mrminsky

I purchased a Certified Pre Owned GS F Sport a few weeks ago. The car has 1 year left of manufacturers warranty plus the 2 years/unlimited. Once the vehicle was negotiated, I sat down with the finance manager in order to sign and finalize everything. Sure enough, he started with his spiel about warranties, etc...... I went in knowing that I had close to a perfect score and a pre-approved loan from my bank.. Once I sat down, he said, he wiould be able to beat it which I thought was great. Then he mentioned the Service agreement and if I were to do a 2-year extension, he would lower the finance rate by .5 per cent. I have never in my life bought an extended warranty, but once he mentioned that I could cancel the warranty at any time for a full refund, I thought maybe it would be a good idea.knowing that I could get my money back if I were to sell it PRIOR to the warranty kicking in after the CPO. Based on what I have read, it actually starts the day you purchase the car.

After looking into it, I am not so sure, he explained it properly.or was quite upfront about it. The fine print says that I can cancel it within 30 days. So here are my questions.

1- Does the warranty start the day I purchased the car? I was under the impression that it starts after the CPO warranty expires and it extends it another 2 years

2-Is I keep the warranty and I sell the car say in two years, only the prorated portion of the warranty will be refunded rather than the full price of the warranty even if the warranty has not started. Is this correct?

3- If I were to cancel, I am not sure how I will be refunded since the warranty is part of the loan.

I sure I got hosed here although I got a pretty decent loan based on current rates. Based on some old threads, I probably could have gotten a much longer term based on what I paid. The rate probably does not make us for the stupidity of agreeing to it and not holding my ground..... This is all on me. I feel like cancelling the warranty and paying off my loan before I even get that first payment. Is anyone familiar with these Lexus extended warranties and how they work?

Greekjim

HontoKuro

This may help answer all your questions from my own official CPO warranty docs (see photos below) that I got from Lexus for my 2015 GS. I also extended mine 2 more years on top of the CPO that will take it to 2024 (Platinum /unlimited miles) but I only paid $900 more to get the 2 extra years so couldn't pass that offer off and paid it cash and was a no brainier. I may or may never use it but at least it's there for some peace of mind when and if things breaks down.

AJLex19

1- Does the warranty start the day I purchased the car? I was under the impression that it starts after the CPO warranty expires and it extends it another 2 years:

Correct.Typically the extended warranty covers the car for the years the original 4yr/50k and the 2yr/Unlimited CPO warranty do not. For instance, if you buy a first registered Feb 2016 CPO GS with 35k miles, the original warranty is still good until Feb 2020. As of Feb 2020, the CPO warranty is good for two years until Feb 2022. If you bought a platinum (or gold) extended warranty, that warranty would run out based on the extension years/date, so likely you'd be covered until 2024 or 2025 (i believe lexus does NOT sells warranties beyond 8 or 9 years from the original model year)

2-Is I keep the warranty and I sell the car say in two years, only the prorated portion of the warranty will be refunded rather than the full price of the warranty even if the warranty has not started. Is this correct?

Correct. The way I understand this is if you sell the car while the extended warranty is still active, they will give you back the monies associated with unused portion of the warranty. So say you paid $2000 for a 2year extended warranty, sold the car after year 1 with the warranty, they should give you back $1000. If the extension hasn't started yet, it seems like they are somehow prorating they value of the warranty over more than the 2years -- they are prorating the warranty cost over the length of your ownership period.

3- If I were to cancel, I am not sure how I will be refunded since the warranty is part of the loan.

Your loan amount should decrease by the amount they owe you (full amount if you cancel quickly, prorated amount if you cancel later).

If it makes you feel better to have the extended warranty, then keep it. I would say the amount you paid for the warranty could be pocketed now and used if the GS breaks down in the future (the GS is a very reliable car over the long haul). Also, i'm sure they did the math already and they are making money on the warranty, even though they made it more attractive by dropping the interest rate to make it more enticing to you.

mrminsky

Thank you so much for all your replies.... In all honesty, I would have never bought the warranty but once the manager came back and said "what if I drop the rate, would you consider it?" I thought about it and I thought, the drop might pay for half of the warranty, but then again. what if I do not keep the car. He made it sound as if the car was sold prior to the warranty kicking in, I would get all the money back. I bet a lot of people get sucked into this only to find out a few years down the road that that is not the case. Again, this is all on me. The guys job is to upsell as much as it can.

dmullen137

Dude that's the best $900 you could've spent - a buck and a quarter a day. Plus you get free roadside assistance which helps offset things a bit. I spent $2050 (down from $5995) for the same zero-deductible platinum LFS warranty but for four additional years. Those finance guys are sharks but I still feel that it's worth it. I picked up a 2015 CPO GS with about 44k on it. My CPO warranty just kicked in at 50k and now it's purely time and unlimited miles - 2 for CPO plus 4 for the LFS plan. Bring it on. These cars are incredible and I'm so glad I jumped into one. Just my two cents

mrminsky

Not sure where you got the $900 from..... I pretty much paid what you paid but for ONLY 2 YEARS...... Now you see where I am going with this.... Time to cancel. Perhaps, if I decide to keep the car after three years, I might consider getting a warranty.

HontoKuro

I think he confused me with you when I stated that I had paid the $900 for 2 additional years of Extended Warranty.

chinee