Is it worth the extra $$ for CPO vs. non CPO?
05-16-10, 10:01 AM
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Is it worth the extra $$ for CPO vs. non CPO?
My lease expires end of July, my choices are down to 2011 BMW 535 and 07 or 08 LS460. I have been tracking the prices on Lexus.com, eBay, cars.com, and autotrader on a weekly basis. It seems the price difference between CPO and non-CPO is about $3,000-4,000. I intend to keep the car for a long time and I drive about 11,000 miles a year, so the most important thing for me is the length of warranty.
Let's say 2 similarly equipped 3-year old LS 460 with 30,000 miles, one is CPO the other is not and the CPO cost $3,500 more. I understand the CPO warranty replaces balance of the original warranty instead of putting on top of it. If I buy the CPO I'd only get 3 year of coverage, if I buy a non-CPO I'd get 2 years of original warranty and I can buy an extended 8 years/125K warranty for $2000. I'd save $1500 and have 5 years of coverage. What do you think?
I am leaning towards CPO for a peace of mind. Can I purchase an extended warranty (backed by Lexus, not after market) at the end of CPO warranty?
Let's say 2 similarly equipped 3-year old LS 460 with 30,000 miles, one is CPO the other is not and the CPO cost $3,500 more. I understand the CPO warranty replaces balance of the original warranty instead of putting on top of it. If I buy the CPO I'd only get 3 year of coverage, if I buy a non-CPO I'd get 2 years of original warranty and I can buy an extended 8 years/125K warranty for $2000. I'd save $1500 and have 5 years of coverage. What do you think?
I am leaning towards CPO for a peace of mind. Can I purchase an extended warranty (backed by Lexus, not after market) at the end of CPO warranty?
05-16-10, 11:40 AM
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Sorry I can't help you with the warranty info, but I'm sure someone here can.
I purchased a car from a luxury wholesale used car dealer for my wife last year. I figured, low miles, still under warranty, save $2k, why not?
Well, I ended up having to sue for fraud after finding that it had been wrecked and sold to them at auction with frame damage. That was a monster headache just to break even and get back what I paid!
Moral of the story, I'll never buy a used car unless it's a CPO. Too many slimy sellers both private and dealerships. On cars of this caliber, piece of mind is far greater than the couple thousand you save.
Also, most CPO's will be freshly serviced and new tires which will save you a chunk of change anyway.
I purchased a car from a luxury wholesale used car dealer for my wife last year. I figured, low miles, still under warranty, save $2k, why not?
Well, I ended up having to sue for fraud after finding that it had been wrecked and sold to them at auction with frame damage. That was a monster headache just to break even and get back what I paid!
Moral of the story, I'll never buy a used car unless it's a CPO. Too many slimy sellers both private and dealerships. On cars of this caliber, piece of mind is far greater than the couple thousand you save.
Also, most CPO's will be freshly serviced and new tires which will save you a chunk of change anyway.
05-16-10, 12:54 PM
#3
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I posted this today in the RX forum....
That is bullcrap and a way for them to basically try to sell the extended warranty.
1. Car is bought at Auction or is a trade in etc.
2. Car has to have UNDER 70k miles and not been in a severe accident.
3. Car is inspected and if passes it is certified.
Certified does raise the price of the vehicle. Not all are certified, it is a selling tool. For instance many low mileage vehicles with the remainder of the factory warranty won't be certified.
Either the car is certified or not. Another thing is a dealer might not want to certify the vehicle as they make more money of higher financing rates for used vehicles. Lexus certified vehicles get special rates, for instance it is 1.9 for 24 months and 4.9 for 60 right now, good as new.
http://www.lexus.com/cpo/overview/index.html
I am a huge Lexus fan but sadly some dealers/salesman do not follow the "Lexus Covenant" as they should. So go elsewhere if possible.
That is bullcrap and a way for them to basically try to sell the extended warranty.
1. Car is bought at Auction or is a trade in etc.
2. Car has to have UNDER 70k miles and not been in a severe accident.
3. Car is inspected and if passes it is certified.
Certified does raise the price of the vehicle. Not all are certified, it is a selling tool. For instance many low mileage vehicles with the remainder of the factory warranty won't be certified.
Either the car is certified or not. Another thing is a dealer might not want to certify the vehicle as they make more money of higher financing rates for used vehicles. Lexus certified vehicles get special rates, for instance it is 1.9 for 24 months and 4.9 for 60 right now, good as new.
HAND SELECTED
Not all pre-owned Lexus vehicles are worthy of the coveted Lexus Certified Pre-Owned designation—only the best. If a model is older than six years or driven for more than 70,000 miles, it's immediately rejected. No exceptions.
HISTORY CHECKED
For extra peace of mind, CARFAX® vehicle history reports are provided for every Lexus Certified Pre-Owned Vehicle, helping you and your Lexus dealer identify potential problems that might otherwise be difficult to detect.
METICULOUSLY INSPECTED
Every Lexus Certified Pre-Owned Vehicle must pass a comprehensive 161-point inspection by a Lexus-trained technician. If any discovered flaws cannot be repaired to Lexus standards, the vehicle will simply not be certified.
THOROUGHLY RECONDITIONED
Lexus Certified Pre-Owned Vehicles must be in like-new condition. That means using only certified Lexus parts for any necessary mechanical repairs, performing paint and surface restorations to meet Lexus standards, and thoroughly cleaning and detailing each vehicle to bring out its true beauty.
CONFIDENTLY BACKED
Because every Lexus Certified Pre-Owned Vehicle is thoroughly reconditioned and meticulously inspected, we can comfortably sell them with a Lexus three-year, 100,000 total vehicle mile limited warranty [1]. This, of course, is fully included in the purchase price.
NEW-VEHICLE FINANCING
Our strict certification standards eliminate the risks typically associated with financing pre-owned vehicles, allowing us to offer the same rates and terms normally reserved for our new vehicles.
LEXUS CUSTOMER-CARE BENEFITS
Those who acquire a Lexus Certified Pre-Owned Vehicle also enjoy the perks of Lexus ownership, including 24-hour Roadside Assistance [2], trip interruption coverage and dealership amenities [3]. Your vehicle's first basic service is free, and a loaner vehicle will be provided for qualified repairs.
Not all pre-owned Lexus vehicles are worthy of the coveted Lexus Certified Pre-Owned designation—only the best. If a model is older than six years or driven for more than 70,000 miles, it's immediately rejected. No exceptions.
HISTORY CHECKED
For extra peace of mind, CARFAX® vehicle history reports are provided for every Lexus Certified Pre-Owned Vehicle, helping you and your Lexus dealer identify potential problems that might otherwise be difficult to detect.
METICULOUSLY INSPECTED
Every Lexus Certified Pre-Owned Vehicle must pass a comprehensive 161-point inspection by a Lexus-trained technician. If any discovered flaws cannot be repaired to Lexus standards, the vehicle will simply not be certified.
THOROUGHLY RECONDITIONED
Lexus Certified Pre-Owned Vehicles must be in like-new condition. That means using only certified Lexus parts for any necessary mechanical repairs, performing paint and surface restorations to meet Lexus standards, and thoroughly cleaning and detailing each vehicle to bring out its true beauty.
CONFIDENTLY BACKED
Because every Lexus Certified Pre-Owned Vehicle is thoroughly reconditioned and meticulously inspected, we can comfortably sell them with a Lexus three-year, 100,000 total vehicle mile limited warranty [1]. This, of course, is fully included in the purchase price.
NEW-VEHICLE FINANCING
Our strict certification standards eliminate the risks typically associated with financing pre-owned vehicles, allowing us to offer the same rates and terms normally reserved for our new vehicles.
LEXUS CUSTOMER-CARE BENEFITS
Those who acquire a Lexus Certified Pre-Owned Vehicle also enjoy the perks of Lexus ownership, including 24-hour Roadside Assistance [2], trip interruption coverage and dealership amenities [3]. Your vehicle's first basic service is free, and a loaner vehicle will be provided for qualified repairs.
I am a huge Lexus fan but sadly some dealers/salesman do not follow the "Lexus Covenant" as they should. So go elsewhere if possible.
05-16-10, 09:16 PM
#4
i believe that Lexus CPO is about as good as they get.. BUT, its not without issues. I bought a GS300 that was CPO and it developed a leak in the trunk when we had some rain out here. My Indy mechanic figured out that it was bad welds in the trunk from a rear end collision! I took it back to the dealership and they acknowledged that it was there fault for missing it, and I got into an LS (blessing for me as the LS is leagues above a GS), but honestly from what I have seen now that I am doing the maintenance myself, my indy mechanic and myself are MUCH more competent than the dealership... they dont pay attention to any of the torque standards etc, and it keeps me from taking it in unless it needs a recall or a warranty repair. For that alone I think CPO is worth it, but I would not pay much for it, its just piece of mind for the next few years and some of these repairs can be expensive. The "recertification process is only as good as the mechanic that is doing it, and I dont think much of their abilities from my experience. Another case in point, the dropped in a brand new 60 mo Lexus battery as part of my CPO.. but DIDNT put water in it.. believe it or not, it died 2 months later... and we found it to be almost empty, just how they come to the dealer, but they didnt even check it... they just dropped it in.. unbelievable.. and I didnt even bother taking it back.. i just bought a better battery and installed it myself.
05-16-10, 09:23 PM
#5
Pole Position
I'm with you cmasten. I just got a new RX, but won't even bother with the free 1K inspection or the 5K oil change.
Not worth it... And it's not because it's Lexus, I would avoid any service from other brands as well...
$120/hour, yeah right!
Not worth it... And it's not because it's Lexus, I would avoid any service from other brands as well...
$120/hour, yeah right!
05-17-10, 08:23 PM
#6
Lead Lap
You can make your own CPO by slapping a warranty on a car that passes your pre-purchase inspection..... all for less than money then buying a dealer approved and appointed CPO.
05-18-10, 05:53 AM
#7
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Just to reiterate my point, I thought the same thing, had a reliable Indy check it out, and thought I was good to go. Turned out there was some right side collision repair and some frame damage that had been repaired (later proven that dealer had prior knowledge and lied) that he had missed. This is a guy I've trusted for years, guess what? Sh.. happens. He's well known in my area as the absolute guru on German cars and would have caught this 99.9% of the time.....but didn't.
If nothing else, a major luxury car dealer wouldn't intentionally lie about this, and if a problem was found then they would take blame and fix the matter. Everyone has an opinion, that's just mine. These luxury brands cost too much to bargain hunt for a grand or two. Trust me, you do not want to suffer through year long litigation and insure a car you can't drive the whole time just to get what's rightfully yours.
Forget what you think about shoddy major dealership mechanics, there's more involved than getting a 5k mile service when dropping 80k+ on a car.
My .02
If nothing else, a major luxury car dealer wouldn't intentionally lie about this, and if a problem was found then they would take blame and fix the matter. Everyone has an opinion, that's just mine. These luxury brands cost too much to bargain hunt for a grand or two. Trust me, you do not want to suffer through year long litigation and insure a car you can't drive the whole time just to get what's rightfully yours.
Forget what you think about shoddy major dealership mechanics, there's more involved than getting a 5k mile service when dropping 80k+ on a car.
My .02
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