Tire And Wheel Protection Plan

[John VT]

Dear members

I recently purchased (financed) a 2015 Rx 350. My dealership offered Tire & wheel protection plan including paintless dent repair & windshield scratch support for $900.

I have 30 days to cancel this and get the full refund. I went through some of the old posts in this forum and now I not able to decide whether this is worth or not.

The dealer says they will replace the tire if it is damaged by nail or pot holes. They will also replace the wheel if its needed at no extra cost and will also take care of dents & dings (not more than 4"). Would appreciate suggestions from the members. I had a Toyota RAV 4 for 5 yrs and none of the above mentioned incidents have happened so far.

Was wondering whether an additional $900 protection plan worth or its just a profitable business for the dealer? Please advise.

[midwesterner]

My personal policy is to never buy extended warranties or protection packages of any kind. In nearly 60 years of driving and some 40 automobiles, I've never needed such a thing -- at least not at the usual cost. Sooner or later, your car will get dings and scratches; the wheels will get stone chips. Are you going to fix all of them, and are they all covered? If you live in an area where there is a lot of debris and road hazards, there is some argument for the tire coverage, but you can replace a tire for $200 or so. I've lost two tires to road damage (out of pocket cost about $400 for the two over about four years). And when you buy replacement tires, you can buy road hazard coverage for about $15 - $20 per tire.

Comes down to a question of risk management: What is the risk you'll incur such damage, and what is the potential cost to repair? Is the potential damage worth $900 out of your pocket up-front? If the answer is yes, keep the package. But I would decline, hands down.

Good move on the new RX. I think the new version, expected to be bigger, will not be as attractive as a mid-size SUV.

[John VT]

Hi Stephen...thank you so much for your suggestions. I have a 30 day window to cancel the plan. Looking forwards for the same.

[kmar]

I agree with midwesterner. You're betting $900 that you WILL incur enough damage to exceed the amount you pay for this "warranty". Unless you're overly hard on your vehicle, drive on roads with horrible potholes and other road hazards, park close to other cars who ding your doors, I'd cancel this within the 30 day period.

We purchased a new 2015 RX 350 a month ago and of course we were "offered" the extended service plan, with the warnings of how expensive some major components are to fix or replace. We said thanks anyway.

[LEX-SV]

Agree too, I always pass immediately.

And a couple of things are built-in to makes sure dealer keeps the money:

1. The 30 day window. Every minute that passes once the customer takes the "deal" and walks out of Finance Managers office works in favor of dealer. They know most customers will end up doing nothing.

2. In the somewhat rare case where customer tries to get refund, they will have a bunch of reasons, excuses, and misc crap to talk customer into keeping it.

By saying no immediately 1 and 2 above are avoided.

[GymW]

Given the lesser quality tires that Lexus provided my 2015 RX 350, I would not even consider protection plan for my tires, but rather use the money to replace them with a premium tire when they wear out. Frankly I'm looking forward to the tires to be wearing out so I can replace them with Michelin's, and with the tire warranty from America's Tire, it includes all road hazards. Michelin invented the radial tire, and as far as I know in its entire history, had only had one recall due to tread separation. I can't say that for any other tire manufacturer.