always be a factor. Just because it is a CPO doesn’t necessarily mean it’s the better option just keep your options open.
Just picked up my 2016 GS 350 with Luxury package @ 25K miles. Car is CPO. I think CPO is worth it if you factor in prepaid maintenance, extended warranty, and "peace of mind" ,if that's something you value.
Plus I got 1.9% APR on finance with LFS for specials on CPOs. Can't imagine getting this rate anywhere else with my credit.
05-14-19, 04:42 PM
