BMW NA Dramatically Alters its Certified Pre-Owned Warranty

BMW has cut its well known and trusted Certified Pre-Owned Warranty from two years and/or 50,000 miles to 1 year / unlimited miles. The change speaks for itself and is a pretty big bummer for anyone seriously looking at CPO BMWs.

Why did this happen? Values are dropping due to a glut of cars in the marketplace and BMWNA may be looking to save some money in 2018. What this does is it makes buying from BMW dealers a little less appealing and potentially disrupts the CPO market in general.

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  • h0m0 non laborans

    By(e) BMW…

  • flyinace2000

    What determines what warranty you get? When the car was “certified” or when it is purchased?

    • I believe purchase date but we’re looking for clarification as well.

  • BimmerFile_Michael

    This will cost BMWNA more than it saves them. Residual values will decline as will demand for used cars. The long term outlook is poor for used car sales after 2020 with many thinking that the opposite (extending warranty) will be needed to support used cars sales, especially those with combustion engines.

    Once people get that electric cars have a simpler and longer life span they will be better in used car residuals.

    The market is shifting and it is hard to predict how this will all go. In many ways the US market may be in for a rude awakening.

    • Seems like it’s having a rude awakening now if 2017 sales are any indication.

      • BimmerFile_Michael

        US is becoming less important for numbers, profit per unit continues to rise as parts sharing has increased and the volume sales of the 2 Series is what MINI was intended to do. China and Europe are driving profits outside of Savs. I would bet that the new management is focused on profit over volume and not focusing on the US as a driver since there is some concern over proposed tariffs. Hedging this will see a decrease in US models and a move away from volume.