Should I Get Extended Warranty?

[AznMechanic]

My car factory warranty expires in exactly a week and my car has 48000 miles on it.

I just checked with the Lexus Dealership and for the Lexus Platinum Plan they quoted this

8 Years or 125,000 miles - $3600+Tax

8 Years or 100,000 miles - $2725+Tax

7 Years or 100,000 miles - $2375+Tax

6 Years or 100,000 miles - $2025+Tax

6 Years or 70,000 miles - $1400+Tax

I drive around 12,000 - 15,000 miles a year and the manager said its the exact same as the Original Factory Warranty.

Should I buy it? If so which plan?

During the ownership of the vehicle I just went to Lexus Dealership if I felt something was wrong and they didnt charge me at all everytime and I think if I dont get the Extended Warranty they will start charging me.

Thanks in advance everyone!

[pauljcl]

My car factory warranty expires in exactly a week and my car has 48000 miles on it.

I just checked with the Lexus Dealership and for the Lexus Platinum Plan they quoted this

8 Years or 125,000 miles - $3600+Tax

8 Years or 100,000 miles - $2725+Tax

7 Years or 100,000 miles - $2375+Tax

6 Years or 100,000 miles - $2025+Tax

6 Years or 70,000 miles - $1400+Tax

I drive around 12,000 - 15,000 miles a year and the manager said its the exact same as the Original Factory Warranty.

Should I buy it? If so which plan?

During the ownership of the vehicle I just went to Lexus Dealership if I felt something was wrong and they didnt charge me at all everytime and I think if I dont get the Extended Warranty they will start charging me.

Thanks in advance everyone!

I had read on this forum that advantageous prices for Lexus warranties were available from:

My Email address is : TobyToyota@aol.com

1-800-335-3987

(see the posts at and following:

http://us.lexusownersclub.com/forums/index...t=0#entry371423

)

I had written and the response was prompt, quoting a large discount on the official price.

Good luck!

Paul

[code58]

My car factory warranty expires in exactly a week and my car has 48000 miles on it.

I just checked with the Lexus Dealership and for the Lexus Platinum Plan they quoted this

8 Years or 125,000 miles - $3600+Tax

8 Years or 100,000 miles - $2725+Tax

7 Years or 100,000 miles - $2375+Tax

6 Years or 100,000 miles - $2025+Tax

6 Years or 70,000 miles - $1400+Tax

I drive around 12,000 - 15,000 miles a year and the manager said its the exact same as the Original Factory Warranty.

Should I buy it? If so which plan?

During the ownership of the vehicle I just went to Lexus Dealership if I felt something was wrong and they didnt charge me at all everytime and I think if I dont get the Extended Warranty they will start charging me.

Thanks in advance everyone!

I had read on this forum that advantageous prices for Lexus warranties were available from:

My Email address is : TobyToyota@aol.com

1-800-335-3987

(see the posts at and following:

http://us.lexusownersclub.com/forums/index...t=0#entry371423

)

I had written and the response was prompt, quoting a large discount on the official price.

Good luck!

Paul

Most people don't know that you don't have to buy the factory warrantee from the dealer. There is a considerable savings most of the time by buying from someone other than the dealer. I personally wouldn't buy anything but a factory warrantee. Although the 3 times that I have bought extended warrantees, I haven't collected 1 thin dime, because I had 0 go wrong. I prefer to take care of anything nit-picky myself. Too much chance of damage (even small) when it's in their hands, and most of the time nobody is gonna admit to it anyway.

[Filehorse]

My car factory warranty expires in exactly a week and my car has 48000 miles on it.

I just checked with the Lexus Dealership and for the Lexus Platinum Plan they quoted this

8 Years or 125,000 miles - $3600+Tax

8 Years or 100,000 miles - $2725+Tax

7 Years or 100,000 miles - $2375+Tax

6 Years or 100,000 miles - $2025+Tax

6 Years or 70,000 miles - $1400+Tax

I drive around 12,000 - 15,000 miles a year and the manager said its the exact same as the Original Factory Warranty.

Should I buy it? If so which plan?

During the ownership of the vehicle I just went to Lexus Dealership if I felt something was wrong and they didnt charge me at all everytime and I think if I dont get the Extended Warranty they will start charging me.

Thanks in advance everyone!

You need to understand that statistically you will never collect as much from an extended warranty as you paid for it. If that were not the case, the warranty purchase price would increase to the point where the purchase price did exceed the average payout in warranty claims. As with most other types of "insurance," what you are buying is peace of mind that you will not have to pay for some catastrophic failure (engine, transmission, transfer case, A/C, etc) while the vehicle is under the extended warranty. If you have access to a knowledgeable, experienced dealer Service Writer, they could tell you whether or not those failures are "likely" to occur during the specific warranty period you are considering. Over on the Roadfly BMW E39 forum, this issue comes up frequently and the best advice given is to take what you would pay for that extended warranty and put it in an escrow account against the day you might have a claim. If you get rid of the vehicle before having a major repair, use the money as part of the payment of the replacement. Is there risk in this approach? Yes. The other side of this option is that, statistically, most people will still have money in the bank the day you sign the title over to the new owner. My 2000 RX300 AWD has 142,000 miles on it. I have replaced the transmission fluid and kept the oil changed at 5,000 mile intervals with Mobil 1 and performed other preventive maintenance such as flushing the cooling system, replacing the timing belt along with upper & lower radiator hoses and the water pump while I was in the area.

If you look primarily at those "big ticket" items, I think you'll find the odds of having one of those failures during whatever warranty period you choose is firmly on the side of the seller of that extended warranty. One note: this is all predicated on the assumption that your vehicle has/will receive good maintenance and that the vehicle has been driven in a reasonable manner and not abused. Only you can make that determination.

How much is peace of mind worth? Caveat emptor.

[AznMechanic]

My car factory warranty expires in exactly a week and my car has 48000 miles on it.

I just checked with the Lexus Dealership and for the Lexus Platinum Plan they quoted this

8 Years or 125,000 miles - $3600+Tax

8 Years or 100,000 miles - $2725+Tax

7 Years or 100,000 miles - $2375+Tax

6 Years or 100,000 miles - $2025+Tax

6 Years or 70,000 miles - $1400+Tax

I drive around 12,000 - 15,000 miles a year and the manager said its the exact same as the Original Factory Warranty.

Should I buy it? If so which plan?

During the ownership of the vehicle I just went to Lexus Dealership if I felt something was wrong and they didnt charge me at all everytime and I think if I dont get the Extended Warranty they will start charging me.

Thanks in advance everyone!

You need to understand that statistically you will never collect as much from an extended warranty as you paid for it. If that were not the case, the warranty purchase price would increase to the point where the purchase price did exceed the average payout in warranty claims. As with most other types of "insurance," what you are buying is peace of mind that you will not have to pay for some catastrophic failure (engine, transmission, transfer case, A/C, etc) while the vehicle is under the extended warranty. If you have access to a knowledgeable, experienced dealer Service Writer, they could tell you whether or not those failures are "likely" to occur during the specific warranty period you are considering. Over on the Roadfly BMW E39 forum, this issue comes up frequently and the best advice given is to take what you would pay for that extended warranty and put it in an escrow account against the day you might have a claim. If you get rid of the vehicle before having a major repair, use the money as part of the payment of the replacement. Is there risk in this approach? Yes. The other side of this option is that, statistically, most people will still have money in the bank the day you sign the title over to the new owner. My 2000 RX300 AWD has 142,000 miles on it. I have replaced the transmission fluid and kept the oil changed at 5,000 mile intervals with Mobil 1 and performed other preventive maintenance such as flushing the cooling system, replacing the timing belt along with upper & lower radiator hoses and the water pump while I was in the area.

If you look primarily at those "big ticket" items, I think you'll find the odds of having one of those failures during whatever warranty period you choose is firmly on the side of the seller of that extended warranty. One note: this is all predicated on the assumption that your vehicle has/will receive good maintenance and that the vehicle has been driven in a reasonable manner and not abused. Only you can make that determination.

How much is peace of mind worth? Caveat emptor.

Well the Lexus Dealership and I have made quite of relationship.

I go there a lot sometimes and sometimes once in 3-5months.

They have been GREAT to me while servicing because they have great people taking care of customers.

I just took mine to the Dealership today and got me a loaner car because I have gone through 4 batteries during the 4 years and I need a new one today again.

They are trying to find why the battery is draining fast and etc.

Also during my Original Factory Warranty, they have replaced the Radio, control panel, cup holder vent, some frames, clips, batteries, steering rack, roof molding, resurfaced rotors and serviced all minor stuff for FREE!

Everything they have done for me has been OUTSTANDING!

I know the General Manager because he's my friend's dad and almost all the advisors know me.

I want to buy the Extended Warranty because I want to keep the relationship between the Lexus Dealership and Me but the Warranty is expensive.

Is paying around $800 a year worth it? Im sure the car wont have engine problem but maybe transmission but probably after the Extended Warranty expires.

The bad part is the Extended Warranty doesn't replace body parts/ wearable parts under warranty. So no more frames, roof moldings, clips, covers etc under warranty.

Thanks everyone!

[sktn77a]

I just checked with the Lexus Dealership and for the Lexus Platinum Plan they quoted this

8 Years or 125,000 miles - $3600+Tax

8 Years or 100,000 miles - $2725+Tax

7 Years or 100,000 miles - $2375+Tax

6 Years or 100,000 miles - $2025+Tax

6 Years or 70,000 miles - $1400+Tax

Well, it's probably too late now but for the benefit of others, these Lexus extended warranty prices are NEGOTIABLE! It's like buying a new car! For example, I got the 7 years/100,000 mile platinum extended warranty for $1260 (which is very close to their cost). Give it a try - you've got nothing to loose. Just figure they are marking up their cost on the warranty by 100% and go from there.