Eagleboy99

Better buy some Powerball tickets man! Up here there are even insurance companies that sell nothing but glass insurance since the big guys won't touch it.

Deeps1

it very well do be. Its true for Canada.

https://www.lexus.ca/lexus/en/know-y...are-protection
infact my previous Toyota had similar coverage and used the oil changes.

GrapeVineyard

Hello,
I am in the process of purchasing a 2024 Lexus RX 350 Luxury. The vehicle should arrive the end of the month, I'm debating on getting an extended warranty or not. Of course, it'll depend on the price. The only reason I may consider it is because of all the electronics involved.
The dealer sells the Zurich extended warranty. I don't have the details yet.

Does anyone know how the Lexus extended warranty compares to Zurich? Once I receive the dealers price, I'll compare it to the Lexus extended warranty and price.

FYI...I usually keep my vehicles for about 8 years.

Please advise. Thank you for your feedback.

Eagleboy99

IME aftermarket warranties are nowhere near as good as OEM. My Lexus has four years and I can buy another 4 at the end of the factory warranty for a few hundred dollars upcharge. I figure I will wait and see. I am hoping Lexus quality means I do not need one.

lexusnyca

Fidelity warranties are generally regarded as the best 3rd party ones.

GrapeVineyard

Hello Eagleboy99,
Thank you for your response. I haven’t ruled out an extended warranty; but, if I do get one I’ll look into the Lexus one and not one from purchase a 3rd party. Although, I’m leaning towards waiting until the Lexus warranty is almost finished and see if it’s needed.

BillUK

Unforunately warranties tend to be needed when you don't have one, and rarely used when you do. It's a gamble either way, and so the risk needs to be calculated on your own feelings about risk avoidance, budgeting, peace of mind, and any possible insights or expectations of a potential future failure.

Eagleboy99

As a general rule, extended warranties are a sucker's bet. Unless you own a Chrysler. Companies would not sell them if they were truly statistically needed: they'd lose money.

dklanecky1

Kind of like going to Las Vegas Casinos!

budwom

I buy Lexus expressly to avoid the need for extended warranties. In fact for my 2013 RX I never used the original warranty at all, and the car has never required a non scheduled repair.

jer

I would definitely hold out until the original warranty is almost up. I believe if you buy it when you purchase your vehicle, if you sell it before the original warranty, they will still somehow pro-rate it and you won't get it all back. Also, you may find (as I did) that if it is trouble-free after 4 years you may want to just take a chance and bank the money needed for the extended warranty.

BillUK

Perhaps, but one could say that for virtually any kind of insurance, and most people take out some kind of insurance to mitigate against future risk.

People buy them for a variety of reasons other than value for money, such as peace of mind, convenience, or knowing that they wouldn't be able to afford the costs if they were hit with a massive repair bill. The financial model for these things is along the same principle as breakdown cover, home, or car insurance, in that there'll be a few winners and a majority of losers, so that the profit lies with the insurer/warranty provider.

My view is that, like any form of gambling, unlike the bookie/insurer, you can choose whether to play or not. As such, you take into account form, such as the age of the car, known failures for that make/model, known potential issues with your own car, and weigh up the odds of a problem against the financial impact of having to pay a lerge repaire bill, compared to the affordability of the cover. In other words, you balance the fact that the odds aren't in your favour against the effect of things going the other way.

For a newer car, with a good reliability record, such as Lexus/Toyota, it's probably not worth it in pure financial terms. For an older car, where the cost of repairing/replacing expensive components might not be financially viable, then for some it's worth considering at the right price.

I'd agree though, that blindly buying an extended warranty is a suckers bet, but that there are also certain circumstances where it's worth considering.

Eagleboy99

Just remember, the house always wins.

budwom

Many forms of insurance are regulated (e.g. home policies by states)...just be aware that, by insurance standards, the margins for companies selling extended warranties are ridiculously high, so I wouldn't put auto extended warranties in the same bucket as insurance in general.

mikemu30

Check with your auto carrier to see if they offer mechanical repair coverage. Mine does for a pretty tiny incremental cost. Extended waaranties typically generate gpms north of 90%. No wonder they push them so hard.