chihlin2

I have not been able to make up my mind whether to keep the vehicle service contract on my used 2017 E350, which I pick up end of January this year.

The VSC is with Allstate, My current mileage is 35.5K, and the contract is for 5 years or until mileage hit 100K. The contract sale price is $1,337 with $100 deductible per claim. (This price is after $400 royal discount because I traded in my old Camry, and the term mixed up on his end. He told me the price was actually for 3 year/36K, but he is going to honor it for me and make it 5 years. Is that really the case, I don't know...) Since my car is 3 years old, it still got a year of manufacture warranty. I put little miles on my car. Probably 5000 to 8000 a year.

I have owned a few Toyota before and I think they are pretty reliable. But I heard the repair cost on Lexus is expensive if something really happen. Just want to see people's opinion and whether to keep the contract. I copy and paste the major exclusion below. The contract also has some additional benefits like Towing/Road Side Assistance, Rental reimbursement.


This Contract excludes the following parts and services:
a) Any part not specifically listed under the SCHEDULE OF COVERAGE section for the Coverage Option You selected, unless You selected Premier Care or Premier Care Wrap for Your Coverage Option.

b) Accessory drive belts, hoses and clamps, spark plugs and wires, clogged fuel injectors where a mechanical/electrical failure has not occurred, tires, wheels and wheel covers, wiper blades, standard transmission clutch parts (including pressure plate, clutch disc, pilot bearing, throw-out bearing, clutch engagement arm and pivot), steering wheel (except for integral electrical failures), batteries (either stand alone or integral to a component), electric vehicle external charging stations, hybrid power packs, fuses, fusible links and circuit breakers, brake drums, rotors, pads and shoes, sub-frame, frame, frame bushings, retractable roof/convertible top, glass, lenses, light emitting assemblies (except for integral electrical failures), any individual light emitting device (i.e. bulbs of any type) that can be removed from an assembly, exhaust pipes, filters (except in conjunction with a covered repair), exhaust gas recirculation pipes/hoses and check valves, catalytic converter, conversion van appliances, door handles (except for integral electrical failures).

c) Loss of fuel, trim, upholstery, insulation, carpet and paint, air or water leaks or wind noise, squeaks and rattles, jack and tool kit, wheel lugs and lug nuts, shop supplies, environmental waste charges or disposal fees, lost or missing parts, electronic diagnostic equipment fees, freight, vehicle body parts including but not limited to: bumpers, body panels, fasteners and mounts, moldings and outside ornamentation, bright metal parts, door stops, hinges, and weather stripping.

d) Any non-manufacturer installed parts including but not limited to: turbochargers, superchargers, convertible tops, audio, navigation and security systems.

e) Replacement of oil, lubricants, coolants, additives and/or other fluids, except in conjunction with the repair of a Covered Part. Replacement of A/C refrigerant and/or oil unless in conjunction with a leak resulting from the failure of a Covered Part.

f) The use of parts that improve the Vehicle beyond its condition immediately prior to the Breakdown.

Littleguy

f) means used parts when available, fyi.

swfla

iTrader: (1)

Your Lexus currently has a power train warranty that goes 72 month/70k miles. For many repairs a computer diagnostic is done, that's not covered, so it'd be another $100-150??? on top of your $100 deductible. I'm sure someone can give an accurate figure here. $1337 isn't a high price as many here report $2-3k prices. But in my personal opinion, Lexus are pretty reliable and big ticket failures occur more often over 75k miles. Has the car been reliable so far? Put $1500 into a savings account as an alternative to buying this contract. Your auto insurance can include, tow, roadside, and rental for a modest annual fee. Lot's of folks ask this same question, just do a search. There's no right answer.

chihlin2

The car has been great so far, and I haven't noticed any mechanical or electronica issues so far.

There are a few minor issues like glove box won't open up when I pushed the button, and the drink holder cover doesn't move when I pushed the closed button.

swfla

iTrader: (1)

You don't spend $1337 for that kind of issue. My point was to focus on the big ticket items that are already covered and what's left that isn't.

lesz

There are an awful lot of exclusions in that service contract, and much of what is covered is also already covered in your Lexus 6 year power train warranty. When you combine what is not covered with the fact that, with the service contract, you still have a $100 deductible, the chances of you ever recovering anything close to the $1300+ cost of the service contract are quite small. Remember, too, that Allstate is selling these contracts, not to save you money, but, instead, to make money for themselves.

As already suggested, if, instead of buying the service contract, you put the money into savings designated for car repairs, there is a strong likelihood that you will end up many dollars ahead, and, if you do the same thing with your next 3 or 4 cars, there is a virtual guarantee that you will be many dollars ahead over the course of ownership of those 3 or 4 cars.

ThumperPup

i bougth a alpha warranty service contract on my 2016 ES300h for 2300 when i bought my car covers up until the ODO has 125k and 3 years
just last month they replaced the glass on the door mirror because it was a defect they covered it thats 575 i feel confident they will cover other things and not try to talk there way out of it.
even if i dont have any other claims on it i am still going to happy that i have it incase i do need it and just before it is ready to expire i will extend it or purchase another plan
alot of people say service contracts are not something ot spend money on just put the cash in the bank and safe it but i have had good luck with conracts
my last 2007 ES i had the contract i bought when the car had 96k on it i paid 2700 for the contract and they did put in abbout 8k worth of repairs by the time that car had 197k on it

Maikerusan

8K of repairs? I have not spent 8K on repairs on all my cars in twenty years, likely longer.and that's with owning at least 2 cars in the family for those full 20 years.

Sure I have spent money on brakes, oil changes and generally maintenance but actual repairs? Almost nil lately (driving Lexus and Toyota products). Last major repairs on any car was an older Taurus and that came nowhere close to 8k despite Ford's abysmal quality

lesz

If you have to spend $8000 in repair costs on an ES, one of 3 things is true. Either a) you have been extraordinarily unlucky or b) you are doing something wrong that is abusing the car or c) you are using repair shops that are gouging you with excessive repair prices.

12jimmyjam

Eh, probably most likely C. With some engine leaks in the 5th gen requiring it’s removal, that’s a big bill. OEM axles are really expensive as well and are a problem with this generation. My 07 had a leak and luckily I had a decent warranty to cover most of that bill which was for over $5k.

Eslader

Looks like the ES and Avalon part numbers match on Rock Auto, so if you want to save money on OEM axles, get them from a Toyota dealership. Around $200 cheaper.