CPO BMW 5 Series

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andy8921
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Joined: Fri Dec 26, 2014 1:02 am

CPO BMW 5 Series

Post by andy8921 » Fri Nov 08, 2019 11:53 pm

Forgive me in advance for posting another potential car purchase question, but I have been looking to buy a new or CPO sedan for several months. After test driving several vehicles from a few different manufacturers (Lexus ES 350, Mazda 6, Toyota Avalon, Toyota Camry) I am seriously considering a CPO 2016 BMW 528xi from my local BMW dealer. Original MSRP on the car was $58,500. The car has 24,000 miles on it, one previous owner and a clean Car Fax report. I test drove the car and enjoyed it. I understand the cost issues associated with maintaining BMW vehicles compared to other brands, but i have a reliable independent mechanic nearby that I am comfortable with and BMW's CPO program will cover any major issues until July 2021 with unlimited mileage. After that, I may considered purchasing an aftermarket extended warranty. The price of the vehicle is $22,000, which seems like a very competitive price, as other area dealers are selling nearly identical cars with higher mileage for up to $5,000 more. Does this price seem too good to be true? Any other 5 Series owners out there that care to comment on the vehicle or the price? Thanks in advance for your help.

HEDGEFUNDIE
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Re: CPO BMW 5 Series

Post by HEDGEFUNDIE » Sat Nov 09, 2019 12:48 am

It is possible the car was originally a dealer buyback. You won’t know about it until the very last second of paperwork signing when the salesman gives you the buyback acknowledgment to sign.

I own a CPO 2015 528xi. A few engine issues at the beginning covered under warranty. It’s been running smoothly ever since.
Last edited by HEDGEFUNDIE on Sat Nov 09, 2019 1:19 am, edited 1 time in total.

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whodidntante
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Re: CPO BMW 5 Series

Post by whodidntante » Sat Nov 09, 2019 1:04 am

Except for my current car that I bought new, I have always bought something older than CPO. Sometimes much older. That's because I consider CPO cars overpriced and I don't trust a dealer to scrutinize a car since they are incentivized to rubber-stamp the inspection. But if you think it's a good value and you like the car, go get it. I would still apply the usual used car, buyer beware stuff. The only inspection worth trusting is one you do yourself (if able) or one done by a professional mechanic that you regard highly who does not have a conflict of interest. Ask directly if the car is a buyback and read everything they put in front of you before you sign it.

In case I have not been clear, DO NOT believe that the 666 point CPO "inspection" done by the dealer represents useful information or is a reason to pay more for the car. It's noise. Of course, the warranty has some value.

anoop
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Re: CPO BMW 5 Series

Post by anoop » Sat Nov 09, 2019 2:16 am

I was a big BMW fan till they put in electrical steerings. I probably won't ever own another one, because with the steering feel gone, the value is just not there.

The price does seem too good to be true. It is lower than the residual from a lease return, typically around 55-60% of MSRP. Even if the dealer got a good deal because someone was throwing it away because they had too much money, they would still try to make as much profit on it as they could. So there's probably a catch somewhere.

Is it possible to request the service history of the car? That would show if the car was being repeatedly taken in for problems.

It has an N20 engine which is known for timing chain failure, but they redesigned those components in 2015, so at least this car won't have that problem.

FireSekr
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Re: CPO BMW 5 Series

Post by FireSekr » Sat Nov 09, 2019 2:26 am

It’s a good car but the reason why it’s cheap is because 2016 was the last year of that body style. The 2017 5 was a major refresh and those vehicles are just starting to come off lease making the 2016 less desirable.

If you do not need a car right now, hold out for some 2017 to become available. The car was vastly improved with the refresh in terms of interior/exterior style and build quality, acceleration , handling, etc.

I have a 2017 530i and it’s an excellent vehicle. I usually buy CPO but in 2017 when I got it, the only CPO available were the last gen (same as 2016 model) which I could have paid $30k for. The 2017 was so much better that I went for a new one for $65k instead

BruDude
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Re: CPO BMW 5 Series

Post by BruDude » Sat Nov 09, 2019 3:21 am

I’ve had 5 BMWs and all of them have had major problems. Just got done rebuilding the engine for my M3 after it blew. That wasn’t cheap. I’ve had 4 Porsche’s and all problem free rock solid. Different price points but I wouldn’t want to own a BMW without at least 5 years of warranty

Mitchell777
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Re: CPO BMW 5 Series

Post by Mitchell777 » Sat Nov 09, 2019 4:46 am

I'm not familiar with dealer buyback. Is it the same as a manufacturer buyback? Where the original customer felt something was wrong with the car.

Swansea
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Re: CPO BMW 5 Series

Post by Swansea » Sat Nov 09, 2019 6:00 am

anoop wrote:
Sat Nov 09, 2019 2:16 am
I was a big BMW fan till they put in electrical steerings. I probably won't ever own another one, because with the steering feel gone, the value is just not there.

The price does seem too good to be true. It is lower than the residual from a lease return, typically around 55-60% of MSRP. Even if the dealer got a good deal because someone was throwing it away because they had too much money, they would still try to make as much profit on it as they could. So there's probably a catch somewhere.

Is it possible to request the service history of the car? That would show if the car was being repeatedly taken in for problems.

It has an N20 engine which is known for timing chain failure, but they redesigned those components in 2015, so at least this car won't have that problem.
If the car was serviced at the dealership, they can put in the key fob into the service advisor computer and read out what was done. My 2008 535XI has 32K miles and has been very reliable. Initially there were issues with the high pressure fuel pump and fuel injectors, but all that was covered under warranty.

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RootSki
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Re: CPO BMW 5 Series

Post by RootSki » Sat Nov 09, 2019 9:51 am

No aftermarket extended warranty. OEM Only!

HEDGEFUNDIE
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Re: CPO BMW 5 Series

Post by HEDGEFUNDIE » Sat Nov 09, 2019 9:56 am

Mitchell777 wrote:
Sat Nov 09, 2019 4:46 am
I'm not familiar with dealer buyback. Is it the same as a manufacturer buyback? Where the original customer felt something was wrong with the car.
Exactly

Helo80
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Re: CPO BMW 5 Series

Post by Helo80 » Sat Nov 09, 2019 10:06 am

andy8921 wrote:
Fri Nov 08, 2019 11:53 pm
After that, I may considered purchasing an aftermarket extended warranty. The price of the vehicle is $22,000, which seems like a very competitive price, as other area dealers are selling nearly identical cars with higher mileage for up to $5,000 more. Does this price seem too good to be true? Any other 5 Series owners out there that care to comment on the vehicle or the price? Thanks in advance for your help.

I do really like the 5-series BMW's, but I have not driven a recent model from this era of 5 series. They are one of the more heavily depreciated BMWs on the market (and overall sedans), so $22k for a CPO seems like a fair price where you'll get the Ultimate Driving Experience without the Ultimate Depreciating Experience.

nicad2000
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Re: CPO BMW 5 Series

Post by nicad2000 » Sat Nov 09, 2019 10:11 am

I think that deal represents a lot of car for the money. The only thing I would say is to make sure you are comfort with the list of options. BMW typically nickel-and-dimes you for everything vs. the Japanese makes you are looking at. The 528i is the smallest engine they put in these things, but still not too shabby. A lot of drivers (myself included) prefer the M Sport package which comes with the 704 sport suspension.

I previously leased a 2016 535i and currently have a 2019 540i, both with the sport package. Based upon my experience, I tend to disagree with the other poster who said there is a night and day difference between these generations. The 2017- G30 generation is an incremental improvement in many areas, but there is not a huge difference. I still miss my 2016 from time to time.

If you are seriously considering a 5 series, I think you owe it to yourself to test drive a 535i with M Sport. It may not be that much more expensive and could be a whole lot more fun.

zlandar
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Re: CPO BMW 5 Series

Post by zlandar » Sat Nov 09, 2019 10:26 am

https://www.autotrader.com/car-info/the ... 4979862017

"Car research site iSeeCars has studied more than 4.1 million car sales to determine which cars depreciate the fastest in 3 years. Thirty-six months is a common lease term, which means the 3-year mark is when a lot of off-lease cars start showing up for sale on the used market. Here are the top 10 fastest-depreciating cars, and what percentage of their value they lose after 3 years:

BMW 5 Series - 52.6 percent"

I owned a 5 series two decades ago. Maintenance was ridiculous and the car broke down in the middle of the road at an intersection despite having all the maintenance done at the dealer.

If you have money to burn then go for it. It's a nice ride when everything is working.

anoop
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Re: CPO BMW 5 Series

Post by anoop » Sat Nov 09, 2019 10:39 am

HEDGEFUNDIE wrote:
Sat Nov 09, 2019 9:56 am
Mitchell777 wrote:
Sat Nov 09, 2019 4:46 am
I'm not familiar with dealer buyback. Is it the same as a manufacturer buyback? Where the original customer felt something was wrong with the car.
Exactly
I went through such a buyback and the guy doing the paperwork (not from the dealership) told me these cars typically end up auctioned and exported. The dealer was actually not involved in that transaction at all. Of course, there is no way to know if that information is correct. But for sure, the car was bought back by BMW directly, not by dealer.

HEDGEFUNDIE
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Re: CPO BMW 5 Series

Post by HEDGEFUNDIE » Sat Nov 09, 2019 11:11 am

anoop wrote:
Sat Nov 09, 2019 10:39 am
HEDGEFUNDIE wrote:
Sat Nov 09, 2019 9:56 am
Mitchell777 wrote:
Sat Nov 09, 2019 4:46 am
I'm not familiar with dealer buyback. Is it the same as a manufacturer buyback? Where the original customer felt something was wrong with the car.
Exactly
I went through such a buyback and the guy doing the paperwork (not from the dealership) told me these cars typically end up auctioned and exported. The dealer was actually not involved in that transaction at all. Of course, there is no way to know if that information is correct. But for sure, the car was bought back by BMW directly, not by dealer.
Bought back by the manufacturer and then purchased at auction by dealers. To be sprung on unsuspecting American consumers.

It happened to me. Don’t let it happen to you.

atikovi
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Re: CPO BMW 5 Series

Post by atikovi » Sat Nov 09, 2019 9:53 pm

HEDGEFUNDIE wrote:
Sat Nov 09, 2019 11:11 am
Bought back by the manufacturer and then purchased at auction by dealers. To be sprung on unsuspecting American consumers.

It happened to me. Don’t let it happen to you.
What unsuspecting American consumers? It's either branded on the title or noted on the Carfax, not to mention it's required to be disclosed in probably every state.

HEDGEFUNDIE
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Re: CPO BMW 5 Series

Post by HEDGEFUNDIE » Sat Nov 09, 2019 10:11 pm

atikovi wrote:
Sat Nov 09, 2019 9:53 pm
HEDGEFUNDIE wrote:
Sat Nov 09, 2019 11:11 am
Bought back by the manufacturer and then purchased at auction by dealers. To be sprung on unsuspecting American consumers.

It happened to me. Don’t let it happen to you.
What unsuspecting American consumers? It's either branded on the title or noted on the Carfax, not to mention it's required to be disclosed in probably every state.
Nope. It is only required to be disclosed at the point of sale by the dealer. Not on the title nor on the CarFax.

https://oppositelock.kinja.com/you-shou ... 1682862688
In some states the title is branded but this is only in a handful of states. Carfax even misses this from time to time.

3504PIR
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Re: CPO BMW 5 Series

Post by 3504PIR » Sat Nov 09, 2019 11:42 pm

I was a big BMW guy until our cars hit about the 7 year mark and started having expensive issues (2 cars bought about a year apart). I like buying new cars and keeping them for over 10 years and it didn’t work out with our BMWs. I found similar comments at the time here and on BMW forums so I left the brand behind. Accordingly I absolutely wouldn’t buy a used one, even a year old, especially an M which tend to be driven much harder. If the launch button was used, even on a test drive more than once...

Topic Author
andy8921
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Joined: Fri Dec 26, 2014 1:02 am

Re: CPO BMW 5 Series

Post by andy8921 » Sat Nov 16, 2019 12:19 am

Thank you to everyone that responded. Just wanted to let the responders know that I went ahead and purchased a CPO 2016 BMW 528xi with 23,450 miles for $21,181 from my local BMW dealer. I was able to secure an additional $750 off the original quoted price by financing over 60 months through BMW at 2.9%, which I will promptly pay off in full without penalty after I receive the first months bill. Very happy with the price I paid for the vehicle.

Trism
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Re: CPO BMW 5 Series

Post by Trism » Tue Nov 19, 2019 11:54 am

Deleted. OP already made a decision.

Sorry for all of the duplicate posts... no idea why this is happening. :).
Last edited by Trism on Tue Nov 19, 2019 11:57 am, edited 2 times in total.

Trism
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Re: CPO BMW 5 Series

Post by Trism » Tue Nov 19, 2019 11:55 am

Deleted. OP already made a decision.
Last edited by Trism on Tue Nov 19, 2019 11:56 am, edited 2 times in total.

Trism
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Re: CPO BMW 5 Series

Post by Trism » Tue Nov 19, 2019 11:55 am

Deleted. OP already made a decision.

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