BiturboA6

CPO 07 A8 or buy 07 A8 & extended warranty? Cost of extended?

Bruce M

CPO puts two years of named component coverage onto the end of the factory warranty. You can get the same 2-year plan almost anywhere.

I'd assign about $2K in value to it. So if you can get $2K deducted, you're even, and then you can spend a bit more and get a better/longer plan, or you can get the same thing elsewhere or even put the purchase off into the future, as you might sell the car, or whatever.

The problem is, the Audi dealers build in $3K+ to the price for CPO, but if you don't want it they only want to deduct $1500. Since they do not touch a 2007 car under CPO and only hang the warranty on it, the best value is getting a car cheaper like from me or somewhere else wholesale, and then getting your own better warranty.

People like CPO because it gives a warm fuzzy feeling that the car was carefully selected and thoroughly inspected and reconditioned, and it comes with a warranty backed by Audi. And it is true that the warranty is honored by all Audi dealers, usually without hassle (but not always).

But let me tell you, I stand next to the buyers from many Audi dealers, and you would not believe what they buy and then "certify" and put on their lots. Accident cars, neglected cars, etc. And I inspect the cars I buy, before and after I buy them, WAY more carefully than they do.

Why? Because they are an Audi dealer, advertise, and get tons of foot traffic and new customers. Me? The first time I screw up and buy a lousy car for someone, my word-of-mouth and referral based business is over.

As long as it does not have a branded title, Audi will allow it to be CPO'd. I would never buy a car for my customer like the cars they buy for theirs.

Bruce

thrilla from manila

Just thinking for sometime down the line.

Bruce M

I know is sounds like I am begging for business, and with the economy the way it is, maybe I am!

But I just do not understand why more people don't follow my system. It can't be a trust issue...it's not like people trust car dealers anyway! I have over 500 references from people I have gotten cars for, including over 30 on AW. I have never ever had someone unhappy with a car I got for them. I buy thse cars with a 10% deposit and 90% of my own money...I'm not buying junk.

It saves money, gets the person a superior car to what they find at a dealer, and I KILL myself to make the car and experience perfect as my next sale depends on it! I'm a car guy...I know what to look for, and I make things right whenever it's needed. Contrast that with a professional car salesperson who (with very few exceptions) is trained in sales techniques and knows next to nothing about the actual car, brand, features, roadfeel, comparisons with other cars they have actually owned and driven, etc.

Buy your next car from me or I will shoot this dog (parody of famous magazine cover from Nat'l Lampoon).

Bruce
p.s. Sorry for ranting!

theanimala

Any chance of seeing the car before purchased, like via photo? I live in the NY area, how would the car get shipped to me?

YaoNYC

i have not bought a car with bruce yet just because we haven't found one yet. but let me tell you, he is patient, thorough, NOT PUSHY at all and is passionate about finding cars for you!

I hope to do business with Bruce in the near future!!!

Zwoobah

I can't speak for how other dealerships manage their CPO programs, but mine is based upon very carefully selected cars. I run the CPO program at <a href="http://www.inskipaudi.com">Inskip Audi</a> in RI.

The value in CPO is three-fold:

1-Warranty. With an $85 deductible, everything is covered except nav/radio, and wear items. This is not a reimbursement plan, you do not have to pay up front and wait for a check. CPO will never force the shop to use junkyard replacement parts, unlike many aftermarket warranty companies. You can get all your warranty work performed by factory trained technicians with factory equipment, and don't have to worry about the warranty company limiting the hourly rate/parts cost/etc related to the repair. The dealership handles all the paperwork, you get a loaner car, and get the convenience of a new-car warranty for a used-car price.

2-Reconditioning. This is a grey area at some dealerships, but essentially the car has to be fully up to date on service and in very good cosmetic condition. The wear items must have almost all their life left. The car will not need any significant servicing for quite a while after you buy it. You can buy a car somewhere else, slap a warranty on it, then discover it needs $1500 in brakes, $600 in maintenance, and $1200 in shocks - at which point you will be SOL, because your warranty does not cover maintenance or wear items.

3-Financing. CPO came about with the advent of leasing. As leases became more and more popular, the manufacturers were getting stuck with tons of 3-year-old off-lease cars. To make these cars more attractive, the manufacturers came up with extended warranties, exhaustive condition checks, and subsidized used-car finance rates. Often the CPO rates are significantly below what independent banks can offer.

Select carefully when buying an A8. From what I have seen, Bruce M is a stand-up guy and I would buy a car from him without hesitation. However, the used car business has a terrible name for very good reason. A lot of places will royally screw you without a second thought. A large dealership cannot easily do so, because we are held to high standards by our manufacturer (if we want to keep selling new and CPO cars).

Always get a good PPI done by a dealership or trusted mechanic - these are complex cars and are expensive to fix. There are lots of things to go wrong, and lots of places to cut corners for an unscupulous dealer looking to make a quick buck.

My background includes running the CPO programs at a BMW, Lexus, and now Audi dealership. I have also been a warranty admin for Ford/Volvo and dealt with all manner of factory and aftermarket warranties.

Bruce's advice is sound, and it is possible to do well buying a non-certified car from a trusted dealer. However, certified cars do offer a good value and a new-car ownership experience.

theanimala

I was offered 1.9% finance for 3 years and 3.9% finance for 4 or 5 years on my CPO 05 A8L. That saved me quite a bit over the duration of my loan compared to what the local banks could offer me.

I think Bruce can offer a heck of a deal. I would use the knowledge of what Bruce can do for your to work yourself a great deal at a dealership on a CPO. If they won't work with you than you know you have Bruce to work with. FYI, I do not recommend making Bruce do the work and then shop it out to a dealer, his time is worth money.

Bruce M

...with the same brush, just like I don't like to be tarred with the "shady used car dealer" brush.

But I am always amazed (jealous??) at what I see the Audi buyers buy, then certify, then sell at big margin with CPO. Then people come to me and tell ask me what to do because the car is needy or was previously hit, etc. And I know firsthand from several dealers that later model cars (05 and after) get VERY little of the multi-point inspection required for CPO.

But that is not all dealers, and some (most?) are great. And certainly used car dealers as a percentage are a LOT worse than Audi dealers as a percentage. It just makes me crazy to see the high markups coupled with the sometimes shoddy process and cars. I think the intent of CPO is solid, but the process got perverted somewhere along the way in the name of speed and increased profits, so many times all that's left is the 2-year warranty extension, and the inspection, service, and recon are AWOL.

As far as the stuff you mention, I agree with most. But CPO does not cover everything except nav and radio. It is not an exclusionary plan (it's a good named component plan), although many times there is goodwill that a 3rd party extended will not offer.

I don't deal with warranty companies that don't pay dealer labor rates, for new parts, etc. But you're right, there are plenty of warranty companies that are two guys in their underwear with a website, so buyer beware. And unlike some 3rd party companies, I don't think people need to lose sleep worrying that Audi CPO plan will go bankrupt!

Thanks for the non-flame response, I will try to edit myself before posting next time.

Bruce
&lt;slinking away quietly&gt;

Bruce M

..if you desire and are local.

I am in PA, 45 min north of Philly, so likely you'd just take train to me and pick it up and drive home. Or transport is only a couple/few hundred dollars door to door.

Bruce