Extended warranty
#1
Driver School Candidate
Thread Starter
Extended warranty
Just purchased a 2022 Certified es300h. Only has 5,009 mi. Came with 4 yrs warranty and they offered 3 more years for $5000. Do different Lexus dealers have different warranties? If so, can they be used at all dealers? Thanks
#2
ff you bought the CPO from a Lexus dealer and they gave you an actual "Lexus Vehicle Service Agreement (VSA)” - their name for the extended warranty - then that is the factory authorized version that is valid at any Lexus dealership. There are a few levels, which are explained on their website. I would just be certain that it actually is from Lexus Financial Services and not some other third party name on it (in other words, genuine factory approved, not some side the dealer made with a warranty company).
https://www.lexusfinancial.com/us/en...greements.html
https://www.lexusfinancial.com/us/en...greements.html
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LexFinally (07-14-24)
#4
Moderator
Yikes! You would be paying $1,600.00 for repairs every year whether you need any or not. The economics of extended warranties (which are prepaid service agreements) do not support them, especially with respect to highly reliable and well made vehicles. This issue has been discussed in many places, including this forum with respect to almost every model.
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Jeaco (07-11-24),
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#7
That said, $5K is on the hiigh end I was offered a 10 year (6 addtional on top of facfory) 100K mile warranty for $3770 when I purchased my car.
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#8
Driver School Candidate
Thread Starter
To answer your original question: YES different dealers will offer you a different cost for the exact same Lexus authorized warranty. Shop around.
That said, $5K is on the hiigh end I was offered a 10 year (6 addtional on top of facfory) 100K mile warranty for $3770 when I purchased my car.
That said, $5K is on the hiigh end I was offered a 10 year (6 addtional on top of facfory) 100K mile warranty for $3770 when I purchased my car.
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hotwings (07-12-24)
#9
Moderator
Here's some research you can do. Based on studies, the average annual repair cost for an ES350 is $468.00. The extended warranty you are considering costs $1,600.00 per year. That's about 4 times what you would pay yourself.
I've had 5 Lexus cars over the past 20 years or so, and I've never had to pay over $500 in a year for repairs that would have been covered under a warranty. Of course, we don't want to generalize from insufficient data, but paying $5,000.00 in repairs is very, very unusual, and the warranty companies, who have lots of data, are betting big time that it's not going to happen much at all.
I've had 5 Lexus cars over the past 20 years or so, and I've never had to pay over $500 in a year for repairs that would have been covered under a warranty. Of course, we don't want to generalize from insufficient data, but paying $5,000.00 in repairs is very, very unusual, and the warranty companies, who have lots of data, are betting big time that it's not going to happen much at all.
Last edited by tfischer; 07-12-24 at 04:46 PM. Reason: I misread the teleprompter.
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LexFinally (07-14-24)
#11
Pole Position
I don't believe that is the case. Remember, the hybrid does have the additional electrical bits, but it eliminates other components like the starter. I suspect in the long run they are very comparable, although there is a lot of concern about the cost of a battery replacement after the 10 year factory warranty expires. Purchasing an extended warranty won't likely help with those components since the factory warranty is so long. I have had 4 Lexus hybrids, and two Toyotas before that and never had any trouble with any of them. To be fair, I haven't had any of them beyond 5 years which is about when I get the itch to upgrade - although that may change now that I have retired.
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