Tag: CPO

By on March 21, 2016

2014 Toyota Camry SE

A wave of older vehicles is poised to flood Toyota dealer lots, but the automaker is confident it has just the plan to deal with it — pre-owned leasing.

Toyota is certain that adding a leasing option to its certified pre-owned inventory would boost CPO sales and clear lots in the face of a growing compliment of three-year-old product, Automotive News reports.

The plan has already been quietly rolled out in the U.S. Northeast, but a national strategy should be in place by the end of April, dependent on training in each dealer region. The option would allow a reduced commitment for buyers who don’t want to finance the full cost of a pre-owned vehicle. (Read More…)

By on March 18, 2016

2012 BMW 328i, Exterior, 328i badge, Image: © 2012 Alex L. Dykes/The Truth About Cars

Sam writes:

Hi Bark,

I have a multi-part question and I’m interested to get your insight.

Part one: To CPO or not. After decades of driving Fords, I’ve decided to treat myself with a sporty German car. A BMW 328i seems like just the ticket. I’m looking at a 2015 model year dealer loaner with 4,000 miles, and it’s available with $8,000 off the $53,000 sticker price. The warranty has been reset, so it’s effectively a full, new-car warranty. With no major changes between 2015 and 2016, this seems like a no-brainer.

Part two: To lease or not. A BMW with a turbo and automatic transmission gives me the willies. I like the idea of turning it back in after three years and washing my hands of any long-term maintenance issues (or having to unload it myself). BMW’s lease interest rate is 4.375 percent, which seems high. The residual factor is 59 percent of MSRP.

Part three: To pay up-front or not. I hate paying monthly for stuff. I’m inclined to just pay the entirety of the lease payments up front. BMW will cut the rate by a little in this case, to 4.125-percent on the residual amount. It still seems high relative to the 0-percent offers on domestic vehicles. Are there any gotchas to paying up front?

I’ve never leased before. I’ve always been a “pay cash” kind of guy. But the lease on the low-mileage CPO with no major changes seems like a slam-dunk over a new car similarly equipped. Am I missing something?

Thanks!

Hoo boy. Get ready for a barn burner.

(Read More…)

By on March 15, 2016

2013 BMW X1

Anonymous writes:

Hi Sajeev,

As a long-time reader of Piston Slap and TTAC, I never thought I’d be writing for advice. You see, I usually buy new or manufacturer-certified cars with warranties and loaners and all the benefits that the extra money affords. Surely, any problems would be handled lovingly and without hassle by the dealer and maker. Mostly that’s been the case, but not this time …

(Read More…)

By on February 6, 2016

Volkswagen Diesel Sale Disclaimer

The fuel cost savings of a diesel vehicle can be huge for those who eat up highway miles. However, with Volkswagen’s voluntary stop sale of those vehicles implicated in the diesel emissions scandal, you may think you can’t buy one from a Volkswagen dealer.

You’d be wrong.

According to a source who spoke to TTAC under the condition of anonymity, Volkswagen dealers are still able to sell an affected diesel vehicle should it meet certain conditions: that it not be a “certified pre-owned” (CPO) or new vehicle, and that the buyer signs a disclaimer stating they understand the vehicle being purchased pollutes more than government compliance tests initially indicated.

(Read More…)

By on February 5, 2016

Volkswagen Dealer Sign

Volkswagen Group of America has begun the process of buying back cars affected by the ongoing diesel emissions scandal, but you shouldn’t expect to receive a letter or phone call with a buyback offer anytime soon.

VW is going ahead with a buyback program that will see the automaker acquire affected vehicles from dealers’ certified pre-owned (CPO) inventories, a source familiar with the plan told TTAC.

(Read More…)

By on July 23, 2015

General Motors Renaissance Center HQ

General Motors disclosed in its quarterly Securities and Exchange Commission filing Thursday that the Federal Trade Commission is investigating the automaker for selling used cars under recall, the Detroit News is reporting.

According to the automaker, the FTC notified GM that it was investigating “certified pre-owned vehicle advertising where dealers had certified vehicles allegedly needing recall repairs.”

The filing acknowledges the investigation is connected with the 2014 recall of 2.59 million cars with faulty ignition switches that could turn the car off while driving, disabling its airbags. So far, 124 deaths have been linked to the defect.

(Read More…)

By on July 14, 2015
dirtycar

Low Miles, One Owner… (photo courtesy: www.parknshine.com)

TTAC commentator cwallace writes:

Sajeev,

Here’s what’s probably an easy question for you: Is it ever worth the money to update wear items on a car before trading it in?

My trusty 2007 Accord EX V6 is suddenly about to cost me some real money. With 154,000 miles on it, the tires are about shot, it needs new struts, there’s a crack in the windshield, and the rear main seal is starting to make a mess of my driveway. Plus, my commute just got a lot longer, so the lack of creature comforts (like sound insulation, for heaven’s sake) make me think I’ve got my money’s worth from this car.

Other than those things, it looks good for its age, and everything else works just as it should. All that dealership service paid off, is what I tell myself.

(Read More…)

By on June 23, 2015

is7

I usually have more fun with $5,000 cars than with $55,000 cars.

It’s not because I’m cheap. Well, let me rephrase that. I love investing in a quality vehicle, but in the world that is wholesale auctions, I rarely get to see them. You can find nearly anything at the auctions that has been traded-in, repossessed or not picked up at the end of it’s lease. What you can’t find are the keepers.

Toyota imported only a bit over 5,000 of these IS F sports sedans from 2008 thru 2014. The number brought to auction so far in 2015? 35. Annualized, that’s less than a 1.5% turnover rate in a business where anywhere from 20% to 60% of late model vehicles will revisit ‘wholesale heaven’ before getting shucked back into a retail dealership.

After a week and change behind the wheel of this 2014 Lexus IS F, I finally figured out why you see so few of these vehicles at the auctions. It’s the one missing ingredient that nearly every enthusiast publication glosses over when they review any high-end sports car.

The real world ownership experience.

(Read More…)

By on June 22, 2015

2012 Toyota Sienna

Michael writes:

This August, we will have a 23-year-old German au pair coming to live with us. She will be taking care of our three boys – ages 6, 4, and 1. I am looking for transportation for said au pair that fulfills the following criteria:

(Read More…)

By on September 28, 2014

IMG_0347a

It’s easy to think that certified pre-owned, CPO, programs that sell used cars that meet manufacturers’ standards for quality, are a fairly modern development in the car biz, but car companies have been helping their dealers sell ‘approved’ used cars for generations. Chevrolet had its “OK” used car program. Ironically, that branding apparently had its origins in the marketing of 1918 era American Motors (unrelated to the company of the same name formed by the merger of Hudson and Nash), which Louis Chevrolet helped found after he parted ways with Billy Durant and the Chevrolet company. Louis Chevrolet would hand sign the dashboard of each American Six with the rhyming “O.K. Chevrolet”. (Read More…)

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