Extended Warranty - A Scam Or Really Worth It?

[kolya3]

Hi All,

I wanted to know what your experience has been with getting your Lexus serviced while the car is under extended warranty. I have heard many tell me that dealers will find any excuse not to service your car. What are your experiences with this, specifically with Lexus?

Has anyone ever heard this excuse?

"You didnt' service the car at the Lexus dealer everytime, that's why it's broken now and so it's not covered by the extended warranty?"

Or how about?

"You missed your oil change by a 1K miles 2 years ago, so you're not covered for X or Y under the extended warranty."

Looking forward to your responses.

Thanks!

Nick

[Lexusfreak]

Best advice is to get one that comes from the automaker (I have a 'Lexus' extended warranty for my 01 ES) as opposed from an 'aftermarket' or 'third party' warranty company. Always read the fine price very carefully to make sure you know what your getting beforehand. The Lexus extended warranty is a tad more expensive, but they have to go over the car with a fine tooth comb because it's a warranty backed by Lexus.....so they are quite fussy compared to other warranty companies. I find the 'third party' route is a huge scam & good luck getting a claim approved for something major if a major part or component fails. So far I have not had to use my extended warranty, but I do have coverage for the next 2 years & 60,000 miles.......that makes me very comfortable! B)

[kolya3]

...

The Lexus extended warranty is a tad more expensive, but they have to go over the car with a fine tooth comb because it's a warranty backed by Lexus.....so they are quite fussy compared to other warranty companies. 

...

Hi,

Thanks for your reply. Can you clarify that last part? What do you mean they "go over the car with a fine tooth comb"? Do you mean that they inspect it prior to letting me purchase the extended warranty?

If so, is that when they could say "Oh we noticed you didn't service it with us every single time. Sorry we won't sell you extended warranty." or "You got new brakes installed elsewhere, well then we're not going to cover anything that has to do with breaks including the ABS"?

In general I've had great experiences with Lexus but I've always been warned about extended warranty so I'd like to find out more.

Nick

[Lexusfreak]

No,

Once you purchase the extended (Lexus) warranty, you put the ball in their court. They (the Lexus Dealership) has to go over the car with a fine tooth comb (and ' FULLY recondition the car so it's meets 'Lexus standards') to make sure all components they are warranting (and the list IS extensive) are in proper operating condition or if not they will replace them automatically! No questions asked. I will give you an example:

My 01 ES was mechanically sound.......they did an oil change but used a "lexus engine flush" beforehand just in case because of the possibility of the engine gelling issue (although I had all service records from the previous owner as it was serviced at that Lexus dealer). The only other things they did was the black shiny plastic mouldings between the front & rear doors (B pillar) were a bit faded because of being exposed to the sun & the elements. They replaced them as part of the extended warranty program before I even took delivery....also the drivers side heated power mirror (heating) element was burned out & they replaced the mirror also. Remember what I said that Lexus is Fussy? You pay a premium for the car & the extended warranty to be sure.....however, Lexus would rather check EVERY vital & non vital component every which way once you buy that extended warranty. I'm sure if you go to their website (pre-owned vehicle section I'm guessing) or call the Lexus USA head office they can explain it to you in more detail. But DON'T get ANYTHING other than the Lexus extended warranty........a 3rd party one, you might as well just drive down the highway & toss the cash out the window.......Lexus will actually back the product & without any questions. Just make sure you keep religious maintenance records especially of the engine & transmission & even consider (but as long as you have proof of records it's not always necessary to go to the dealer for maintenance items) taking the car to the Lexus dealer for service during the extended warranty period. B)

[infiniti_g35c]

i have a question for you guys as well, i just bought a 2001 LEXUS IS300 from a third party, meaning it wasnt from a dealership because i got absolutely an amazing deal on it. We negotiated the price down to a little under $16,000 for this car before tax, etc and it had 65,000 miles on it when i bought it. it is a clean title, but the interior is a little worn out, but nothing that looks that bad. Anyways, when talking to LEXUS, they were going to charge me $3500 for an extended warranty up to 100,000 miles, which is only 30,000 miles away and i really didnt find it necessary. I mean, in the end, will it come out worth it? Wont i be better off just taking the car into a dealership to get serviced, everything checked, and paying for it? Some things that need to be fixed are: drivers door handle is loose, there is a small lightbulb out in the front headlight, the tires need to be rotated, the brake pads changed, possibly oil change and whole system flushout. Am i looking in the range of the $1000's to get this all done? And another question, since my warranty is no longer valid, do i get a loaner car from my dealership? just some quick questions! THANKS!

[Lexusfreak]

I don't beleive they will give you a loner car if it's out of warranty & since you would be new to the dealer. The would most likely give you a ride in the shuttle van however to a reasonably close location. I find the $3500 for an extended warranty quite high & the reason why they are charging you that is ost likely the mileage & the fact it's off regular factory warranty. Did you get any service history & warranty work that was done on your car? Get a couple of prices from local Lexus dealers or perhaps you have a good independent mechanic that charges less per hour for labour that does good work & that you trust? If that's the case, you could save some cash & perhaps bring the fluids (as an example) to him so change & flush. B)

[Unlisted]

to get a true Lexus extended warranty the car has to be under 4yrs from date of first use or 50,000 miles.if it has been serviced by alexus dealer anywhere past the 50,000 mile mark then it won't qualify. The items you have listed wont cost half of that{$1000.} as for the loaner question. if your spending $ and it going to take more then a few hrs. to check out they should give you a loaner as a good business decision not that your owed one.

[steviej]

my feeling is if you take good care of your car and you perfom(ed) all necessary maint. items in a reasonable time, then an extended warranty will not pay for itself by the time the car reaches 100,000 miles.

an once of prevention is worth more than the cost of the extended warranty.

steviej

[Lexusfreak]

Agreed, the price for the extended warranty in this case seems way to expensive at $3500.00 (U.S. dollars!) in infiniti's case. I got mine as un stated under the 4 year & 50k range for $1400.00 Canadian in my case which is in & around the $1000 U.S. mark give or take.