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We're looking to pick up a Lexus and found two virtually identical vehicles with one being CPO at the dealership and another being located at a VW dealership. There is a $5K difference in price with the CPO obviously being the higher of the two. While there is no way I'd pay $5K for the CPO car, the dealership did say they will negotiate on the price of the car.
With that said, how much more is a CPO car worth over the same car that is not a CPO? Is it even worth it to pay extra for a CPO car if both cars are are in similar condition and drive the same? The CPO car does come with a 3yr/100K extended warranty but this should add no more than $1500 to the price of the car.
We're looking to pick up a Lexus and found two virtually identical vehicles with one being CPO at the dealership and another being located at a VW dealership. There is a $5K difference in price with the CPO obviously being the higher of the two. While there is no way I'd pay $5K for the CPO car, the dealership did say they will negotiate on the price of the car.
With that said, how much more is a CPO car worth over the same car that is not a CPO? Is it even worth it to pay extra for a CPO car if both cars are are in similar condition and drive the same? The CPO car does come with a 3yr/100K extended warranty but this should add no more than $1500 to the price of the car.
Any thoughts or experience with CPO cars?
Go to Edmunds.com and appraise the value of the car (under used cars). On Edmunds, when you get the value of the car, it has a spot that shows you how much it would be worth if it was a CPO vehicle at the dealer. How old is this car? How many miles? Is it still under manufacturer's originial warranty? I'd say buy the CPO if there is no warranty left, but you can surely negotiate the price.
Go to Edmunds.com and appraise the value of the car (under used cars). On Edmunds, when you get the value of the car, it has a spot that shows you how much it would be worth if it was a CPO vehicle at the dealer. How old is this car? How many miles? Is it still under manufacturer's originial warranty? I'd say buy the CPO if there is no warranty left, but you can surely negotiate the price.
I go check out Edmunds but it seems all those sites (NADA/KBB/Edmunds) all differ greatly in price.
The cars are both two years old with around 25k miles each. I'm sure they are still under factory warranty as well.
I go check out Edmunds but it seems all those sites (NADA/KBB/Edmunds) all differ greatly in price.
The cars are both two years old with around 25k miles each. I'm sure they are still under factory warranty as well.
Since they're so new and still under manufacturer's warranty, the CPO perks are not worth the extra $5K in my humble opinion. Unless, you can talk them down.
I ran into the same question recently picking up a used Honda. In the end, I thought the auto dealers where charging too much for the "extended" or "CPO" plans. I thought 1500-1700 would have been fair since places like Car Max will sell you a 36 month for about that if you buy from them.
I ended up buying an almost new used car with no extended coverage. If I were up in a little higher end car though, where the simple things cost way more (Porsche, BMW or even Audi) I would have spent the extra $.
The only thing these plans really save you is the cost if something goes horribly wrong, like a major component.
It depends. CPO guidelines differ between manufacturers but typically they require a more in-depth level of inspection of the vehicle and require allow a determined minimum wear for things like brakes and tires, or require the car has brand new tires, brakes and the next major service performed. So what you really have to do is look at the two otherwise comparable cars. If the CPO car has brand new tires and brakes and the 30K done and extended factory warranty, while the other has 50% wear on the tires, almost due for major service, etc etc, the CPO might be equal or the better deal in the long run.
But if these two cars are actually identical down to the wear and maintenance, $5K is pretty steep. Just don't buy an aftermarket warranty from the VW dealer. They are a real PITA to get anthing done in. I'd skip it altogether.
Lexus has extremely strict CPO standards because the warranty is 100K miles, and can be extended up to 125K miles.
The average dealership spends about $2500 certifying the car, and it is a true Lexus-backed warranty that is extremely inclusive. There are very few things it doesn't cover.
We're looking to pick up a Lexus and found two virtually identical vehicles with one being CPO at the dealership and another being located at a VW dealership. There is a $5K difference in price with the CPO obviously being the higher of the two. While there is no way I'd pay $5K for the CPO car, the dealership did say they will negotiate on the price of the car.
With that said, how much more is a CPO car worth over the same car that is not a CPO? Is it even worth it to pay extra for a CPO car if both cars are are in similar condition and drive the same? The CPO car does come with a 3yr/100K extended warranty but this should add no more than $1500 to the price of the car.
Any thoughts or experience with CPO cars?
Great question, Snake.
Personally, I would pass on the CPO and consider investing in the best extended warranty possible with the money saved. Although not a huge fan on extended warranties, with the expense of repairs nowadays, a 3 to 5 year warranty would afford more restful nights than just knowing the vehicle was a CPO.
I bought a used car from a dealership, and demanded it be CPO. The finance guy pulled out a CPO stamp for the paperwork without doing anything for the car, if that tells you anything about CPO cars.
CPO is good in theory, but you still need to be careful. In the end, if you look at what dealers check for CPO, most of it is fluff and if you give any car a good once over, you can tell if its a good buy. Part of a CPO appeal is the extended warranty, but you can buy those direct from the automakers for between $900-$2000, so a $5k premium for a name and a warranty you can get on your own is a bit steep.
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