Is An Extended Warranty A Must Have?

[twestrope]

I am looking at several 2001 LS 430's with 35K miles. They obviously are approaching the end of the warranty. I am looking for a car with some upgrades such as the Mark Levinson stereo, navigation system, sport suspension and maybe the Ultra pkg.

How important would it be to get an extended warranty on this kind of car? I understand that Lexus repairs are not cheap but does their reliability offset this somewhat? The quotes I have gotten from Warranty Direct are $1,730 for the 4 years/100K for the Secure Care Plus and $2,105 for the Luxurycare Plus which covers the navigation system and other high tech components.

Any thoughts or experiences would be appreciated. Thanks.

[jvcn]

These questions usually come down to how risk averse you are and whether you can find a good independent shop to help you save money.

Think about it this way: If you can handle a $3000 hit in the unlikely event it becomes necessary, don't buy a warranty. The warranties are sold assuming that on average the repairs won't add up to anywhere near what you paid, and independent companies may give you a hard time paying for repairs. It is likely but NOT certain that you could do better by saving your pennies and just doing good maintenance.

I looked at Certified Lexus 430s and 400s and in almost every case, you could do better with an uncertified model and pay for the warranty separately. My guess is that not buying the warranty is equally efficient.

Even observing mid 1990s LS, sounds like people are putting no more than $3-$4K into them with serious repairs. Bear in mind that those include wear items which won't be covered in any warranty, apply to much older cars, and are a worse than average case scenario. After all, if you can't trust Lexus reliability, what cars can you trust?

But you have to decide your own comfort level. If you'd rather pay $2k and feel safe, then maybe you should do so. But even with the warranty, there will be some hassle, and not everything you want will be covered if there are problems.

The worst situation is to pay for a warranty, have something bad happen, and then find it isn't covered or worst of all, that the company has abandoned their customers or is giving them the run around.

[VGR]

I am looking at several 2001 LS 430's with 35K miles.

Sounds like you are looking at LS 430's on dealers lots rather than purchasing from a private party owner. There is more risk of getting a car with moderate to heavy mechanical wear and tear when buying from a dealer because dealers generally won't show you service records and you'll never be able to meet the original owner to find out how hard and aggressively they drove the car.

[jerry895]

I am looking at several 2001 LS 430's with 35K miles.

Sounds like you are looking at LS 430's on dealers lots rather than purchasing from a private party owner. There is more risk of getting a car with moderate to heavy mechanical wear and tear when buying from a dealer because dealers generally won't show you service records and you'll never be able to meet the original owner to find out how hard and aggressively they drove the car.

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I am a lexus sales rep. and owner of a certified 01 rx300 and a 98 gs 400. I show my customers the vehicle service history and a copy of the ro. when the vehicle was certified. If you want to get a warranty get the factory warranty. In my 12 years selling cars I have seen quite a few angry customers storm into the showroom about 3rd party warranties that we had sold them [ this was before I joined Lexus] When I bought my gs400 I bought a powertrain warranty just in case and I knew the car it was bought new at our store the owner traded it in on a new ls430.

[VGR]

I am a lexus sales rep.  When I bought my gs400 I bought a powertrain warranty just in case

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Just in case what? If a used Lexus has received regular preventive maintenance and has not been driven aggressively and abusively, never run low on engine oil or coolant, etc. it will have little mechanical wear and tear and therefore the powertrain warranty is a waste of money. That's why it's important for used Lexus shoppers to get to know the original owner which is not possible if they purchase from a Lexus dealer.

Every car maker offers certified cars and extended warranties and all of them have "certified" cars that actually have considerable mechanical wear and tear that can come back to haunt the used car buyer soon after the extended warranty expires. That's because cars that have considerable mechanical wear and tear can still breeze through the certification process and because the certification process is limited in its ability to detect whether or not a car has been driven aggressively and abusively, never run low on engine oil or coolant, etc. Furthermore, no dealer or dealer sales rep will publicly admit all this which is one more reason to steer clear of dealers when shopping for a used Lexus.

[92Lex]

I am a lexus sales rep.  When I bought my gs400 I bought a powertrain warranty just in case

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Just in case what? If a used Lexus has received regular preventive maintenance and has not been driven aggressively and abusively, never run low on engine oil or coolant, etc. it will have little mechanical wear and tear and therefore the powertrain warranty is a waste of money. That's why it's important for used Lexus shoppers to get to know the original owner which is not possible if they purchase from a Lexus dealer.

Every car maker offers certified cars and extended warranties and all of them have "certified" cars that actually have considerable mechanical wear and tear that can come back to haunt the used car buyer soon after the extended warranty expires. That's because cars that have considerable mechanical wear and tear can still breeze through the certification process and because the certification process is limited in its ability to detect whether or not a car has been driven aggressively and abusively, never run low on engine oil or coolant, etc. Furthermore, no dealer or dealer sales rep will publicly admit all this which is one more reason to steer clear of dealers when shopping for a used Lexus.

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What makes you so sure you'll actually get to know the original owner and his/her driving habits? They'll just lie through their teeth to get you to fatten their wallet.

[VGR]

What makes you so sure you'll actually get to know the original owner and his/her driving habits? They'll just lie through their teeth to get you to fatten their wallet.

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Because a majority of older professional people from affluent neighborhoods are not liars and do not race their luxury cars wildly. One way you can get to know the driving habits of the original owner is to initially let him / her test drive the car for you. And then when you go to test drive the car yourself you can check for any trace of play in the steering wheel which is an excellent way of determining if the car has been driven hard and aggressively over the years. And since you are a smog tech, you know one of the best ways to verify engine condition and maintenance history is to verify whether or not the engine is putting out low emissions as it should

[SRK]

In all of the years I have been buying and selling cars I have learned one thing - you can't generalize about car owners. Some old folks ignore maintenance, some drive over curbs and hit things. Some young folks maintain their cars to the point of obsession and refuse to drive them in the rain. And then the opposite can occur.

The dealers are always quick with the service records - it is in their best interest to show them.

The independant car lots are usually the most suspect, because if the car was a good one either the private owner would have sold it, or the dealer would have taken it in trade with a view to retailing it themselves.

But you can't generalize too much. In Canada it is far easier to take action against a dealer (who wants to protect a reputation) than an independant, and nearly impossible to take action against a private party, when something goes badly wrong.

[92Lex]

In all of the years I have been buying and selling cars I have learned one thing - you can't generalize about car owners.  Some old folks ignore maintenance, some drive over curbs and hit things.  Some young folks maintain their cars to the point of obsession and refuse to drive them in the rain.  And then the opposite can occur.

The dealers are always quick with the service records - it is in their best interest to show them.

The independant car lots are usually the most suspect, because if the car was a good one either the private owner would have sold it, or the dealer would have taken it in trade with a view to retailing it themselves.

But you can't generalize too much.  In Canada it is far easier to take action against a dealer (who wants to protect a reputation) than an independant, and nearly impossible to take action against a private party, when something goes badly wrong.

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Well said.

[Lexusfreak]

Only consider the extended warranty if it's a 'Lexus' extended & NOT an aftermarket company......many headaches & there is a good chance you will get ripped off going the aftermarket way. B)