CPO Certified Pre Owned....worth it?
07-23-09, 06:21 PM
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CPO Certified Pre Owned....worth it?
Hi-
I am in the market for an rx350 2007 with about 40,000 miles. There are several cpo's to choose from..they run about $3000 more than non CPO offered by other (non - lexus) dealers in my area.
I need some experienced Lexus owners opinion. This is the first car I have purchased with out the guidance of parents or husband...little nervous.
Thanks for the help.
I am in the market for an rx350 2007 with about 40,000 miles. There are several cpo's to choose from..they run about $3000 more than non CPO offered by other (non - lexus) dealers in my area.
I need some experienced Lexus owners opinion. This is the first car I have purchased with out the guidance of parents or husband...little nervous.
Thanks for the help.
07-23-09, 06:46 PM
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Lexus CPO program offers 3 year/100k miles warranty, on top of the fact that the car was selected for the program, thoroughly inspected and likely got new brakes and tires, oil change, etc. Does it cost a dealership $3k? Of course not. Is it worth it to you in case you do experience problems that are likely to be covered under the warranty? You have to decide. Lexus dealer is likely to require you to maintain the car at their dealership and it isn't free and is expensive. All in all, it is a personal economical choice. I do not have the warranty nor did I purchase the car as a CPO vehicle as I was willing to handle as much of the maintenance myself and have repairs done by a good indy mechanic I happened to know (I've owned the car for almost a year and no problems so far where I had to take it to the mechanic). I hope someone who did purchase CPO can chime in and give you a rundown of program's benefits here.
07-24-09, 06:29 AM
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I wouldn't (and didn't) pay for a CPO. To be fair, the Lexus dealership didn't have exactly what I wanted... but the prices on what they had were too high.
You can get a warranty that will extend the one on your vehicle for less than $3k. Plus, if you buy a 2007 w/ 40k miles you'll still have factory warranty left. Take it to a Lexus/Toyota service guy and pay them $100 to give it a good once-over. I bet the brakes and tires don't need replacing, and everything else is probably OK.
To me, warm fuzzies aren't worth $3k. Also, if what bagsbie said is true (not saying it's not... just have no experience), maintaining your car at the Lexus dealership will cost you an arm and a leg on top of that $3k.
You can get a warranty that will extend the one on your vehicle for less than $3k. Plus, if you buy a 2007 w/ 40k miles you'll still have factory warranty left. Take it to a Lexus/Toyota service guy and pay them $100 to give it a good once-over. I bet the brakes and tires don't need replacing, and everything else is probably OK.
To me, warm fuzzies aren't worth $3k. Also, if what bagsbie said is true (not saying it's not... just have no experience), maintaining your car at the Lexus dealership will cost you an arm and a leg on top of that $3k.
07-24-09, 06:57 AM
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It's a matter of personal taste. If I was going to purchase a Lexus, I would go to a Lexus dealer, Benz, a Benz dealer, and so on..
Yeah, you may spend a little more, but to me, it's worth it. The dealer mechanics know the vehicle and know what to look for when certifying it. I think they would replace parts which would otherwise be missed if the Lexus was in a Chevy lot.
Good luck!!
Yeah, you may spend a little more, but to me, it's worth it. The dealer mechanics know the vehicle and know what to look for when certifying it. I think they would replace parts which would otherwise be missed if the Lexus was in a Chevy lot.
Good luck!!
07-24-09, 06:58 AM
#5
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CPO is an assurance that the car has been inspected and brought up to very high operating and appearance standards. I am told by dealers, who may be puffing, that Lexus often spends well more than several thousand dollars on the CPO process. Also, the warranty is an excellent selling point if you sell your car before it expires, as it gives you the ability to sell a used car with dealer warranty protection. Lexus and many other high end marks have used the CPO to create a new first-class of used cars, which seems to be working. I purchased my '04 RX as a CPO and do not regret the price. Whether I used the warranty before its expiration I am not sure, but I knew at the time I was buying a used car with no unhappy surprises down the road, and I'll gladly pay for that.
07-24-09, 07:42 AM
#6
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My personal view is that CPO is just the extended warranty ... the vehicles are not specifically singled out and extensively tested.
When you buy new Lexus, you have the option to get the extended warranty as long you purchase it before the base warranty expires. At no time does Lexus check or test for ... preexisting condition
. The same thing apply when they are selling a used vehicle, with milage less than when the base warranty runs out. The dealership has leeway to purchase it for you. [The first owner can also purchase the extended warranty and transfer it to the new owner]. So it is simply a matter of making the new owner feel good and I am willing to bet, the vehicle is not subjected to any extensive rigor.
The whole insurance thing is based on risk mitigation, while the insuring company is in money making business. Look at your risk and financial situation [cash flow as well] and then make the call. One can purchase the extended warranty through other companies ... but then you need to make sure the insuring company is going to be around when you need them. Would your vehicle need repairs for more than the premium? No one can tell. Among all insured, for sure the premium is more than the collective repair cost.
If you own more than one car, then think about self insuring. Each extended warranty will cost you about 2000+ [for Lexus 2800 or so ... the actual amount is negotiable]. Having 4000 in the bank for 2 vehicles will most probably cover any potential risk and if nothing goes wrong, you have your money.
Salim
When you buy new Lexus, you have the option to get the extended warranty as long you purchase it before the base warranty expires. At no time does Lexus check or test for ... preexisting condition
. The same thing apply when they are selling a used vehicle, with milage less than when the base warranty runs out. The dealership has leeway to purchase it for you. [The first owner can also purchase the extended warranty and transfer it to the new owner]. So it is simply a matter of making the new owner feel good and I am willing to bet, the vehicle is not subjected to any extensive rigor.The whole insurance thing is based on risk mitigation, while the insuring company is in money making business. Look at your risk and financial situation [cash flow as well] and then make the call. One can purchase the extended warranty through other companies ... but then you need to make sure the insuring company is going to be around when you need them. Would your vehicle need repairs for more than the premium? No one can tell. Among all insured, for sure the premium is more than the collective repair cost.
If you own more than one car, then think about self insuring. Each extended warranty will cost you about 2000+ [for Lexus 2800 or so ... the actual amount is negotiable]. Having 4000 in the bank for 2 vehicles will most probably cover any potential risk and if nothing goes wrong, you have your money.
Salim
07-24-09, 08:12 AM
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My personal view is that CPO is just the extended warranty ... the vehicles are not specifically singled out and extensively tested.
When you buy new Lexus, you have the option to get the extended warranty as long you purchase it before the base warranty expires. At no time does Lexus check or test for ... preexisting condition. The same thing apply when they are selling a used vehicle, with milage less than when the base warranty runs out. The dealership has leeway to purchase it for you. [The first owner can also purchase the extended warranty and transfer it to the new owner]. So it is simply a matter of making the new owner feel good and I am willing to bet, the vehicle is not subjected to any extensive rigor.
The whole insurance thing is based on risk mitigation, while the insuring company is in money making business. Look at your risk and financial situation [cash flow as well] and then make the call. One can purchase the extended warranty through other companies ... but then you need to make sure the insuring company is going to be around when you need them. Would your vehicle need repairs for more than the premium? No one can tell. Among all insured, for sure the premium is more than the collective repair cost.
If you own more than one car, then think about self insuring. Each extended warranty will cost you about 2000+ [for Lexus 2800 or so ... the actual amount is negotiable]. Having 4000 in the bank for 2 vehicles will most probably cover any potential risk and if nothing goes wrong, you have your money.
Salim
When you buy new Lexus, you have the option to get the extended warranty as long you purchase it before the base warranty expires. At no time does Lexus check or test for ... preexisting condition
. The same thing apply when they are selling a used vehicle, with milage less than when the base warranty runs out. The dealership has leeway to purchase it for you. [The first owner can also purchase the extended warranty and transfer it to the new owner]. So it is simply a matter of making the new owner feel good and I am willing to bet, the vehicle is not subjected to any extensive rigor.The whole insurance thing is based on risk mitigation, while the insuring company is in money making business. Look at your risk and financial situation [cash flow as well] and then make the call. One can purchase the extended warranty through other companies ... but then you need to make sure the insuring company is going to be around when you need them. Would your vehicle need repairs for more than the premium? No one can tell. Among all insured, for sure the premium is more than the collective repair cost.
If you own more than one car, then think about self insuring. Each extended warranty will cost you about 2000+ [for Lexus 2800 or so ... the actual amount is negotiable]. Having 4000 in the bank for 2 vehicles will most probably cover any potential risk and if nothing goes wrong, you have your money.
Salim
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07-24-09, 09:11 AM
#8
My 2 cents: Lexus CPO (not dealer CPO) is worth considering if priced right. From what I have heard, the real cost to do a CPO is ~ $1.5 to 2K. This includes new tires, batteries and brakes. So, not bad. Your warranty up to 100K. Powertrain is already under warranty up to 72K. The CPO adds 28K after 72K original warranty.
Extended warranty will cost ~ $1.5K, good to 75K and add 3 years. About $500/year.
For the Lexus extended warranty, you are basically buying warranty for (you can read the coverage on the Lexus website, any one of these happening will cost at least $500 each claim:
A/C.
Any moving parts, other than powertrain. Like side mirrors, tailgate, moonroof, etc.
Alternator.
Power Steering.....to name a few.
So, do your research and depending on your fiscal strategy, you can make an informed decision! Salim has a very good point!
Good luck.
Extended warranty will cost ~ $1.5K, good to 75K and add 3 years. About $500/year.
For the Lexus extended warranty, you are basically buying warranty for (you can read the coverage on the Lexus website, any one of these happening will cost at least $500 each claim:
A/C.
Any moving parts, other than powertrain. Like side mirrors, tailgate, moonroof, etc.
Alternator.
Power Steering.....to name a few.
So, do your research and depending on your fiscal strategy, you can make an informed decision! Salim has a very good point!
Good luck.
07-24-09, 09:57 AM
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My 2 cents: Lexus CPO (not dealer CPO) is worth considering if priced right. From what I have heard, the real cost to do a CPO is ~ $1.5 to 2K. This includes new tires, batteries and brakes. So, not bad. Your warranty up to 100K. Powertrain is already under warranty up to 72K. The CPO adds 28K after 72K original warranty.
Extended warranty will cost ~ $1.5K, good to 75K and add 3 years. About $500/year.
Extended warranty will cost ~ $1.5K, good to 75K and add 3 years. About $500/year.
07-24-09, 10:26 AM
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Yikes. This is why I take the Lexus to the Toyota Dealership for any repairs or maintenance, (such as the timing belt) I cannot do myself. It seems to be half the cost on any repair vs the Lexus dealership.
07-24-09, 11:59 AM
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X2. I recently bought some parts for the RX at a Toyota dealership. Guess what? The price from them was 3 times cheaper than that at the Lexus dealership!
07-24-09, 12:17 PM
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Actually, there's a big difference between CPO warranty and an extended warranty: the former is from Lexus and extended warranty normally is offered by a third party warranty company. One of the better ones is Fidelity. When offered extended warranty (not CPO), one should do a proper research on the company (simple Google search can reveal a lot of information on the company). Normally, you can negotiate extended warranty from a 3rd party company that Lexus might pass as its own but you have no luck negotiating CPO.
07-24-09, 12:32 PM
#14
I have the Lexus extended warranty. Would rather use Lexus. My dealer wanted to shove a 3rd party provider, even giving me guarantees that everything willbe covered and even telling me the Lexus warranty is not as good...this coming from Lexus dealer...what's wrong with the picture?
