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BMW 3-Series (E90 E92) Forum > BMW E90/E92/E93 3-series General Forums > General E90 Sedan / E91 Wagon / E92 Coupe / E93 Cabrio > Difference between CPO and extended warranty



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      09-26-2011, 02:05 PM   #1
Bmwguy11
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Difference between CPO and extended warranty

I see a lot of posts/threads about 3-series warranty questions that have a lot of varying information in them, so I thought I'd post this to help clear up confusion and help others get the info they need.

To start, this thread references 2 different things. The first is CPO (Certified Pre-Owned) and BMW's extended warranty (BMW Extended Vehicle Protection Plan). Below are the key differences.

CPO:
The CPO is something an authorized BMW dealership can do to extend the factory warranty of a pre-owned BMW they wish to sell. The factory warranty lasts 4 years / 50,000 miles. The CPO adds 2 years and 50,000 miles to this, which means the factory warranty will go to 6 years / 100,000 miles total. There is a $50 per service visit charge for covered CPO warranty items. The CPO can only be done by the dealership to a pre-owned car they are selling. The CPO warranty is similar to the "gold" extended warranty. See link for more info: http://www.bmwusa.com/Standard/Conte...Warranty2.aspx
-You CANNOT take a car you already own into a dealership and have it be "CPO'd". If you want a CPO warranty, the dealership has to do it before you actually purchase the used vehicle.

Extended Warranty:
The BMW extended warranty is a service contract (just like all other purchased extended warranties). This is something you can purchase for your vehicle at the time you buy it, or even after you own it, up to a certain time period and/or mileage. There is a $50 deductible for each service visit. The extended warranty I refer to here is actually called the BMW Extended Vehicle Protection Plan. It does not cover the same things as the factory warranty. Read more about the plan here: http://www.bmwusa.com/Standard/Conte...rotection.aspx


Hope this helps!

Last edited by Bmwguy11; 09-27-2011 at 08:20 AM..
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      09-26-2011, 02:11 PM   #2
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Yep I edited it to clarify, and included a link showing what is not covered. For visibility, this is what the CPO warranty does NOT cover:

What is not covered:

Upkeep Items
Maintenance; engine, transmission and body adjustments; wheel alignment, balancing or rotation; wiper blade inserts; engine drive belts; spark plugs; filters; fuses; all batteries; all hoses and clamps (except air conditioning and power steering); oils, lubricants, fluids, refrigerants and coolants (except as required in the course of a covered repair); brake pads and rotors; brake shoes and drums; manual transmission clutch assemblies; suspension dampers (shock absorbers/strut elements); exhaust systems; tires.

Wear and use
All wear-and-use items as defined in ''The Certified Pre-Owned BMW Vehicle Program Consumer Information Statement'' for Certified Pre-Owned BMWs (including all suspension parts and components).

Body and interior
Paint; glass; headlights; bulbs (except instrumentation); mirrors; lenses; body and chassis; body seals and gaskets; interior and exterior trim, moldings and fasteners; upholstery, headliner, carpeting, floor and trunk mats; convertible top (all components except electronics); air or water leaks; wind or body noises; wheels; damage due to rust, corrosion or contamination except as covered by the BMW New Vehicle Rust and Corrosion Perforation Warranty.

Accessories
Radio/CD (or cassette) player, telephone, navigation system, CD changer, DVD player or any components of those systems, plus non-original equipment parts, components or accessories.
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      09-26-2011, 02:12 PM   #3
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The extended warranty has a $50 deductible per visit? Nowhere in the brochure does it make mention of a $50 deductible.

EDIT: Nevermind, I was reading the really small fine print. It's in regular font size. :P
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      09-26-2011, 02:13 PM   #4
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Quote:
Originally Posted by Bmwguy11 View Post
I see a lot of posts/threads about 3-series warranty questions that have a lot of varying information in them, so I thought I'd post this to help clear up confusion and help others get the info they need.

To start, this thread references 2 different things. The first is CPO (Certified Pre-Owned) and BMW's extended warranty (BMW Extended Vehicle Protection Plan). Below are the key differences.

CPO:
The CPO is something an authorized BMW dealership can do to extend the factory warranty of a pre-owned BMW they wish to sell. The factory warranty lasts 4 years / 50,000 miles. The CPO adds 2 years and 50,000 miles to this, which means the factory warranty will go to 6 years / 100,000 miles total. The CPO can only be done by the dealership to a pre-owned car they are selling. As the CPO is an extension of the factory warranty, it covers everything the factory warranty does, with slight exceptions. http://www.bmwusa.com/Standard/Conte...Warranty2.aspx
-You CANNOT take a car you already own into a dealership and have it be "CPO'd". If you want a CPO warranty, the dealership has to do it before you actually purchase the used vehicle.

Extended Warranty:
The BMW extended warranty is actually a service contract (just like all other purchased extended warranties). This is something you can purchase for your vehicle at the time you buy it, or even after you own it, up to a certain time period and/or mileage. There is a $50 deductible for each service visit. The extended warranty is actually called the BMW Extended Vehicle Protection Plan. It does not cover the same things as the factory warranty. The service contract indicates what is covered, as well as reasons they could deny coverage (such as aftermarket modifications). Read more about the plan here: http://www.bmwusa.com/Standard/Conte...rotection.aspx


Hope this helps!
Incorrect. Please research before you post stuff as "facts."
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      09-26-2011, 02:15 PM   #5
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The extended covers all my oil changes til 100k right? lol
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      09-26-2011, 02:20 PM   #6
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Quote:
Originally Posted by ceb View Post
Incorrect. Please research before you post stuff as "facts."
Please provide information on what is "incorrect". The goal here is to correct misconceptions and help people make informed decisions. I posted links that verify much of my information.
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      09-26-2011, 02:28 PM   #7
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Perhaps the OP should have linked to this page too.

http://www.bmwusa.com/Standard/Conte...nty/Terms.aspx

CPO is nothing more than an alleged certification program coupled with an extended warranty provided by BMW. Just like with the extended warranty, there are lots of exclusions and costs.

The OP failed with his post.
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      09-26-2011, 02:38 PM   #8
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Quote:
Originally Posted by ceb View Post
Perhaps the OP should have linked to this page too.

http://www.bmwusa.com/Standard/Conte...nty/Terms.aspx

CPO is nothing more than an alleged certification program coupled with an extended warranty provided by BMW. Just like with the extended warranty, there are lots of exclusions and costs.

The OP failed with his post.
The list of exclusion is much smaller with the CPO than with the other extended warranty service contract. I have provided links that show this.


I have added the part about the $50 charge for CPO warranty work. Other than that omission, everything else I said was correct.

So, it would be better to contribute, rather than troll.

Last edited by Bmwguy11; 09-26-2011 at 02:47 PM..
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      09-26-2011, 02:57 PM   #9
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Quote:
Originally Posted by Bmwguy11 View Post
The list of exclusion is much smaller with the CPO than with the other extended warranty service contract. I have provided links that show this.


I have added the part about the $50 charge for CPO warranty work. Other than that omission, everything else I said was correct.

So, it would be better to contribute, rather than troll.
That's actually incorrect too. My BMW "sponsored" Fidelity warranty covers radios and navigation systems and waives the $50 fee if I go to the selling dealer.

Contributions aren't contributions unless they are correct.
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      09-26-2011, 03:02 PM   #10
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Quote:
Originally Posted by ceb View Post
That's actually incorrect too. My BMW "sponsored" Fidelity warranty covers radios and navigation systems and waives the $50 fee if I go to the selling dealer.

Contributions aren't contributions unless they are correct.
You are confusing exclusions with inclusions. CPO covers everything except what is excluded. Extended warranty covers only what is included on the list, and everything else is automatically excluded. There is a difference. While you can get the platinum coverage to cover the navigation and radio, you're missing the fact that there will often be other items that are excluded from your warranty that are not necessarily excluded on the CPO. But, at this point you're really splitting hairs. I've provided the links. Nowhere did I say "CPO covers your navigation system, but extended warranty does not". So again, you're trolling for the purpose of trolling in some kind of internet one-upsman-ship.

As for the $50 fee being waived, we aren't talking about your fidelity warranty. We are talking about the specific "BMW Extended Vehicle Protection Plan".

Last edited by Bmwguy11; 09-26-2011 at 03:11 PM..
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      09-26-2011, 03:19 PM   #11
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i have CPO warranty, and i have to pay that 50 dollar deductible fee each time i come in to the dealer.
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      09-26-2011, 03:28 PM   #12
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Quote:
Originally Posted by LocDawgg View Post
i have CPO warranty, and i have to pay that 50 dollar deductible fee each time i come in to the dealer.
Thanks, I made sure I noted that in the original post.

If anyone else has corrections or more to add, please let me know!
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      09-26-2011, 03:30 PM   #13
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Quote:
Originally Posted by Bmwguy11 View Post
Also, another big difference, the factory warranty and CPO limited warranty are covered by the magnuson-moss warranty act. The extended warranty is not. The reason for this is because Magnuson-Moss applies to manufacturer warranty. The CPO is a manufacturer warranty, while the extended warranties are not. They are 3rd party, hence why they are called "service contracts".
Say WHAT?

A warranty is not "covered" by the MM act.

I think everyone here appreciates fairly new members trying to contribute, but spouting incorrect and misleading information does not help your credibility.

There are very few differences between the CPO warranty and the BMW extended warranty. Both have exclusions and both charge fees.

There are two major differences.

The CPO warranty is applied to a car by the dealer (generally on trade-in by the first owner) following an inspection. The car must meet time in service and miles in service requirements.

A BMW extended warranty can be purchased up to warranty end without an inspection.

The CPO warranty stays with the car if it is sold.

The BMW extended warranty can either be transferred to the new owner for a fairly small fee or the selling owner can get a pro-rated refund.

The MM act does not apply to warranties. You do not understand the MM act.

Both have a fee per service visit.

For all practical purposes, it is immaterial to a owner if the car is certified or merely covered by an extended warranty. If something covered breaks, they take it to the dealer, pay the $50 and get it fixed.

Both warranties are recorded in the BMW computer (as is my "fidelity" warramty)

The resale value of a CPO car may be slightly higher as there is a perception (like you have) that the CPO warranty is "better."
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      09-26-2011, 04:04 PM   #14
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Quote:
Originally Posted by ceb View Post
Say WHAT?

A warranty is not "covered" by the MM act.
"covered" or "protected by" might be a better term. The magnuson-moss warranty act is the federal statute that governs manufacturer warranties on consumer products. Vehicles are included in this. So, I'm not sure what you're trying to say.

Quote:
I think everyone here appreciates fairly new members trying to contribute, but spouting incorrect and misleading information does not help your credibility.
I may be new here, but I have long been a part of many car forums, including 10 years on S2ki.com, with several of them as a moderator of forums such as forced induction and the technical/under the hood forum. Again, I have provided links and proof of where I am stating my facts. All you have had so far is your "word".

As I have shown, I am completely open and willing to what others have to say, and do not mind admitting fault, as well as adjusting my original information post to reflect new/different information. You on the other hand feel it necessary to simply insult me while you spout internet memes long past their prime ("fail").

Quote:
There are very few differences between the CPO warranty and the BMW extended warranty. Both have exclusions and both charge fees.
And I have outlined some of those differences. Which was the purpose of the thread. I got tired of reading posts every day like "if your warranty is expiring just take it to the dealer and get it CPO'd cuz it's cheaper than buying an extended warranty".

Quote:
There are two major differences.

The CPO warranty is applied to a car by the dealer (generally on trade-in by the first owner) following an inspection. The car must meet time in service and miles in service requirements.

A BMW extended warranty can be purchased up to warranty end without an inspection.

The CPO warranty stays with the car if it is sold.

The BMW extended warranty can either be transferred to the new owner for a fairly small fee or the selling owner can get a pro-rated refund.
All of this is a repeat of things I already stated or linked to. Ironically the same exact information you first quoted me as "incorrect" and "fail".

Quote:
The MM act does not apply to warranties. You do not understand the MM act.
A rather ironic statement. Apparently you are unaware of how the MM act is related to manufacturer warranties. Using the most common example, a car manufacturer cannot deny warranty repair simply because a vehicle is modified. Because of the magnuson-moss warranty act, the manufacturer must provide evidence that the aftermarket part caused the failure of the warrantied repair in order to deny it.

Title 16 - Commercial Practices, Chapter I - Federal Trade Commission, Subchapter G - Rules, Regulations, Statements and Interpretations under the Magnuson-Moss Warranty Act, Part 700 - Interpretations under the Magnuson-Moss Warranty Act. Contained within these rules and regulations is Section 700.10, which states:

No warrantor may condition the continued validity of a warranty on the use of only authorized repair service and/or authorized replacement parts for non-warranty service and maintenance. For example, provisions such as, "This warranty is void if service is performed by anyone other than an authorized 'ABC' dealer and all replacement parts must be genuine 'ABC' parts," and the like, are prohibited where the service or parts are not covered by the warranty. These provisions violate the Act in two ways. First, they violate the section 102(c) ban against tying arrangements. Second, such provisions are deceptive under section 110 of the Act, because a warrantor cannot, as a matter of law, avoid liability under a written warranty where a defect is unrelated to the use by a consumer of "unauthorized" articles or service. This does not preclude a warrantor from expressly excluding liability for defects or damage caused by such "unauthorized" articles or service; nor does it preclude the warrantor from denying liability where the warrantor can demonstrate that the defect or damage was so caused.


So, please do explain to everyone here how the magnuson-moss warranty act does not apply to warranties...


Quote:
Both have a fee per service visit.
Again something already in the original post.

Quote:
For all practical purposes, it is immaterial to a owner if the car is certified or merely covered by an extended warranty. If something covered breaks, they take it to the dealer, pay the $50 and get it fixed.
But to some, the differences are important. And I also wanted to stop posts I mentioned before, like the misconception you could take a car you already own to a dealer and have them "CPO" it.

Quote:
The resale value of a CPO car may be slightly higher as there is a perception (like you have) that the CPO warranty is "better."
At no point have I said one is better than the other. So don't put words into my mouth. Which one is "better" is subjective, and is determined by the person who has to decide what is important or not important to them when it comes to going beyond the factory warranty.
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      09-26-2011, 05:12 PM   #15
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I am very confused now, so what does CPO cover then?
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      09-26-2011, 05:23 PM   #16
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Quote:
Originally Posted by e90sexion View Post
I am very confused now, so what does CPO cover then?
In my first post I have a link to what the CPO warranty covers. The CPO warranty only has an "exclusion" list. Everything NOT on that list is covered. Make sense?
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      09-26-2011, 05:38 PM   #17
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Quote:
Originally Posted by Bmwguy11 View Post
In my first post I have a link to what the CPO warranty covers. The CPO warranty only has an "exclusion" list. Everything NOT on that list is covered. Make sense?
yes. thanks for your post. glad i bought mine CPO.
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      09-26-2011, 07:56 PM   #18
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BMWGuy11 or anyone, I understand that CPO would need to pass some stringent test to get the CPO mark, but how come the dealership wouldn't just CPO all their pre-owned BMW vehicles to make it more appealing? Would potential cost of needed to bring it up to CPO standard such as tires or brakes/rotors be one of those issues?
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      09-26-2011, 08:14 PM   #19
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Quote:
Originally Posted by dawei213 View Post
BMWGuy11 or anyone, I understand that CPO would need to pass some stringent test to get the CPO mark, but how come the dealership wouldn't just CPO all their pre-owned BMW vehicles to make it more appealing? Would potential cost of needed to bring it up to CPO standard such as tires or brakes/rotors be one of those issues?
It has to fit certain criteria, such as still under factory warranty for example. Also depending on what needs to be done, it could cost too much to get it to the point where it meets certification standards. A common one is non oem wheels/tires, for example.
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      09-26-2011, 08:18 PM   #20
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Ehm......

The Orginal BMW Warranty 4 years / 50,000 Miles covers all defective/ malfunction parts on the car with no deductable. It also included free maintenance on the car.

CPO, additional 2 years / 50,000 miles added to the original warranty, covers engine mechanical defects/malfunction. There are some other mechanical parts on the car not also related to the engine that is also covered by CPO. There is a $50 deductable for every non-repeated issue per "visit"

CPO can go further which all depends on how good of a SA you have
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      09-26-2011, 08:31 PM   #21
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Quote:
Originally Posted by Bmwguy11 View Post
"covered" or "protected by" might be a better term. The magnuson-moss warranty act is the federal statute that governs manufacturer warranties on consumer products. Vehicles are included in this. So, I'm not sure what you're trying to say.

I may be new here, but I have long been a part of many car forums, including 10 years on S2ki.com, with several of them as a moderator of forums such as forced induction and the technical/under the hood forum. Again, I have provided links and proof of where I am stating my facts. All you have had so far is your "word".

As I have shown, I am completely open and willing to what others have to say, and do not mind admitting fault, as well as adjusting my original information post to reflect new/different information. You on the other hand feel it necessary to simply insult me while you spout internet memes long past their prime ("fail").

And I have outlined some of those differences. Which was the purpose of the thread. I got tired of reading posts every day like "if your warranty is expiring just take it to the dealer and get it CPO'd cuz it's cheaper than buying an extended warranty".

All of this is a repeat of things I already stated or linked to. Ironically the same exact information you first quoted me as "incorrect" and "fail".

A rather ironic statement. Apparently you are unaware of how the MM act is related to manufacturer warranties. Using the most common example, a car manufacturer cannot deny warranty repair simply because a vehicle is modified. Because of the magnuson-moss warranty act, the manufacturer must provide evidence that the aftermarket part caused the failure of the warrantied repair in order to deny it.

Title 16 - Commercial Practices, Chapter I - Federal Trade Commission, Subchapter G - Rules, Regulations, Statements and Interpretations under the Magnuson-Moss Warranty Act, Part 700 - Interpretations under the Magnuson-Moss Warranty Act. Contained within these rules and regulations is Section 700.10, which states:

No warrantor may condition the continued validity of a warranty on the use of only authorized repair service and/or authorized replacement parts for non-warranty service and maintenance. For example, provisions such as, "This warranty is void if service is performed by anyone other than an authorized 'ABC' dealer and all replacement parts must be genuine 'ABC' parts," and the like, are prohibited where the service or parts are not covered by the warranty. These provisions violate the Act in two ways. First, they violate the section 102(c) ban against tying arrangements. Second, such provisions are deceptive under section 110 of the Act, because a warrantor cannot, as a matter of law, avoid liability under a written warranty where a defect is unrelated to the use by a consumer of "unauthorized" articles or service. This does not preclude a warrantor from expressly excluding liability for defects or damage caused by such "unauthorized" articles or service; nor does it preclude the warrantor from denying liability where the warrantor can demonstrate that the defect or damage was so caused.


So, please do explain to everyone here how the magnuson-moss warranty act does not apply to warranties...


Again something already in the original post.

But to some, the differences are important. And I also wanted to stop posts I mentioned before, like the misconception you could take a car you already own to a dealer and have them "CPO" it.


At no point have I said one is better than the other. So don't put words into my mouth. Which one is "better" is subjective, and is determined by the person who has to decide what is important or not important to them when it comes to going beyond the factory warranty.
The MM act prohibits a manufacturer from refusing warranty service based on the mere presence of an aftermarket part. Please read the last couple of pages of the "mods and warranty" sticky to learn more about that and why the MM act doesn't apply to performance parts..

BMW specifically states (and I referenced it above) that CPO is not an extension of the factory warranty.Even if it were, I'm not sure how that would concern the MM act.

Your problem is that you don't understand the differences between warranties, CPO and the MM act (which has nothing to do with CPO.) You screwed up your initial post, went back a few times to fix it and still didn't get it quite right.

BTW, I've forgotten more about the MM act that most people will ever know.
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      09-26-2011, 08:39 PM   #22
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Quote:
Originally Posted by Bmwguy11 View Post
In my first post I have a link to what the CPO warranty covers. The CPO warranty only has an "exclusion" list. Everything NOT on that list is covered. Make sense?
That is actually open to interpretation. The covered items are actually only the major systems and the exclusionary list is much longer. Again from the BMW link I posted it appears to be both an inclusionary and an exclusionary warranty:

"Our warranty has broad coverage that includes: engine, automatic/manual transmission, final-drive assembly, steering, hydraulic brake parts, anti-lock braking system, electrical, air conditioning/heating system, cooling system and fuel system.

What is not covered:

Upkeep Items
Maintenance; engine, transmission and body adjustments; wheel alignment, balancing or rotation; wiper blade inserts; engine drive belts; spark plugs; filters; fuses; all batteries; all hoses and clamps (except air conditioning and power steering); oils, lubricants, fluids, refrigerants and coolants (except as required in the course of a covered repair); brake pads and rotors; brake shoes and drums; manual transmission clutch assemblies; suspension dampers (shock absorbers/strut elements); exhaust systems; tires.

Wear and use
All wear-and-use items as defined in ''The Certified Pre-Owned BMW Vehicle Program Consumer Information Statement'' for Certified Pre-Owned BMWs (including all suspension parts and components).

Body and interior
Paint; glass; headlights; bulbs (except instrumentation); mirrors; lenses; body and chassis; body seals and gaskets; interior and exterior trim, moldings and fasteners; upholstery, headliner, carpeting, floor and trunk mats; convertible top (all components except electronics); air or water leaks; wind or body noises; wheels; damage due to rust, corrosion or contamination except as covered by the BMW New Vehicle Rust and Corrosion Perforation Warranty.

Accessories
Radio/CD (or cassette) player, telephone, navigation system, CD changer, DVD player or any components of those systems, plus non-original equipment parts, components or accessories.
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