StevenC56

I have some questions about the Lexus extended warranty plan. Do you have to buy it at the time of sale, or can you buy it anytime before the factory warranty expires? Advantages/disadvantages either way? Also, does anybody have any idea how much mark up there is on these plans? I know it's usually a ton. If I decide to buy one I would negotiate a fair price. Thinking about the 7 year 75K plan. Any info?

EyeKutr

iTrader: (5)

A seven year 75 K mile plan makes little sense to me as the factory powertrain goes to 70K / 6 yrs, comprehensive being 4/50K. 7 yr 100K mile makes a bit more sense, even if you plan on driving low miles, resale of teh car is easier with a 100K plan. You may also want to call Merkury and get a quote, you do not have to have a policy with them to get it.

Modeler

Buying an extended warranty on a Lexus is exactly like throwing money down the toilet. Do yourself a favor: put that money that you were thinking of spending on the warranty into a money market account at 5.25%. Pay for any unexpected repairs out of that money. I bet that at the end of seven years you will still have plenty of that money left over.

AlterZgo

I think Lexus's extended warranty is like that of any other mfg, ie. it can be purchased at any time up until the expiration of the comprehensive warranty.

It makes no sense to buy the warranty up front because:

1. You can probably find it significantly cheaper online through another Lexus dealer.
2. If you sell the car anytime before the comprehsive warranty expires, ie. in the first 4 yrs of ownership, you will recoup very little of the cost of the extended warranty. How many people here have been willing to pay $1000 more for a car that has extended warranty vs. one that doesn't? Very few.
3. If you total your car anytime before expiration of the comprehensive warranty, you will receive little value of the extended warranty in an insurance settlement.
4. If the way the Lexus warranty is sold is similar to that of most of the other car mfgs, there is only a very small price premium to buy the warranty near the expiration of the comprehensive warranty vs. buying the warranty up front at the time of initial purchase. As an example, I know that Acura and Infiniti 7 yr/ 100k warranties can be purchased for about $1200 or so online when purchased while the car is new. If you wait until near expiration of the standard warranty, you may only have to pay about $1300.

jerfitz

My dealer, Lexus of Las Vegas, told me that if I buy it at the time of purchase and NEVER use it, when it expires they will give me back the amount I originally paid fror it. So the question is, will I still own the car 7 years later.