Extended Bumper To Bumper Warranty

[Davex]

Having just bought my 2008 IS250 I am considering the dealer's offer to extend the 4 year warranty by 3 years to 7 years for US$2500. I intend to keep the car for 10 years. I have had my Toyota 4-Runner for 13 years and have never had anything other than routine servicing done on it. I wonder if I will need it. However, the IS250 is more complex and sophisticated with multiple computers so there is more to go wrong. Hence my dilemma.

Any opinions would be welcome!

Thanks

[tex2670]

Having just bought my 2008 IS250 I am considering the dealer's offer to extend the 4 year warranty by 3 years to 7 years for US$2500. I intend to keep the car for 10 years. I have had my Toyota 4-Runner for 13 years and have never had anything other than routine servicing done on it. I wonder if I will need it. However, the IS250 is more complex and sophisticated with multiple computers so there is more to go wrong. Hence my dilemma.

Any opinions would be welcome!

Thanks

My belief is that this is a waste on a Toyota product--your 4Runner is a great example. You are buying into the salesman scare tactics with the "today's cars have many more things that can go wrong." This was the same reasoning my dad would never buy a car with power windows--"It's just the first thing that breaks!"

You are paying for $2500 for 3 years of coverage, not 7 because you already have 4 years with your purchase. Keep your $2500 and invest it. If you have a major malfunction after 4 years, you have the money to pay for it.

If you do decide to get it, ask them for a copy of the warranty documents to review before you purchase. Look for a the section that says "Exclusions." I had this issue on an Acura TL that I foolishly bought Honda's extended warranty for. There was a LONG list of exclusions. My auto-dimming rear view mirror went bad, and I was denied coverage because "mirrors" were excluded (even though the glass part was fine--just the liquid inside went bad). I even appealed to Honda Finance, and no go. Dealer ended up agreeing with me, and comp'ed the cost of parts.

[Knightshade]

Having just bought my 2008 IS250 I am considering the dealer's offer to extend the 4 year warranty by 3 years to 7 years for US$2500. I intend to keep the car for 10 years. I have had my Toyota 4-Runner for 13 years and have never had anything other than routine servicing done on it. I wonder if I will need it. However, the IS250 is more complex and sophisticated with multiple computers so there is more to go wrong. Hence my dilemma.

Any opinions would be welcome!

Thanks

My belief is that this is a waste on a Toyota product--your 4Runner is a great example. You are buying into the salesman scare tactics with the "today's cars have many more things that can go wrong." This was the same reasoning my dad would never buy a car with power windows--"It's just the first thing that breaks!"

You are paying for $2500 for 3 years of coverage, not 7 because you already have 4 years with your purchase. Keep your $2500 and invest it. If you have a major malfunction after 4 years, you have the money to pay for it.

If you do decide to get it, ask them for a copy of the warranty documents to review before you purchase. Look for a the section that says "Exclusions." I had this issue on an Acura TL that I foolishly bought Honda's extended warranty for. There was a LONG list of exclusions. My auto-dimming rear view mirror went bad, and I was denied coverage because "mirrors" were excluded (even though the glass part was fine--just the liquid inside went bad). I even appealed to Honda Finance, and no go. Dealer ended up agreeing with me, and comp'ed the cost of parts.

if you search around you can also get the extended warranty MUCH MUCH cheaper than that... the quoted cost on my IS350 was only something like 1600-1800 (can't recall exactly) for the platinum (best coverage) 7 yr/100k warranty from Lexus... I think it was a dealership in Connecticut or someplace like that... you can buy the warranty from any dealership and it's valid anywhere. And an IS250 should be even cheaper than my quote.

[joeb427]

These are quotes I recieved for my IS 250AWD for Genuine Lexus Platinum Warranties.

RWD may be a bit cheaper.

Call this guy or email this guy.

tdietrich@toyotaofgreenfield.com

Lexus Platinum Program for 7 yrs / 100,000 miles

w/ $0 deductible for $1415.00

7 yr / 75,000 mile plan for $1130.00

on the IS250.

Toyota of Greenfield

12 Olive Street

Greenfield, MA 01301

Attn: Troy Dietrich

(413) 772-0989.

[Knightshade]

Yup, that's the guy... just couldn't remember his info off hand and can't get to my other email while at work... while it's true that it's only "adding" 3 yrs/50k miles that works out to less than $500/yr for the extra coverage... maybe not worth it if you replace your car every 3-5 years, but pretty cheap piece of mind if you keep em for the long term.

[joeb427]

What I like is you can buy the warranty the last day of your 4 yrs or at 49990 miles.

So you have plenty of time to decide and see if you'll keep the vehicle.

[mild_se7en]

Davex,

i also plan to hold on to my car for 10+ years. my dealer offered a buyback on the extended warranty. at the end of 7 years if nothing breaks, i get its cost back. i figure if anything does break after the covered 4 years, it will at least cost the price of the warranty. also, you may want to choose to act quickly. the contract may be prorated for milage.

i hope this info is relevant to you. i purchased my IS from a Hawaii Lexus dealer.

good luck on your choice.

[tex2670]

Davex,

i also plan to hold on to my car for 10+ years. my dealer offered a buyback on the extended warranty. at the end of 7 years if nothing breaks, i get its cost back. i figure if anything does break after the covered 4 years, it will at least cost the price of the warranty. also, you may want to choose to act quickly. the contract may be prorated for milage.

i hope this info is relevant to you. i purchased my IS from a Hawaii Lexus dealer.

good luck on your choice.

What this will do is make you question whether you should make a claim for something minor that comes up, say, in year 5. If it would cost you $250, do you pay out of pocket and hope nothing else comes up during the warranty period? Or do you claim it, and forego the possiblilty of a refund?

[Manolo1]

A complete waste of money unless peace of mind is your utmost priority...

[Davex]

Thanks for the feedback everyone. All most helpful.

Davex

These are quotes I recieved for my IS 250AWD for Genuine Lexus Platinum Warranties.

RWD may be a bit cheaper.

Call this guy or email this guy.

tdietrich@toyotaofgreenfield.com

Lexus Platinum Program for 7 yrs / 100,000 miles

w/ $0 deductible for $1415.00

7 yr / 75,000 mile plan for $1130.00

on the IS250.

Toyota of Greenfield

12 Olive Street

Greenfield, MA 01301

Attn: Troy Dietrich

(413) 772-0989.

[AKK]

I think the extended warranty is good if your planning on keeping it past it's factory warranty and if you drive a lot.

$2500 is too much though. You should get a 100K/7 yr Warranty for like $1500 max.

Another option is getting "mechanical break down insurance" via your car insurance company.

I have that for a new civic I got. It's like $3.00/month, and you have to start it when you buy the car new (they give you a 1 year grace to get it).

Then you keep paying. So after 48 months, you've paid $144, and during that time you've been under your factory warranty.

From 48 months to 100 000 miles your under the $3.00/month warranty. It's bumper to bumper cept for brakes etc.

The catch is that it has a $250 deductible.

From 50K to 100K, your really worried about major repairs, trans etc falling out. $250 is almost nothing considering how expensive Nav units, and Transmissions can run. So if you add up 72 mo $3.00, plus $250 deductible, your still way cheaper than the $2500 warranty from them.

Plus you didn't have to pay it upfront or with interest.

IF you sell the car, then your done. The other catch is if you get 400 speeding tickets, your insurance will go up. So this is for responsible people.

[Knightshade]

I think the extended warranty is good if your planning on keeping it past it's factory warranty and if you drive a lot.

$2500 is too much though. You should get a 100K/7 yr Warranty for like $1500 max.

Another option is getting "mechanical break down insurance" via your car insurance company.

I have that for a new civic I got. It's like $3.00/month, and you have to start it when you buy the car new (they give you a 1 year grace to get it).

Then you keep paying. So after 48 months, you've paid $144, and during that time you've been under your factory warranty.

From 48 months to 100 000 miles your under the $3.00/month warranty. It's bumper to bumper cept for brakes etc.

The catch is that it has a $250 deductible.

From 50K to 100K, your really worried about major repairs, trans etc falling out. $250 is almost nothing considering how expensive Nav units, and Transmissions can run. So if you add up 72 mo $3.00, plus $250 deductible, your still way cheaper than the $2500 warranty from them.

Plus you didn't have to pay it upfront or with interest.

IF you sell the car, then your done. The other catch is if you get 400 speeding tickets, your insurance will go up. So this is for responsible people.

The other catch is as far as I know only Geico offers this- which is great if you use Geico, otherwise not so much

[bartkat]

I don't think break-down insurance is anything near to a full bumper to bumper warranty.

[Lex Law]

I bookmarked this thread on extended warranty. It costs a fortune to fix the IS, so I will be getting one in 3.9 years.

[SW03ES]

also, you may want to choose to act quickly. the contract may be prorated for milage.

The Lexus warranty is NOT prorated for mileage as long as you purchase it before the original 4 year 50k mile warranty elapses. If you buy it 3 years an 49,999 miles in, its still the same cost.

The only reason to buy it now is to roll it into the financing. Just buy it later.

[Manolo1]

The real money is in all the maintenance and, if you go by the book, the chances of having a major repair are small.

I sold my previous Lexus with 100K miles and zero repairs...

[Knightshade]

It's an insurance policy really.

In theory if you take good care of yourself you don't need health insurance for a fair while either. For many folks that'll be true.

But the one time something DOES go wrong, it can get crazy expensive very fast.

If that's a risk you want to take, go ahead. If you'd rather spend a little bit (and in this case we're talking less than the avg. person spends on health insurance for ONE year to have the car covered for an extra 3) and be sure you won't have repair costs, then do that.

Personally I've seen what Lexus gets for their parts though, and even though I could do a fair bit of the labor myself I'm still prob. gonna get the 7yr/100k before my factory 4/50k expires, despite knowing there's a fair chance nothing major will break.

[joeb427]

Toyota quality isn't what it used to be.

I'll buy the Lexus warranty when my 4/50 is almost over.

[tex2670]

It's an insurance policy really.

In theory if you take good care of yourself you don't need health insurance for a fair while either. For many folks that'll be true.

But the one time something DOES go wrong, it can get crazy expensive very fast.

If that's a risk you want to take, go ahead. If you'd rather spend a little bit (and in this case we're talking less than the avg. person spends on health insurance for ONE year to have the car covered for an extra 3) and be sure you won't have repair costs, then do that.

Personally I've seen what Lexus gets for their parts though, and even though I could do a fair bit of the labor myself I'm still prob. gonna get the 7yr/100k before my factory 4/50k expires, despite knowing there's a fair chance nothing major will break.

The big difference here is--have you ever seen the ACTUAL amount of the medical bills that your insurance company pays? For example, having a premature baby, with a few weeks stay in the hospital will EASILY mount a bill that is more than the cost of your fully-loaded IS.

BTW--the April car issue of Consumer Reports arrived today. There's an article addressing how many "extended warranties" are a waste of $$.

[Knightshade]

Yes, I've seen plenty of medical bills.

I've also seen what Lexus charges for even simple parts.

There's not as much difference between the two as you seem to think :P

[tex2670]

Yes, I've seen plenty of medical bills.

I've also seen what Lexus charges for even simple parts.

There's not as much difference between the two as you seem to think :P

In the 4/08 CR article, in which they surveyed 8000 people, Lexus topped all makers for the extended warranty that, in the end, turned out to be the worst deal. Participants reported an average loss of $600, i.e., the cost of the warranty exceeded covered repairs by $600 (and that's the AVERAGE). YMMV.

[Knightshade]

So then you're risking $200 a year, average...or about $4 per week... to insure you have no repair costs for 3 extra years.

If you're wrong, you're out $4 a week, less than the cost of a fast food meal.

If you're right, you can potentially save thousands.

Not the worlds worst gamble.

Consider this too- the -averge- Lexus owner doesn't know about the forums. He likely paid $2500 for his warranty. So if it "costs" him $600 that means he had $1900 in repairs.

Which means you're actually -making- money on average if you get it at Troys price.

So in short, that number makes me even more confident the warranty is a good idea :)

[randmare]

These are quotes I recieved for my IS 250AWD for Genuine Lexus Platinum Warranties.

RWD may be a bit cheaper.

Call this guy or email this guy.

tdietrich@toyotaofgreenfield.com

Lexus Platinum Program for 7 yrs / 100,000 miles

w/ $0 deductible for $1415.00

7 yr / 75,000 mile plan for $1130.00

on the IS250.

Toyota of Greenfield

12 Olive Street

Greenfield, MA 01301

Attn: Troy Dietrich

(413) 772-0989.

Buying from a toyota dealer.. My toyato dealer in town does not work on any Lexus, so if Toyota sells a lexus warranty will a Lexus dealer honor this warranty?

[Knightshade]

Yes, he's selling you a lexus warranty, not a toyota one. Both types of dealers can sell em even though only one kind performs the service.