$2,500 CPO certification fee for a vehicle advertised as CPO??

[kbreese72]

Hello all,

I just got back from my local Genesis dealer (Genesis of the South Shore here on Long Island, NY). I was there to purchase a very slightly used 2023 G70 3.3T AWD which was apparently a loaner vehicle and it has only 500 miles on it. It's clearly advertised as a Certified Pre-owned vehicle on their website. Anyhow, negotiated with the sales rep and all went well. After some back and forth they agreed to a price of $46,500 and I would put down $2500 and do the financing thru them. The Sticker on the car is 57.8k (Fully loaded prestige pkg)

Anyhow, then I got to the infamous finance guy. First, he of course tries to push the tire and wheel warranty. I said no thanks. Next he said OK what about the vehicle warranty. I said I think I'm covered with the remaining10 year/100k powertrain and 6k bumper to bumper CPO warranty. He said I'd have to pay $2500 for that certification and to get the CPO benefits.

Does this sound legit, even though they are advertising the car as CPO??

Please advise.

Thanks,
Kevin

 

[srobak]

The dealer has to pay extra money to the mothership to get it on CPO coverage. Back in the day this was 1k or 1200 and of course it was passed on to the customer. However - it was also already included in the price.... not tacked on after the fact. If it was advertised as an actual CPO vehicle - then that price should have included it. If it was advertised as CPO ELIGIBLE - then they could tack on the price. Double check the listing online and on the window to see what it says. If it doesn't say ELIGIBLE - then call it out and threaten to walk from the deal. They will likely cave, but try to nickel and dime you elsewhere. If it DOES say ELIGIBLE - then negotiate the amount. Start at half price $1250. They still make a profit on that. If they don't come reasonable close to that 1250 mark - threaten to walk from the deal. They aren't going to risk a total sale on 46k for a few hundred dollars.

Also - keep in mind that the price of the car is the price of the car - regardless of financing. The dealer shops you around to lenders, finds the best rate with THEIR partners (read: NOT your bank or credit union) - and then tacks on 1 to 2% which is all profit for them. Either reach out to your bank (or preferably a credit union if you really want to save some dough) and get their offer/pre-approval - or else as soon as you receive the full contract - go refi it with your bank. You will save thousands.

 

[kbreese72]

Thank you for your reply, and yes, sir, It was and is still definitely advertised as CPO. In fact I just looked it up right now and the price changed to lower than I agreed to pay. Their advertised price is AFTER a $2500 down payment. So the price now is apparently $46k, lower than then $46.5k I had to haggle with them to agree to. which the finance guy wants to charge me an additional $2500 for the CPO certification meaning a total of $49k not including their $700 fee, making it $49.7k plus TTL. Here's the current Ad picture:

Oh and for the record this is a big dealership, it's part Hyundai and also a Toyota dealership, all owned by the same people I believe.
The Genesis dealer as 3.4 stars on Google and many terrible reviews.

Also, I want to reiterate that this car only has 500 miles on it, it is like brand new. There is no way it should not be certified, and $2500 to "Certify" it sounds absurd for a car w/500 miles.

 

[PMCErnie]

A CPO is useless on that car. Just buy an extended warranty. That will give you the powertrain warranty for 10/100,000. You’ll already get the basic 5/60,000 warranty when you buy the car.

 

[kbreese72]

A CPO is useless on that car. Just buy an extended warranty. That will give you the powertrain warranty for 10/100,000. You’ll already get the basic 5/60,000 warranty when you buy the car.

You mean the 10/100,000 Genesis SVC, which is essentially an extended bumper to bumper warranty, correct? How much should I expect to pay for that?

 

[PMCErnie]

You mean the 10/100,000 Genesis SVC, which is essentially an extended bumper to bumper warranty, correct? How much should I expect to pay for that?

Circa $2,000.

There is no such thing as a bumper to bumper warranty. The correct title is “New Vehicle Limited Warranty.”

Hyundai Warranty Coverage | America's Best | Hyundai USA

Experience the peace of mind that comes with high quality car service. Learn more about our warranty options including Powertrain, New Vehicle, & more.

www.hyundaiusa.com

 

[kbreese72]

Circa $2,000.

There is no such thing as a bumper to bumper warranty. The correct title is “New Vehicle Limited Warranty.”

Hyundai Warranty Coverage | America's Best | Hyundai USA

Experience the peace of mind that comes with high quality car service. Learn more about our warranty options including Powertrain, New Vehicle, & more.

www.hyundaiusa.com

$2000? I looked online and what I found was most dealers try to sell it for $4000, and that the going rate most people pay is $3000. So I thought I got a decent price when I told them I would pay no more than $2600.

In terms of "bumper to bumper" I mean generally speaking. Of course it doesn't cover wear item's, etc. But it's the same thing as their standard 5/60k b2b warranty extended to 10/100k, correct?

 

[srobak]

It is not at all uncommon for dealers to make 200-300% profit on extended warranties - even factory like the SVC. The price for those are always negotiable. 4k is way out of sorts. You could have likely gotten them to about 2k - especially if you also pay any additional fee to CPO it like you. mentioned earlier. If you did - you just made their day, and the whole crew is going to be enjoying a night out on you. If they sold you anything other than the SVC then I hope it is with Zurich, Endurance or Route66. If not - get ready for a fight.

 

[Trixie86]

I love my wheel/tire coverage. Used it twice in Chicago,

 

[kbreese72]

It is not at all uncommon for dealers to make 200-300% profit on extended warranties - even factory like the SVC. The price for those are always negotiable. 4k is way out of sorts. You could have likely gotten them to about 2k - especially if you also pay any additional fee to CPO it like you. mentioned earlier. If you did - you just made their day, and the whole crew is going to be enjoying a night out on you. If they sold you anything other than the SVC then I hope it is with Zurich, Endurance or Route66. If not - get ready for a fight.

No, I refused to pay the $2500 CPO fee, or any other fee. I told them $46.5k for the car ($44k after my $2500 deposit) + tax & DMV fees. The only thing I am paying extra for is $2600 for the 10/100 Genesis VSC.

Being the car is basically brand new (CPO w/only 500 miles) and the sticker is $57.8k, I think $46.5k is a good price for it. I'm happy w/$11,300 off MSRP on a car that is already known to be great for the money.

As far as the VSC goes, $2600 may not be the best deal but it's not bad from my research.

Also, I'm on Long Island and so is the dealer. It's VERY hard to get decent deals locally because they are both very greedy here and also have very expensive overhead.. That's why I normally never buy locally, but I felt this was a decent deal.

That said, I am going tomorrow to pick up the car, and I will try to talk down that $2600 for the VSC

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[srobak]

Sounds like what I did when I got into the game in 2015. Bought a 1 year old CPO "G80" Ultimate AWD. Had 9500 on it from a 1 year biz lease and looked like it just rolled off the factory line. 53k MSRP - 42k to me +1400 for Hyundai Platinum Protection (B2B 10/100k). I could live with that for 9 years/90k to go and 10k on the car. It served me well for several years. I did have to get the sunroof replaced (known rattle issue), the trans replaced (known ahead of time as there are/were issues with it flaring), and the clock spring in the steering wheel. The roof was at 26k or so, and the last 2 were at 65-70k. All covered under the warranty. Other than that - it was an absolutely fantastic car and no real issues.

 

[kbreese72]

Great to hear. I've done a lot of research on the car and it seems the car itself is fantastic, especially for the money. My fear is the dealership service departments. Heard so many horror stories. That's what makes me nervous. Also, the insurance is surprisingly high for the car as well.

 

[kbreese72]

Just picked up the car today. Took 7 hours of mostly waiting around and I had to walk out for them to remove the $2500 CPO fee and only charge the $2600 for the extended warranty.

Home now and looking at the paperwork it says HPP warranty 10/100k... Looked it up and that's a Hyundai warranty. I guess that still works for Genesis vehicles??

 

[PMCErnie]

Congrats. They got $100 more out of you, but I think you’ll be happier with the extended warranty.

 

[kbreese72]

Yeah I had an "appointment" and it took over 7 hours in total. We waited over 5 hours before we finally got to sit down with the finance guy again. We were both VERY frustrated with the ridiculous wait. I was ready to say F this and walk out for a while.

So after finally sitting down with the finance guy and some time-wasting small talk the finance guy almost immediately turns this screen toward me to sign. I'm like...I'm not signing anything until I see the numbers. So he gives me a confusing breakdown that doesn't even show the price of the car anywhere. I start doing math and realize they still have the $2500 CPO fee PLUS the $2600 for the warranty, so a total of $5100 extra.

I told him the CPO fee was supposed to be removed after my conversation with the General Sales manager. He argued no, that he already told me that had to be charged. I argued a little and was like ok then it is what is is, I will go and ask for my deposit back and then we argued some more about the whole CPO thing and I walked out, went and got my sales rep and asked for my deposit to be refunded.

My Sales rep was shook his head and sighed and said did you talk to Lindsay? (General sales manager) I said no, and he took me to the sales manager that was there and we went back and forth, and then he made a call or two and spoke with the finance guy, came back and said he removed the $2500 CPO fee. He said they just have to change paperwork and the finance guy should call me back in, in 10 or 15 minutes.

Of course an hour and half later I'm still not called in. The finance guy had taken like 3 other people instead of getting me back in. Both my sales rep and the sales manager seemed frustrated by him and the sales manager went and grabbed my paperwork and had me sign 90% of the paperwork needed to try to move things along. I was so close to walking out yet again before he did this.

Finally another 30 minutes or so the finance guy finally called me back in. He wasn't the normal friendly BS-ing guy when I first met him now. He was very quiet, seemed frustrated and to the point. Some of the paperwork was wrong, like they had my wrong insurance company which I told him...he didn't care, he just moved paperwork along. Eventually signed everything and was on my way.

For where I live and this dealership, I'm sure I got a very good deal and one they were not happy with. This is a very old-school style of tactics with them. Lure you in with a low price and tack on all kinds of extra's. You should read their reviews online....they are horrible. Basically walking in the door to pick up the car you need to wear a suit of armor and be armed with knowledge and make sure you check every number. Throughout the process I had to have them "fix" and change things.

When you walk in their doors to pick up the car, you are basically about to go to war. It's really unfortunate that it has to be this way, but in the end, I do really like the car and happy with my deal.

NOTE: Although this was long-winded, there was a LOT I left out to try to keep it somewhat short, but yesterday was exhausting and quite the adventure. Them making us wait that long was all a game and we left while waiting to go get something to eat, and as soon as we did I immediately got a call from my sales rep claiming they will be ready for me when I get back LOL. Came back and waited another hour and a half. The whole process is ridiculous. It should have taken no more than an hour. They knew for FOUR DAYS I was coming in to pick up the car Friday. They couldn't get paperwork together in all that time? I have to wait 5+ hours before i even sit down with finance when I have an appointment? What a joke. FAR from a luxury experience.
I just hope and pray the service department isn't the same level of nightmare...

 

[srobak]

Home now and looking at the paperwork it says HPP warranty 10/100k... Looked it up and that's a Hyundai warranty. I guess that still works for Genesis vehicles??

Hyundai Platinum Protection is not the same thing as Genesis Protection Plan. With how hard they are trying to segregate the 2 brands and the refusal of Hyundai dealers to work on Genny's now - I wonder if they just gave you a $2600 piece of paper. Without it getting CPO branded - I don't think they are able to offer the GPP... so - did it indeed get officially CPO'ed? Contact GMA and verify. If not - you might be needing to make a call to your attorney.

 

[Mcc]

Hyundai Platinum Protection is not the same thing as Genesis Protection Plan.

What makes you say this?
to be sure, just go to you local Genesis service and show it to them.

 

[srobak]

What makes you say this?

Hyundai dealers aren't even allowed to work on Genesis vehicles under warranty anymore - and instead you have to take the car up to several hours away to the nearest Genesis dealer to have the work done. Do you really think that Genesis is going to suddenly blur the line when it comes to an extended warranty issued by HMA?

I sure hope they do - but I'm not holding my breath with how hostile that whole situation has become.

 

[Mcc]

I didn’t mean go to hyun and have warranty service. But got to Genesis and ask if they accept the Hyundai warranty on their Genesis. Seems pretty simple to verify instead of speculating.

 

[kbreese72]

Guys, I have a BIG post I made Saturday morning, that is STILL pending moderator approval. I don;'t know why this is still happening or why the mod is so slow to approve. I think my initial post took like a week. Then my first reply took several days, and here we are again. It's screwing up the flow of the thread.

Anyhow, I am unsure about the HPP thing yet, but I know that's a Hyundai warranty. Not sure yet how that will play out but I will look into it. For the record this dealership is a combined Hyundai/Genesis dealership.