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Certified Pre-Owned Vehicles
bonnie_rick
Member Posts: 115
in General
this is now the discussion area for the topic he
started in Smart Shopper Certified Used Vehicles
(Topic #234).
Questions about any used makes/models are welcome
here!
started in Smart Shopper Certified Used Vehicles
(Topic #234).
Questions about any used makes/models are welcome
here!
0
Comments
AutoNation has a one-price, no haggle policy on all retail purchases. Buying from AutoNation costs a little more than if you bought your car from a lot or from an ad in the paper, but they are very selective about their vehicles. All of them must be less than 5 years old and have less than 75,000 miles. They are all put through a comprehensive 165-point certification that is performed by an ASE-certified technician.
I have a 1987 Toyota Celica with 136,400 miles on it. The brakes are bad. The left blinker is troublesome, but works with effort. There is some rust but not a huge amount. There is a pretty significant dent on the right side by the back wheel. The tires are good, not great. The engine is great, but there may be a slight oil drip. The windshield is full of little pock marks. Am I forgetting anything? Oh yeah, there are a bunch of really cool bumper stickers on it.
I'm picking up a new car tonight and asked the dealership what they'd give me for my Celica. At first they said $250. "WHAT???" Then they said $300. I asked a friend of mine who knows cars and who knows my car what he thought it was worth. He thought maybe $400 and he said he'd give me that for it. It sure seems like this car is worth more than that but I have no idea how much more.
Edmund's doesn't price cars as old as mine. The Kelley Blue Book lists $830 as a trade-in price for my car in fair condition. I consider my car less than in fair condition, but not almost $600 less! The Blue Book for buying my car is about $3,200 but that's for a car in excellant condition sold by an outfit that has spent the time and money to recondition it.
My dad says I should be able to get $900 for it but that's based on his gut and his being my dad and not wanting me to sell it for a penny less than what I can.
So I don't know where to get a fair value assessment for my car if I were going to sell it myself. Aside from advertising it and seeing what offers I get, is there an easier way? Please hurry, my friend is waiting!
Your Host
getting the 328i an older sister (Literally older).
Just starting shopping for a coupe and haven't
gotten serious yet. Tried to find out from BMW
USA's website what you get for certified pre-owned
car, but their site doesn't list any details at
all, even in the owner's circle. Can anybody tell
me what kind of a warranty you get (say on a 97
coupe with 50K miles) that is certified? Any
opinions as to whether it's worth the money they
want for certifying one? What about an aftermarket
warranty instead? How are they on bang-for-the-buck
as a substitute? Something nice about having the
dealer hold the warranty I think...
I'd appreciate any comments..... Thanks
It seems like a reasonable enough warranty plan, although I haven't done any price shopping to see how much extra they think it actually adds to the value of a car.
Car_Man
Smart Shoppers / FWI Co-Host
I purchased via a private seller a '97 540i auto with 66K miles, solid maint. records, new tires, newly serviced, etc, etc, and its own transferable aftermarket warranty. So far, it's been a great car, and the warranty company didn't balk a bit on the one minor repair (slight leak in valve cover gasket) we used it for. It also quickly paid on the previous owner's one problem, a guage cluster that needed replacing due to a lcd that quit. In fact, they paid the mechanic BEFORE the work was even done on my repair.
Why am I saying all this? Well, I paid $30,900 for this car. Comparable models(17" sport wheels, prem pkg, leather, cd changer, etc) with extended warranty at BMW dealers were hovering around 38-40K. Add in sales tax of $2700 or so , and you can see that you'd easily have another $10,000 invested in a comparable car if bought at a dealer. $10,000 makes quiet a "rainy day" fund for future repairs, especially when you realize that I won't even need that fund until after my 100,000 mile (and very comprehensive) warranty runs out in about 3 years. Invested at 12%, I'll have about $14,000 more to play with at that time. That's close to 50% of what the car cost me!
The reasons why for this huge price difference:
1. You are NOT gonna find a "deal" at a BMW dealer. They know the market well, they know what they need to make in profit, and you will never find a seller in a hurry at a dealer.
2. Sales tax. On private sales here in GA, you avoid sales tax. Can't do that at a dealer.
3. Businesses have to make money. Private sellers usually just want a little more than they'd get in a trade-in situation. The retail/wholesale spread on a car in this class can be $6,000 or more. Try to find a seller who just wants to beat what a dealer will give him in trade. It takes time, but it can happen.
4. Private sellers are rare who can pay cash for a $30,000 plus 3 year old car. Most people selling cars in this class have trouble finding qualified buyers. If you can show up with cash(or a pre-qualified loan), you can save money. Dealers, on the other hand, can finance just about anything through their own financing arms, so they take riskier buyers in exhange for a higher initial price.
So, in my opinion, check around and shop carefully before considering a certified BMW.
As for the only advantage of the 328 over the 318 being ego, i think there's a little sour grapes there, the 6 is smoother, easier to use with manual tranny because of the extra torque an rotational mass, and for me gets great mileage ( as good as my 1.9L saturn ) because i'm almost always in the motor's comfort zone, while I used to flog that 4-cyl. Plus, you know, it's faster.
dave
1) BMW warranty with BMW dealer service, roadside assistance, etc. I was nervous about getting a second pricey euro car, and this helped a lot. Since the warranty is through BMW i trust them to care about the car more than a 3rd party warranty shop, and use OEM parts, etc.
2) A checked-over car ( though this was not all THAT great, it seems )
3) They gave me a good value for my trade, which saved hassle and made the loan smaller.
4) I got financed with a special CPO rate that was substantially better than other used car loans i could have gotten.
It is nice to go the the dealer, find a car i can be quite confident in ( warrantry/inspection), have them accept my trade, and finance me in an hour, and i'm out the door with a car. This saves a great deal of time and hassle. If you count the good financing i got, this convienence really didn't cost that much.
Yes, i did "leave a little money on the table" but i already did that when I got a BMW as opposed to a chevy metro, right?
But i am not tied to the program, and if i get another BMW i might use it, might not. The extended warranty is not quite as good as the OEM one, but it does cover the major components, at least.
dave
I've found Weatherford BMW in IPO-Ground-Zero Northern California to be the epitomy of arrogance. They steered me to 92s & 93s when I asked to see a $20,000 vehicle, when BMW's own CPO website can turn up at least a few 97s at $19999.
BMW ownership has almost become conformist. AFter 10 years of enjoying my (2nd owner) private-import BMW (it has made it to 205,000 miles), I'm moving on to a less arrogant marque with a rarer model (selling only 1,000 month in the US) that reflects my own personal passion for individuality.
You can tell us.....
Brought it in twice for service. First time to deal with an over-sensitive motion detector. Second time for a loose heater control cable and a warped glove box door that closes but won't stay properly locked. They fixed the control cable, special ordered the door, and washed my car before they gave it back. No charge, no hassle, no attitude for buying the cheapest bimmer on the lot.
Bill
Now that you own it, you have to make the best of it unless you wish to pursue costly litigation on some legal ground that is beyond the scope of the Board or the people who give advice. We aren't legally capable, so....
I'd say just stick with it, get them to replace as many parts as possible, and bail out with some warranty still left (I presume it is transferable), so you'll have a sales tool of sorts.
You ARE on your own after the warranty expires. So since your car seems like a real nightmare, just get rid of it and move on. When you buy a car with 45K, particularly a technical marvel like the 740iL, you have no control over the first owner's actions. They could have beat the heck out that car, and now the wear is starting to show.
Our experience with repairing over 4300 customer vehicles [Lexus and Infiniti] in Atlanta in the last 5 years indicates they typically run about $3,000 per +- $500 per year or 15 cents per mile which ever is greater [roughly 5%/yr of NEW purchase price]. With LS400 being consistently the lowest!!!
Luckily the extended warranty period gets rid of early failed components and leaves the transmission as the most expensive component to fail.
He said it is a certified pre-owned Honda, and that it has 35,000 mile bumper-to-bumper warranty. Is this possible from a run-of-the-mill used car lot? Do I have to ask to see something, to prove it's certified, and if so, what do I ask to see?
Also, when I take it for a test drive/inspection, do I get, like, a certificate?
Help. Pleez. The car's a cutie.
Used cars that are manufacturer certified may be a little more reputable, but understand that the certification is only as good as the place giving the certification.
Remember, the dealer that is certifying the used car is also the dealer who is trying to sell it.
Something to think about.
Personally, certified or not, I would have an outside source check out the vehicle.
But what about this mythical warranty? He said it was a Honda warranty, for their certified pre-owned cars. What should I ask to see?
If it's a Honda certified used car it's for real. That car had to go through a very intense inspection in order to be Honda Certified.
The warranty is for real.
Believe me ...I'm not trying to defend ..or knock any stores..or manfacturers...I'm a dealer, so I have heard, or seen it all ---- I feel -opatience- is just giving some good advice ......
I have friends that are Toyota, Ford, Acura, Subaru...etc dealers ..and some are absolutly the best --- and some ..aren't so good --- But, I feel that is just good advice to have the vehicle checked .....
When I go to one of the auctions ...--- I have the vehicles checked and "certified" ...it cost me $275 to have the wheels, brakes, transmission, compression, computer and a diagnostic done --- but, it does cover that vehicle --- and that just makes me feel.. very comfortable --- if it fails ..the auction buys it back........
I hope this helps....
Terry.
1. its the "dealers" certification process, whatever that may be. Not all states actually define "certified".
2. The local honda dealer certified the car but it sat on his lot and didnt sell. He took it to auction and another dealer buys the car and then tries to sell it as certified. (it passed all the requirements but non honda dealer can not offer the "official warranty") It's not uncommon for these types of cars to be at auction. Lincoln charges us $595 to certify a used lincoln but it it dosnt sell I can "un-certify" it and get my fee back. Not all certification programs work this way. So dealers make sure it's known on the auction block that the car was certified...If I am at the auction and I know the car was prev. certified I am more inclined to buy it and pay a little more. Just like a consumer.
3. the dealer is a liar.
Rich
Some lots can give a car a 30 day warranty and call it "certified".
Terry.
Makes no sense.
Bottom line --- Cash
Terry.
That's what his bosses told the used car prep guys to do at all the places he's ever worked.
He did the same thing at the Honda, Chevy, Jeep & Chrysler dealerships he used to work for.
I think Dateline or 20/20 did a rather scathing piece on "certified" used cars a couple years ago.
You can ask all the salesmen all the questions you like. They'll all insist that the 1000-point certified safety inspection is legit till they're blue in the face because that's what they've been trained to do, even though they know better.
Unfortunately, I was suckered in & bought a Dodge "certified pre-owned" Durango from the same dealership he works for before consulting with him. Fortunately for me he went and did the full 100+ point certification for me for free. He found a leaking water pump, dying fuel pump, dying alternator, fouled spark plugs, soft radiator hose, leaking front shock, cracked serpentine belt, and cracked radiator fan. The truck only had 22K! All repairs were covered under warranty. I haven't had any problems since.
So much for the "Certified" label.
Car_Man
Host
Smart Shoppers / FWI Message Boards
In our neck of the woods, selling dealers offers warranties ...... of sorts. Sometimes, it may be as short as 30-90 days. The local Acura dealer "certified" a '97 3.5RL with 68K mileage! It was pretty "clean," except that the trunk CD changer was gone and there were a couple scratches in the "plum" paint. Passed on that color .................
The best thing you can do is, have it checked out by a "real pro"....then find a warranty company via Edmund's or another good source...
Terry.
At Jag we used to spend closer to $2K a copy running them through the shop, I think the more expensive work is more prevalent at high end stores.
That or DCH ran a very honest operation.
Bill
Car_Man
Host
Smart Shoppers / FWI Message Boards
I'm still under the original warranty and haven't bumped into the CPO portion of the warranty yet, but I give it a vote of confidence. Among other things it got me fresh rotors and pads and tires before I bought the car; something that probably went quite a ways toward paying the additional cost of buying a CPO car over one that isn't.
I have 2 BMW's now... I'm pretty comfortable that the CPO is a good deal.
Car_man
Host
Smart Shoppers / FWI Message Boards
In summary, my experience has been very positive so far. Even minor issues (Where does this rattle come from ?) have been taken care of without a problem.
I think in the future, if i buy another BMW, i'll be far more prone to buy a new car, and get the exact car i want with the free maintenance.
It was my impression that the CPO warranty does not cover rattles--that that's considered 'trim.'
dave