Extended Warranty, anyone?
08-26-06, 04:05 PM
#31
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IMO, i think extended warranties are a waste of money, i have had them on several of my other cars, i tend to keep the car for about 2-3 years, when you go to cash in your warranty it has depreicated. What i dont understand is how do they depreciate something that has not even been used. Example, my v6 accord, it had standard 3yr 36k factory warranty, i bought a 100k, sold the car at 27k miles and was give a depreciated amount on the extened warranty. What i dont get is the extended portion has never even been touched, everything that was done under warranty was under the intital factory warranty. I hope that makes sense, also i was told it does not give any additonal value to the car if you sell it private party. In my experince its not really worth it if you only keep your cars for a few years, now if your going to keep the car 100,000 miles then yes it may be worth it.
That said, for an expensive car, I'd have to think private parties would prefer your car over one without a warranty, and you should be able to command more $ from it quite easily.
However, I'm probably going to keep the IS350 for 100,000 to 120,000 miles (5-7 years), and so it starts to look more appealing at that point.
08-26-06, 04:08 PM
#32
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I had the same gripe when I had an extended warranty on a Dodge that I traded in at 21k miles...my complaint fell on deaf ears, and to be candid, the documentation that I signed was clear that they would screw me if I wanted a refund. Buyer beware.
I learned from that experience, and from hearing many others, that extended warranties are for suckers. You're essentially betting against yourself. What's more, many (most) people finance these things, so they end up paying interest on an insurance policy they may never use. CRAZY!
Think of it this way: if Lexus wasn't making a good profit on selling these warranties, they wouldn't sell them. Simple logic can only lead to the conclusion that you're not likely to need repairs equalling the value of what you paid for the extended warranty. You could invest that same amount of money, or simply put it in a savings account, and keep the difference at the end.
There's always "that guy" that had a castastrophic engine failure and was fortunate to have the extended warranty. For every "that guy", there's countless others that threw away money. Your decision.
I learned from that experience, and from hearing many others, that extended warranties are for suckers. You're essentially betting against yourself. What's more, many (most) people finance these things, so they end up paying interest on an insurance policy they may never use. CRAZY!
Think of it this way: if Lexus wasn't making a good profit on selling these warranties, they wouldn't sell them. Simple logic can only lead to the conclusion that you're not likely to need repairs equalling the value of what you paid for the extended warranty. You could invest that same amount of money, or simply put it in a savings account, and keep the difference at the end.
There's always "that guy" that had a castastrophic engine failure and was fortunate to have the extended warranty. For every "that guy", there's countless others that threw away money. Your decision.
The entire reason for this is to manage risk - to put a dollar value on the risk vs. the reward and then be able to make a choice of what to do.
08-26-06, 04:40 PM
#33
Lexus Champion
^^^^absolutely. you can tell those who don't understand how insurance and extended warranties relate to risk....they say it is not worth it when they complete the simple math calculations only; they don't say it isn't worth it to me...and dealer profit? how it that a factor?
08-26-06, 06:55 PM
#34
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FWIW, I purchased a 3rd party warranty and had to go through tons of work every time I took my car in for service.
I purchased the Lexus warranty (100k miles for about 2k) and am happy I did so. At least I know that I can take it to Lexus and NOT worry about getting nickel and dimed. Also, the above warranty is a no deductible warranty.
Finally, I got 2k off MSRP on my car, so it worked out great.
I purchased the Lexus warranty (100k miles for about 2k) and am happy I did so. At least I know that I can take it to Lexus and NOT worry about getting nickel and dimed. Also, the above warranty is a no deductible warranty.
Finally, I got 2k off MSRP on my car, so it worked out great.
The IS350 Gold warranty (not bumper to bumper - just the major bits) is $1975; the Platinum (most would call this bumper to bumper) is about $400 more.
Which did you get? The standard "Gold" warranty?
Did the dealership negotiate on price on the warranty?
08-26-06, 08:05 PM
#35
Lexus Test Driver
^^^^absolutely. you can tell those who don't understand how insurance and extended warranties relate to risk....they say it is not worth it when they complete the simple math calculations only; they don't say it isn't worth it to me...and dealer profit? how it that a factor?
Re: comparing an extended warranty on a car to health insurance of life insurance...give me a break. You can't possibly be comparing the impact of losing your health (or worse) with the possibility of needing a transmission rebuild down the line. Most of us are well heeled enough to afford a Lexus, which tells me we can probably afford repairs later on if necessary. Now, paying for open heart surgery, for example....well, that might be a bit of a challenge for most of us.
I think a more valid comparison would be for insurance above and beyond that which is prudent. Some people buy cancer insurance, for example. Cancer insurance only makes sense if you have a strong history of cancer in your family. To me, extended warranties only make sense if your car make/model is a known POS in long-term reliability. Health insurance is to factory warranty, as cancer insurance is to extended warranty. Just my opinion.
08-26-06, 08:16 PM
#36
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Warranty info
Go to "http://www.warrantieslexus.com/lexus.html". It will bring you into a page for Lexus of Greenwich. This is a legitimate site as Lexus of Greenwich is where I just bought my car. Their finance guy had quoted $1495 to me for a 6 year, 100K platinum warranty, with 0 deductible. The website listed $1340. I called them on this and they matched their website. They told me that they are trying to attract out of state business for the warranty.
If it is safer to buy a warranty directly from Lexus, the difference of $500 would justify it.
As far as whether to get an extended warranty...we had 3 1998 nissans. Two had Nissan warrantees. One car ran for 135K miles (until I turned it in) and I never needed to repair anything in 9 years. One car (identical year and car) had an electrical malfunction and needed over $4000 of repairs when it was just over three years old. The warranty paid for itself (and the other car!). The other car needed a new transmission in year 6, and had no warranty (my husband didn't believe in them) and we paid $1500 out of our pockets. A warranty would have saved us a few hundred $$. I know this is a Lexus and probably nothing will go wrong, but it has so many fancy electronics, it seems to be good insurance. My two cents.
It was recommended to me to take the dealer offered 5year tire and wheel warranty for $339. THere is a $2K cap. However, how many of us haven't had to replace tires or repair tires due to a nail or an accident?
If it is safer to buy a warranty directly from Lexus, the difference of $500 would justify it.
As far as whether to get an extended warranty...we had 3 1998 nissans. Two had Nissan warrantees. One car ran for 135K miles (until I turned it in) and I never needed to repair anything in 9 years. One car (identical year and car) had an electrical malfunction and needed over $4000 of repairs when it was just over three years old. The warranty paid for itself (and the other car!). The other car needed a new transmission in year 6, and had no warranty (my husband didn't believe in them) and we paid $1500 out of our pockets. A warranty would have saved us a few hundred $$. I know this is a Lexus and probably nothing will go wrong, but it has so many fancy electronics, it seems to be good insurance. My two cents.
It was recommended to me to take the dealer offered 5year tire and wheel warranty for $339. THere is a $2K cap. However, how many of us haven't had to replace tires or repair tires due to a nail or an accident?
Last edited by berniss; 08-26-06 at 08:25 PM.
08-26-06, 10:15 PM
#37
i dont honestly think you can command more on your price, i sold a 04 denali with a 100k warranty and the buyer did not want to pay the extra that i was asking, same with my 04 v6 accord, nobody wanted the extended 
anyway when i traded in the accord for the IS the dealer said they would not give me any additonal money for it, and that it has no bearing on actual blue book values. BUT i agree if you do truely intend on keeping the car for longer then factory it can be worth it. Im just frustrated that they depreicate something that is not being used during the intital warranty period.
anyway when i traded in the accord for the IS the dealer said they would not give me any additonal money for it, and that it has no bearing on actual blue book values. BUT i agree if you do truely intend on keeping the car for longer then factory it can be worth it. Im just frustrated that they depreicate something that is not being used during the intital warranty period.
08-26-06, 11:12 PM
#38
Lexus Champion
Fair enough. Extended warranties aren't worth it to me, and I advocate against purchasing them when driving generally reliable vehicles. Lexus is a known reliable brand, so in my opinion, extended warranties are wasted dollars. I thought that was implicit in my other post, but maybe not.
Re: comparing an extended warranty on a car to health insurance of life insurance...give me a break. You can't possibly be comparing the impact of losing your health (or worse) with the possibility of needing a transmission rebuild down the line. Most of us are well heeled enough to afford a Lexus, which tells me we can probably afford repairs later on if necessary. Now, paying for open heart surgery, for example....well, that might be a bit of a challenge for most of us.
I think a more valid comparison would be for insurance above and beyond that which is prudent. Some people buy cancer insurance, for example. Cancer insurance only makes sense if you have a strong history of cancer in your family. To me, extended warranties only make sense if your car make/model is a known POS in long-term reliability. Health insurance is to factory warranty, as cancer insurance is to extended warranty. Just my opinion.
Re: comparing an extended warranty on a car to health insurance of life insurance...give me a break. You can't possibly be comparing the impact of losing your health (or worse) with the possibility of needing a transmission rebuild down the line. Most of us are well heeled enough to afford a Lexus, which tells me we can probably afford repairs later on if necessary. Now, paying for open heart surgery, for example....well, that might be a bit of a challenge for most of us.
I think a more valid comparison would be for insurance above and beyond that which is prudent. Some people buy cancer insurance, for example. Cancer insurance only makes sense if you have a strong history of cancer in your family. To me, extended warranties only make sense if your car make/model is a known POS in long-term reliability. Health insurance is to factory warranty, as cancer insurance is to extended warranty. Just my opinion.
and then there is credit insurance. how many of us believe in that? [not me] flood insurance, home insurance, renter's insurance, flight insurance, trip cancellation insurance....it's all about risk.
Again this might be a bit dated since pretty much everyone working at a decent job will get good insurance on principle but it's the risk and the mindset that I'm referring to. When you're young you simply don't pay extra for dismemberment and you take the lowest cheapest [factory] health package and don't pay any thing additional if you don't have to [willing to take the risk].
I don't buy cars anymore without some type of extended warranty. Period. I am completely and totally risk adverse and life is so much better that way for me. Doesn't mean I'm not concerned about getting ripped off or getting the best bang for my dollar but I don't fly blind anymore, on anything. Extended warranties aren't a scam, credit insurance is.
08-27-06, 02:45 AM
#39
Platinum. 2k. Yes they did negotiate a bit, but I think of it as a negotiation on the entire package (car & warranty)
08-27-06, 05:11 AM
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i dont honestly think you can command more on your price, i sold a 04 denali with a 100k warranty and the buyer did not want to pay the extra that i was asking, same with my 04 v6 accord, nobody wanted the extended anyway when i traded in the accord for the IS the dealer said they would not give me any additonal money for it, and that it has no bearing on actual blue book values. BUT i agree if you do truely intend on keeping the car for longer then factory it can be worth it. Im just frustrated that they depreicate something that is not being used during the intital warranty period.
anyway when i traded in the accord for the IS the dealer said they would not give me any additonal money for it, and that it has no bearing on actual blue book values. BUT i agree if you do truely intend on keeping the car for longer then factory it can be worth it. Im just frustrated that they depreicate something that is not being used during the intital warranty period.The reason the dealer won't give you a penny for it is he can't legally sell it with his car - it's usually only transferrable between private parties when they sell it. And your Denali buyer isn't typical - if he won't pay for it, keep advertising the car until someone will - Denalis aren't reliable and there should be a market for that.
08-27-06, 05:16 AM
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Go to "http://www.warrantieslexus.com/lexus.html". It will bring you into a page for Lexus of Greenwich. This is a legitimate site as Lexus of Greenwich is where I just bought my car. Their finance guy had quoted $1495 to me for a 6 year, 100K platinum warranty, with 0 deductible. The website listed $1340. I called them on this and they matched their website. They told me that they are trying to attract out of state business for the warranty.
Prices must've gone up - the IS350 quote I got for the above was $1510. Still, that's better than the published price on Lexus' website!! Thanks - I'll use this in bargaining a better price if and when I decide to buy!
Ah - just realized you have an IS250; your prices match the 250 pricing exactly.
Last edited by dclive; 08-27-06 at 05:23 AM.
08-27-06, 10:00 AM
#42
Prices must've gone up - the IS350 quote I got for the above was $1510. Still, that's better than the published price on Lexus' website!! Thanks - I'll use this in bargaining a better price if and when I decide to buy!
Ah - just realized you have an IS250; your prices match the 250 pricing exactly.
Ah - just realized you have an IS250; your prices match the 250 pricing exactly.
08-27-06, 10:24 AM
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08-27-06, 10:53 AM
#44
I'm a firm believer in warranties
08-27-06, 11:31 AM
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Great find!! Have book marked their page. Now when my local dealer tries to rake me over the coals, I have a point of comparison.
Go to "http://www.warrantieslexus.com/lexus.html". It will bring you into a page for Lexus of Greenwich. This is a legitimate site as Lexus of Greenwich is where I just bought my car. Their finance guy had quoted $1495 to me for a 6 year, 100K platinum warranty, with 0 deductible. The website listed $1340. I called them on this and they matched their website. They told me that they are trying to attract out of state business for the warranty.
If it is safer to buy a warranty directly from Lexus, the difference of $500 would justify it.
As far as whether to get an extended warranty...we had 3 1998 nissans. Two had Nissan warrantees. One car ran for 135K miles (until I turned it in) and I never needed to repair anything in 9 years. One car (identical year and car) had an electrical malfunction and needed over $4000 of repairs when it was just over three years old. The warranty paid for itself (and the other car!). The other car needed a new transmission in year 6, and had no warranty (my husband didn't believe in them) and we paid $1500 out of our pockets. A warranty would have saved us a few hundred $$. I know this is a Lexus and probably nothing will go wrong, but it has so many fancy electronics, it seems to be good insurance. My two cents.
It was recommended to me to take the dealer offered 5year tire and wheel warranty for $339. THere is a $2K cap. However, how many of us haven't had to replace tires or repair tires due to a nail or an accident?
If it is safer to buy a warranty directly from Lexus, the difference of $500 would justify it.
As far as whether to get an extended warranty...we had 3 1998 nissans. Two had Nissan warrantees. One car ran for 135K miles (until I turned it in) and I never needed to repair anything in 9 years. One car (identical year and car) had an electrical malfunction and needed over $4000 of repairs when it was just over three years old. The warranty paid for itself (and the other car!). The other car needed a new transmission in year 6, and had no warranty (my husband didn't believe in them) and we paid $1500 out of our pockets. A warranty would have saved us a few hundred $$. I know this is a Lexus and probably nothing will go wrong, but it has so many fancy electronics, it seems to be good insurance. My two cents.
It was recommended to me to take the dealer offered 5year tire and wheel warranty for $339. THere is a $2K cap. However, how many of us haven't had to replace tires or repair tires due to a nail or an accident?
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