Buying used prestige with peace of mind

When buying a used prestige vehicle you don’t know what you’re in for. Yes, you’ve missed out on a chunk of depreciation by not buying new, but prestige vehicles cost prestige money to fix.

With even the best used car advice, you don’t really know what problems are hiding under that glossy paint of a used car, nor how well the previous owner treated the car. And with their complexity and high parts costs, you could easily find yourself spending the money you saved by buying a used prestige vehicle if it starts to develop problems.

Buying a prestige vehicle from a dealer will give you a statutory warranty (normally: three months/5000km) or if you’re lucky some remaining factory new-car warranty. But be aware, if something needs to be fixed, under the statutory warranty there’s no obligation to use original parts and any licensed mechanic can do the work.

Enter the certified pre-owned program (often abbreviated as CPO).

Manufacturers and importers have realised there is a market in servicing purchasers of relatively new, used cars. After all, there will always be ex-company fleet vehicles and dealer trade-ins that have been lightly used and well looked after. Why not, then, promote this cream of the (used) crop as ‘good as new’, and endorse it with a factory-backed warranty -- and, in most cases, roadside assistance?

Not only are CPOs now a way of shifting metal, but they are increasingly an important brand building tool. Buyers new to the brand via used vehicles might buy new next time around.

Generally, it’s been slow to start for CPOs in Australia. In fact, not all prestige marques have thrown their hat in the ring; neither Lexus nor Infiniti, for example, have a factory-backed CPO program.

But many brands do – and we’re taking a look at what they offer…

Common CPO inclusions
There’s some common ground across most local CPOs. In each of the prestige CPO programs we looked at vehicles are given a once-over by an authorised dealer’s factory-trained mechanics, who then ‘recondition’ the vehicle with genuine parts as required and (for instance) update software as necessary. The vehicle is then offered for sale.

The key attraction of the CPO program is their factory-backed warranties. It’s a very enticing proposition to think that if a part fails on your expensive new, used prestige car that it’ll be replaced for free with a genuine part fitted by factory trained mechanics who also have access to the latest factory tools and software.

But here’s where they differ
As we discovered, however, not all CPO warranties are the same.

Jaguar, Land Rover/Range Rover, Ferrari, Maserati and Volvo CPO warranties mirror their respective new car warranties (NCW), so you’re covered for any manufacturing defect as you would a new car.

For Audi, the warranty is the same as NCW – except the clock starts ticking on paint imperfection warranty (three years) and body corrosion perforation coverage (12 years) when the car is bought new. Mercedes-Benz, however, won’t cover items such as defects in or failure of wheels, paintwork, chrome, seals, panels and bodywork, decorative or trim components or software under its Certified used warranty.

The Porsche Approved Pre-Owned Car Warranty covers everything as per Porsche’s NCW except for optical defects (ie: imperfections in paint and trim). Similarly, Bentley excludes items such as wheels, paintwork, trim and upholstery from its Pre-Owned program warranty.

BMW’s Premium Selection CPO program has a number of warranty exclusions. For example, sun shades, roller blinds, lumbar support, the key set and ignition barrel, and lose wiring or burnt-out electrical system parts (including starter motor, fan units, the lighting system and alternator and the windscreen-washer system) are not covered.

Gaskets, except for the head gasket, are also not covered under the BMW CPO program. Like Audi, BMW only covers paint and corrosion as part of NCW (and for the same periods as Audi – three and 12 years respectively).

Given that the brand is under BMW ownership, it’s no surprise that the MINI NEXT exclusions are the same as the Bavarian marque.

None of the CPO warranties cover vehicles used as a hire car, that are damaged due to non-factory approved parts, nor do they cover consumables such as clutch plates, brake pads/disc and tyres. This is just as is the case with NCWs.

Protecting investment
Although there are plenty of references in the programs’ terms and conditions that suggest that getting servicing done by an authorised dealer is the best way to ensure the warranty conditions are met, under Australian consumer law you are not under any obligation to do so.

Most manufacturers offer a two-year warranty, and none are activated in place of NCW (because of CPO warranty exclusions in some cases, that is a good thing) but kick-off once the NCW has expired.

While all CPO programs offer at least a one year warranty (many provide two years, see table below) none have a cap on kilometres travelled in the period.

All the programs we looked at cap the age and kilometre reading of vehicles eligible for inclusion. For Jaguar, Land Rover, Range Rover, and Volvo it’s five years/100,000km. Audi, BMW and MINI also cap the age of eligible CPO vehicles at five years but extends the kilometre cap up to 120,000km.

Some manufacturers offer much older vehicles than you’d think. Maserati, for example, will include cars up to six years from new (and up to 130,000km), although anything past its fifth birthday will only be eligible for a drivetrain warranty of up to two years. To get a full bumper-to-bumper two-year warranty, your Maserati must join the CPO program before the three-year new-car warranty has expired and have travelled less than 100,000km. For cars whose new-car warranty has expired, only a one-year warranty will be offered.

Mercedes-Benz will offer vehicles up to 12 years old with a maximum of 150,000km, although older vehicles only get a drivetrain warranty.

A choice of programs
There are three Mercedes-Benz Certified warranties, depending on the vehicle: the two-year Premium Plus warranty covers vehicles from two years from new to eight years and up to 120,000km; the 1 year Premium Plus, for vehicles from one year old to two years and up to 120,000km (but can’t be added to a vehicle once two years since first registration has passed); and, the 1 year Premium Driveline, for vehicles eight to 12 years years old that have covered up to 150,000km.

This last warranty also applies to vehicles under eight years old with 120,000km to 150,000km travelled.

If you’re keen on a used Ferrari, the Ferrari Approved program offers cars up to 11 years old (with less than 90,000km). Bentley also offers cars of up to 11 years-old, without a kilometre limit.

Porsche will offer cars up to nine years-old (with a 200,000km limit) as part of its Porsche Approved CPO program.

Break it down
Breakdown cover to the same level as NCW is parceled with all the CPO warranties.

Most CPO program are transferrable to the next private owner, but the Audi Approved:plus, BMW Premium Selection, Mercedes-Benz Certified and MINI NEXT warranties cease as soon as you sell the car (although for BMW and MINI, the remaining breakdown cover does carryover to the new owner).

Bentley charges a $100 fee to transfer its warranty to a new private owner.

Steak knives too?
While CPO programs follow a similar theme, some throw in extra features.

The BMW Premium Selection program includes one year or 25,000km worth of servicing, while the BMW Premium Selection Platinum (only for BMW 6 Series, M6 and 7 Series) offers two years or 50,000km of servicing.

Under the MINI NEXT program, MINI will pay for one scheduled 25,000km oil service with its 12-month warranty, even if the next service is not due until after the warranty expires.

Rolls-Royce will pay all servicing costs as part of its Provenance Pre-Owned program for the duration of the two-year warranty.

In case you’re heading overseas with your Porsche, the Porsche Approved warranty will be honoured by dealers worldwide.

Jaguar Approved and Land Rover Approved dealers offer extra peace of mind by putting their dealers and cars through independent inspection to ensure they meet the company’s criteria. Jaguar Approved vehicles also have an independently verified kilometre check prior to sale.

Bentley offers Pre-Owned buyers a factory tour at Crewe – but only on a ‘case-by-case’ basis.

As we’ve found, it pays to read the terms and conditions carefully before you sign up for any CPO vehicle, especially for warranty exclusions -- of which we’ve listed only the highlights.

Yet if you want to experience the new-car feel without the odour of a new-car price, CPO program are an enticing alternative.

Notes
* BMW Premium Selection – Only BMW roadside assistance (Roadside Assistance & Accident Management) can be transferred to a future owner
BMW Premium Selection One year warranty with one 25,000km interval service included; BMW Premium Selection Platinum Warranty period (for BMW 6 Series, M6 and 7 Series) two years with two 25,000km services included.

*MINI NEXT – Only BMW roadside assistance (Roadside Assistance & Accident Management) can be transferred to a future owner

* M-B Certified – If the vehicle is less than 18 months old, the warranty will be the remainder of the Mercedes-Benz New Passenger Car 3 Year Owner Protection Plan, plus a one- year Approved Pre-Owned Warranty.

* Porsche Approved Vehicles up to nine years old can have up to two years warranty – warranty cannot be extended beyond the 10th birthday of the car

* Tesla Certified Pre-Owned vehicles have their battery and driveline covered for eight years and the remainder gets four years/80,000km from date of CPO purchase (excluding consumables/normal wear and tear).