Hypothesis: CPO is a marketing and extended warranty program, not an inspection program
10-12-2005, 04:27 AM
#1
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Hypothesis: CPO is a marketing and extended warranty program, not an inspection program
How many times do we hear about CPO cars with defects. Nobody cares about the condition of the car. Its just a marketing program to resell used/traded Audis with an extended warranty.
10-12-2005, 05:01 AM
#3
AudiWorld Senior Member
My CPO ar had to go back several times after purchase...
I'm sure all my dealer did was to stamp it CPO. I've had several oil leaks to new TC so far in 10 months of ownership.
10-12-2005, 05:05 AM
#4
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If you buy a used car still under original factory warranty...
then what the hell is the "certification" process good for? I mean if you find some little niggly thing later, it's covered. The big stuff (oil in motor, lights work, tire condition, brake condition, interior condition, etc) anybody can see.
I just don't get the extended warranty thing either. I want to avoid having to pay a $3000 service bill. So I'll pay $3000 now, and then I won't have to worry. It's just expensive insurance, and they are making money... and it's not coming from the dealer...
I just don't get the extended warranty thing either. I want to avoid having to pay a $3000 service bill. So I'll pay $3000 now, and then I won't have to worry. It's just expensive insurance, and they are making money... and it's not coming from the dealer...
10-12-2005, 05:40 AM
#5
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every program that is made up by dealers and manufacturers is designed to make them more money
i am convinced that the dealer/manufacturers cpo was made up because they were starting to lose too many used car sales to internet person to person interchanges. how do they fix it, scare the public into the idea that they can't trust buying a used car that's not inspected by their "trained technicians". lol : )
10-12-2005, 05:53 AM
#6
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Not ture, you are paying $3000 to avoid $20,000+
Tranny replacement with labour is around $13,000, turbo replacement about $10,000, various suspension parts, air bags etc. are over $1000 so your $3000 or $2000 in my case buys you peace of mind.
I don't think any of us has stats on how frequently these things break but I do know if I didn't buy CPO either turbo or tranny would go for sure :-)
I find the prevailing theory on this board of if you did not have expensive repairs then the CPO was not worth it a fallacy. Has your house ever burnt down? But you still buy fire insurance, right?
Granted there are DIYs here who can minimize the cost but they still have to pay for the parts. You also have to weigh whether you can afford the price tag of a tranny failure. I would have trouble if my service adviser told me "that will be $13,000 please".
I don't think any of us has stats on how frequently these things break but I do know if I didn't buy CPO either turbo or tranny would go for sure :-)
I find the prevailing theory on this board of if you did not have expensive repairs then the CPO was not worth it a fallacy. Has your house ever burnt down? But you still buy fire insurance, right?
Granted there are DIYs here who can minimize the cost but they still have to pay for the parts. You also have to weigh whether you can afford the price tag of a tranny failure. I would have trouble if my service adviser told me "that will be $13,000 please".
10-12-2005, 06:00 AM
#7
The Idea of CPO regrdless of the brand.. was to "Brand" the used car.
Ie..Previously Owned was to be different than simply used. It is marketing 101. Create the illussion of 'better'.
The next step and it was a lofty one and originally worked was the 300 or whatever "point inspection process". The dealers that did this had the cream of the crop lease return cars to pick from. They inspected them at whatever labor cost. Repaired the warranty items and were paid by AoA and if need be took care of the the minor cosmetic stuff and tires. This took a bit of profit, but it was working.
The flaw in the plan as most have pointed out is that there is no 'Corporate Monitor' to the process. The less than 100% ethical dealers saw the loop hole and jumped right into it. They learend that the did not have to go the 300 point route. They could just give it a once over..quickly.. with very little labor cost. Detail the car, some Armor All on the tires, and sign off on the CPO.
If the car was under 50K/4 years, the AoA new car warranty would take care of it once the flaw was found. The dealer would be compensated fully for it without the cost of looking for it.
If the buyer noticed prior to delivery that the tires were bad.. then they would replace them. Once the buyer drove off.. they were pretty much on their own. BECAUSE most buyers assume they are fine and don't do their due dilligence on the car.
This goes back to the marketing Perception of CPO.
It all comes down to a simple fact. No matter who the seller is..if you as the buyer are plunking down $25,000.00 ++++ then you should do your homework. Afterall its still a used car.
Unfortunatly its AoA that gets the black eye as its their "brand of CPO" and they admit its a dealer thing and the dealer is a separate entity and they really can't control what they do beyond new car warranty work.
The next step and it was a lofty one and originally worked was the 300 or whatever "point inspection process". The dealers that did this had the cream of the crop lease return cars to pick from. They inspected them at whatever labor cost. Repaired the warranty items and were paid by AoA and if need be took care of the the minor cosmetic stuff and tires. This took a bit of profit, but it was working.
The flaw in the plan as most have pointed out is that there is no 'Corporate Monitor' to the process. The less than 100% ethical dealers saw the loop hole and jumped right into it. They learend that the did not have to go the 300 point route. They could just give it a once over..quickly.. with very little labor cost. Detail the car, some Armor All on the tires, and sign off on the CPO.
If the car was under 50K/4 years, the AoA new car warranty would take care of it once the flaw was found. The dealer would be compensated fully for it without the cost of looking for it.
If the buyer noticed prior to delivery that the tires were bad.. then they would replace them. Once the buyer drove off.. they were pretty much on their own. BECAUSE most buyers assume they are fine and don't do their due dilligence on the car.
This goes back to the marketing Perception of CPO.
It all comes down to a simple fact. No matter who the seller is..if you as the buyer are plunking down $25,000.00 ++++ then you should do your homework. Afterall its still a used car.
Unfortunatly its AoA that gets the black eye as its their "brand of CPO" and they admit its a dealer thing and the dealer is a separate entity and they really can't control what they do beyond new car warranty work.
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10-12-2005, 06:46 AM
#9
I think it depends on how mechanically inclinded you
are and how much due diligence you do when purchasing your allroad.
DYI air bag is less than $400.00. Indi tranny probably under 2K, and turbos closer to 6K.
I like my chances of getting to 100K without a major engine or tranny issue.
I just jinxed myself :-(.
DYI air bag is less than $400.00. Indi tranny probably under 2K, and turbos closer to 6K.
I like my chances of getting to 100K without a major engine or tranny issue.
I just jinxed myself :-(.
10-12-2005, 07:07 AM
#10
Gotta tell you... Shhhhh...76K and no problems sinc 48K
OK.. I got a new set of Turbos..30K, ABS Module, Steering Harnes, Cam Seals, Oil Line Seals.....
But that was all in the first 15 months..
But that was all in the first 15 months..