Questions about a CPO purchase (non-Kia)

[falanger]

So a good friend of mine graduated last month and decided to treat herself to a new-ish car (2018 Q60 RS). This is her first car and she wanted to complete the purchase all by herself, but after looking at her contracts, it appears to me she got a terrible deal.

I don't have any experience with CPO, so I'm curious, is it customary for dealers to tack on a "CPO activation fee", which in her case was an extra 2500 bucks?

Something else I have no experience with; extended warranties, GAP and maintenance plans. They charged her $3900 for the warranty, $799 for GAP, and $899 for the maintenance plan. Are these amounts typical for a brand like Infiniti?

Again, just curious about all this since it seems to me she got gouged.
TIA

 

[Nac]

My experience with CPO is with BMW and I did not pay an "activation fee".

Here is what Infiniti has about their CPO program on the web.

INFINITI Certified Pre-Owned vehicles.... Confidence is enhanced through our certified process, which begins with a vehicle that was crafted to INFINITI’s exacting standards, passed a rigorous 167 point inspection and includes a factory-backed, up to 6 years unlimited mileage warranty [*].

This limited warranty, which is backed by INFINITI, covers all major components and is inclusive of powertrain coverage.

All authorized INFINITI Retailers can service your vehicle using genuine INFINITI original replacement parts or INFINITI approved parts by trained INFINITI technicians. We offer an unlimited number of claims on covered parts.

Click here to view the INFINITI Certified Warranty Booklet that describes the warranty coverage and all the benefits of owning a Certified Pre-Owned INFINITI

If that is what CPO means; why did she purchase an extended warranty? The car is fully covered for 6 years oir already.

INFINITI Certified Warranty Booklet states: INFINITI will provide complimentary basic maintenance for the first year of ownership, thereafter, maintenance service expenses specified in your Owner’s Manual such as but not limited to: engine tune-up, wheel balance and alignment, spark plug and wire replacement or adjustment, timing belt replacement, fluid and lubricant replacement or replenishment, wiper blade replacement, headlight aiming, filter replacement, brake pad and shoe replacement, air conditioning refrigerant replacement or replenishment.

Why would anyone buy prepaid maintenance, the CPO covers the first year, Is there some capability to move the prepaid maintenance it to another vehicle if this one is totaled? $899 seems to be excessive when the first year is already covered.

What is GAP in this case? GAP insurance I am familiar with covers the gap between what is owed on the car and the cars value if totaled when the note on the car is more than the value of the car.

On a preowned car significant depreciation has already occurred and the buyer should never be upside-down (owe more than book value), that's why you buy a pre owned vehicle.

CPO, in my experience, is really a manufacturers extended warranty on a car they inspected. When I was in the market for a CPO car, I found CPO cars priced $1500 - $2000 more than non-CPO (which pays for the manufacturers extended warranty) and the CPO warranty was always included in the asking price.

Appears they charged $6,400.00 ($2,500 activation + $3,900) for an extended warranty which can be purchased for significantly less, and should not be required if the car is true Infiniti CPO.

My advice, do what should have been done prior to purchasing, read the contracts, see what was actually purchased. If any of the services are undesirable (I assume they all are) find out what it costs to cancel them. Pay the cancellation fee and get as much of her money back as possible.

Chalk up the loss to the price of an education in car buying.

 

[stoopid]

She got shafted, but frankly she deserved to be. She didn't read the contract or care about the money values being exchanged, so she can obviously afford to be parted with her money. Her caring now is... out of pride?

 

[Nac]

She got shafted, but frankly she deserved to be. She didn't read the contract or care about the money values being exchanged, so she can obviously afford to be parted with her money. Her caring now is... out of pride?

That's a bit harsh, no one deserves to be screwed on a vehicle deal (even you), she is apparently young (just graduated) and likely inexperienced in purchasing vehicles. Trying to stand on her own and completing the purchase all by herself is admirable; however, was not the best strategy.

Even after buying 15 vehicles , I bring a trusted and experienced third party to the dealership with a plan (I have also been a third party for friends and family), since the third party has "no dog in the race" they are less emotional and more objective and help the buyer stick to a good plan (which it appears she did not have).

Unfortunately it appears she is going to learn about vehicle purchasing through a dealership with this expensive lesson.

By the way:
How do you know she didn't read the contract?
How do you know she doesn't care about the money values being exchanged?
How do you know she can obviously afford to be parted with her money?
How do you know her caring now is... out of pride?

Unless you are her, or are a very close confidant of hers, you don't have a clue regarding what you stated, its all supposition, and I think you picked a very appropriate screen name.....

 

[stoopid]

By the way:
How do you know she didn't read the contract?
How do you know she doesn't care about the money values being exchanged?
How do you know she can obviously afford to be parted with her money?
How do you know her caring now is... out of pride?

It's all in the results. We don't know why the sudden concern, hence I asked it as a "?" question. I'm the stupid one?

Don't kill the messenger, I'm just pointing out the obvious.

 

[Nac]

It's all in the results. We don't know why the sudden concern...

I did not call anyone stupid, I said you were being harsh, likely knew nothing about the person you were speaking of and picked an appropriate screen name. You called yourself Stoopid.

It is apparent you are a horribly deficient cause analyst (i.e. critical thinker),with the statement "It's all in the results." you used "post hoc ergo propter hoc" logic (after this, therefore because of this'). Meaning since event X followed event Y, event X must have been caused by event Y.

This is a poor critical thinkers logic error in that correlation is used to determine causality. (It may serve you well to remember "correlation is NOT cause", and one should think critically before stating something stoopid)

Your horrifically inappropriate logic lies in a conclusion based solely on the order of events, without taking other factors into account that may result in proof that your conclusion is false.

An example is "the rooster crows immediately before sunrise; therefore the rooster causes the sun to rise."

Like you "I'm just pointing out the obvious." You stated "She got shafted, but frankly she deserved to be." Your reply to my second post shows you based that statement that on horribly faulty logic.

You should probably apologize for that unfair, unhelpful and unnecessary remark; or don't and show the rest of the forum members that you do in fact live up to your screen name.

If you wish to continue this discussion, I urge you to Think Critically before replying.

 

[stoopid]

You are being very heroic saving the damsel not in distress.

 

[Nocostinger]

So a good friend of mine graduated last month and decided to treat herself to a new-ish car (2018 Q60 RS). This is her first car and she wanted to complete the purchase all by herself, but after looking at her contracts, it appears to me she got a terrible deal.

I don't have any experience with CPO, so I'm curious, is it customary for dealers to tack on a "CPO activation fee", which in her case was an extra 2500 bucks?

Something else I have no experience with; extended warranties, GAP and maintenance plans. They charged her $3900 for the warranty, $799 for GAP, and $899 for the maintenance plan. Are these amounts typical for a brand like Infiniti?

Again, just curious about all this since it seems to me she got gouged.
TIA

Lol the Finance Manager is going to europe on vacation!
Seriously though, nothing you can do at this point. You're basically going to tell her "I told you so".

Now for the good news: Warranty (Extender service contract) typically is cancellable as is GAP. The maintenance plan sounds like a decent deal depending on what it covers and for how long.
As far as the "certified warranty activation fee" make sure it says this on the contract and have her get in touch with Infinity Consumer Affairs. Most luxury brands frown on bullshit like that from dealers and will usually threaten them with penalty or hold back vehicle allocation until problems like that are corrected. Depending on what the contract looks like, there may be some laws against predatory lending that were broken there. GAP coverage shouldn't exceed 2% - 3% of the vehicle purchase price AFTER down payment. I know this varies state by state but if they broke that, its predatory lending and depending on the state, this may void the finance contract.

But,

Theres alot of what ifs there.

Summarized:
Cancel extra Warranty: If their finance manager tells you to wait or says they can't, go directly to the company that supplies it. they'll help.
Note that the money from the warranty cancellation goes to paying down the principle of the car directly through her bank, she won't get a refund check or cash so don't bark up that tree.

For the activation fee: Threaten to take it to infiniti consumer affairs. Thats some rank bullshit and if they did that for the Certified Preowned coverage thats kinda fraud.

For GAP, run the math. If its out of line, let the dealership know that they need to make it right or else...