Extended Warranty Help
03-16-13, 06:35 PM
#32
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I needed to update this thread for myself. I am trying to decide if I will purchase an extended warranty for my 2012 RX-350-awd, and our 2012 IS-250. My RX was built in Japan,but so was my 2007 Honda CR-V,and I had some out of pocket after warranty expired repairs. I have all the bells and whistles on the RX,and on a 2012 IS-250-awd that I bought my Wife two weeks ago.
Do I use Troy at Lexus or Midwest Toyota?(my local dealer is way too high).
If I buy two Lexus extended warranties at the same time, maybe my discount will be better.
Do I use Troy at Lexus or Midwest Toyota?(my local dealer is way too high).
If I buy two Lexus extended warranties at the same time, maybe my discount will be better.
03-17-13, 09:15 AM
#33
It is incredible how your local dealer will not work with you on price, vs. an online ext. warranty seller. I could understand if you did not buy the car from the dealer, but after you buy a car, one would think they would be more flexible in satisfying the customer, even if it means less profit on a given item. But, car dealerships are small businesses, they all have different ideas on what customer care is. They must hate internet re sellers, for items like ext. warranties and parts. Not knocking dealers though, its a tough economy, everyone trying to survive.
You raise a valid point regarding ext. warranty. OPTIONS! My 13 had $17k in options, and dealer installed options... this is nearly 50% of the base price. The ext. warranty prices are the SAME, regardless of options on the vehicle... prob. a slight oversight by Lexus.... prob. a result of such a tiny % of the RX's having such heavy options, due to long wait time for custom build. Many of the comments you are hearing, may not be from owners who had all these options installed. It only takes one or two of these options to fail for your warranty to more than pay for itself... while an option might be only $1500, try replacing that item 5 years from now... it can easily be $3k as the labor to get to the part can be difficult...then, the cost of the part, as a replacement items, vs. newly installed on a newly built car, well, it can be 2x. There was an article written years ago about the cost of replacement parts for a $30k car.... parts alone were something like $100k. IMO, with enough options, and the relatively low cost of the Lexus factory warranty (specially the discounted prices listed), I would think its a no-brainer. Specially considering the added value it brings for re sale, if you decide to sell it before warranty expires..it makes a private sale, as comfortable for the buyer, as a CPO sale. You can be assured the cost of the ext. warranty would be recovered in the added sales price, assuming you sell privately. Or as mentioned, pro rated refund, which prob. doesn't make sense, as the value of the ext. warranty is at the end.
I view ext. warranties as "fixed repair costs for x miles, and x years." In the case of my RX, if I can drive it for 100k miles, and repairs cost me a guaranteed $2k for 8 years, I consider that a good value, and great piece of mind. $2k = 3.5% of the price of my car. To use anything for 8 yrs, nearly every day, and be assured only 3.5% in repair cost is very impressive in my mind.
In addition, I hate haggling with service dept. about price of repairs.... it falls under the "what the market will bear" once the cars factory warranty has expired. At >$100 an hour for labor, and it rising every year, expect repairs in 5 yrs to be nearly double :-).
I find it interesting how the price from 100k miles to 125k miles is the only huge price jump in the ext. warranty. higher end miles = more problems, the pricing clearly reflects this. So even Lexus's actuaries have caught on to the fact these cars do HAVE repairs, from experience.
You raise a valid point regarding ext. warranty. OPTIONS! My 13 had $17k in options, and dealer installed options... this is nearly 50% of the base price. The ext. warranty prices are the SAME, regardless of options on the vehicle... prob. a slight oversight by Lexus.... prob. a result of such a tiny % of the RX's having such heavy options, due to long wait time for custom build. Many of the comments you are hearing, may not be from owners who had all these options installed. It only takes one or two of these options to fail for your warranty to more than pay for itself... while an option might be only $1500, try replacing that item 5 years from now... it can easily be $3k as the labor to get to the part can be difficult...then, the cost of the part, as a replacement items, vs. newly installed on a newly built car, well, it can be 2x. There was an article written years ago about the cost of replacement parts for a $30k car.... parts alone were something like $100k. IMO, with enough options, and the relatively low cost of the Lexus factory warranty (specially the discounted prices listed), I would think its a no-brainer. Specially considering the added value it brings for re sale, if you decide to sell it before warranty expires..it makes a private sale, as comfortable for the buyer, as a CPO sale. You can be assured the cost of the ext. warranty would be recovered in the added sales price, assuming you sell privately. Or as mentioned, pro rated refund, which prob. doesn't make sense, as the value of the ext. warranty is at the end.
I view ext. warranties as "fixed repair costs for x miles, and x years." In the case of my RX, if I can drive it for 100k miles, and repairs cost me a guaranteed $2k for 8 years, I consider that a good value, and great piece of mind. $2k = 3.5% of the price of my car. To use anything for 8 yrs, nearly every day, and be assured only 3.5% in repair cost is very impressive in my mind.
In addition, I hate haggling with service dept. about price of repairs.... it falls under the "what the market will bear" once the cars factory warranty has expired. At >$100 an hour for labor, and it rising every year, expect repairs in 5 yrs to be nearly double :-).
I find it interesting how the price from 100k miles to 125k miles is the only huge price jump in the ext. warranty. higher end miles = more problems, the pricing clearly reflects this. So even Lexus's actuaries have caught on to the fact these cars do HAVE repairs, from experience.
03-17-13, 10:59 AM
#34
Racer
Dolphin, agree with your comments. I too am one of those that generally has "fully loaded" (or near to it) special ordered vehicles, so the way extended warranties are priced without that consideration, it can be a better deal for me than perhaps a majority.
With my last two purchases, it has really helped taking printed internet quotes for extended warranties with me when it comes time to closing with the infamous finance manager... I ask for the best price, and if I get something that is crazy high, I whip out the quote I have -- and then lots of studdering occurs. This last time for example, my dealer price matched when that happened, which after lots of back and forth consulting between themselves and their reference materials, they claimed to me was exactly their cost. What I found is that the price "the two internet guys" that are continually referenced here at least quoted me, appears to be rock bottom within a few bucks of one another.. As was discussed in another thread a while back, it all comes down to how a dealer wants to make their profit... On the extremes: "more" on each of a lower number of transactions, or "less" on each of a higher number of deals they close. Most consumers of course would prefer to buy from dealers wanting less margin on each deal, or for me, at least something in-between the two extremes that allows me to walk away feeling good about my deal at the end of the day, without a bunch of haggling. I know some folks on this forum enjoy the negotiation, and some may pay less than me in the end for their trouble. Good for them. I'm not rich and don't have money to throw away, but I also don't want to haggle or play games. I make that well known in my first interaction with the sales person that we need to be fair with each other, I know they need to make a profit, I am well informed and not afraid to use the internet, but I will just walk away if I don't get something that feels OK for me in our first round of negotiation. That approach has personally served me well. I'm also fortunate having lived in major metropolitan areas the past 15+ years, where there are several dealers within an hour drive from my home -- and the dealers know they have competition.
Like you, I also like the "repairs are budgeted" approach an Extended Warranty offers, especially given Lexus treats customers with the platinum zero-deductible version, practically as if the standard warranty just lasted for the full 8 years. I really appreciate it's all an odds game if it makes financial sense -- Extended Warranties are just another type of insurance. Some people are comfortable with the risk, others not, and that's fine. My Lexus have all proven to be highly reliable, but as age creeps in, things do happen, and when it does, it's not cheap -- and to your point, the costs keep going up. I keep my rides an average of 5-7 years. All but one of my extended warranties more than paid for themselves by the time I sold my vehicle. I remain happy with having prepaid what will be about 65 cents a day for the piece of mind I'll have no unplanned expenses beyond scheduled maintenance, for as long as I will likely own my RX450h -- and if something does go wrong, I'll be treated as well then as if I had just taken delivery of my new Lexus -- cappuccino, fancy cookies, new loaners and all.
With my last two purchases, it has really helped taking printed internet quotes for extended warranties with me when it comes time to closing with the infamous finance manager... I ask for the best price, and if I get something that is crazy high, I whip out the quote I have -- and then lots of studdering occurs. This last time for example, my dealer price matched when that happened, which after lots of back and forth consulting between themselves and their reference materials, they claimed to me was exactly their cost. What I found is that the price "the two internet guys" that are continually referenced here at least quoted me, appears to be rock bottom within a few bucks of one another.. As was discussed in another thread a while back, it all comes down to how a dealer wants to make their profit... On the extremes: "more" on each of a lower number of transactions, or "less" on each of a higher number of deals they close. Most consumers of course would prefer to buy from dealers wanting less margin on each deal, or for me, at least something in-between the two extremes that allows me to walk away feeling good about my deal at the end of the day, without a bunch of haggling. I know some folks on this forum enjoy the negotiation, and some may pay less than me in the end for their trouble. Good for them. I'm not rich and don't have money to throw away, but I also don't want to haggle or play games. I make that well known in my first interaction with the sales person that we need to be fair with each other, I know they need to make a profit, I am well informed and not afraid to use the internet, but I will just walk away if I don't get something that feels OK for me in our first round of negotiation. That approach has personally served me well. I'm also fortunate having lived in major metropolitan areas the past 15+ years, where there are several dealers within an hour drive from my home -- and the dealers know they have competition.
Like you, I also like the "repairs are budgeted" approach an Extended Warranty offers, especially given Lexus treats customers with the platinum zero-deductible version, practically as if the standard warranty just lasted for the full 8 years. I really appreciate it's all an odds game if it makes financial sense -- Extended Warranties are just another type of insurance. Some people are comfortable with the risk, others not, and that's fine. My Lexus have all proven to be highly reliable, but as age creeps in, things do happen, and when it does, it's not cheap -- and to your point, the costs keep going up. I keep my rides an average of 5-7 years. All but one of my extended warranties more than paid for themselves by the time I sold my vehicle. I remain happy with having prepaid what will be about 65 cents a day for the piece of mind I'll have no unplanned expenses beyond scheduled maintenance, for as long as I will likely own my RX450h -- and if something does go wrong, I'll be treated as well then as if I had just taken delivery of my new Lexus -- cappuccino, fancy cookies, new loaners and all.
03-17-13, 12:02 PM
#35
Warranty
I bought a new 2007 RX350. And a few months before my factory warranty expired. I bought a 2 year Lexus extension from Jerry for 600 dollars. I find it to be cheap insurance as it is only 82 cents a day.
My RX was only in the shop twice besides service and the oil line recall. The XM receiver died. And I had a driver’s side pillar airbag light come on. Which was almost 3.000 dollars’ worth of repairs.
So for me it was worth it.
My RX was only in the shop twice besides service and the oil line recall. The XM receiver died. And I had a driver’s side pillar airbag light come on. Which was almost 3.000 dollars’ worth of repairs.
So for me it was worth it.
03-18-13, 08:48 AM
#36
I second Jerry at Midwest Toyota. He was by far the cheapest quote I got on my 2013 and it was painless working with him. It was all handled via email and he needed very little info from me to process the paperwork. I got updates and everything was delivered to me on time.
03-18-13, 11:48 AM
#37
I bought a 5year/100,000 mile no deductible plan by the company named Route 66, offered at the Pentagon Credit Union for $1295 when I purchased my 2010 RX. It's a bumper to bumper coverage less normal wear items.
03-20-13, 03:09 AM
#40
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