Extended Warranty

[elliot527]

We have a 2010 ES. We are thinking about getting an extended warranty. Anyone with suggestions.

[pj8708]

Welcome elliot527 to the Lexus Owners Club. This topic comes up often and there is no real consensus about whether it's a thumbs up or down. Heres my view on the subject.

The extended warranty is the same as an insurance policy. If you want protection from any future financial exposure then this is for you. But in most cases the "premium" is steep. There is the fact that they want that premium all up front. That means your either going to pay cash instead of puttung it into a money market or CD, or maybe pu itt on your credit card and pay out more money if your going to make payments.

Extended warrantys are major profit makers for dealers and are best considered when looking at an older car with higher mileage. If your someone who wants to have no stone unturned then go for it. However, you have a recent model car with a good history and could pass on parting with your hard earned money

Paul

[backwoods lex]

The warranty that I bought for my 2007 ES just saved me around $3500. They had to remove the engine to fix an oil leak.

For what it's worth, plans can be competitive. The (non-lexus) dealer wanted about $3000 for one. I opted instead to get one from my local credit union for closer to $800.

[Django44]

Across the broad spectrum of all cars on the road the extended warranties are not worth it. If they were the warranty companies would not be in business. Unless you know that your car has a high likelihood to breakdown then I don't think they are worth it (and if the model has a poor reputation the warranty companies will know it and charge you accordingly to assure that they make a profit). When I was considering an extended warranty for my 2008 ES350 a couple of years ago I did a little research and found that Edmunds ranked the Lexus (and Lincoln) as the most reliable brand on the road. Given that, I decided againt the extended warranty and just put a little more money into the savings as a means of self-insurance. To me its like buying fire insurance on pig iron stored under water. And, by the way, the warranty companies are still sending info and even calling me (had a call last week) about purchasing an extended policy. Do you think they would be doing that because the Lexus has (1) a good reputation for reliability or (2) a poor reputation?