Cost for dealer to CPO...

[TampaBlueE90]

2008 E90 M3 16k miles at lease end...

I have spoke with 1 dealer who offered me about a 4k markup on top of my residual to CPO the car for two more years.

This seem about right?

[JusCruzin]

Sounds a bit high. In any event, if you are averaging only 5,300 miles per year, I would query whether it makes sense to CPO the car. At that rate ($4k for 10k miles) you would be paying about 40 cents per mile for the coverage, which is a lot.

[J08M3]

Yes, that price is about right. However I wouldn't do it. With that low miles you might want to just trade it in and order a new one with new warranty. I had 20k on my 08 and the dealer gave me $5k for it at end of lease cause it was worth so much more than my residual. Then a great deal on an '11. I would've been foolish to CPO and buy out my lease.

[positiveions]

i was told 2500...

[FVM3]

such a low miles car, i wont CPO it.

[aus]

Here's a secrete. They will get your car from BMWFS at the auction price, which is way below your residual. My paperwork on my 2008 trade in for my 2011 showed the dealer got the car around $36,000 but it's being sold for $44,000. And they had minimal stuff to fix on my car. It was pristine.

[positiveions]

Originally Posted by aus

Here's a secrete. They will get your car from BMWFS at the auction price, which is way below your residual. My paperwork on my 2008 trade in for my 2011 showed the dealer got the car around $36,000 but it's being sold for $44,000. And they had minimal stuff to fix on my car. It was pristine.

that is why, you can negotiate on the residual. I did, got 2k off.

[JusCruzin]

So BMWFS will let you buy out the car for less than the residual at the end of the lease? Why would they do that if the car is in excellent condition (ie, in good enough shape for them to resell it at a profit)?

[amzbimmer]

I went through a similar question process. Each dealer will charge a different amount to CPO...some will do it for the fixed base price, other will charge the base price + parts/repairs and labor. Thus it will vary, so you have to shop around. If your car is pristine, they should CPO it for the base price.

Regarding negotiating the residual, again it is dependent on if your car is worth more than the residual value and if they are confident they will resell it. If not, you have room for negotiating.

[aus]

BMWFS will probably not sell you the car for below residual, but they will give the auction price to a dealer (probably any dealer). BMWFS knows the auction price is what they'll get for the car once they get it back since they won't sell it themselves.

How much it takes to CPO the car depends on what condition it's in. They worry about brakes and tires the most, assuming the engine's fine.

Offer them $1,000 over auction, and you'll buy a third party extended warranty for $500 over their cost. That's a fair deal.
I just got a 3 yr/36,000 mile extended warranty from Century Service Plus for the wife's 335 for $2,350, which was cost because I have a friend in the business. They said it would normally go for around $3,200. I got the Comprehensive, which is a BUMPER TO BUMPER warranty. CPO is powertrain and electronic's only. My buddy got the Mini extended warranty on his Cooper S, and had a plastic oil line go bad... NOT COVERED because it's plastic. It was $1,500 to replace a $75 part.

.

[pbonsalb]

For $4000, I would not do it for another 2 years of coverage given the mileage you drive. Keep track of your costs over years 5 and 6 and I think you will come out ahead. Paying for a warranty is sort of like buying insurance.

If it was $2000, I would seriously consider it. At that price, if nothing else, it would help the resale of your car should you decide to sell it since many buyers with no experience with the car feel safer with some warranty.