Experiences with CPO?
 

I am trying to figure out if buying a CPO or a new subaru is a better choice? I am looking for a brz limited 6mt. I test drove a used one on saturday but am trying to decipher the financial differences between CPO and new. Here is what I have came up with.


2013 Limited BRZ Certified Pre Owned ($26,400)
Pros
Possibly cheaper after negotiations
Increased powertrain warranty (7 years/100k miles)
Galaxy Blue color
Available immediately
700 miles

Cons
First model year
Lower resale value (2013 vs newer)(second owner)
Worse financing terms

New Limited BRZ (2014 or 2015)
Pros
Subaru VIP Program (2% below invoice)
Better resale value
Better financing terms

Cons
Possibly more expensive than well negotiated 2013
Worse powertrain warranty (5 years/50k miles)
Must wait until July

Anyone else have any possible pros and cons to help me make my decision?

What's the price? That's the biggest piece you left out.

Oh sorry! It is listed at $26,400 but the salesmen said that is pretty negotiable.

Sorry, what's the mileage? That seems high even with low mileage though.

IMO if you are within $2-3k difference from buying new...buy new.

I forgot all the important information! ahh. the used BRZ had 700 miles

2013 Limited BRZ Certified Pre Owned
Pros
The potentially better sale price helps lessen the hit taken for depreciation compared to buying it new.

Cons
Even with a better warranty, you have no idea how the previous owner treated it, or even if they broke it in properly. And you likely won't know for a while.

New Limited BRZ (2014 or 2015)
Pros
You know how it's been treated since day one.

Cons
Pretty much the same car as before, with nothing new, really. So no reward for having held out for a year.

The used car is still in the break in period and was supposedly traded into the audi dealership by a 70 year old man who disliked getting in and out of such a low car. He left with an A6. There shouldn't be a destination fee when purchasing a used trade-in correct? That is another $800 or so saved over new

Who cares how much your savings are, if your financing terms on the new one are better. You have to look at total cost of after interest financing to see what really is the better deal.

Someone has taken the depreciation hit on the CPO car. Also, depending on how far you want to go with mods the extra warranty might be not even worth considering. You're going to get out the door cheaper in the CPO and 700 miles is basically brand new. The money you save on the lower interest rate might not even equal what you'd pay for the new limited.

On the other hand, theres something about a new car. Being the first owner and being able to break it in.

I paid less than $26,400 for my Limited BRZ new.. ($26,575 after tax/title/etc to be exact)

I paid less than $26,400 for my Limited BRZ new..

Yes I plan on being able to get close to this price with the subaru VIP program on a new BRZ and 8% tax rate. I am starting to think that the used would have to come down to about $24k to make it worth it to me. Does anyone think this is a reasonable price to expect for this used car?

At $26k+ the second owner, in this case, is going to be hit with the biggest depreciation.

$26,400 is the advertised price without negotiations. How much do you think they would be willing to come down once negotiations started?

I bet you could get 2/3 grand off that price its a 2013. Try buying from Clint new though; Worst case get a quote from him and use it as part of the negotiation.. but I would give him the business and get the color car I wanted.

http://www.ft86club.com/forums/showt...ighlight=clint

Even if you get $2-3k off that asking price, the higher interest rate will net you a savings of what $1-2k. Not worth it IMO when you can buy a year newer car, be the only owner, etc.

I think you would have to get the price around $22k for this to make any sense, considering the asking is basically the same as what some are getting new ones for (this is without knowing what kind if interest rates you are comparing).

But it also depends on how much he intends to put down, which will also affect total cost in the long run considering interest.

You have to assume he would put down the same on both, but yes that would make a difference in the total amount of interest paid. Although he hasn't said what the interest rate comparison is.

Thanks! I have read a lot about Clint's services but with the VIP program it seemed close enough to not pay for shipping twice. But maybe I will get a quote!

I intend to put around $3k down and was told the current financing for the used BRZ was 1.99% (up to 48 months) and 2.49% (up to 72 months). I was also told that the rates for new cars would be within 1% better than those. I can always apply at my credit union to try to get better rates. I do see your point @Burrcold about the total interest being the deciding factor and have done some estimation calculations for that. This thread was more intended for comparing the differences in new cars and CPO cars and how buying used would decrease the resale/trade-in value. Thank you for all the responses!

Those rates aren't bad.