GL450 CPO vs. Q7 New

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
Post Reply
Topic Author
tin369
Posts: 88
Joined: Sat Feb 07, 2015 5:04 pm

GL450 CPO vs. Q7 New

Post by tin369 »

Hi all,

Need to get some advice from the BH community. I have a 2009 RAV4 V6 and need to get something bigger. I started out with the MDX, XC90 and then found out about the GL450, a 2014 CPO can be had for around $50,000 or so.

I was wondering if buying a CPO would make sense since it has already gone through the initial depreciation. Do any of you own this car and if so, how do you like it, whats been your maintenance cost so far? A CPO extended warranty can also be bought thus extending the warranty.

I am also researching about GEICO mechanical breakdown insurance, does any one know anything about it? I did test drive and it felt big, considering what I currently rive, but I am telling myself that I will get used to the size within a week or so, just like your eyes adjust to that Big screen tv after a couple days.

I also am considering the new Q7, will lease it I guess, but not sure yet, if the Q7 although not as big as the GL450, would be more car like in term or driving and comfort.

and lastly which banks has the lowest rates for financing used cars? I was initially thinking of putting down $10,000 as down payment, but with low interest rates would it make sense to invest that $10,000 or use it as a down payment to have lower monthly payment?
Last edited by tin369 on Fri Feb 17, 2017 10:59 am, edited 1 time in total.
tim1999
Posts: 3768
Joined: Tue Dec 16, 2008 7:16 am

Re: New or CPO luxury SUV?

Post by tim1999 »

Mercedes-Benz depreciation is horrible in the first 3 years, leading to good pricing on CPO vehicles. The CPO warranty is good and can be extended for additional cost. CPO is a far better deal than buying new, especially if you can find one with low mileage that has been treated gently.

As long as you are covered under either the original warranty or the CPO warranty, you get free roadside assistance and towing from Mercedes-Benz.

Sometimes Mercedes offers special financing rates (1.99% etc.) for CPO models so you may want to investigate that.
livesoft
Posts: 74430
Joined: Thu Mar 01, 2007 8:00 pm

Re: New or CPO luxury SUV?

Post by livesoft »

I buy CPO Lexus SUV that have come off of 3-year leases. Lexus has already made tons of money on the leases, so one can negotiate these 3-year old cars down quite a bit in price. Then I keep them 15 years or so. I have never bought an extended warranty because these are Lexus and don't fall apart nor need repairs.
Wiki This signature message sponsored by sscritic: Learn to fish.
lurker415
Posts: 15
Joined: Tue Oct 18, 2016 10:17 pm

Re: New or CPO luxury SUV?

Post by lurker415 »

I bought a CPO Lexus SUV 10 years ago, and it's been the best car I've ever owned by a wide margin. If/when this current car ever dies, I will replace it with another CPO.
rg422
Posts: 84
Joined: Wed Jan 18, 2017 4:35 pm

Re: New or CPO luxury SUV?

Post by rg422 »

Buying CPO (3-4) year old cars will save a lot compared to buying new and though I do not have any experience with said SUVs, I will recommend financing through PenFed or Lightstream. The latter's process is much more simple and depending on credit/income you can finance the whole purchase price; we did this previously with a 1.9% interest rate. It's a really simple process - you apply, they email you results and or income verification requests. They then wire the funds to your checking account. This process usually takes 1-2 days. You have to purchase a vehicle within 30 days, though.
Topic Author
tin369
Posts: 88
Joined: Sat Feb 07, 2015 5:04 pm

Re: New or CPO luxury SUV?

Post by tin369 »

rg422 wrote:Buying CPO (3-4) year old cars will save a lot compared to buying new and though I do not have any experience with said SUVs, I will recommend financing through PenFed or Lightstream. The latter's process is much more simple and depending on credit/income you can finance the whole purchase price; we did this previously with a 1.9% interest rate. It's a really simple process - you apply, they email you results and or income verification requests. They then wire the funds to your checking account. This process usually takes 1-2 days. You have to purchase a vehicle within 30 days, though.
Was the 1.9% for 60 months on a used car that you got? What income verification documents do I need to send if approved? Also, if I don't buy a car within 30 days, what happens? can I cancel the loan, and also can I prepay the loan without any penalty.
randomguy
Posts: 9208
Joined: Wed Sep 17, 2014 9:00 am

Re: New or CPO luxury SUV?

Post by randomguy »

tin369 wrote:Hi all,

Need to get some advice from the BH community. I have a 2009 RAV4 V6 and need to get something bigger. I started out with the MDX, XC90 and then found out about the GL450, a 2014 CPO can be had for around $50,000 or so.

I was wondering if buying a CPO would make sense since it has already gone through the initial depreciation. Do any of you own this car and if so, how do you like it, whats been your maintenance cost so far? A CPO extended warranty can also be bought thus extending the warranty.
It has also gone through the years where it is likely to be reliable.:) The math is along the lines of

2017 GLS450 70k (could be a lot more depending on options)
2014 GL540 CPO 45k
2011 GL450 25k (depends on a lot on mileage and condition at this point)

So you "lose" 20k to depreciation instead of 25k. There will not be any more repair work (i.e the CPO warranty should have your covered) but you might end up paying for more service (60k versus 30k) and consumables (you aren't getting new tires on the CPO and things like batteries and brakes might be require chaging) over the 3 years of ownership. I expect the CPO car to be a bit cheaper. But don't think you are saving 20k+ by buying a it. You are saving 5k or so. Things like taxes and financing change the numbers up a bit. If you consider that a big savings or not is sort of up to you.

And if you buy new and hold for 6 years (and maybe get the extended warranty to match the CPO), you split the difference ending up with cost in between buying and owning for 3 years (either the CPO or the new one).

Personally I have tended to go used (with extended warranties on some brands) for the expensive cars and new for the more mainstream ones (i.e. when I did the Honda math I I expect to pay an added 1k over the lifespan. I thought that was a no brainer. On the ~45k audi, saving 5k seemed worth it). YMMV.
Topic Author
tin369
Posts: 88
Joined: Sat Feb 07, 2015 5:04 pm

Gl450 CPO vs. Q7 New

Post by tin369 »

I am now also seriously considering the Q7, I looked at the lease and it does not lease well, do you guys think it is a good idea to buy? If buying I will have to put at-least $30,000 down to have a lower monthly payment. Does it make sense financially to do so?
Dilbydog
Posts: 99
Joined: Mon May 23, 2016 10:17 pm

Re: GL450 CPO vs. Q7 New

Post by Dilbydog »

Just out of curiosity, why did you give up on the MDX? We've had excellent experiences with Acura, including an MDX and RDX. I don't know what their CPO program is like, but I assume it's competitive with the other "luxury" brands.
Topic Author
tin369
Posts: 88
Joined: Sat Feb 07, 2015 5:04 pm

Re: GL450 CPO vs. Q7 New

Post by tin369 »

Dilbydog wrote:Just out of curiosity, why did you give up on the MDX? We've had excellent experiences with Acura, including an MDX and RDX. I don't know what their CPO program is like, but I assume it's competitive with the other "luxury" brands.

The new grill design of the MDX is growing on me, however the infotainment looks very outdated. and when you price the car with all the options its close to $57000, My thought is I can get a better quality car if I go the CPO route for less than the MDX and a couple of $$$$ more if I go with the Q7 which is more modern.

I am just trying to be sensible with money while I still able to get a nice car.
User avatar
sunny_socal
Posts: 2295
Joined: Tue Mar 24, 2015 4:22 pm

Re: GL450 CPO vs. Q7 New

Post by sunny_socal »

I've been considering vehicles in the same category, $50k price range. Between the two choices in the thread I'd definitely go with the new Q7.

- Pilot/Highlander: The updated models look like minivans. We already had a minivan and they're great for kids.
- MDX: Don't care for the front grille, although it's not as bad as last year's model. Doesn't inspire for whatever reason. Car is very "meh."
- RX350: Wouldn't be caught dead in this car, it has a face only a mother could love! (It's the most reliable, no doubt...)
- Inifinity: They all look like jellybeans, they're trying _so hard_ with the styling. No thanks.
- GL450: The car of my dream$. But I can't imagine paying $100k for a vehicle, or $50k for a CPO. Doesn't compute. Div by zero! :confused
- Q7: A contender! Nice car, but wife didn't like the infotainment system. I could live with it.
- XC90: The frontrunner! Seems like a lot of car for the money. We'd go through their Overseas Delivery program since we need to go to Europe anyway, it ends up being great deal in that scenario:

http://www.volvocars.com/us/shopping-to ... s-delivery

Price list for OSD: (PDF)
http://assets.volvocars.com/us/~/media/ ... -t6-v4.pdf
Post Reply