GSvet

Hi all, long time lurker, first time poster.

My 2008 Lexus GS AWD is expiring its factory warranty next summer. It also is gonna need about 2k in paint work. My question: Do I suck it up and trade in for a newer model, or do I buy the extended warranty thru Jerry and get the paint work done? I'll owe about 20k on the car by next summer.

I feel that if i'm gonna dump 3k plus on warranty extension and paint, it might not even be worth it. Perhaps I can get a 2009 GS CPO (3 years warranty built in) and without need of paint work? I'm guessing the sales tax expense on a tradein would be much less than 3k. I'm also wondering if used lexuses will be lower priced next year when the shortage of cars turns around....

Any advice is appreciated...

moose66

Forget about the extended warranty. All I can think about is the paint. A 2K paint job? Yikes, that sounds like a lot of paint. Hopefully you could get enough to cover what you owe plus some to put down on something else. Too many unknowns to run any numbers for you. But that paint comment is what would scare me.

GSvet

One side of my car is all chipped, I think a sanding/salting truck that drove by me might have been the culprit. Can't be sure. It's actually the labor that's costing me an arm and a leg - they have to remove the doors. I've already put off repainting since this winter - but I need to come to a decision by next year what to do.

Valley101

From a financial standpoint it is never wise to trade in a vehicle that you owe money on. You are just digging a deeper hole and extending the time you will be in debt. If you need paint work you are going to be low balled if you attempt a trade. A repaint is better, but will also reduce your trade in value. Try a private sale if you can come out with money in your pocket after the payoff. Otherwise, stick with the vehicle until it is paid off.

msgs350

iTrader: (2)

The paint/damage situtaion is going to cost you regardless whether you trade it or repair it. Just repaint whats needed and try those dentless repair guys. They are usually 30% or so cheaper than a body shop and can be a decent job. As for trading it for another GS, I personally wouldn't do it, since they look identical. You would end up with the same car and possible longer payments terms and a CPO is still a used car with its own blemishes.

Sorry, no advice on the extended warranty.....Good luck!

GSvet

I'm assuming given how much i have left on it I should at least break even upon payoff.

moose66

Sounds like you aren't too concerned about having a new note. If you can break even, then I would trade up. You then no longer have to spend 2K to paint nor worry about a warranty. Your worry then becomes how to pay for your new note.

Stormforge

GSvet, i had a problem with rock chips too. my solution was paying my insurance company a $200 deductible and i got a $2,800 2 stage paint job (hood, bumper, fenders). i then followed that up with a complete front end clear bra (full hood, entire bumper and fender).

i'm not sure how your insurance company deals with rock chips, but it maybe worth your while to see if you can claim this.

moose66

Were you able to do this without your premium increasing? Insurance companies have the nack for paying for something such as this and then on your next renewal, BAM! You are now a high risk client commanding higher premiums.

Valley101

Insurance companies cannot raise your rates from a claim against comprehensive coverage, because that covers damage that is not your fault or under your control, just like a stone breaking your windshield.

GSvet

I'm not sure how that would work... If I don't know when the alleged damage actually happened or by what, wouldnt they say I should have raised the issue sooner?

moose66

Thanks for the clarification. This is good information to know the next time I have any doubt about submitting a claim for damage I am not responsible for.

msgs350

iTrader: (2)

Not totally true. Any payout by an insurance company counts as a "loss". I had a windshield replaced last year and when I shopped for a new company, it was on my record and affected new rates.

Stormforge

no increase in my premiums. but mind you, i'm in canada. so my insurance company may operate differently than yours in the US.

Valley101

Again, your insurance company cannot raise your rates based on a comprehensive claim. If you go to another insurance company with a new policy that is a different story. I said "your" insurance company. I have had a few windshields replaced over the years and a vandalism claim and there were no rate issues. Comprehensive includes; fire, theft, vandalism, storm damage and other acts of god. Claims due to war or terrorism are not valid claims against any insurance company They are specifically excluded. When reading an insurance policy mainly pay attention to what is excluded. If it is not specifically excluded it is normally covered, though the process of how to go about your claim can vary from company to company.