PhilipMSPT

iTrader: (5)

How come CPO warranties for most automakers are better than their warranties of brand-new cars?

For example, Lexus bumper-to-bumper Basic Warranty for a new car is 4 yrs, 50k miles. But the warranty for a Lexus CPO vehicle is 6 years, 100k miles; which still includes a loaner car, Roadside Assistance, and Trip Interruption Service? BMW does the same thing...



Why not just make it the same?

LexFather

Good questions. Well the used cars already have miles on it, thus it SOUNDS like an extension but its really just a warrenty on top of the miles the car has for the NEW owner of an OLD car.

New car 0 miles, so warrenty to 50k
Certified car has say 30k miles, so warrenty really lasts 70k for the new owner (to 100k).

Lexus and BMW were real smart by seeing the value of the CPO game before others did. It gets people to your brand and well, the owner is treated pretty much no differently than buying a new car.

newr

new warranty > CPO warranty

CPO warranty is limited. It does not cover everything like the new warranty. At least in the BMW case and others maybe limited also.

For BMW CPO Warranty these are covered
Engine
Automatic/Manual Transmission
Front Suspension
Rear Suspension
Steering
Brakes
ABS Brake System
Electrical

Air Conditioning/Heating System

Cooling System

Interior/Exterior

Fuel System

Final Drive Assembly, Propeller Shaft

Not covered
Upkeep Items
Maintenance; engine, transmission, and body adjustments; wheel alignment, balancing or rotation; wiper blade inserts; engine drive belts; spark plugs; filters; fuses; all batteries; all hoses and clamps (except air conditioning and power steering); oils, lubricants, fluids, refrigerants and coolants (except as required in the course of a covered repair); brake pads and rotors; brake shoes and drums; manual transmission clutch assemblies; suspension dampers (shock absorbers/strut elements); exhaust systems; tires.

Wear and Tear
All wear and tear items as defined in The Certified Pre-Owned BMW Protection Plan Consumer Information Statement (including all suspension parts and components).

Body and Interior
Paint; glass; headlamps; bulbs (except instrumentation); mirrors; lenses; body and chassis; body seals and gaskets; interior and exterior trim, moldings, and fasteners; upholstery, headliner, carpeting, floor and trunk mats; convertible top (all components except electronics); air or water leaks; wind or body noises; wheels; damage due to rust, corrosion, or contamination, except as covered by the BMW New Vehicle Rust and Corrosion Perforation Warranty.

Accessories
Radio/cassette player, telephone, navigation system, CD changer, or any components of those systems; non-original equipment parts, components or accessories.

tex2670

Lexus CPO is 3 years or 100K total miles.

IS350jet

I've always wondered this myself, Phillip. If Lexus can offer a 6 year, 100k mile warranty on a pre-owned car, why can't they offer that on a brand new car? My only guess is that it helps market CPO cars and allows for higher pricing.

Plus, newr is correct, the CPO warranty is very complex and doesn't cover everything that the new car warranty does.

PhilipMSPT

iTrader: (5)

I believe it's three years from purchase, or up to 6 years max from model year, whichever comes first.

Anyways, it's pretty comprehensive...

TruthTellr

The CPO waranty is the extra $5,000 they added to the used cars price. That more than covers any engine/tranny problem, if it ever happens. No normal well maintained car today ever has engine tranny failure before 100K.....unless if it's a camry or accord, then one will need triple the waranty.

thequickad

This is not a true statement and more like a marketing hype - "Lexus-trained technicians perform a meticulous inspection" I recently purchased a CPO Lexus LS430 with the warranty. I discovered that the windshield was chipped and repaired without disclosure so it cracked after 3 days of driving, there was also damage to the leather quite visible (shame on me for believing CPO). and I was told that Lexus only give you one master key by my dealer. So there you go, CPO is not as "meticulous" as Lexus claimed, it does have the warranty to cover the issues but it's still a marketing tool.

nabbun

i think it makes buying a used car more appealing since a bunch of shoppers prefer getting into newer cars because of the warranties AND knowing you drove it first and there shouldn't be any damage or abuse from the previous owner(s

like my parents. they would never ever ever buy a used car because they simply don't how it was driven and taken care of.

they would rather take their time and save up money and buy a nice simple car that they can afford.

IS-SV

The warranties do vary by brand, but the new car and CPO warranties are certainly better than any 3rd party aftermarket warranty.