LXBOY

Hi Everyone, I did my search on this topic. Found everything that I was looking for. Still stuck with a thought if it is worth it or not. The Dealerships in Washington only offer 4Yr/60k for $2000. I am wandering if anyone got it and think if they got the worth out of it. My warranty expires in may'06. Still have time.

Hallar....

GATO

iTrader: (1)

a little pricey................prbably hit you at retail for it. maybe a few hundred in room

ok, so, your mfg warranty is up in May? is that correct?

the 4 year 60k would start from the 50k plus? therefore taking it to 110k?

what company is the warranty through?

deductable?

what kind of coverage? if "lexus" is it a gold, platinum? ect....

jonathancl

Extended warranties are poor investments by their very nature.

Edit (clarification):

Correction: they're not investments; they're hedges, but they are unnecessary hedges. Medical or liability insurance is very different because medical expenses or liability judgements can well exceed your income or even net worth; the same is not true for repairs to your car. Hedging is expensive protection for rare circumstances; thus there is no sensible reason to purchase protection for losses you can sustain.

Extended warranty prices are based on actuarial probabilities that problems of varying costs will occur during the period of the warranty. That a policy costs $2000 means the probabilistic cost of repairs for the period of the warranty is less than $2000 (the difference is the warranty-provider's operating and profit margin).

Buying a reliable car you can afford and maintaining it is the only way to successfully reduce your overall transportation costs. Lexus makes the most reliable automobiles on the road. The warranties appear to be great deals, but that's merely a function of the car's quality. You don't need protection.

GATO

iTrader: (1)

I don't agree with that at all.

First of all their not investments, and neither is a vehicle. after all, it loses value the minute you drive it off the lot.

Just like Health insurance, would that be considered a bad investment?
would you be upset if you didn't get sick last month, would you then want to cancel it?

After all, nothing in this world is defect free. (especially not a vehicle) and there is a reason that the manufacturer stops the comprehensive part of their warranty at 36mths 36k miles ( in this case 48 month 50k for Lexus)

Chpsk8

I look at it this way. You can pay $2k today, and have peace of mind for 4/60 or you can put that $2k into your pocket, and ride it out.
A car like this you may never put a dime into failed parts, or you could sneeze and drop $2k in one service call.
I personally sought out a certified car with warranty. Yeah I overpaid for the car, but it still had a longer warranty than a brand new Honda Accord, and I get to drive a Lexus! I wanted a warranty for peace of mind, more than anything else. I don't think I'll ever have any major issues, but if I do... it's there.
Mine is certified and they take care of everything. Squeaks, rattles, poop on the windshield, they fix it all for free! I wish Lexus would make a truck, I'd trash my Ram in a second for a Lexus truck, just for the service experience!

If a dealership is offering a warranty just remember that you can negotiate the price. warranties are profit points for dealerships. Don't be afraid to say something like. "I'd like an extended warranty, but that price is too high, oh well, I'll just risk it". Odds are they will drop the price right away.
When I bought my Miata the finance chick tried to sell me a warranty for $1400. I said no and she said "how about $600?" I still said no. Glad I did. I've had the car for 2 years and have'nt put a nickle into it. "knock wood".

jlee804

iTrader: (1)

Extended warranty is just for piece of mind. I bought my 2001 GS430 in 2O04. It was 3 1/2 years old. I was the 3rd owner. The car only had 18k miles on it but i didn't know how the 2 previous owners took care of the car and maintenance. Although the car was in perfect physical condition I didn't want to get caught off guard with unexpected break downs. I ended up buying from warranry direct with a 6 yr/100k policy for $1200. You can take the car to any repair shop and the cost will be covered.

web site is www.warrantydirect.com. you can get an online quote.

chuckisc

My very own and painful experience cause by Warranty Gold, former Vendor of CL years ago before they went bankrupted...

Bought my car in 02, bought a 5 years Extended warranty for $1250 from Warranty Gold. 6 months later the company went down the tubes. HQ was in Cayman Island, NOT a US company... Cut it as a loss!

If I have to buy a piece of mind, I'll go with a BIGGER player like AAA or the Lexus' Warranty. NOTHING else! What good is it of a warranty deal you got at a discounted rate if 6 months from now that company goes under? Or they won't pay your repair because of some technicality mistake on your part etc. If you already plan to buy a Warranty for your car, you are gambling with the Warranty company and your car's performance. Both wish you don't ever have to use your policy

My final word: do not buy from some internet site, no matter how good they tell you about their custom's satisfaction rates or claim history are... Go with AAA or Lexus...

Good luck

EyesOnly

I too am thinking of buying straight from Lexus. I have 2000 GS400 with 31k miles, and powertrain runs out in June. I got a rough estimate of $2000 for a 2 year extension (up to I think 90k miles). Are these Lexus warranties negotiable? Are they the same coverage as when you buy a 'certified' Lexus?

LXBOY

The warranty will be from Lexus Dealership, not from a third party. When I did the research, found some members who had bought it and were feeling good the fact thay they bought it, because, fixing the problem would have caused them more money, So that is what made me rise thsi question again. I know it is a repeat. But I really appreciate the feedback.

GQD_GS4

hmmm $2000 for 4 years = 500 a year = roughly $40 a month for peace of mind, knowing that almost any problem will be taken cared of....its worth it!!!

chuckisc

Amen to this...

lostinthew

I drive a 98GS300 and in 2002 we bought a Buick Rendezvous because with three kids we didn't want a van anymore but needed to seat seven. Anyway we decided on the purchase and we are sitting with the finance guy who naturally asks if we would like to buy the extended warranty. My knee-jerk reaction is no. He says let me tell you about it first. The payments are $100 per month for two years. It extends the 36/36,000 warranty to 75,000 miles. And, if you don't use the warranty, you get all your premiums back! Whoa. I'm sure they have done all the math, but I chose to buy it.

Turns out to be a wise move because Rendezvous's have some inherent problems and we have already used the $2400 in repairs and we have about 20,000 miles to go.

I had never heard of rebating the premiums and don't know if Buick or anyone offers it now. However, we came out ahead.

Anyone out there ever heard of this?

chuckisc

Cost of ownership is too much for domestic car.... poor investment on your part in my opinion! Otherwise, I do believe in Extended Warranty...but.. BUICK

GATO

iTrader: (1)

Yes, most extended service contracts work that way. they give you 100% back of the unused portion. ( prorated of course )

LXBOY

If u buy the warranty from the Lexus dealerships, the warranties are the same. But anyway, What if the warranty is bought from a different state, and the dealership gives u a good price, since he knows the car is not going to come to his delership to get fixed, since the warranty is honoured nationwide at all the dealerships..... what ya'll think. not sure, but just giving it a try. Anyone know of anyhting, feedit back.. YO!!!!

Hallarr