Extended Warranty Worth The Money

[scottsails2]

Greeting,

I just purchased my first Lexus and I wanted to know is a Wrap
warranty worth the money. My ES300h has the 72 month/70,000 power train
warranty. When I was completing the loan over the phone with a USAA customer
service individual, he asked if I wanted to purchase a Wrap Warranty. He said
it would extend the full coverage of the original 48/50,000 to match the power
train, it costs $584.

I am posting on this forum because your vehicles are in the Wrap
warranty period. What repairs have you had and what were the costs? I chose
Lexus due to the reliability that is my quandary. I have 30 days to keep the
policy or get a refund. Any help will be appreciated.

Thanks,

Scott

[Django44]

I posted this earlier in the year on the topic of extended warranties: "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 JD Powers ranked the Lexus (and Lincoln) as the most reliable brand on the road. Given that, I decided against 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?" Having said all that, the $584 for another two years of warranty does not sound like too bad of a deal. I was quoted something like $2200 for three years. Note: my 2008 ES350 now has 73,000 miles on it and if I had purchased extended coverage I would have never used it.

[KBRX330]

I will add to this topic for future viewers. Our 2008 ES350 now has 195,000 miles on it and had zero defects until an O2 sensor went bad at about 170,000 miles.

[gbhrps]

Extended warranties are only good for those individuals who intend to keep their car forever. Most people trade new cars before they get to the stage where an extended warranty would be of any use. Its the second and third owners who need the warranty.

If you know that this is going to be a long time love affair, get it for the peace of mind. Personally, I wouldn't bother, but I'd be putting a monthly $50 in the bank just in case. And if I don't ever need it for repairs, its a down payment on the next new car.

As for a hybrid, personally, I wouldn't want to own one down the road when electric motors and batteries go bad and need replacing. The cost of those parts alone has got to be astronomic. Its not like going to a wrecking yard to get a used transmission or engine for a normal vehicle. There just won't be many hybrids like yours around, due to the low volume numbers of hybrids sold. So it'll be off to see the dealership for new parts (read expensive).

The last point I'd make is, 6 months from now when someone runs a red light, broadsides your car and totals it, will Lexus give you your money back on the remaining warranty, or even transfer it to your next car? Good Luck which ever way you decide.

[Django44]

Today, just about the time gbhrps sent his message, I received yet another phone solicitation for extended coverage on my 2008 ES350. The car has 75,000 miles on it and I have not had any problems in the nearly 6-1/2 years that I've had it.