Extended warranty worth it?

[754boy]

We purchased a 2013 RX350 new.  We now have 40k on it.  We have been getting calls with offers of extended warranty.  I am not totally sold on the extended warranty.  I have read the forum some and have not seen many complaints about issue that happen < 100K.  The offer we have on the table now is:

4 years - 100K

 

199.00 Down

18 Payments: 149.99

2898 total

I've been looking for anyone who has had 3000K plus in repairs, not maintenance, on a RX under 100K miles.

 

Is this warranty worth it really?

 

[1990LS400]

Vehicle extended warranties are very profitable for car dealers.  Of the $2,900 you are being asked to pay, I doubt that even $1,000 of it will go to the company underwriting the warranty.  The rest is pure profit for the car dealer. 

There is a chance that this warranty would be cost effective but there is a far greater probability that it would not.  Keep in mind that the basic warranty on your RX is 48 months or 50,000 miles and the powertrain warranty is 72 months or 70,000 miles.  These warranties take precedence over an extended warranty.  Essentially, an extended warranty takes effect after basic and powertrain warranties have expired.  Extended warranties usually have numerous exclusions on what is covered.

I retired from an insurance company that sold vehicle service warranties through franchised car dealers.  Employees could buy vehicle service warranties at "cost" but few of my fellow employees did.

I suppose there are other factors such as how much money you keep in reserve for vehicle repairs, e.g. if a $5,000 or $10,000 car repair bill is a financial shock, then maybe an extended warranty is in order.  And are you committed to keeping this vehicle to 100,000 miles?

If you buy this warranty I sure hope it is with the company I retired from!  I'd like them to be able to keep paying my retiree healthcare premium even if coverage was reduced by my being on Medicare. 

 

[ImaPappy]

I  just purchased a 2013 RX350 FSport a few weeks ago.  This is our third RX350 ... first was 2004 (RX330), then 2008 and now this one.  My wife and I love them.  I always buy extra warranty BUT ONLY FROM LEXUS ... NEVER THIRD PARTY.  We finance for five years and I like to have warranty that covers most of the financing period.  Lexus warranty is excellent because you can go to any Lexus dealer and be assured a great service and know they will still be in business when you need them. Not so with third party and many are scams.  On my 2008, the struts went bad in the fourth year of service and it was completely covered .. I knew two were bad and Lexus, unsolicited,  found the other two were bad too and changed them at the same time ... gave me a loaner (brand new RX350)  for a week with no cost to me.  That's why I love Lexus.

Bottom line, consider buying extra years of warranty but only from Lexus ... never from a third party.

Hope this helps ...

ALAN

[buckmeister2]

Pappy is right about getting the warranty from Lexus.  You don't want to have to deal with both the dealer and the warranty company if you need a repair.  However....I am not a fan of warranties on dependable vehicles used in sensible driving conditions.  But, if you want the peace of mind, get the warranty from Lexus.

[VBdenny]

NO

[GymW]

Definitely not from the dealer as the exponentially overcharge. Also be very careful of 'too good to be true' from companies you never heard of. They are too good to be true. I got one but is through my automobile insurance company (USAA) at one third the dealer cost and more comprehensive. I also am allowed to make payments for the policy over a period of time interest-free to the warranty is paid for. You MUST read the fine print, Particularly what is NOT covered. That alone made make you think twice about getting the warranty.  You should check the policy for the warranted time of the replacement part if mentioned. You don't want to copayment for constantly replacing the same part. Also most warranties for their stated period of time, include the year that the car is covered by the manufacturer warranty. So in the case of Lexus, the actual amount of time you get for your money, is one year less than stated, is the first year is already covered by Lexus. No warranty covers wear and tear, or maintenance items. I got the maintenance policy from the dealer, only because of the cost of the maintenance policy was less than I would pay out-of-pocket. Since I was going to have to pay it anyway eventually, I got the policy. I generally keep cars 15 years.