aw001

Hello!

I would like to pose questions or do a poll on this... What does all the veterans out there think? On one side, we get lexus for its perceived reliability, but then again, moving parts breaks down. To get, or not to get? Any answers hopefully comes with points to reinforce that decision.

By the way, edmunds and consumer reports interestingly suggested to forego extended warranties and save the money for potential repair...

If this had been dealt with and agreed upon in the past, apologies for the re-post.

sktn77a

iTrader: (2)

Most consumer groups say not to get the warranty, especially on a reliable car like a Lexus. But, like you say, parts do break down occasionally. I bought a 3/36 Lexus Platinum warranty when I got my car, just in case the control arm bushings crapped out on me. They didn't but I did get a water pump and wheel bearing replaced ($1500). The warranty is about to expire. I paid $3000 for it and got $1500 back plus some peace of mind.

roadfrog

Oh geez.....here we go again......

I'll start off by saying that, not only do Edmunds and Consumer Reports advise against aftermarket warranties (which of course are not actually warranties), but every consumer publication and advice column recommends against them. There was a study done (don't ask me to post it), where something around 85% of purchased warranties do NOT pay themselves back.

Ever wonder why a car dealership spends more time trying to sell you a warranty than they do the car your're buying? Because they make a lot of money on your bet. The house always wins.

I've purchased warranties twice in my early car ownership days. Both times I got screwed. In the case of my LS, I would have lost tons of money on the warranty they tried to sell me. I think the only time where I MAY have come ahead is on my previous BMW 7 series, but no warranty company in their right mind would cover one.

As others have suggested here in similar threads, put an equivalent amount you would have spent on a warranty into a savings plan. Then, IF needed, draw from it to cover any expenses on your car. I would bet a hefty sum, that at the end of the equivalent time of warranty coverage, you'll have enough money leftover to take your significant other on a nice little getaway.

Wandl

I was at Park Place Lexus yesterday here in Dallas looking at a LX with my wife. Talked to my service advisor, and the salesperson. Both actually said if I considered a newer LS (mine is a 2010 with 110k miles) the VSA isn't something they would push me towards....yes it is available (mainly for peace of mind), however the repair and failure rates for 2013+ LS' have been very low. Lexus didn't completely redesign the 2013 LS, and because of that, they're using a lot of the same reliable engineered components as they did in the previous generation, so not a lot of experimental engineering. The SA said most of the complaints was the mouse-tool-usage thing which isn't a factory defect, rather a design issue. He also has not heard of a single air suspension failure for the 2013+ LS; though I caveat by stating it hasn't been out long enough yet.

Anyway all this to say is is purely up to you; assuming you're within the 4/50k Lexus warranty, a VSA for 8yr/125k Platinum is ~$3600 (from Troy Dietrich) and if that's worth the peace of mind, go for it. But short of a catastrophic failure, I don't know if a 2014 LS would accumulate that much in repairs.

Purely just me and my opinion obviously.

roadfrog

Wandl, you make a good point which I neglected to reference, and that is "peace of mind". If you sleep better at night knowing that if anything goes wrong, you have a good chance of being covered, especially a Lexus CPO warranty, then that's fair. I'm just not worried about a catastrophic failure. They just don't happen on an LS. Do I have house insurance? Yep. Do I have car insurance? Sure. Because they protect against CATASTROPHIC financial hardships/injury etc. But having a "warranty" for repair of a water pump or control arms? Nah. If you deal ONLY with dealerships, then perhaps a warranty might pay itself....though not likely. The dealership is betting against you, that alone should send alarm bells..

shinbob

This is something that only you can decide.

Yes, if you look at the overall picture, then extended warranties are not a good deal. The warranty companies indeed make quite a bit of money, and they do this by taking in more in premiums than they pay out in settlements. If you had a fleet of 10 LSs, then of course you'd never get the warranty, it would always be better to self-insure.

And as many on this board have pointed out, if something does break (stuff happens, even with Lexus), then you could probably shop around a few indy mechanics, buy parts online, and get it fixed for a lot less than the dealership would charge.

What you pay for in getting an extended warranty is the peace of mind that most repairs will be covered, and comfort in knowing that all you'd have to do is to take it into the dealership and get all the benefits that they offer (excellent service, nice loaners, etc...). I'm assuming a Lexus warranty here...

And sometimes it does actually pay off. I just had a series of things go wrong on my LS, to the tune of $8000, and it was all covered under my extended CPO warranty. Well worth the $1800 that I spent on it! While the LSs are reliable, parts and repairs can be quite expensive for those things that do go wrong.

I never, ever get extended warranties for any household/consumer goods (electronics, etc...), but do definitely like them for pre-owned cars. If my TV or laptop breaks, then I'll just buy a new one that will have updated technology anyway. But if I suffer a transmission or engine or NAV system failure without a warranty, then I'm in trouble.

aw001

I guess the questions i should ask myself are;

1)Do you feel lucky today? Or next year, or next 10 years...
2)What is the price of good sleep at night/ peace of mind worth?

I read through other discussions regarding warranties, and they are not without its down sides too;- parts uncovered, hassle or runarounds by dealer/ corporate/ etc...

Btw, i got quotes from toby 5 mins ago and if anyone needs the info, let me know. AWD= level 4 vs base LS 460= level 3, aka more expensive. I think i will bring it to an independent mechanic to have it completely inspected and decide over the weekend. Thanks for the opinions posted!

sktn77a

iTrader: (2)

"Well do ya, punk?"

aw001

LOL!! NICE.

comotiger

For the Lexus Platinum warranty I purchased, Toby's quote was over $2000 cheaper than from my St. Louis dealership, who recommended I buy from Toby! I believe Toby is selling these warranties essentially at cost, with a very small margin. So, if one buys a Lexus warranty without shopping around, the dealer is making a huge profit at purchase, and Lexus foots the bill for repairs anyways. So the dealer is not really betting against anyone, they have already gotten their "commission". However, if one buys from Troy of MA or Toby of LA, their quotes are nearly identical and probably at cost. I think in this case, Lexus is betting against the buyer.

roadfrog

Yes I do Harry. LOL

I'll give you an example of one of the, (many) ways I got screwed by a warranty company. It was on my wife's Ford Taurus she once owned. The warranty specifically stated that the CV joint was covered. So, Ford dealer says, "no problem, pick up the car tomorrow". Hours later, the dealer calls. "Sorry...warranty co. won't cover the work until metallurgical testing is done on the affected part". In short, the repair would not be covered until we paid for a metal test to determine that the part "FAILED" and didn't merely "WEAR out". If the test determined failure, then the repair would be covered and the metal test paid for as well. BUT if the test determined wear, then the coverage would not be authorized and the test (and the labour etc to remove and test the part) would be on my hook. I could go on, but that one sticks out as the main reason why I would not consider (especially on an LS), an aftermarket warranty. There are SO many loopholes that these contracts afford the warranty company and stack against you. here's a stat from Consumer Reports:

• 55% of people who bought an extended warranty never used it.
• Of the 45% who did use it, on average, they spent more on the warranty than it paid for repairs.

comotiger

Roadfrog, I agree, for 3rd party warranties, caveat emptor.

I have had a few repairs done under Lexus CPO or new car warranty - a very painless process and no nickel-and-diming. I am hopeful my Platinum VSA will offer a similar experience when I need help.

roadfrog

At the end of the day, will the warranty cost be more than the repairs? That's the real bet. According to CR, the answer is almost 100% that it will. But again... the "anecdotal" stories will tell you otherwise.

roadfrog

I agree. I've never been screwed by a "true" warranty - factory. I would only assume a Lexus CPO would be equally legit. But service policies are not warranties, even if we call them warranties. Warranties aren't out to make money and business. Service policies are. Warranties and guarantees are included in an items purchase at no charge and backed by the company that produced the item.

Doublebase

It's a matter of personal choice, personally I'd never even consider it, but then again I work in the trade and I have that advantage. But when you're talking about a 2014 LS460? I mean these cars have been refined through the life of this model, I have an 07 and I hardly have any problems, I imagine a 2014 would be even less. Even if the thing does break, unless you have to take it to the dealer you should be fine.