cjlazar84

Buy the warranty. 1600 is a good price for the 7 year/100k. These new cars are smarter than we are. they in my eyes are ticking timb bombs, than again it is a lexus so it may never have a problem.

But the way i see it is, we all spend about a 100 bucks a month for insurance and most of us never have a accident. So you tell me what the better thing to do. I think you are on my same page.

Buy the damn warranty\

Lazar

greg0723

i got my cpo warranty for 1800. it is 4 yrs or 125k miles. i have 40k on the car. got it 1 month ago. plus i took the warranty because it lowered my finance rate to a 6.99% lowering my monthly payment.

IAMJAVEDG

iTrader: (5)

sounds like a bargain to me!

cjlazar84

Not to be out of line. but they put you together about the warranty and lowering your finance rate.

Check it out.

When most ( not all ) dealers say buy a warranty and ill drop the finance rate a point or 1/2 point etc... this is bs. most dealership make 2 points ( which in our normal language means 2% rate increase ).

Example: you go to buy a car, they send your credit info to the loan processor who than writes back a rate and term and stips. ( stips are either proof of income, proof of rental/homeownership etc.). for most good credit these days you get around 6.29%-8.9% per the term of the loan. Lets say the processor send back an approval for you at 5.5% for 72 months. they will also say, ''we allow you to make up to 2 % rate exchange. which means they tell you, hey i got you bought and the finance rate is 7.5 %. but dont worry i will hook you up at 7 % if you buy the warranty.

A- that is very illegal and finance people do it all the time.
B- before you go to a dealership try and get you own finance. If you have USAA or your own company they dont need to make extra money on you. etc...


Hope that was an insight for most.anything that may have been confusing just hit me up and i am happy to help out.

Lazar

Kurtz

iTrader: (1)

Generally you'll get a much better price on the warranty from Troy or Toby than any local dealer, so just skip it at the dealer.

When I told mine the price I could get it for (I was paying cash for the car) and said I'd buy the warranty from him if he just matched it he told me there's no way I could possibly be getting it that cheap, their employee cost was $600 more, and tough luck.

Ok, no money for you then

Lets Drive

iTrader: (3)

I'd disagree; the cars we drive have far more mechanical and complex parts, all of which are grossly marked up, as opposed to extended warranties for retail appliances and other devices. As Kurtz stated, its an insurance against the high cost of parts replacement down the line, which from the sounds of my ML sub, or the ongoing cam gear issues (I’ve had the latter replaced twice in 35k miles), already leaves me reassured that I did the right thing by opting for the warranty. Given this specific car was purchased within the first year of a new generation, its among the highest risk for potential issues and quirks, especially with the options I have. An extended warranty (and insurance in general), will always exist as a bet against yourself; just as going without one is also a gamble. With the ability to price shop and negotiate, it can be an educated and worthy investment. It certainly may not be for everyone, but each person will have to make that call.

juice14

I think its a great price, they wanted to charge my friend 3500 for his benz

OutCaster

iTrader: (1)

Do our cars really need the extended warranty though?

IS-SV

IMHO no, especially if you have the reserves to handle the worse case scenario. Everybody's situation is unique and I can respect that.

Kurtz

iTrader: (1)

On the other hand, if you spend $1500 on the extended warranty you don't need to keep a spare $5000 sitting around on the unlikely chance your valves/cam gears start rattling, or your transmission gets flaky, or your backup camera fails, or your ML sub blows, etc...

that 1500 bucks buys you 3 extra years you can spend your $ on whatever else you want and not have to even think about using it to fix your car, because you know all repairs are covered.

(And in my personal case, though it may not apply to everyone, there's the added value of I plan to sell mine at about 6.5 years... so the seller will have the confidence that even if he didn't notice anything wrong the day he pays me for it, he'll still have some warranty left after that.)

IS-SV

Good points about length of ownership playing into decision, again everybody has different situations to consider.

Having over $5000 in semi-liquid assets (other than passbook savings and mm accounts) is certainly going to yield better. Many owners have thousands in various forms of liquid reserves despite the car(s) that they own in or out of warranty.

Blueshark

I too is looking into extended warranties, will those good quotes available in CANADA ?

And please clarify this for me, but the lady from toyota that sold me the Lexus told me that the extended warrranty on the used car is only available at the purchasing moment, not available after you owed the car ?!!!! Is that bogus.......

Kurtz

iTrader: (1)

Bogus in the US certainly, here you can buy it anytime until the second/mile before the factory warranty expires.

LexusRuss

This post is on the money . Everything he said is correct. The real cost of that warranty is probably $700-900 bucks, MAX.

SoDiezl350

iTrader: (2)

I had no intention of purchasing the extended warranty on my 07 IS350 until the auto leveling motor in one of the headlights as well as one of the motors in the side mirrors failed at 40k miles. Had this repair been paid for out of warranty it certainly would have cost more than the $1800. Now I'm not sure what to do.