[Cobu]

Just curious which one of the two current CPO financing options would most folks go for ?

[Alexander]

Maintenance in my mind is worthless. You will have to fight your SA unless a specific light goes off...

0.9% has way more value than maintenance.

[vasillalov]

Definitely the 0.9%. Do your own maintenance!

[Cobu]

That's what I was thinking - maintenance can be a pain in the butt w/stealership service, plus you can always go elsewhere - cheaper... thanks for confirming my thoughts

[grieverr]

Well, to play devil's advocate.... what's the APR go to if you choose the maintenance? I believe it's about $2k for the maintenance package. If you would pay close to that in interest, I'd choose maintenance. Free oil changes and loaners are nice Local shops don't offer that.

You can always pay less interest if you can afford to send a good amount of money on top of your due payment. That would cancel out the APR advantage.

[DenverJayhawk]

the maint during a 2 year CPO agreement is 2 oil changes at most and maybe a set of brakes if you're lucky. You can do all three of those for under 1k easily.

Before you buy a CPO, make sure you look at the tires and are happy with the condition of the RFTs. Don't let them stick you with a used set that they claim have acceptable tread life remaining. Insist on a new set of RFTs. Those suckers are expensive to replace.

[bulldog_yyc]

Originally Posted by grieverr

Well, to play devil's advocate.... what's the APR go to if you choose the maintenance? I believe it's about $2k for the maintenance package. If you would pay close to that in interest, I'd choose maintenance. Free oil changes and loaners are nice Local shops don't offer that.

You can always pay less interest if you can afford to send a good amount of money on top of your due payment. That would cancel out the APR advantage.

the point is that while they charge you 2,000 for the maint package, dont expect to extract that value; as was pointed out above, you have to fight tooth and nail for them to cover anything under the warranty, let alone the maintenance package. Who knows how much value you will get from it; depends on actual service needed and actual reimbursement of those service costs they cover; ie it is a gamble

On the low interest, they have to charge the low interest as a part of the loan agreement. They cant decide to charge you higher or lower because they feel like it (read: they are discretionary for maintenance benefits).

Pick the low interest option, its a no brainer.

[galahad05]

Insightful comment by turkish.

Listen to him.

[grieverr]

Originally Posted by turkish335

On the low interest, they have to charge the low interest as a part of the loan agreement. They cant decide to charge you higher or lower because they feel like it (read: they are discretionary for maintenance benefits).

Understood. However if they're giving him an option and he chooses the maintenance, then obviously something will have to change with the (what seems to be a promotional) interest rate. It's not that they're not giving him the loan. They may offer another loan at 5%, for example. So, if the interest ends up being $3k, he can potentially enjoy both promotional items by paying more on the balance and reducing the amount of interest paid, AND he'd have the included maintenance. If he chooses the APR, the he's definitely stuck with paying for things out of pocket.

What's the car in question here? Is it a 335?

Under maintenance, I've had my HPFP done three times, brakes, cracked intake duct (probably caused by them in the first place), software update, and of course, oil changes and wipers. Although the HPFP is now covered, I think I've gotten my $2000. All without hassle. Maybe your dealer is extra tough on service, for some reason.

And again, all those times I've gotten a loaner car and free coffee and pastries Maintenance is peace of mind, especially if you're not mechanically inclined. It also looks good on paper if you sell your car down the road. And, yes, I would agree that this last piece is not something you should base a car purchase on, but I thought I'd throw it in as an extra.

[bimmer_335]

How was your HPFP covered under maintenaince plan... I think you are mistaken. HPFP is covered under warranty, CPO and now till 120k.

Choice is simple... go with 0.9%.

[blacknbean]

i choose maintanence since my car with be out of the no cost soon. the .9 is only for 24months and i had the cash to pay. plus it will add value when i go to sell since not many cars be under free maintanence a couple yrs from now

i only had the car a week and ive gotten new injectors, new software, and new control arm bushings. im also due for a set of rear brakes in 5k. im at 45k miles so pretty soon that would have been out of pocket.

[hugus311]

Before you buy a CPO, make sure you look at the tires and are happy with the condition of the RFTs. Don't let them stick you with a used set that they claim have acceptable tread life remaining. Insist on a new set of RFTs. Those suckers are expensive to replace.

Yup i did not and 4 new tires about 1 month later

[Sara]

Originally Posted by blacknbean

i choose maintanence since my car with be out of the no cost soon. the .9 is only for 24months and i had the cash to pay. plus it will add value when i go to sell since not many cars be under free maintanence a couple yrs from now

i only had the car a week and ive gotten new injectors, new software, and new control arm bushings. im also due for a set of rear brakes in 5k. im at 45k miles so pretty soon that would have been out of pocket.

.9 for only 24 months? Mine is the entire length of my loan.

[grieverr]

Originally Posted by bimmer_335

How was your HPFP covered under maintenaince plan... I think you are mistaken. HPFP is covered under warranty, CPO and now till 120k.

You're right. My mistake.

[phil.]

Originally Posted by Sara504

.9 for only 24 months? Mine is the entire length of my loan.

lucky for you. the current 0.9% APR promo from BMWFS is only for 24 months. as mentioned earlier, it's straightforward to compare the interest saved. i think you can get 2.9% from BMWFS. so do the math 0.9 over 2 yrs versus 2.9 over your preferred term. i think it's available up to 60 months.

for any vehicle you're considering, you need to determine if you'll get more/less value from no cost maintenance than the loan difference.

[Cobu]

thanks folks - lot of good info. I also thought the 0.9% APR is for 60 months

[persian54]

.9!

[bulldog_yyc]

Originally Posted by phil.

lucky for you. the current 0.9% APR promo from BMWFS is only for 24 months. as mentioned earlier, it's straightforward to compare the interest saved. i think you can get 2.9% from BMWFS. so do the math 0.9 over 2 yrs versus 2.9 over your preferred term. i think it's available up to 60 months.

for any vehicle you're considering, you need to determine if you'll get more/less value from no cost maintenance than the loan difference.

you don't need to determine anything - the fact that the low interest is a guaranteed benefit makes it the obvious choice every time over the maintenance option which is subject to the discretion of your dealer (ie roll the dice)

[phil.]

say you finance $20k for a 2007 that's got one more year on new car warranty with CPO expiring in 2013. and to make the math comparison easy, let's say the miles you drive per year will have you hit 100k right around the same time CPO expires in 2013.

choosing 0.9% apr, you'd incur $188 in interest over 2010-2012 and pay your own maintenance.

choosing no cost maintenance, what sort of loan are you getting? at 2.9% over 60months you'd pay $1509 in interest. at 1.9% over 60m you'd pay $981.

comparing the interest trade off, you're talking about $900-$1000 difference. it'll be really hard to get that much value in no cost maintenance. but it's not always just these two factors. for me, despite the huge benefit, i can't do a 2 year loan.

[Bighorns]

We got the 6 yr/100,000 mile package with 1.9 % interest, and brand new RFTs' on the rear. The dealership we bought at was recommended by a friend, and they've been great. We bought tire insurance, and they've already replaced 1 flat, which was totally covered, and did the front brakes while it was there since they were coming up due within a couple thousand miles. My sticky trunk latch was replaced, (no charge), and the loaner was a 328, not a Toyota. The only things I've paid for so far are my decorative front plate and touch-up paint!
All that being said, I think the package you decide on depends a lot on what dealership you choose.

[anerbe]

Curious if you get the maintenance and 5.9%, then refi @ 2.99 at a credit union. I'm curious if there's a minimum length of finance term to keep the maintenance....

[jeremicium]

I got .9% for 60 months on my 335. Saved something like $6,000 over a 4.9% loan my bank was offering. Just checked my last statement, on a car that I owe $42,000 on I paid $29 in interest last month.