gandro

My local lexus dealer quoted me something between $1500-$1800 for the extended warranty (forgot the exact price) on a 2008 ES 350 which extends coverage to 6 years or 100K. It may make sense for me to have the extended coverage as I put between 20-30K miles on my car each year.
Does anyone know where I can find the invoice cost for the extended warranty? People on clublexus recommend paying no more than $100 over invoice. But more importantly, did most problems on your ES350 appear before 50K? If most other these vehicles have little drama between 50-100K, it may be better to bank the $1000+ and use it as an insurance policy for an unfortunate repair. Thanks

MD350

Cost is around $1100 from what I remember about 1 year ago.

I would not own an ES350 without a warranty, so if you plan on keeping it past 50K miles, I would get one. There is just too much that could break.

You don't have to buy the warranty at purchase, unless you want the cost included in your loan. If you can pay cash for the warranty, you can buy it anytime the car is still under the 4yr 50k new car warranty.

Kaius88

hmm... I normally dont get extended warranty on quality products, but since i plan to own this car for 10+ years, I think I should get the extended warranty when it's almost 4 years old. I didnt know you can extend it later on. This is good to know. To tell ya the truth, my wife asked me what my next car is gonna be, I instinctively said ES350. Can't get a better combination of quality, price, and style. I drove my Miata for almost 10 years, and it was soooo not my style. You just gotta be comfortable in your own car..... this is a must.

MD350

The electronics and computers used in the ES350 (sensors for key fob, NAV, glass roof, ML radio, etc, etc) far out number what you would find on a Miata. I would get a warranty for piece of mind.

Lets be real, the car is not perfect. Anything that breaks after 50K miles (70K for powertrain), you are on your own. That is scary to me. Just my 2 cents.

gandro

Sure, however I tend to keep my cars for over 200K and put between 20K-30K miles on my vehicle annually. So this $1100 only covers me for the interval between 50K-100K or about 2 years with my driving habits.
Its tough to say what will go wrong between this SPECIFIC interval and if it is worth the $1100.
Thanks

codex57

Since you can get it at any time during the regular warranty period, I wouldn't stress too much about it right now.

I'll prolly get it just cuz the UL has sooo much electronics, but I'll wait to get it.

350Dave

The cost for the extended warranty typically goes up every year or two. I would not finance it, but if you buy it, it is fully refundable at any time for any reason. This assumes it is the Lexus extended warranty, not some 3rd party...

MD350

What? So, you are telling me I can go buy the warranty, run up a bunch of claims over the next 5 years or so, and then get my money back? I can't believe that is true. If it is, I'll sign today!! Usually, you can get your full refund within 60 or 90 days of purchase. And, the F&I person in the dealership has to give up their commission in the form of a chargeback.

In my line of work, extended warranty refunds are prorated based on remaining term. And if you do finance it, your lender is the lienholder on the warranty and the prorated refund gets posted to principle on your loan. The customer does not get the refund unless the auto loan is paid off.

Most reasons for a cancel are due to total loss or the unit was sold/traded. Very rarely is it due to buyer remorse.

n2cars

I think the cost of warranty is only refundable if there are no claims against it. If you make a claim and collect services against it, you no longer have the option to cash it in.
They use this as a "perk" to sell more warranties, and is often a good deal.
However, for those financial minds out there who use the "law of 72" to determine value, Lexus makes 50% on your principal in 4 years with no services rendered if you don't file a claim. If you do file a warranty claim, they're betting that their costs over 4 years will be less than your principal plus the interest that they earn on your money.

So, if you spend $1800 on a 4 year warranty, they will have around $2700 dollars in the bank (given 10% interest rate) when your warranty expires. If you don't file a claim, they write you a check for $1800, and keep the $900 they earned in interest. If you think you will file claims less than $2700 in 4 years, it's best to not get the warranty.
However, peace of mind does have a value. The $2700 dollar question is, how much?

Another tough question - if you have a $200 problem in the last year of the extended warranty, do you fix it under warranty and forfeit the $1800 or fix it "out of pocket" and gamble that you won't have anymore problems and can still make a run at the warranty refund?

codex57

Aren't these warranties prorated like MD350 said? That's how the Honda and Nissan ones were when me and a friend bought them last year. So, the numbers in the equation change depending on what year you're talking about. If you have $200 in the last year, you might only be risking $400 or whatever is left. Like there really would just be a $200 problem on this car tho.

sirCharles

Extended warranty, really not needed. These cars are to reliable IMHO. If you run into any issues after basic warranty period then subtract the amount from the interest adjusted cost of the extended warranty. You will be better off by not purchasing it.

MD350

I was told if the NAV unit goes on this car, a new one installed is about $3,000. This 6 speed tranny is not cheap either. Not to mention all of the other sensors, computers, etc. on this car. I would not own this car without any kind of warranty. Just my 2 cents.

justbass

Apparently, without the ECP even the gaskets nor the fluids are covered in the basic warranty, even when changing a warranted part. Nice(?)

I/we have purchased the extended warranty because we tend to hang onto our vehicles for 8 plus years.

350Dave

Sorry, I meant to say the cost of the warranty is full refundable, but pro-rated. I cashed my last one in after 6 months when I bought my '07 ES.

jgtile

Well, here is my 2 cents. On every American car I have purchased I bought the extended warranty. And, everytime, it has paid off at least 3 fold (for me). However, with the Lexus, I am taking a risk. I am "banking" on the Lexus reliability numbers (the ES350 anyway) so we will see. I sure hope that Lexus will stand behind their car and that nothing major will occur. I don't blame anyone if they get the extended warranty but my hope is that the Lexus extra cost is worth not getting the extended warranty! We will see!