Originally Posted by Chuckinnj

Mr Frog is 100% correct if you want to go the indy/after market route but most owners want to stay with Lexus parts and factory trained techs which are not needed for some repairs like suspension components. HOWEVER...... When you get into the electronic control repairs (that must be done at a dealer) the repairs can get very costly exceeding the cost of the contract, I must admit the LS is very reliable and that these repairs are rare but "Hey! ***** Happens"

I have purchased FACTORY warranties for my:
Volvo 850 Turbo Wagon used it for 2 AC replacements and trans replacement.......Huge WIN.
SRT Charger and never used it..... Out $2000
Nissan 300Z used it on several occasions for suspension module and several "minor problems"........ WIN
Nissan Maxima used it for a AC compressor and alternator....... Broke even
Lexus ES used it for a power window motor....... Out $1500
Lexus LS......... Too early to tell BUT I sleep well at night.
At the end of the day I have lost money on buying these contracts.

These contracts are a gamble and most of the time you are paying more for the contract VS. out of pocket repairs.
Feeling Lucky?..... Don't buy them. Wanna sleep at night?....... Buy it!
Dealers make a big profit from selling these contracts and the prices are well calculated in the underwriters favor. These contracts are negotiable and can be "lumped into" the financed price so chisel away at the F&I guy.