[Uridian]

Hi all. So, as the title suggests, my lease will be ending in April of this year. I'm looking into what options I have, if I want to stay with BMW at all, etc. I can find much of the information I need for myself, but just to get the conversation started, I called my dealership to have my CA lay out my options for me.

I'm at least considering buying the car, so I asked what he could do for me. The first option he laid out was residual + $3500 for CPO, then finance that through BMW FS. $3500 seemed more than I've been seeing in my travels on the internet, so I asked if it was negotiable (not really expecting an honest answer), and he told me "No, that's just charged straight through".

So my big question is this: is the cost of CPO'ing a lease buyout negotiable? If not, is $3500 grossly overpriced? I've seen people mention as low as $1600 in the past couple of years, so what determines the initial cost of the CPO warranty?

If I don't pay for the CPO, then what level of Extended Warranty currently most closely resembles the CPO warranty for services vs. cost? Is an extended warranty a better idea anyway?

If I buy out the car now without CPO'ing it, then I'd have until the end of the factory warranty to buy the Extended Warranty anyway, right?

I'll also take any other suggestions for options I haven't yet considered.

If it matters, I'm pretty handy and can do all my work myself. The things I'm most worried about are the cost of major engine or transmission work/replacement.

Thanks!

[BEM-S4]

You can CPO anytime, anywhere, as long as the original warranty has not yet expired. There are different levels, 75k and 100k, so maybe he was quoting you for 100k. You can include maintenance too for an additional fee again as long as the krignal coverage hasn't lapsed.

[BEM-S4]

So really unless the do it for free just wait til close to 50k or 4 years whatever comes first. God forbid you pay a bunch of money to CPO then total the car.

[bmwx5er]

Originally Posted by Uridian

Hi all. So, as the title suggests, my lease will be ending in April of this year. I'm looking into what options I have, if I want to stay with BMW at all, etc. I can find much of the information I need for myself, but just to get the conversation started, I called my dealership to have my CA lay out my options for me.

I'm at least considering buying the car, so I asked what he could do for me. The first option he laid out was residual + $3500 for CPO, then finance that through BMW FS. $3500 seemed more than I've been seeing in my travels on the internet, so I asked if it was negotiable (not really expecting an honest answer), and he told me "No, that's just charged straight through".

So my big question is this: is the cost of CPO'ing a lease buyout negotiable? If not, is $3500 grossly overpriced? I've seen people mention as low as $1600 in the past couple of years, so what determines the initial cost of the CPO warranty?

If I don't pay for the CPO, then what level of Extended Warranty currently most closely resembles the CPO warranty for services vs. cost? Is an extended warranty a better idea anyway?

If I buy out the car now without CPO'ing it, then I'd have until the end of the factory warranty to buy the Extended Warranty anyway, right?

I'll also take any other suggestions for options I haven't yet considered.

If it matters, I'm pretty handy and can do all my work myself. The things I'm most worried about are the cost of major engine or transmission work/replacement.

Thanks!

The dealer cost to CPO is about $1900 + 2-3 hours of labor for going through the CPO checklist. If new tires are needed, then that's coming out of the dealer's pocket too. I'd suspect the $3500 has at least $1000 in mark up (assuming you didn't need new tires).

Also, when the dealer CPO's a lease return, they are actually buying the car from BMWFS at a wholesale rate, which i'm sure is substantially more than the residual -- typical dealer BS of asking you to pay the residual.

I'd shop around for other CPO'ed cars..

[BEM-S4]

Or shop around dealers. You can do all of this stuff with anybody.

[Pparana]

Originally Posted by Uridian

Hi all. So, as the title suggests, my lease will be ending in April of this year. I'm looking into what options I have, if I want to stay with BMW at all, etc. I can find much of the information I need for myself, but just to get the conversation started, I called my dealership to have my CA lay out my options for me.

I'm at least considering buying the car, so I asked what he could do for me. The first option he laid out was residual + $3500 for CPO, then finance that through BMW FS. $3500 seemed more than I've been seeing in my travels on the internet, so I asked if it was negotiable (not really expecting an honest answer), and he told me "No, that's just charged straight through".

So my big question is this: is the cost of CPO'ing a lease buyout negotiable? If not, is $3500 grossly overpriced? I've seen people mention as low as $1600 in the past couple of years, so what determines the initial cost of the CPO warranty?

If I don't pay for the CPO, then what level of Extended Warranty currently most closely resembles the CPO warranty for services vs. cost? Is an extended warranty a better idea anyway?

If I buy out the car now without CPO'ing it, then I'd have until the end of the factory warranty to buy the Extended Warranty anyway, right?

I'll also take any other suggestions for options I haven't yet considered.

If it matters, I'm pretty handy and can do all my work myself. The things I'm most worried about are the cost of major engine or transmission work/replacement.

Thanks!

parts for these cars are readily available and cheap from wrecks, new is also reasonable. Cars are very easy to work on for German. If your handy w a wrench and your car has not had many issues I would not bother. I do not know much about the 4 cyl but a whole engine used cant be more than 4k, and going down in cost.

These are worst case scenarios, more common stuff is likely, and if you have some issues you can always sell. An extended warranty never adds much if any resale value.

[BMW F22]

Subscribed as my lease ends in May and I'm thinking about buying it out as well. Hope to get it for below residual and then CPO it.

[Uridian]

Originally Posted by bmwx5er

The dealer cost to CPO is about $1900 + 2-3 hours of labor for going through the CPO checklist. If new tires are needed, then that's coming out of the dealer's pocket too. I'd suspect the $3500 has at least $1000 in mark up (assuming you didn't need new tires).

Also, when the dealer CPO's a lease return, they are actually buying the car from BMWFS at a wholesale rate, which i'm sure is substantially more than the residual -- typical dealer BS of asking you to pay the residual.

I'd shop around for other CPO'ed cars..

That's interesting about the CPO cost vs shop time and markup. I'll ask him about that breakdown the next time I speak with him. Do they perform any actual repairs or detailing? Or is it really just making sure everything works and is safe, which I am more than capable of doing myself (brakes, tires, fluids)?

I'm sorry, do you mean *less* than the residual? Your sentence as it is now reads like the dealership is losing money on my lease return and trying to recoup that money through the CPO cost.

I'm not really interested in shopping for another CPO version of my car. I ordered specifically what I wanted when I first leased it, so either I'll buy out *my* car, hand it in and lease a new 230i, or just turn it in and do something else entirely.

Originally Posted by BEM-S4

You can CPO anytime, anywhere, as long as the original warranty has not yet expired. There are different levels, 75k and 100k, so maybe he was quoting you for 100k. You can include maintenance too for an additional fee again as long as the krignal coverage hasn't lapsed.

That hadn't occurred to me as an option, but I guess you're right. Though, without the CPO, I might not get a financing rate I want. But if I can save a few thousand bucks, it might not matter anyway.