Certified- Extra warranty come-ons?
11-26-06, 11:24 AM
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Certified- Extra warranty come-ons?
I just bought a used RX330 yesterday from a dealer and have to tell him tomorrow what options I want. The extra warranty is 2 yrs beyond the certified 3 yrs/100000 mi. Cost is ~ $2595. Then there is optional "Use it or lose it" guarantee for $295 so if the warranty is never used, the $2595 will be refunded at the end of the period. What have other people done in these circumstances? The car seems in good shape, 32000 mi, one previous owner with good maintenance record.
Also does anyone have Tire and Rim, or VIN Total Loss insurance from the dealer? Remote starter? Are these come-ons, or valuable?
Also does anyone have Tire and Rim, or VIN Total Loss insurance from the dealer? Remote starter? Are these come-ons, or valuable?
11-26-06, 02:45 PM
#2
Out of Warranty
Welcome to CL, Marciabcd! 
What your dealer seems to be offering you is a "prepaid" service account, rather than an extended warranty. You pay for service in advance, and at the end of the warranty period, your balance is refunded. That really doesn't represent any "coverage" at all. If you had, say a transmission failure, $2600 wouldn't begin to cover it. You need full coverage if you decide to pay the additional cost.
What they are offering you doesn't sound like a very good deal - you're giving them a fair chunk of money as a no-interest loan. Wish my bank would do that!
Besides, you don't have to make that decision until your existing warranty is about to expire. Dealers tend to want you to put this cost on your loan, but that's false economy. Don't let them stampede you into a large purchase because they claim you only have hours to make the decision. Take your time and investigate the coverage offered by several "extended warranty" companies. There is no point in having double warranty coverage.
If you are looking for additional warranty coverage, check with a number of "insurance" vendors. This coverage is really an insurance policy and costs vary widely. My Lexus dealer tried to sell me the "Lexus" policy, but the service manager says the aftermarket policies are a little more involved for them to process but offer similar coverage at a considerably lower price.
If the tire and rim insurance covers road hazards (like that available from most tire shops) it should only be about $15/tire. Insuring the factory rims is probably not needed - if you hit a deep pothole hard enough to damage the rim, your comprehensive insurance will probably cover it (check with your carrier). If the stock rim is bent, there is likely suspension damage as well - which should also covered by your existing insurance policy.
A remote starter is completely useless in my part of the country, Texas, but in regions such as yours that get snow and really cold weather, many people have found them helpful, particularly if you have to park your car outside. Check with a couple of aftermarket supplier/installers in your area - usually people selling alarm systems will handle remote start kits. See what kind of costs you are looking at from one of these alternate sources. Not to cast aspersions on your dealer, but it seems like you are getting a fast shuffle to run up your final cost. That's almost pure profit to the dealer. Good Luck!
What your dealer seems to be offering you is a "prepaid" service account, rather than an extended warranty. You pay for service in advance, and at the end of the warranty period, your balance is refunded. That really doesn't represent any "coverage" at all. If you had, say a transmission failure, $2600 wouldn't begin to cover it. You need full coverage if you decide to pay the additional cost.
What they are offering you doesn't sound like a very good deal - you're giving them a fair chunk of money as a no-interest loan. Wish my bank would do that!
Besides, you don't have to make that decision until your existing warranty is about to expire. Dealers tend to want you to put this cost on your loan, but that's false economy. Don't let them stampede you into a large purchase because they claim you only have hours to make the decision. Take your time and investigate the coverage offered by several "extended warranty" companies. There is no point in having double warranty coverage.If you are looking for additional warranty coverage, check with a number of "insurance" vendors. This coverage is really an insurance policy and costs vary widely. My Lexus dealer tried to sell me the "Lexus" policy, but the service manager says the aftermarket policies are a little more involved for them to process but offer similar coverage at a considerably lower price.
If the tire and rim insurance covers road hazards (like that available from most tire shops) it should only be about $15/tire. Insuring the factory rims is probably not needed - if you hit a deep pothole hard enough to damage the rim, your comprehensive insurance will probably cover it (check with your carrier). If the stock rim is bent, there is likely suspension damage as well - which should also covered by your existing insurance policy.
A remote starter is completely useless in my part of the country, Texas, but in regions such as yours that get snow and really cold weather, many people have found them helpful, particularly if you have to park your car outside. Check with a couple of aftermarket supplier/installers in your area - usually people selling alarm systems will handle remote start kits. See what kind of costs you are looking at from one of these alternate sources. Not to cast aspersions on your dealer, but it seems like you are getting a fast shuffle to run up your final cost. That's almost pure profit to the dealer. Good Luck!
Last edited by Lil4X; 11-26-06 at 03:02 PM.
11-26-06, 04:49 PM
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actually, the extra 2 years she is being offered is a "wrap" plan which comes from lexus financial services, they allow you to buy additional coverage to extend the certification beyond the 3 years / 100k miles
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