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I am looking into buying out the lease on my 2003 E39 M5 (23K Miles) which expires in August and I just got a quote from the dealer on what it will cost.

They say the CPO which will take me through October of 2008 or 100K miles will cost $2800. If I want full maintenance it is an additional $1195.

Is this right? Seems a little rich to me.
 

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mricorp said:
I am looking into buying out the lease on my 2003 E39 M5 (23K Miles) which expires in August and I just got a quote from the dealer on what it will cost.

They say the CPO which will take me through October of 2008 or 100K miles will cost $2800. If I want full maintenance it is an additional $1195.

Is this right? Seems a little rich to me.
I dont know if it is right, but it sounds consistent, with what I have seen others post. On a side note when I bought my car, they were asking 57,900 and sold it to me for 53,000 even and then BMWNA said they wouldnt finance it unless the dealership CPO'd, which they did, got a new set of tires and what not and they didnt charge me for the CPO process, I dont know if I got lucky or if they just had a large profit margin and were able to absorb the cost? Josh
 

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maintenance sounds right. cpo is within the range of what others have paid, but i think some people have paid substantially less for the cpo. i think cpo costs the dealer $1500 plus parts if any work is required.
 

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as far as the cpo price, i am not sure. however, that is the same price that i have been quoted for the extended maintaince plan.

bryon :cheers:
 

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There are two CPO prices...the one BMWNA charges the dealership and the one the dealership is able to extort, er, obtain from a customer for having a CPO on a given car. The BMWNA price to the dealer is much less than that, but I don't know the real value -- I think it is in the range of $1500.
 

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I was told it cost the dealership $1295. They agreed to give it to me for that, with the addition of a $500 fee for the inspection, paperwork, buying the car from the previous owner, cpoing it, selling it to me, license & title paperwork, blah blah blah.

It isn't as comprehensive as opther 3rd party plans, but with the $2500 you save you can self-insure the stuff it doesnt cover

A
 

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As the original owner of the car, the quote you received may be for the extneded warranty rather than CPO, which is used for cars turned in and then sold to new owners. The extended warranty is definately more expensive than the CPO cost, as I found out when I was looking at one for my 530 (I was the original owner). I assumed that the extended warranty was more inclusive than the CPO and did not require a deductable, but I never checked it out further.
 

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KevinM said:
As the original owner of the car, the quote you received may be for the extneded warranty rather than CPO, which is used for cars turned in and then sold to new owners. The extended warranty is definately more expensive than the CPO cost, as I found out when I was looking at one for my 530 (I was the original owner). I assumed that the extended warranty was more inclusive than the CPO and did not require a deductable, but I never checked it out further.
The extended warranty BMW sells is exactly the CPO warranty as far as coverage. I'm not sure about the deductible.

I've previously posted the details here: http://www.m5board.com/vbulletin/showthread.php?t=52390

Mike
 

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I purchased a CPO'd '03 from a dealer in Oct.04. They quoted me $1,750 for the full maintenance warranty. The final negotiated price was $875; the dealer "ate" the other half. While not dispositive, this is confirms my experience that the pricing of these warranties is highly, repeat highly, negotiable. Good luck. 5 Driver
 

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5driver said:
I purchased a CPO'd '03 from a dealer in Oct.04. They quoted me $1,750 for the full maintenance warranty. The final negotiated price was $875; the dealer "ate" the other half. While not dispositive, this is confirms my experience that the pricing of these warranties is highly, repeat highly, negotiable. Good luck. 5 Driver
The "full maintenance" plan and the "extended warranty" plan are two completely different animals.

Since you bought a CPO vehicle you already had the extended (CPO) warranty included in the purchase price.

You purchased the full maintenance extension which your dealer quoted you a highly inflated price - BMW's suggested retail price of that maintenance extension is $1195.
 

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mdernst said:
The "full maintenance" plan and the "extended warranty" plan are two completely different animals.

Since you bought a CPO vehicle you already had the extended (CPO) warranty included in the purchase price.

You purchased the full maintenance extension which your dealer quoted you a highly inflated price - BMW's suggested retail price of that maintenance extension is $1195.
You are certainly correct. The dealer quote for the maintenance extension was grossly inflated, and the extended warranty is separate and distinct coverage, of course.

I shopped for an extended warranty for a '97 MB 5 years ago and, for absolutely identical coverages from the same aftermarket insurer, I got prices of $2,750 and $2,250 from two of the larger ATL dealers. Highly, repeat, highly negotiable prices for this product. 5 Driver :)
 

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5driver said:
You are certainly correct. The dealer quote for the maintenance extension was grossly inflated, and the extended warranty is separate and distinct coverage, of course.

I shopped for an extended warranty for a '97 MB 5 years ago and, for absolutely identical coverages from the same aftermarket insurer, I got prices of $2,750 and $2,250 from two of the larger ATL dealers. Highly, repeat, highly negotiable prices for this product. 5 Driver :)
I agree and either way looks like you got a good deal on the extended maintenance plan.
 

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mricorp said:
I am looking into buying out the lease on my 2003 E39 M5 (23K Miles) which expires in August and I just got a quote from the dealer on what it will cost.

They say the CPO which will take me through October of 2008 or 100K miles will cost $2800. If I want full maintenance it is an additional $1195.

Is this right? Seems a little rich to me.
It sounds like to me they are quoting you a 3rd party extended warranty (AFAIK BMW does not offer one other than the CPO). To get the CPO, you have to get your dealer to buy the car from the lease bank - not you. Then they CPO it and sell it to you. It could be this is what you told them and what they intend to do, and the difference between their cost for the CPO ($1,000-1,500) and the price they quoted you is to cover the labor to inspect/certify the car, and then profit for handling the transaction for you. You didn't think they would do it for free, did you? If that is a dealer buy, CPO, and sell to you price it sounds like a little too much profit for the dealer to me.

Dennis
 

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dwynne said:
It sounds like to me they are quoting you a 3rd party extended warranty (AFAIK BMW does not offer one other than the CPO).
BMW announced an "Original Owners Plan" (OOP) a while back. An extended warranty saleable only to the original purchaser. Transferrable, BUT only if purchased more than 90days prior to transfer. (So an original owner looking to sell can't buy it and compete with dealers offering CPOs...BMW protecting their dealers)

Pricing is high. I recall $3500? just a recollection- do a search
 

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List price of OOP Extended warranty for M5 ard is referring to was $3,795 when I was looking at it early this month. Not available for any Dinan equipped cars, however, so that ruled mine out.:grrrrr: I also heard discrepancies from different dealers re the "90 day rule" -- some claimed they had never heard of that and sold these all the time. Be sure to double check before you buy one.
 

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JP 99300 said:
List price of OOP Extended warranty for M5 ard is referring to was $3,795 when I was looking at it early this month. Not available for any Dinan equipped cars, however, so that ruled mine out.:grrrrr: I also heard discrepancies from different dealers re the "90 day rule" -- some claimed they had never heard of that and sold these all the time. Be sure to double check before you buy one.
Since the person asking does not OWN the car, the lease bank does, then he needs the cheaper CPO deal anyway. Dealer buys the car and sells it to him CPO. If this is financed with BMWFS he might can save some money by waiting until lease end then turning it into the dealer, the dealer will likely get a discount (below residual) to buy the car, then CPO and re-buy.

Dennis
 

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dwynne said:
Since the person asking does not OWN the car, the lease bank does,
I agree the cheaper CPO deal may be better, financially...


Do you know for a fact that the OOP is not available to a leasor?

Not nitpicking, just want to make sure the info here is the best. :)

Ard
 

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ard said:
I agree the cheaper CPO deal may be better, financially...


Do you know for a fact that the OOP is not available to a leasor?

Not nitpicking, just want to make sure the info here is the best. :)

Ard
Leasor /Lessor = the lease bank
Lessee = you (or the person who posted the question)

No reason for the lease bank to buy an OOP plan, I don't think.

In order for BMW to CPO the car a BMW dealer has to sell the car. The perfect time to do this is at the end of the lease. Next best would be to have the dealer buyout the lease, CPO and sell. I can't imagine why anyone would want to pay about 2x more for a similar warranty while they are under lease. In just about every state the lesee or a dealer are the only ones that can buy a car off lease and if the lesee does it sales tax is due. So that makes an ideal time to "Sell" it to the dealer and buy it back CPO.

Like I said, in this case CPO is the way to go - but for a better price....

Dennis
 

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CPO cost as quoted on my last transaction for my 2002 M5 is $1200. That is the standard CPO fee in the US. Cost to dealer of extended maintenance for 6years/100K is $1195. Both of these were verified by my friend who is the GM at a BMW dealer.
 

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dwynne said:
Leasor /Lessor = the lease bank
Lessee = you (or the person who posted the question)

No reason for the lease bank to buy an OOP plan, I don't think.

In order for BMW to CPO the car a BMW dealer has to sell the car. The perfect time to do this is at the end of the lease. Next best would be to have the dealer buyout the lease, CPO and sell. I can't imagine why anyone would want to pay about 2x more for a similar warranty while they are under lease. In just about every state the lesee or a dealer are the only ones that can buy a car off lease and if the lesee does it sales tax is due. So that makes an ideal time to "Sell" it to the dealer and buy it back CPO.

Like I said, in this case CPO is the way to go - but for a better price....

Dennis

Sorry about getting leasee and leasor backwards- I don't lease.

While you continue to assert the O2P is not available to a person leasing the car, that is incorrect. Based on the BMW press release, the O2P is available to the original owner or "original leasing customer":


"This is the official BMW NA annoucement of the extended warranty plan:

"In support of BMW’s ongoing efforts to develop stronger relationships with our
customers, BMW of North America and BMW Financial Services have jointly
developed the Original Owner Protection Program (2OP). The 2OP Program
is an extended service contract product that offers extended protection
exclusively to the original BMW retail purchaser or leasing customer. The
Original Owner Protection Program is targeted at two groups; either new BMW
retail purchasers or lessees who may decide to purchase their leased BMW at
lease-end. To be eligible for this program, the vehicle must still be covered
under the BMW New Vehicle Limited Warranty at the time of enrollment.
Consumer Benefits: Customer benefits of the Original Owner Protection
Program (2OP) include:
• Program backing by BMW of North America
• 2 year/50,000-mile peace of mind protection (takes affect at expiration of
BMW New Vehicle Limited Warranty)
• Scope of coverage like the Certified Pre-Owned BMW Vehicle Program
• Includes BMW Roadside Assistance
• Use of original BMW new or authorized remanufactured parts
• No vehicle inspection required
The Original Owner Protection Program is tentatively scheduled to launch in
late July across the country (except in Florida and Puerto Rico), pending the
successful testing of supporting systems and final state approvals as required
(still pending in WY). A separate bulletin will be issued in the next few weeks
announcing the official launch date of the program and giving you more details
about the launch and the Program content.


Original Owner Protection Program Availability: After it is launched, this
program can be sold at all BMW centers that have signed a Center
Participation Agreement for this program, except those in Florida and Puerto
Rico (due to state legal requirements). 2OP Program availability in Florida and
Puerto Rico will be announced later this year. However, authorized BMW
centers in Florida and Puerto Rico will be able to honor coverage (covered
repairs) under this program."


Now, the cpo may be a better deal, and can certainly be done easily when transfering from lease to ownership....
 
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