CPO

[bandersen]

Good morning...

Here's an odd one, perhaps one of you working @ a dealership could comment.....I read about (national news) the shortages of used cars in the used car market. Yet - I see a dealer in my area has had a (seemingly) well priced out 2018 X5.50. Only 23k miles, well optioned. According to Carfax, 1 owner (from this same dealership) had it 2 years. No accidents reported. My question - they've had it for sale as a CPO since May. No movement. Seems odd with a 'shortage' of used cars out there.

Any comments?

[RED_Y_]

I've seen another guy talking about this "shortage of used cars". I think dealers are trying to lure more customers in and inflate the demand since sales are low right now. I go for a walk by multiple dealerships every second day and I don't see a lot of cars moving or customers lining up, my wife wants new Tesla but I don't see a point buying it since we are working from home till end of the year and during pandemic we barely drive anywhere.

[smyles]

I think the shortage is mostly in "affordable" segment, i.e. $3...10k. A lot of dealer auctions have been shut down for several months, so the supply has been disrupted.

As for the OPs example, are 50 really that desirable, given the reliability reputation, remaining depreciation, etc?

[bandersen]

Originally Posted by smyles

I think the shortage is mostly in "affordable" segment, i.e. $3...10k. A lot of dealer auctions have been shut down for several months, so the supply has been disrupted.

As for the OPs example, are 50 really that desirable, given the reliability reputation, remaining depreciation, etc?

Would LOVE to hear a response to that question....as I'm leaning into the market (which of course may take me 6-12 months!!).

[ponytuning]

Originally Posted by bandersen

[/COLOR][/COLOR]

Would LOVE to hear a response to that question....as I'm leaning into the market (which of course may take me 6-12 months!!).

Yes, I was so put down by this that I got two of them, both are rock solid

[yohoe]

Just bought a CPO in Grapevine, TX. Longest on the lot was 1 month for xdrive (i didn't look at sdrive) and 1 was a 35d with the other involved in 2 accidents. Those with more features were the fastest moving.

[jch1511]

Originally Posted by bandersen

[/COLOR][/COLOR]

Would LOVE to hear a response to that question....as I'm leaning into the market (which of course may take me 6-12 months!!).

I am on my 8th BMW 50i/V8s going back 25 years, no issues and no substitute for the wonderful driving experiences.

[RedBent]

I've been casually searching for CPO X5s for a little while and I have noticed that they are moving quite well in my area. A few that I liked were sold in under a week.

Prices are definitely up vs comparable builds I was finding back in April-ish when I started to look; I'd probably say 7% or more in a lot of cases.

[BavarianM]

Agreed, I had been told the very same statement. “Shortage of used cars” by multiple BMW dealers. This in turn is keeping the 16’-18’ F15 prices firm, or higher than average, especially for CPO M-Sports. CPO’s are flying off the lot. This is my observation from analyzing the market last 1.5 years.

[bandersen]

Thank you all for the great comments. Wish me luck this weekend.

[jiggz]

Originally Posted by bandersen

Thank you all for the great comments. Wish me luck this weekend.

Good luck! Regarding CPO... IMO it's not worth the extra cost that dealers will charge for a certified vehicle. At one time probably yes as you'd get 2 years/50K miles of extra warranty, now it's 1 year/unlimited miles. So unless you drive a ton of miles, maybe it could be worth it, but otherwise I don't think it is. Just my .02.

Also keep in mind CPO is not the same warranty coverage as the original 4 year/50K mile warranty - there are numerous exclusions (I experienced this on my E70 X5). A lot of buyers don't realize this, they think they have a full extension of the original warranty and that's most definitely not true. You'd be better off buying non-CPO'd X5 and getting a better 3rd party warranty if you want coverage beyond the factory warranty.

[bandersen]

Originally Posted by jiggz

Good luck! Regarding CPO... IMO it's not worth the extra cost that dealers will charge for a certified vehicle. At one time probably yes as you'd get 2 years/50K miles of extra warranty, now it's 1 year/unlimited miles. So unless you drive a ton of miles, maybe it could be worth it, but otherwise I don't think it is. Just my .02.

Also keep in mind CPO is not the same warranty coverage as the original 4 year/50K mile warranty - there are numerous exclusions (I experienced this on my E70 X5). A lot of buyers don't realize this, they think they have a full extension of the original warranty and that's most definitely not true. You'd be better off buying non-CPO'd X5 and getting a better 3rd party warranty if you want coverage beyond the factory warranty.

Awesome comments. Thank you.