Manufacturer Buyback/Lemon Title

[CosmosMpower]

I found a car that fits all my requirements but the only problem is that it has a Manufacturer Buyback aka Lemon stamp on the title. Speaking to the owner it was a keyless entry issue that could not be resolved in 3 tries by the first dealer/owner in CA. It was bought back by the dealership and then handed over to BMW corporate who fixed the problem and auctioned the car off to a small car lot where the current owner bought it.

The keyless entry is working perfectly since the factory fix but is the title effectively the same as salvage? Would you guys even bother looking at a car that had a manufacturer buyback if you knew the circumstances behind it? Is the resale crap with that type of title?

[sammm]

Keep looking. May not be a big deal, but it's a red flag that could hurt later.

[CosmosMpower]

Keep looking. May not be a big deal, but it's a red flag that could hurt later.

That's what I was thinking. Did not want to automatically dismiss it because it's exactly the color, options etc that I wanted.

[goofygrin]

It would have to be at a significant discount for me to even consider it (ie, $15k instead of $25k).

FWIW, there seems to be a LOT of these BMW buy back cars (and a ton in Houston for some reason).

[sammm]

(and a ton in Houston for some reason).

The car wasn't underwater, but the garage the car was in was.

[goofygrin]

I just think that Houston's shady

Not as shady as Oklahoma though. Found a car I was really interested in for a good price in Tulsa, but when I had BMW run the VIN through their computers they told me that they wouldn't touch the car. Apparently it was black listed in BMW's computer and had been in a couple really bad accidents (not in Carfax, but was in BMWs computer).

A BMW buyback might not have any warranty on it at all, which is a scary thought!

[CosmosMpower]

It would have to be at a significant discount for me to even consider it (ie, $15k instead of $25k).

FWIW, there seems to be a LOT of these BMW buy back cars (and a ton in Houston for some reason).

Most the BMW's are HPFP lemons but I think they have that resolved and it's warrantied till 120K miles now anyway. It sounds like your opinion of Lemon and Salvage is about the same?

[762]

I would just think that on such an available vehicle there is no reason to risk having the flagged title.

If I was in your shoes I would just wait and find a good certified car.

[CosmosMpower]

I just think that Houston's shady

Not as shady as Oklahoma though. Found a car I was really interested in for a good price in Tulsa, but when I had BMW run the VIN through their computers they told me that they wouldn't touch the car. Apparently it was black listed in BMW's computer and had been in a couple really bad accidents (not in Carfax, but was in BMWs computer).

A BMW buyback might not have any warranty on it at all, which is a scary thought!

The seller PM'd me. BMW confirmed the story and the entire comfort access control unit was replaced and re-programmed. The car is still under full warranty under the original terms but the car is not eligible to be CPO certified.

[altiain]

I would just think that on such an available vehicle there is no reason to risk having the flagged title.

If I was in your shoes I would just wait and find a good certified car.

What he said. A 1/3 Series BMW isn't that rare. I'd wait to find the one you want with a clean title. It shouldn't take that long. Regardless of how well this one has been taken care of, it will always have that mark on the title when you eventually go to sell it.

[goofygrin]

The seller PM'd me. BMW confirmed the story and the entire comfort access control unit was replaced and re-programmed. The car is still under full warranty under the original terms but the car is not eligible to be CPO certified.

If it's not got a clean title, it better be CHEAP. You might even have trouble insuring it.

[CosmosMpower]

What he said. A 1/3 Series BMW isn't that rare. I'd wait to find the one you want with a clean title. It shouldn't take that long. Regardless of how well this one has been taken care of, it will always have that mark on the title when you eventually go to sell it.

Actually a 1/3 series with a manual transmission in a coupe is a bit more rare than I thought especially with decent miles, in good condition and with a good options group. I'll likely pass on this one, have another one in mind too.

[OZMDD]

Personally I wouldn't mind the lemon title if BMW is giving you full disclosure on the issue and is offering a warranty on the car, so long as my insurance company doesn't have a problem. It's not accident damage, which is my big issue with salvage titles, since structural integrity is likely compromised on modern cars. That said, I would expect at least a 25-30% discount over a non-lemon version of the same car. I am a value-hound, both by nature and necessity, so that changes my thinking. Your resources might dictate different thinking, but you are also spending more than I would be able to, so you have more risk.

Finally, I think the length-of-ownership is a major factor. If you're likely to sell the car in 5 years or less, resale is a major issue. If you expect to keep it as 5-10 years, I don't think a title will mean nearly as much to a prospective owner as the condition of the car, since it would be out of warranty anyway.

My two cents.

[goofygrin]

Mike, 4 year old 335i's are <$25k...

[CosmosMpower]

Mike, 4 year old 335i's are <$25k...

Correction, a 4 year old 335 with 60K+ miles and little options are <25. But yeah we're not talking 40K here.

[Rob®]

Agreed 100% with OZMDD on all points.

[OZMDD]

Mike, 4 year old 335i's are <$25k...

I realize that. I drive $12K cars!

Agreed 100% with OZMDD on all points.

Somebody take a screen shot... first (and probably last) time this has ever been said!

[ken o]

Really? BMW bought a car back for a keyless entry problem that was easily fixed by replacing the unit. But could not be fixed in 3+ tries and they never tried replacing the unit?
Is your info coming from the seller or BMWUSA?

Can't get a CPO - pass on it.

[CosmosMpower]

Really? BMW bought a car back for a keyless entry problem that was easily fixed by replacing the unit. But could not be fixed in 3+ tries and they never tried replacing the unit?
Is your info coming from the seller or BMWUSA?

Can't get a CPO - pass on it.

That's what the seller says is is stated on the carfax, he called his service advisor and he said they told him the same thing. On the carfax it shows that it was brought in for a check, then ordered parts, then brought in 2 more times and then sold to dealer. He gave me a VIN but I didn't bother to run the carfax.

[goofygrin]

You can email a service adviser (like Pat Arnold @ Classic) and have them run the VIN through BMWs computer and it will tell you if it's under warranty and what the BMW status is.