[TourStageFan]

I am the previous owner of an E39 and E60, which were both purchased new. This is my first CPO car, so I am less familiar with pricing.

I'm curious to know how much of a discount people were able to negotiate off of the dealer's asking price?

The last couple of dealers I visited were only offering $500 - $700 off their asking price. They said that they spent $2000 - $3000 to make repairs/replace parts in order to qualify the car for CPO status.

Any info. from those that have purchased CPO cars would be greatly appreciated.

Thanks in advance!

[Chili Palmer]

You're lucky your dealers are discounting, when I bought my car they weren't taking anything off the asking price - probably because my car was a 2011 and it was 2012, so it was still a new design of the 5-Series. Plus my car was an M-sport, it was the only one available in a 100 mile radius on the BMW website for CPO's.

I'd beat on them, all they can say is no.

[NickG_TechniqueTuning]

There's no definitive answer to this, as every car and dealership is different. It boils down to how much the dealership actually paid for the car (was it a trade-in, BMW FS lease return, auction purchase, etc.), how much they have invested in reconditioning the vehicle (ie, cost of repairs done), and then how long it's been sitting on their lot.

IMO, BMW dealers have the highest profit margin on the lease return vehicles. 4 of the last 6 BMWs I've purchased have been a BMW FS lease return vehicle, and those are the cars I've gotten the best deal on. Dealers get these cars at auction or below auction pricing, and don't have to pay the auction fees or transport costs to get the cars onto their lot. I estimate the CPO warranty costs the dealership ~$1500-2000. The dealership is probably also going to want to make ~10% on their investment. So with those estimates, you can calculate about what the dealership is willing to sell the car for without too much effort in negotiating. Getting them below that number will start to get harder.

Cases in point: In January I purchased a 2013 X3 from a BMW dealership. 20k miles, CPO warranty, and the exact options I wanted. They were asking $34,850 and I got them down to $32,300. I called them on the car as soon as they advertised it and got it on their lot, even before they performed the CPO inspection. I was the first customer to test drive the car.

The previous purchase was a 2011 550i M-Sport in August 2014. Again, from a BMW dealership. The salesman new what I was looking for, and called me when he found out this particular car was coming in off a 3 year lease. They got the car in at 11am on a Saturday, and I drove away in it 7pm that night. They were asking $37k and I got it for $35,500.

Overall, I'd say you should be able to get at least $1500-2000 off the asking price, if not more depending on how long the car has been on their lot. My advice is to get the car as soon as it hits the lot (ie, minimum floor time), or after it's been there for 1-2 months (they're desperate to get rid of it).

[Genieman]

I don't think there is a formula at all. Not only that, I don't personally care what the dealer incurred to get the car and CPO the car and auction price and blah blah blah, every car has a market value. If the dealer overpaid to get a car (and they usually don't but if they did) that's not my problem and they can't just pass that on to the consumer if it causes the price to exceed a fair market value. Best bet is to use a few of the pricing services, KBB, Edmunds, NADA and get several CPO prices from there of your specific car with the options it has. Most likely the asking price will be higher, and try to negotiate to the price from the websites. If the car is only 1-2 years old, I also think of it in terms of MSRP. If I buy a new car I can probably get the dealer down 5-7% off of MSRP before incentives. So if you can get that on a new car, then a 1 year old car should be at least 12-15% off of its original MSRP, if 2 years old then 17-20% off original MSRP.

[493263]

The thing is that if the dealer allows a large margin for haggling, then that dealer is probably overpricing.

A lot of high end auto dealers are moving towards the no haggle pricing now. It creates a much more pleasant environment and they don't need to spend 5 hours on a customer to get a sale. Hell, even the local Mazda dealer here won't even budget a dollar but you also won't find a lower price anywhere.

[lsturbointeg]

When I purchased my CPO 2011 535i it had an additional discount $2500 off on top of the selling price when I bought this last June. However...all the CPO all varied on discounts... some $500-5000...So like someone stated above it all depends what BMW had to do to recondition the Car Maybe?

[Ben2k9]

Originally Posted by TourStageFan

I am the previous owner of an E39 and E60, which were both purchased new. This is my first CPO car, so I am less familiar with pricing.

I'm curious to know how much of a discount people were able to negotiate off of the dealer's asking price?

The last couple of dealers I visited were only offering $500 - $700 off their asking price. They said that they spent $2000 - $3000 to make repairs/replace parts in order to qualify the car for CPO status.

Any info. from those that have purchased CPO cars would be greatly appreciated.

Thanks in advance!

I would spend a lot of time on autotrader.com researching prices to get a good understanding of the range. Will help in negotiations or you just might find a better deal elsewhere. I bought a 550 from a dealer in Miami and had the car shipped here because it was a couple grand cheaper and better suited my preferences on colors and options.

[bscarlett]

I always find it interesting when dealership claim to have spent thousands to qualify for CPO and when I ask for the service records to be pulled....there is no evidence of any parts being replaced. Get the dealership to commit to how much they spent to CPO it and then ask for the records...then deduct exactly what they claimed to have put into the car when their records don't support it. I have bought several CPO'd cars and have gotten around 5-10% off each of them. For my E39, it was being sold as CPO and I asked to remove CPO to save 3K...the car was rock solid and had 2 years of warranty....better to have 3K in my pocket.

[TourStageFan]

Originally Posted by bscarlett

I always find it interesting when dealership claim to have spent thousands to qualify for CPO and when I ask for the service records to be pulled....there is no evidence of any parts being replaced. Get the dealership to commit to how much they spent to CPO it and then ask for the records...then deduct exactly what they claimed to have put into the car when their records don't support it. I have bought several CPO'd cars and have gotten around 5-10% off each of them. For my E39, it was being sold as CPO and I asked to remove CPO to save 3K...the car was rock solid and had 2 years of warranty....better to have 3K in my pocket.

I did review the technician's notes that detail the certification process (what was replaced/repaired, etc.). I also heard that BMW reimburses the dealers for the money spent on the Certification process, cannot confirm whether this is true.

5- 10% was what I was expecting, at a minimum! Especially given that the new 2016 body style was just announced.

I like your suggestion re: removing the CPO, but I'm not sure the dealers here in the NYC area would go for it.

[TourStageFan]

On a separate note, has anyone purchased additional years of the free Scheduled Maintenance to cover the car after the original warranty has expired?

If so, how much did you pay? One dealer near me quoted ~$1000.

[lsturbointeg]

Originally Posted by TourStageFan

On a separate note, has anyone purchased additional years of the free Scheduled Maintenance to cover the car after the original warranty has expired?

If so, how much did you pay? One dealer near me quoted ~$1000.

I did...I'll have to check to see how much more I paid

[ezaircon4jc]

Originally Posted by TourStageFan

On a separate note, has anyone purchased additional years of the free Scheduled Maintenance to cover the car after the original warranty has expired?

If so, how much did you pay? One dealer near me quoted ~$1000.

WOW!!!!! My dealer wanted $2100 so I passed. For a grand I would have bit!! I wonder if I could get the same deal......

[493263]

Originally Posted by ezaircon4jc

WOW!!!!! My dealer wanted $2100 so I passed. For a grand I would have bit!! I wonder if I could get the same deal......

It depends on the car I think. I paid about $1500 for mine.

Originally Posted by TourStageFan

I did review the technician's notes that detail the certification process (what was replaced/repaired, etc.). I also heard that BMW reimburses the dealers for the money spent on the Certification process, cannot confirm whether this is true.

5- 10% was what I was expecting, at a minimum! Especially given that the new 2016 body style was just announced.

I like your suggestion re: removing the CPO, but I'm not sure the dealers here in the NYC area would go for it.

They're not going to remove CPO because:

1. They already spent money to get it CPOed
2. CPO vehicles sell much faster than non CPO vehicles
3. CPO vehicles sell with ASP of $3-4k higher.

[ezmaass]

Sadly, the auto industry still operates like some kind of archaic street market where you need to negotiate prices. This is somewhat excusable on used cars as each is a unique situation. But new vehicles? Laughable.

In any case, everything is negotiable when it comes to buying a CPO car - so just do your homework. Like any market, it's about knowing your comparables. Set a reasonable RANGE of what you think the car is worth (based upon comparables, KBB values, etc), and then negotiate as far down into that range as possible.

[bscarlett]

Originally Posted by 493263

It depends on the car I think. I paid about $1500 for mine.



They're not going to remove CPO because:

1. They already spent money to get it CPOed
2. CPO vehicles sell much faster than non CPO vehicles
3. CPO vehicles sell with ASP of $3-4k higher.

It must be different in the US but for my E39, I had them remove the CPO and I was just about to buy an e70 and the dealership removed it to bring the price down....passed on the car as it had the N63 engine.

It would appear they asses the car to determine what CPO would cost and then wait for the sale. For my E53, they quoted $3000 for CPO when I bought it off lease and then when I hesitated, they suggested to wait and see how much was needed....got CPO down to $1300.

[NickG_TechniqueTuning]

Originally Posted by 493263

It depends on the car I think. I paid about $1500 for mine.



They're not going to remove CPO because:

1. They already spent money to get it CPOed
2. CPO vehicles sell much faster than non CPO vehicles
3. CPO vehicles sell with ASP of $3-4k higher.

CPO can be removed, as it's not 'awarded' until the car gets sold at the retail level, and the dealership pays BMW the appropriate fee.

[493263]

Originally Posted by NickG_TechniqueTuning

CPO can be removed, as it's not 'awarded' until the car gets sold at the retail level, and the dealership pays BMW the appropriate fee.

I'm not saying they can't. I'm saying they probably won't. The current situation for new vs used vehicles in the US right now is.

1. Need to move more new vehicles off the lot to meet sales numbers(to beat Audi and satisfy shareholders)
2. Not enough used vehicles as it is flying off the lot. I believe the average CPO vehicle only sit on the lot for about 2-3 weeks.

What BMWNA is doing?

1. Encouraging people to get off lease by giving them incentives like early lease termination
2. Deals and incentives on a new vehicle.

[Slickrick2]

Originally Posted by TourStageFan

I am the previous owner of an E39 and E60, which were both purchased new. This is my first CPO car, so I am less familiar with pricing.

I'm curious to know how much of a discount people were able to negotiate off of the dealer's asking price?

The last couple of dealers I visited were only offering $500 - $700 off their asking price. They said that they spent $2000 - $3000 to make repairs/replace parts in order to qualify the car for CPO status.

Any info. from those that have purchased CPO cars would be greatly appreciated.

Thanks in advance!

I always look for $2000 to $3000 off the CPO sticker price. Must go in ready to buy the car on the spot. That is what will draw their attention immediately. I just bought a 2014 elite CPO 550i X-drive M-sport / excec , Carbon Black with Mocha Nappa loaded. Settled on $63,000 from $65,999 and they took my 2008 535xi Sport loaded as a trade in. They gave me what I wanted which was $15,000 for the trade in. I only had 59,000 original miles. I bought that BMW new from the dealer.

I'm very happy with my new CPO 550I. I almost certain I won't buy new again. I'll lease the car new but won't purchase new again.

[jasonle89]

Originally Posted by TourStageFan

I am the previous owner of an E39 and E60, which were both purchased new. This is my first CPO car, so I am less familiar with pricing.

I'm curious to know how much of a discount people were able to negotiate off of the dealer's asking price?

The last couple of dealers I visited were only offering $500 - $700 off their asking price. They said that they spent $2000 - $3000 to make repairs/replace parts in order to qualify the car for CPO status.

Any info. from those that have purchased CPO cars would be greatly appreciated.

Thanks in advance!

I got close to $3000 off. Dont trust all the crap they say.