Extended Warranty

[Newlywed24]

Hello to all,

I am a first time Lexus owner as of March 10 and very excited. I am a recent college grad, only 24, and have a few questions on purchasing extended warranties. I have been looking everywhere and researching. My warranty has not lapsed, but I just would like to get the most for my money. I have a 2002 Lexus ES 300 (for a great price by the way) with 49300 miles. Perfect condition, interior and exterior. I live in Missouri. I know a lot of these companies fold under after a while and I was looking for a company that has been in business with an exceptional A.M. Best Rating. I looked at Continental and Warranty Direct and are not too convinced after seeing numerous complaints. Could someone please refer me to a good company? Would greatly appreciate it.

Thanks

[Lexusfreak]

I'd pass on the 'aftermarket' extended warranty if I were you.....it's not worth it. Considering you have low mileage on your ES.....why do you need it? Have you had many problems with the car?

I'd consider the Lexus extended warranty or nothing at all. maintain the car as recommended in your owners manual & just pocket that extended warranty cash. Just my 2 cents. B)

Welcome to LOC btw.

[nc211]

Hello to all,

I am a first time Lexus owner as of March 10 and very excited. I am a recent college grad, only 24, and have a few questions on purchasing extended warranties. I have been looking everywhere and researching. My warranty has not lapsed, but I just would like to get the most for my money. I have a 2002 Lexus ES 300 (for a great price by the way) with 49300 miles. Perfect condition, interior and exterior. I live in Missouri. I know a lot of these companies fold under after a while and I was looking for a company that has been in business with an exceptional A.M. Best Rating. I looked at Continental and Warranty Direct and are not too convinced after seeing numerous complaints. Could someone please refer me to a good company? Would greatly appreciate it.

Thanks

I agree with Lexusfreak. Although an extended warranty can save your butt sometimes, if you own a car known for major repairs. You, don't have one of those cars. Infact, you have one the best cars ever made now, and as long as you keep up with the normal fluid changes and such "which a warranty won't cover anyway", you really shouldn't have any problems with the car for several more years and MANY more miles. But, if you want to ease your mind, I ask if you're a member of a credit union anywhere? If so, I'd call them and see what they recommend. Or possibly your bank's autolending department. Going through a financial institution, especially if it's a local institution that prides itself on their community support, can add an additional layer of protection for you, if the actual warranty company goes down. Nobody likes to be told "you recommended these guys, and now I'm screwed over because of it".

[european]

Hello to all,

I am a first time Lexus owner as of March 10 and very excited. I am a recent college grad, only 24, and have a few questions on purchasing extended warranties. I have been looking everywhere and researching. My warranty has not lapsed, but I just would like to get the most for my money. I have a 2002 Lexus ES 300 (for a great price by the way) with 49300 miles. Perfect condition, interior and exterior. I live in Missouri. I know a lot of these companies fold under after a while and I was looking for a company that has been in business with an exceptional A.M. Best Rating. I looked at Continental and Warranty Direct and are not too convinced after seeing numerous complaints. Could someone please refer me to a good company? Would greatly appreciate it.

Thanks

I have been an Certified Mercedes-Benz mechaninc (sorry not Lexus) and owned many cars, including our LX470, and I will always purchase an extended warranty on any vehicle that I will own after the factory warranty expires. Even though I can do most of the repairs myself, or since I am in this industry and know many friends at different dealers where I can get the parts wholesale, I would never own a car without a warranty. Do you have a car insurance, health insurance etc. Why? Bc you dont want to get the big bill on an unexpected month when your finances are not ready for it. I have spoken with many insurance companies (that back extended warranty companies - well, some, the good ones) and found out that their loss ratio on extended warranties is over 90%, which means that 90% of the warranty cost will go into repairs. Now granted that it is from dealer cost and not retail price, but if you buy direct or from a reasonable source, you will be for sure covered. I have worked for many franchise dealers, before owning my own, and found out that all manufacturers including Lexus, Mercedes and BMW are trying to cut down on costs, and if you have an Lexus or other manufacturer extended warranty, they will try to wiggle out of paying. If you have a warning light, in many cases they will reset the light and have you come back, or try to go the cheaper way out of it, versus if you have an 3rd party ext warranty, they (the dealer or manufacturer) wont pay for it, therefore they will be more eager to fix it right the first time, without caring how much it costs. You have to remember, every dealer has a amount that they can spend on warranty repairs each month and if their total service labor charges a month is a lot higher on warranty repairs versus client pay repairs they get into audits from the manufacturer and can even loose their license (see Mercedes Benz of Encino - the former Auto Stiegler), therefore many times, specialy on big items if the manufacture is paying even though, you the consumer think are safe, you will be surprised. I have been on the other side of the fence and it is not always pretty. You have shop technicians, shop foremans, service manager, SPOMS and other factory reps that might have to get involved and because the techician did not fill the warrranty paperworks correctly, they will deduct (or chargeback) certain claims bc of it, therefore the mechanics many times, will say No problem found, or do the inexpensive and quick fix, to aviod paperwork miranda and move on, and that will ultimately hurt you, the consumer. I think that if you find a strong 3rd party extended warranty, you are better off, because not only you can take the car to the repair facility of your choice (even a non-franchise dealer if you like) but you know that you have rental, towing roadside assistance and the assurance that they will fix it right because it will not cost them, the dealer or the manufacturer, a penny.

Well these are my 2 cents, ............