Service Plan on CPO car

[justinmj]

Hi,

I'm buying a 2013 135i convertible, a CPO car with 15k miles presently on it.

I was offered a service plan for the car, for $2495, that goes to 100k miles. However, based on how long I might have the car (possibly not beyond 50-60k miles) I'm not sure if it's worth it.

I didn't know this, but I was informed that free scheduled maintenance is no longer offered on CPO cars since January.

I called my local service department (Pacific BMW in Glendale), and when I broke it down, it seemed as if the servicing might end up costing similarly.

Does anyone have experience with this kind of thing? I'd love to get your take.

Thanks,
Justin

[Rob Daman]

My 2011 CPO that I bought this March has maintenance till next year which is 4 years. They changed my brake fluid a few weeks after I bought it no charge.

Sounds fishy.

Originally Posted by justinmj

I didn't know this, but I was informed that free scheduled maintenance is no longer offered on CPO cars since January.

[gregthegr8]

Hey Justin,

Is this because you'd be buying from a person or non-BMW dealer? That's insane if somehow the car is no longer covered for the 4 yr/50k maintenance, but may make sense if they changed the rule to force people to only buy from BMW dealers. I mean, the car will still have the 4 yr/50k warranty and I guess the extended CPO warranty, just not the free service? Depending on how many miles you drive, I think it's really hard to imagine you'd rack up $2495 in service costs as the cars don't need that much until you start creeping over 50-60k miles and need things like new water pumps, thermostats, etc.

[Kouper]

Recent policy change. But I'd make sure it applies to your 2013, don't just accept it.

For model year 2015 or later vehicles sold or leased by an authorized BMW center on or after July 1, 2014, BMW Maintenance Program coverage is provided for the exclusive benefit of the initial purchaser, owner, or lessee of a new vehicle, sales demonstrator vehicle, Aftersales Mobility Program (AMP) vehicle, or BMW Group company vehicle from an authorized BMW center in the United States (including Puerto Rico). Accordingly, BMW Maintenance Program coverage, with one exception, is not transferable to subsequent purchasers, owners, or lessees. The sole exception to the non-transferability of BMW Maintenance Program coverage is that household transfers - transfers within the United States (including Puerto Rico) to members of the household of the initial purchaser, owner, or lessee of a BMW vehicle from an authorized BMW center - will not terminate BMW Maintenance Program coverage. Household transfers are limited solely to transfers to a current or former spouse or spousal equivalent, child, sibling, parent, grandparent, or grandchild from the initial purchaser, owner, or lessee of a vehicle. In the event of a household transfer, purchasers, owners, or lessees of a BMW vehicle should promptly advise their authorized BMW center to document and confirm the household transfer for purposes of BMW Maintenance Program coverage. The payoff of a loan on a vehicle by the initial purchaser and the purchase of a leased vehicle by the initial lessee are not considered transfers for purposes of BMW Maintenance Program coverage.

The BMW Maintenance Program covers all factory recommended maintenance as determined by the Condition Based Service (CBS) system. Additional specific items that need replacement due to normal wear and tear, and that are not covered by the original New Vehicle Limited Warranty - such as brake pads, brake rotors, and wiper blade inserts - are included, provided wear and tear exceeds BMW wear limits. Any applicable adjustments required due to normal operating conditions are also included.

[justinmj]

Kouper: that doesn't say anything about 2013's, though....I'm a bit confused. I've sent a query to the dealer, no reply yet.

gregthegr8: no, this is a 2013 CPO car, from Weatherford BMW in Berkeley. The service plan went up to 100k miles, so I'm wondering if it might be a good idea. Hmmm...

Any other thoughts?

[Kouper]

No , it doesn't say anything about 2013 but what you are being told is consistent with the direction BMW is going with this policy.

Can you look up CPO provisions on the BMW website? If not, ask them to show you this in writing. Regardless, I do not think it is worth $2500. Can you transfer it to next buyer if you sell the car? Again, ask for copy of terms in writing if you are seriously considering this plan.

Good luck.

[justinmj]

I'll see if I can get this in writing.

Thanks for your thoughts. They said it is transferrable, and/or I can get a pro-rated refund anytime as well.

[gregthegr8]

Man, doesn't this defeat half the purpose of most people wanting to get a BMW? There are some really good independent shops though and one of the highest recommended ones is right near you in Glendale called Pit Stop Motor Tuning who numerous forum members take their 135s and 1Ms, too. Perhaps that may help.

Considering you may just need basic service such as oil changes (coupons at dealer for $80) + a brake fluid flush every 2 years, I don't know that a service contract is worth $2495, especially if you don't expect to have the car past 50k miles. I wouldn't get it, but at least they'll still cover all the warrantied parts and labor if something goes wrong.

[Kouper]

Originally Posted by gregthegr8

Man, doesn't this defeat half the purpose of most people wanting to get a USED BMW?

Exactly. It makes it more expensive for you to buy a used BMW, so guess what? That salesman may get you to look at a new BMW instead, with a great incentive lease/buy offer and a new one comes with free maintenance too! So now BMW may be selling more new cars. And, if you still decide to buy used, they'll sell more high margin maintenance plans to cover those used cars. And it's not like they are giving anything up against the competition. Any possible benefit to consumers from lower used BMW values and resulting residuals probably won't be seen until three years out when the 2015s come off lease.

Not good for the consumer, but sure looks like it's going to put more $$$ in BMW's pockets.