07lexsik

Hello CL Friends!
I'm actually in the market to buy a new/CPO LS460 F-Sport.

Right now I'm driving a 2013 GS350 F-Sport with 78k miles on 'er. A dealer offered me 26k for trade in….
Anyways, I found a CPO 2013 LS460 F-Sport, White/Black, with just under 6k miles. They're asking just shy of 70k for it. I think my biggest question is, what are the benefits of purchasing a CPO vehicle versus a new one off the lot? I haven't taken a look at the vehicle itself, just checked it out online.

Thanks so much for your input!

hjones4841

I purchased a 2011 CPO LS with 25K miles on it in early December. The biggest benefit is a 36 month/100,000 mile Lexus warranty (I confirmed that this is a Lexus warranty, not a third party.) Then, they claim that they did a 161 point inspection and replaced tires if they did not have at least 60% wear left; same thing for the brake pads. You get a loaner car if repairs are needed.

More info is available here:

http://www.lexus.com/cpo/index.html

nsaldanh

It all depends on when the car was first put in service. The original factory 4 year warranty will apply before the CPO kicks in. If the car is only 1 year old the CPO will not even kick in.

What does that car cost new? You should be able to get about $8K - $12K off a new 2013 LS at this time of the year if they are still available.

tyrenfroe

There are no advantages to buying a CPO during the original factory warranty period. As a matter of fact, there are only downsides. The primary one is that the CPO process wipes out the existing in-effect factory warranty and replaces it with a CPO warranty. I believe the CPO warranty is in most, if not all, respects equivalent to the factory warranty. So what's the problem? The problem is that you CANNOT purchase a REFUNDABLE, TRANSFERABLE, FACTORY EXTENDED WARRANTY for a Lexus once it's been CPO'd (same with a BMW, btw). When the Lexus CPO warranty expires, you will be looking at 3rd party sources to continue warranty coverage and THEY can vary widely in coverage exclusions when compared to Lexus factory or CPO warranties.

For a low mileage used vehicle, you want to "catch" it before it undergoes the CPO process. That way, the original factory warranty remains in effect (goes with the vehicle, not the owner) as does the opportunity to purchase the gold standard FACTORY extended warranty that fits your ownership profile.

caha14

I have my own opinion on the benefits/lack thereof of CPO and have expressed it in other related threads (in a nutshell, while I wouldn't avoid a CPO car if I found the right one, I don't think CPO is the panacea). Overall, I tend to agree with the thought of buying a good car within factory warranty in order to be able to extend it with a Lexus warranty, etc.

FWIW (in response to the earlier posts), my understanding is that unlike other manufacturers' CPO warranties that do begin at the end of the factory warranty, the Lexus one begins immediately. However, my understanding (possibly limited) is that if the vehicle is under 4/50 warranty, that warranty would "coexist" with the CPO warranty. If it doesn't, I've learned yet another thing today, and this would definitely raise questions about the rationale for buying a CPO Lexus that's newer than one year. The transferability restrictions are also quite revealing.

jamodeo

iTrader: (1)

Lexus 4/50 exists with every owner and does not go away when a CPO is added. Everything up until 4/50 will be covered under the new car warranty which is transferable and after the 4/50 is up the CPO will take over although the countdown of the 3/100 starts on the CPO the second you leave the dealership with the used car.

-Joe

lbintab

iTrader: (1)

I got a third party when I bought my car used. It still had the original 100k drive train but that was it. Mine ran me 2k for a 2 year 24k warranty...which paid for itself in upper control arm replacements.

tyrenfroe

Good points, Joe. I'm not sure how the warranty concurrency works from a legal standpoint. If, for example, you bought a CPO'd LS within its first year, then the Lexus factory warranty would make the CPO one superfluous, since the CPO warranty would expire in 3 years (ie. before expiration of factory warranty) and the higher CPO mileage limit would not come into play due the "whichever comes first" qualifier. So, one might think the "factory" warranty has therefore effectively replaced the CPO one. NOT SO! Since the vehicle was CPO'd, the owner is unable to purchase a factory extended warranty from Lexus, even during the period that the 3/100 CPO warranty is "extended" by the 4/50 factory one. That's what I was trying to get across, but as you noted, I left the impression that the 3 year CPO replaced the 4 year factory warranty which is NOT the case. Thanks for the correction.

caha14

I noted that too earlier LOL! Indeed, unless you drive enough to exceed 50k within your first three years of owning a CPO that was less than one year old at purchase, the CPO warranty is of no use to you.

You actually can purchase a factory extended warranty from Lexus. In general, for any used Lexus sold by a Lexus dealer (9 years old or newer), you would need to buy the warranty on the spot (according to LFS' website).

It sounds from what you are saying that a CPO vehicle that is within the 4/50 window would be treated no differently (from an eligibility standpoint) than one that is outside, which is interesting. Unless there is some competitive warranty pricing in this part of the deal, buying a newish car CPO would then seem to make little financial sense (back to your original point).

tyrenfroe

I believe you can buy a Lexus factory extended warranty IF and ONLY IF the vehicle in question is NOT a CPO vehicle. It is up to the dealer's discretion to offer, if at all, factory extended warranties for Lexus vehicles OTHER than CPO'd ones. But, once CPO'd, you're stuck with the CPO warranty and later, if desired, a third-party extended warranty. Lexus will have NOTHING to do with CPO warranty coverage (beyond Federally-mandated engine and emissions control coverages) after the warranty period expires. Once CPO'd, you're probably better off to dump the car before its warranty runs out.

caha14

CJITTY, as an example, has a CPO 2008 600hL covered through 2017 if I remember correctly (he'll hopefully chime in). I don't think CPO is as restrictive as you indicate, but again, the key is that the warranty has to be purchased with the car with no waiting period allowed.

tyrenfroe

Even if you did put a ton of miles on the car, it wouldn't matter. The CPO warranty is 3/100 "whichever comes first." Since the termination of the CPO 3-years would occur BEFORE the 4 year anniversary of the car's in-service date (you bought it at less than one year old)., the CPO warranty would be of NO positive value whatsoever to you. And, since CPO obviates purchase of a factory extended warranty, you would have made a very poor bargain indeed in purchasing such a vehicle.

I am NOT saying this at all. I AM saying that, because the CPO process itself EXTINGUISHES any hope of purchasing a FACTORY, REFUNDABLE, TRANSFERABLE, EXTENDED WARRANTY, the almost-new CPO vehicle is worth less (not "worthless") than an equivalent almost-new car WITHOUT the "cachet" of CPO-hood (-ness, etc.).

caha14

I'm aware it's "whichever comes first", and precisely because of that, my only point was that if hypothetically you put 60 or 70k miles on your "quasi new" CPO in a couple of years, your 4/50 would be gone, and your CPO would be there.

With regards to transferability and refundability of an extended factory warranty, I have no idea, but in terms of availability, I stand behind what I said before: you can get one.

tyrenfroe

Yep, you're right on mileage - don't know what I was thinking.

Nope, you're wrong on availability - no factory extended warranties on CPOs - period!

caha14

Gosh, if that's the case, I will gladly stand corrected. I am, however, a bit puzzled. Since I've never bought a CPO Lexus, my knowledge of this is limited to conversations with the finance manager at the dealership and to individuals who've gone through the process. Nobody has ever mentioned that these are 3rd party warranties, but they have indicated the need to buy immediately (as some CLers have posted as well), which I can't imagine many third parties would require, but again, this is all very interesting.

I'm in the "buy a well-kept non-CPO car within 4/50 warranty and get a platinum VSA" club anyway (that's what I did with my LS), but still...