MickeyS

Does every Lexus dealer has a different price for their extended warranties? Is it worth getting it?

GXOwner

I find extended warranty prices to vary a bit from dealer to dealer. The finance manager at the end who "completes" the final paperwork is the one who tries to sell you on the extended warranty and uses that to negotiate a better APR% for you. Other words, you pay a bit less on interest but spend a little more on the warranty which usually works out to be better if you keep the vehicle for 5-7 years. If you lease then you don't need to think about extended warranty at all.

We usually keep your vehicles for 6-7 years so we get the extended warranty which we believe is cheaper in the long run especially with so much of the vehicle is riding on computer systems.

Craig B

There are two places I would check pricing other than your dealership. Both of these people sell the Lexus Platinum warranties. They sell the same warranty for much less than any Lexus dealer.

Troy Dietrich Greenfield Toyota 413-772-0231

Midwest Toyota
Jerry Johnson
800-530-5789

A friend of mine told me Jerry has the best pricing. I've heard Troy will match Jerry's price.

Luke27617

iTrader: (2)

I would wait with buying extended warranty until your factory warranty is almost gone. You can always buy it later on. Meantime you may want to sell the vehicle, may be involve in accident, stolen, etc. Why waste $$$ until you are sure you will use the warranty.

Koz

This is true but there are regular price increases. Don't know if the increases equal the pro-rated refund if canceled.

Koz

GXOwner

Also keep in mind the ext warranty is fully transferable if you decide to sell your car or also get a refund for any unused portion of the warranty. However, if you decide to get the ext warranty when your factory warranty is on it's way out, the dealer will have the bargaining chips as they know you will be keeping the vehicle and now want the warranty. But when you get the ext warranty at purchase you have the advantage since you don't really need to get it with the factory warranty but the dealer wants to sell you one. With different manufacturers over the past years between my wife and I, we have gotten significant discounts off the MSRP of the ext warranty and they throw in an extra year for 8 yrs total and knock off 1% off our APR.

Also with certain manufacturers, ext warranties work differently. Some only allow you to get their OEM ext warranty at the time of purchase. They have other third party warranties for later add-ons so make sure you ask your dealer for confirmation.

If you are incline to go with the ext warranty, it's more advantageous to get it at purchase in our experience. Just sharing our thoughts but it's really up to you to justify the extra cash on warranty.

MickeyS

Thanks for your input. I'll speak to the finance manager at the dealer where I purchased my GX and maybe they'll be able to give me a good deal. I don't know if ti pays to go from dealer to dealer to see which offers the best.

SaniDel

I agree with the advice to wait until close to the expiration of the original warranty as you may not keep your vehicle that long. However, don't allow your original warranty to expire ... the extended warranty must be purchased before then.

We purchased a three-year warranty extension on a 2006 RX400h while we waited for the availability of the 2010 GX 460 as our original warranty expired in June 2009 ... long before the GX became available. It cost $2,400, but when we traded the RX for the GX we received a check for the pro-rated portion of the unused warranty. It was a cheap and simple way to maintain our "peace of mind" of continued warranty coverage while we waited for the GX 460 to arrive.
Regards,

SaniDel

MickeyS

Like you said, it's about"peace of mind" and not spending a fortune if/or when something goes wrong. I am definitely in favor of an extended warranty and honestly I will keep my GX at least 7 yrs.

SaniDel

Talk to your Lexus Dealer Financing Manager when your vehicle is near the end of the original warranty. That could be determined by accumulated mileage or by the calendar depending on your driving style. If by the calendar, 48 months from the Date of First Use (DoFU). The extended warranty extends your original warranty for an additional 36 months, but the DoFU is unchanged.

Note that you still lose some 'perks' from the original warranty. For example, Lexus will not offer to transport a disabled vehicle to the nearest dealership after the original warranty expired. We learned that the hard way about 4-1/2 years into our RX ownership when the battery died. Fortunately, we had AAA who arranged a transport.
Regards,

SaniDel

MickeyS

Wow, that's really something you didn't expect form Lexus! The only thing I am reluctant about is waiting until the last minute to buy it. By then I am sure the prices will be higher than three or four years ago, so it probably makes sense to get it while they are low. I normally keep my vehicles up to seven years so even if it has some warranty left, it can be transferable and I might get some money back.

Craig B

Mickey, call those two people I posted earlier. I'm sure they will beat anything your dealer has to offer and it's the same warranty.

SaniDel

Use my data point for comparison ... $2,400 for a three-year warranty extension on a four year-old car. If you can get it on a new vehicle for significantly less, then you probably should get it now. If it is about the same price, consider the time value of money ... $2,400 may be worth more in your wallet while you wait to see if you still want the warranty extension four years from now. A lot can happen in four years ...
Regards,

SaniDel

MickeyS

I went ahead and purchased the extended warranty from my local Lexus. The warranty had gone up since I bought the GX three months ago by $600, however I was able to bargain with the business manager and got a Platinum 7 year 125K for $4000 tax included! The Lexus website has it for $3650 but it is for a GX 470, they don't show the GX 460, so comparing the numbers I don't think is such a bad deal. The GX has so many electrical parts that it could be a nightmare if things begin to go wrong and you don't have a warranty. Thanks again for your input.

wchapin

My understanding about extended warranties is they are 50-80% profit. So, if an extended warranty cost you $3,000, Lexus decided their average cost of repairs in providing the warranty was $600-$1500. Do you have the $600-$1500 to cover those repairs yourself? If you do (you should if you are buying a GX in the first place), you are probably better off self-insuring and saving your hard earned money that would just be profit to Lexus and the dealership. Unless buying the Lexus made your budget tight, if you have the cash onhand and a great car manufacturer like Lexus, you will mostly likely come out ahead self-insuring.