Helmar

I've been offered an extended warranty for my 2008 LS600hL, which I plan on keeping for another 3-5 years.

The price is $5400 for an 8 year, 125,000 mile policy that's identical to the factory new warranty.

Question:

Lexus knows their cars VERY well and offers this warranty to make a profit. With this warranty, then, they're betting that I'll use LESS than $5400 worth of the warranty services, while I'll be betting that I'll use more.

Does it make sense to "Bet against the house" and buy such an extended warranty?

By the way, the "Check engine" light on my car went on this weekend and when I took it in to Lexus yesterday, they'll need to perform about $5,100 worth of work (under warranty).

HBH

Tee

I say get for peice of mind and it is a 600h, by it being a hybrid I would get it just on that fact alone.

joedaddy1

iTrader: (1)

can't you get it through that toyota guy for about half price?
is $5400 retail? because that sounds WAY TOO HIGH!

Call this guy:
Jerry Johnson
Midwest Toyota
Midwest Superstore
1100 east 30th
Hutchinson, Ks 67502
800-530-5789
Cell 620-664-8844
jerryj@midwestsuperstore.com

Good Reviews online for this guy.

rominl

iTrader: (4)

5400 is stupidly high for extended warranty imho

WhitBaby

I'd be wary of any near 'identical' third party warranties. Many of these aren't accepted at many dealerships and repair shops. Reason, they don't reimburse the shops.

Besides even Lexus extended warranties are probably the most negotiable item they push. You can even get one from another dealer, even across the country.
Send Sewell, Carson etc. a note about what you want. Even a toll-free call will surprise you. Ask for the Sales dept or Finance dept. They get these 'warranties' at a Dealer Net cost from Lexus.

Anything above that is pure profit. As long as the car doesn't have too many miles on it, and still under an original warranty they'll sell you one.
Many dealerships will sell you an extended warranty for just a $50 profit. It only takes them 10 minutes to do the paperwork and that'll be $50 more than they have now. Call around, it'll save you bux.

Whit

Helmar

Thanks for that heads up, he quoted a much better price.

But my question remains.

Even at that better price, doesn't Lexus (corporate, not the dealer) expect to make a profit by selling this extended warranty and believes that I'll require LESS service than the warranty provides?

In other words, who am I to bet against Lexus? They're betting that the car is so reliable that I won't need the full benefits of the warranty....

I guess that's pretty much like any kind of insurance......

HBH

adammb

What was the better price?

rominl

iTrader: (4)

yup it's basically just like insurance. of course they are making money off you, and it's just a risk if you will end up spending more than avg owner

Member

No one knows your car better than you do. Do you feel comfortable without a warranty? Given the fact this is a hybrid and the recent $5,000 worth of repair, this is is no brainer, just get the warranty. If the warranty can be transferred to the next owner, it'll increase the resale value.

Nospinzone

In other words, who am I to bet against Lexus? They're betting that the car is so reliable that I won't need the full benefits of the warranty....

The difference is you are an individual insuring one vehicle while Lexus is a company insuring 1000's of vehicles. They are spreading their risk over many vehicles. They know they will make money in the long run even though some vehicles will cost them more then they collect in the premium.

I too would like to know what your better price is, although I suspect the extended warranty for a 600 is more than for a 460. However, that $5100 repair makes it seem worth it even at your dealer's price.

I guess you just have to ask yourself, do I feel lucky today? Well ........ do you ....... punk?

rominl

iTrader: (4)

also keep in mind, drivetrain warranty (including the hybrid part) is more than the normal 4yr/50k i believe

Helmar

Following are the prices quoted from Jerry Johnson at Midwest Toyota in Hutchinson, KS:

L4-LEXUS—(LS600H)
7 YEARS 75,000 MILES $1,800.00,
7 YEAR 100,000 MILES $2,385.00
7 YEARS 125,000 MILES $3,295.00

8 YEAR 75,000 MILES $2,055.00
8 YEARS 100,000 MILES $2,915.00
8 YEARS 125,000 MILES $4,210.00

My dealer stated flatly that the $5402 was not negotiable.

HBH

aypues

Wow, he really does have good pricing. I'm going to use him once I get my LS in a few weeks.

jstjohnz

Well that's his choice I suppose. Another factor is I believe there is no sales tax on the warranty if purchased out of state.

aypues

Who cares what your dealer is quoting. This is like buying Tide laundry detergent. It is identical from retailer to retailer. Just make sure you're not getting a knock off warranty. Just call around to whomever has the lowest price for the plan you want and do it!