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Collusion in the CPO Process?

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Old 07-04-15, 03:38 AM
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irishbrahm
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Default Collusion in the CPO Process?

So I purchased a '11 LS460 CPO two weeks ago. Shortly after leaving the dealership I noticed that the "soft-close" function on the driver's door didn't work. I'd think that this problem would have come to light during the 161-point CPO inspection. Indeed, it's a bit troubling for a CPO vehicle need a $1K repair immediately after purchase.

But perhaps not.

Had the door lock actuator been repaired during the CPO process, the service dept. would have billed the used car dept. The used car manager would (not eat the expense but) pass the cost on to the buyer. Potential buyers would probably balk at paying the higher price. So what's the solution? Let the problem go unrepaired. If/when the buyer discovers it, the buyer can bring it in and have it covered under the CPO warranty. Indeed, this is the desired result -- to ultimately have Lexus pay for the repair (rather than the dealership or the buyer). If the buyer is inconvenienced by bringing the car in for service, so be it.

Is what I described a reality? I don't know. If so, I'm wondering if it is ethical.
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Old 07-04-15, 04:00 AM
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I think it's more likely it was simply missed during the inspection. Your door still closes fine; the LS is the only model with this feature so probably not a discrete item to check on the standard list.

Should they have caught it? Yep. Intentional? No.
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Old 07-04-15, 04:26 AM
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I bought a CPO with a filthy dirty air filter and filthy engine compartment/covers. I pointed it out and they took care of it N/C. Very shocked at the lack of care and thoroughness during inspection.
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Old 07-04-15, 07:06 AM
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161-point CPO inspection.....do you think people actually check??
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Old 07-04-15, 07:28 AM
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Originally Posted by irishbrahm
So I purchased a '11 LS460 CPO two weeks ago.
Congratulations.


Shortly after leaving the dealership I noticed that the "soft-close" function on the driver's door didn't work. I'd think that this problem would have come to light during the 161-point CPO inspection. Indeed, it's a bit troubling for a CPO vehicle need a $1K repair immediately after purchase.

But perhaps not.

Had the door lock actuator been repaired during the CPO process, the service dept. would have billed the used car dept. The used car manager would (not eat the expense but) pass the cost on to the buyer. Potential buyers would probably balk at paying the higher price. So what's the solution? Let the problem go unrepaired. If/when the buyer discovers it, the buyer can bring it in and have it covered under the CPO warranty. Indeed, this is the desired result -- to ultimately have Lexus pay for the repair (rather than the dealership or the buyer). If the buyer is inconvenienced by bringing the car in for service, so be it.

Is what I described a reality? I don't know. If so, I'm wondering if it is ethical.
Although your car is now 4-5 years old, cars, in general, keep getting more and more complex all the time, so there are more potential points to check...and potential things to miss.

As far as passing the added costs on to the consumer, Toyota, from what I understand, generally has one set figure that is supposed to cover the whole CPO process.....though that sounded suspect to me, at least that's what they told me at the time, though that policy may have now changed.

Among random CPOs just sitting on the lot, I've seen a fair amount of variation in them. Some look and/or drive virtually like the day they were built. Others, despite the well-publicized 160-180 check-point lists, have obviously had a few corners cut on them, both in looks and road-manners. So my general advice, even with a CPO, is to look it over and test-drive it as thoroughly as you would any other used car.
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Old 07-04-15, 07:44 AM
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Originally Posted by DaveGS4
I think it's more likely it was simply missed during the inspection. Your door still closes fine; the LS is the only model with this feature so probably not a discrete item to check on the standard list.

Should they have caught it? Yep. Intentional? No.
I agree, I think it was just overlooked. I would not even know to look
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Old 07-04-15, 07:50 AM
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Originally Posted by grabber2
161-point CPO inspection.....do you think people actually check??
I have no faith that people actually check.
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Old 07-04-15, 07:59 AM
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Originally Posted by LexsCTJill
I have no faith that people actually check.
When you say "people", are you referring to Lexus mechanics certifying the car or the consumers buying the car?
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Old 07-04-15, 08:07 AM
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Originally Posted by swfla
When you say "people", are you referring to Lexus mechanics certifying the car or the consumers buying the car?
Yes, that is what I meant. I would argue that they maybe check 30 points at most.
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Old 07-04-15, 08:14 AM
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Originally Posted by LexsCTJill
Yes, that is what I meant. I would argue that they maybe check 30 points at most.
A little more than that, but I agree that they don't catch all 160-180 points on every car. Not only do vehicles keep getting more and more complex all the time, but the technicians only have a certain amount of time during any given work-day to devote to each CPO-candidate they inspect. If they spend their entire days on just CPOs, nothing else would get done.....and lots of other customers are waiting.
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Old 07-04-15, 08:36 AM
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Originally Posted by DaveGS4
I think it's more likely it was simply missed during the inspection. Your door still closes fine; the LS is the only model with this feature so probably not a discrete item to check on the standard list.

Should they have caught it? Yep. Intentional? No.
Perhaps. I guess what surprised me was that my salesperson was very cavalier about the problem (which I took to mean that such problems happen with CPOs more than one might think). And, of course, there was no apology.

AS for the self-closing feature, the dealership that I bought the car from should be quite familiar with it. I think it's the highest-volume Lexus dealership in the Southeast; it routinely has at least 5 CPO LS460s on the lot at a given time.

Last edited by irishbrahm; 07-04-15 at 08:43 AM.
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Old 07-04-15, 08:57 AM
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Originally Posted by mmarshall
Congratulations.
As far as passing the added costs on to the consumer, Toyota, from what I understand, generally has one set figure that is supposed to cover the whole CPO process.....though that sounded suspect to me, at least that's what they told me at the time, though that policy may have now changed.
My understanding (from watching a YouTube video interviewing a Lexus service manager about the CPO process) is that the dealership pays Lexus a fixed amount to CPO a vehicle (I'm not sure if it varies by model). As for who pays for the needed repairs, I guess that some or all of the costs pass on to the buyer. Used car managers are well-known for saying "We have too much in this car to let it go for what you're asking." For my purchase, I went to the service department and obtained the service history. The used car dept. spent nearly $3K on repairs and service on my car (new tires, new front brakes, 45K service, alignment, engine and cabin filters, etc.).

I should mention that I love my LS460! The car is absolutely amazing!
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Old 07-04-15, 09:41 AM
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Default Collusion in the CPO Process?

IMHO this sort of thing is just a part of life. My brand new LS460 had an inoperative navigation system when I took delivery that required it to spend a week at the dealer. Then it was delivered back to me with a new nav unit...that still malfunctioned the same way. So...they replaced the unit and never tested it, the service advisor noticed it when he brought it around.

Should that have happened, no, but it did and that's life.
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Old 07-04-15, 03:27 PM
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Originally Posted by irishbrahm
So I purchased a '11 LS460 CPO two weeks ago. Shortly after leaving the dealership I noticed that the "soft-close" function on the driver's door didn't work. I'd think that this problem would have come to light during the 161-point CPO inspection. Indeed, it's a bit troubling for a CPO vehicle need a $1K repair immediately after purchase.

But perhaps not.

Had the door lock actuator been repaired during the CPO process, the service dept. would have billed the used car dept. The used car manager would (not eat the expense but) pass the cost on to the buyer. Potential buyers would probably balk at paying the higher price. So what's the solution? Let the problem go unrepaired. If/when the buyer discovers it, the buyer can bring it in and have it covered under the CPO warranty. Indeed, this is the desired result -- to ultimately have Lexus pay for the repair (rather than the dealership or the buyer). If the buyer is inconvenienced by bringing the car in for service, so be it.

Is what I described a reality? I don't know. If so, I'm wondering if it is ethical.
Ok--so it's a warranty repair that the dealer gets compensated for from Lexus. But it still takes his service dept reps away from other repairs of paying customers. And if it were me, he wouldn't get a penny, because I don't always buy my cars at the closest dealer (i.e., the one that I will end up taking it to for service).

It's a compelling conspiracy theory, but stuff happens, and sometimes issues get missed in CPO inspection.
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Old 07-04-15, 03:30 PM
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Originally Posted by LexsCTJill
Yes, that is what I meant. I would argue that they maybe check 30 points at most.
Maybe the do and maybe they don't. I bought a CPO BMW, and at my purchase, they showed me the checklist completed by the service department. If I'm the guy putting my name on that checklist that goes into their system, and is given to the customer, I want it right. Otherwise, you are creating the very paper trail to get yourself fired.
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