I've been checking out a few pre-owned XC90s locally the last week or so, and the other day I visited my local Volvo dealer and learned of the certified pre-owned 6 year/100K mile warranty. I'll likely end up purchasing a 2005 or 2006 XC90, so if I were to purchase a certified pre-owned vehicle, this would provide a 3 - 4 year warranty. I've also checked out a few XC90s at non-Volvo dealers, and if I were to go that route, I would want to purchase a third-party extended warranty anyway. That said, once I realized that Volvo CPOs do have the extended warranty, this really peaked my interest in focusing my search on Volvo CPOs as opposed to buying an XC90 from a non-Volvo dealer.

Here's my question, though. In bargaining for a vehicle price, my strategy is to typically take the average of the KBB & NADA wholesale prices, add 10% or so, and then start from there. However, I'm wondering if this may not be a good strategy for a CPO Volvo, as the extended warranty is somewhat of a bonus, thus driving up the price. That said, what would be a good estimated value for the CPO warranty? I know there are a lot of factors involved here, which makes it difficult, if not impossible, to put a value on this, but what would be a reasonable amount for adjusting an initial offer taking into account the CPO warranty?

Secondly, I know that extensions of the CPO warranty (to a 7 or 8 year total warranty, I believe) are available. Typically, what would be the cost of tacking on an extra year or two to the CPO warranty? This is something I would also consider.

Finally, are there any caveats or known limitations of Volvo's CPO, and if so, what are they? I'd like to read about this warranty, although I haven't been able to locate the "fine print" on Volvo's webiste. I may get in touch with my sales contact at my local Volvo dealership to see if this information is available.

Thanks to anyone who might be able to help!