Factory warranty question
02-01-04, 09:51 PM
#16
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Originally posted by JPI
Why are we buying extended warr when the factory cover 4 years 50k miles bumper to bumper, 6 years and 70k powertrain. Am I missing something here?
JPI
Why are we buying extended warr when the factory cover 4 years 50k miles bumper to bumper, 6 years and 70k powertrain. Am I missing something here?
JPI
What you are missing is that the 7 yr/100k warranty gives you another 3 yrs and 50k miles of warranty coverage for just about everything and another year and 30k miles for the drivetrain.
The question is, of course, is the cost "worth it" or not? That will depend on whether or not you have problems with your car in that time period. It's a judgment call; weighing the cost/benefit ratio is tricky because nobody knows what kind of problems (if any) lie ahead. It's kind of like insurance in a way-you buy it hoping you won't need it, but if you DO, you're glad to have it!
Anyway, my purpose in posting is not to convince anyone to buy the ext. warranty, just to share some info for those who are already considering it.
BTW, my car now has 5,200 miles on it. I actually do drive a lot-I just happened to buy a (slightly) used GS that was almost never driven since new!
02-02-04, 06:54 PM
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$1,100 vs. $1,600
Folks,
Just to pipe in here regarding warranties of factory vs. 3rd party. I wrote up an informal FAQ on this subject over at the Crovette Forum when I used to have a C5.
It can be found here: http://corvetteforum.com/reviews/vie...=505&TopicID=6
By the way, I'm a believer in 3rd party warranties - provided you do your homework and know the facts.
What's written below is the short version but if you're going to buy a 3rd party warranty, do yourself a favor a read whole version at the C5 board. The info is a couple of years old but the basics are still solid and accurate.
Factory typically provides less coverage for more $$$ - the offest is the security of knowing it's sponsored by Lexus.
3rd party (exclusionary warranties) typically provide more coverage for less $$$ - the offset is hoping they stay business.
3rd party warranties are all over the map in terms of quality, financial security, etc. - home work is your best (and only) friend when it comes to buying from an aftermarket co.
The Lexus warranty for 7 years / 100K is basically a 3 year 50,000 mile warranty (factory covers the first 4/50K). The warranty period begins on the in-service date of the car - NOT when you actually purchase the warranty (although the two may be the same if you buy the warranty when you purchase new car). Either way, you're buying a 3 year, 50K warranty for what looked like to be the lowest price of $1,600. I am assuming this is a bumper to bumper (exclusionary policy - meaning it covers everything that's NOT listed - typically maintenance type stuff) warranty.
What I'm writting below is not an endorsement or a recommendation - or a gloat. Everyone's priorities are different - mine were value, service and cost - in that order.
Viking Warranty: 4 Year / 100K EXCLUSIONARY WARRANTY
Coverage Period: Begins from date of contract purchase (not the in-service date). Therefore I bought 45 days prior to my factory warranty expiring. This effectively extends coverage for four whole years or until 100K, whichever occurs first.
Covered Items: Exclusionary Policy means it covers everything except what's not listed in the "exclusions" - bascically maintenance, abuse, Y2K, etc. You can read the language on their site. The coverage is very similiar to the Lexus Policy
Where you take it: Anywhere you want - must be ASE certified. I've used it at Sears (NTB) and Lexus.
How it Pays: They pay the shop directly via corporate credit card. Every dealer I've ever used has accepted this form of payment. No, you don't have to pay and wait for reimbursement - unless you choose to go that route.
Rental Reimbursement: I don't need because I get loaners at Lexus but if I go somewhere else, they'll pay $30.00/day for a rental car (for overnight repairs).
Reinsurance/Goes outta Business: My **** fear that the company goes outta business and I'm stuck holding a worthless piece of paper. Make sure the company is reinsured by reputable reinsurer. This one is underwritten by AIG - I believe they're the world's largest insurance co. and they are one of the highest rated by AM Best.
Transferrable: Yes for $50.00
Deductable: Yes $50.00 per visit - NOT PER REPAIR. This is important. When I go in, if I have multiple issues, I only want to pay the deductable ONCE.
Retail Rates: They pay the shop retail rates at standard book times. Dealerships love my business and my warranty - they go outta their way to find stuff for me.
Remember, you gotta do your homework and the companies don't make it easy to compare. REMEMBER - APPLES TO APPLES or you'll get suckered in if you're not careful.
The Viking Policy was right at $1,100 dollars and I also have them on my Land Rover Disco - which was a 5 year/100K exclusionary policy. On that deal they've paid over $4,000 for a policy I bought for $2,300 and it still has 3 years and 30K left.
3rd Parties get a bad rap because people get suckered into thinking they are buying a "great" policy from a "great" company. Do your homework, know the facts and then make a knowleadgable decision.
Good luck,
Eric
Just to pipe in here regarding warranties of factory vs. 3rd party. I wrote up an informal FAQ on this subject over at the Crovette Forum when I used to have a C5.
It can be found here: http://corvetteforum.com/reviews/vie...=505&TopicID=6
By the way, I'm a believer in 3rd party warranties - provided you do your homework and know the facts.
What's written below is the short version but if you're going to buy a 3rd party warranty, do yourself a favor a read whole version at the C5 board. The info is a couple of years old but the basics are still solid and accurate.
Factory typically provides less coverage for more $$$ - the offest is the security of knowing it's sponsored by Lexus.
3rd party (exclusionary warranties) typically provide more coverage for less $$$ - the offset is hoping they stay business.
3rd party warranties are all over the map in terms of quality, financial security, etc. - home work is your best (and only) friend when it comes to buying from an aftermarket co.
The Lexus warranty for 7 years / 100K is basically a 3 year 50,000 mile warranty (factory covers the first 4/50K). The warranty period begins on the in-service date of the car - NOT when you actually purchase the warranty (although the two may be the same if you buy the warranty when you purchase new car). Either way, you're buying a 3 year, 50K warranty for what looked like to be the lowest price of $1,600. I am assuming this is a bumper to bumper (exclusionary policy - meaning it covers everything that's NOT listed - typically maintenance type stuff) warranty.
What I'm writting below is not an endorsement or a recommendation - or a gloat. Everyone's priorities are different - mine were value, service and cost - in that order.
Viking Warranty: 4 Year / 100K EXCLUSIONARY WARRANTY
Coverage Period: Begins from date of contract purchase (not the in-service date). Therefore I bought 45 days prior to my factory warranty expiring. This effectively extends coverage for four whole years or until 100K, whichever occurs first.
Covered Items: Exclusionary Policy means it covers everything except what's not listed in the "exclusions" - bascically maintenance, abuse, Y2K, etc. You can read the language on their site. The coverage is very similiar to the Lexus Policy
Where you take it: Anywhere you want - must be ASE certified. I've used it at Sears (NTB) and Lexus.
How it Pays: They pay the shop directly via corporate credit card. Every dealer I've ever used has accepted this form of payment. No, you don't have to pay and wait for reimbursement - unless you choose to go that route.
Rental Reimbursement: I don't need because I get loaners at Lexus but if I go somewhere else, they'll pay $30.00/day for a rental car (for overnight repairs).
Reinsurance/Goes outta Business: My **** fear that the company goes outta business and I'm stuck holding a worthless piece of paper. Make sure the company is reinsured by reputable reinsurer. This one is underwritten by AIG - I believe they're the world's largest insurance co. and they are one of the highest rated by AM Best.
Transferrable: Yes for $50.00
Deductable: Yes $50.00 per visit - NOT PER REPAIR. This is important. When I go in, if I have multiple issues, I only want to pay the deductable ONCE.
Retail Rates: They pay the shop retail rates at standard book times. Dealerships love my business and my warranty - they go outta their way to find stuff for me.
Remember, you gotta do your homework and the companies don't make it easy to compare. REMEMBER - APPLES TO APPLES or you'll get suckered in if you're not careful.
The Viking Policy was right at $1,100 dollars and I also have them on my Land Rover Disco - which was a 5 year/100K exclusionary policy. On that deal they've paid over $4,000 for a policy I bought for $2,300 and it still has 3 years and 30K left.
3rd Parties get a bad rap because people get suckered into thinking they are buying a "great" policy from a "great" company. Do your homework, know the facts and then make a knowleadgable decision.
Good luck,
Eric
02-03-04, 08:40 AM
#18
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Thanks Eric!
Great advice and info. I too am considering a 3rd party warranty, but as you stated, they do have a bad rap. I've heard a number of "horror stories" over the years and would tend to stay away.
Your personal experience makes it sound like a viable option though. I will check out that company and see what they want for a warranty comparable to the Lexus Platinum 7/100 warranty. My car's in service date was June 2000 so I have a few months left. I would basically be buying another 3 years of coverage for about 1,500 or 1,600.
Your personal experience makes it sound like a viable option though. I will check out that company and see what they want for a warranty comparable to the Lexus Platinum 7/100 warranty. My car's in service date was June 2000 so I have a few months left. I would basically be buying another 3 years of coverage for about 1,500 or 1,600.
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