Lexus adds service agreements to certified used program
05-11-06, 04:30 AM
#1
G35x - RWD/AWD goodness
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Lexus adds service agreements to certified used program
Lexus plans to offer service agreements to owners of its certified used vehicles that could broaden warranty coverage.
Marv Ingram, national fleet manager of Lexus' certified program, says the division and its captive finance company are developing "four or five" service agreements. They will enable buyers to add time and mileage coverage to certified warranties, he says.
Ingram says the new agreements are likely to be introduced in October.
Certified Lexus cars and trucks are covered by a 3-year/100,000-mile warranty that extends from when the vehicle was sold as new. The certified program allows buyers to extend coverage to five years for an additional charge.
Ingram says Lexus dealers asked for the new service agreements. They say the modifications will enable dealers to align warranty coverage with customers' driving habits, Ingram told Automotive News.
Other automakers offer protection plans to buyers of certified used vehicles. General Motors' GM Certified vehicles have a 3-month/3,000-mile warranty that takes effect after the new-vehicle warranty expires. Certified-vehicle customers can buy protection that covers the powertrain for as much as 3 years or 75,000 miles.
GM Certified manager Paul Pejza says the company believes in giving customers a choice of how much coverage they want to buy.
"Our average (certified) vehicles are around two years old with 27,000 miles on them," Pejza says.
"We don't like using a cookie-cutter approach and charging every customer an additional $500 to $1,000. We give the customer the option."
Tony Pez, used-car manager at Meade Lexus of Lakeside in Utica, Mich., says he welcomes the new service agreements. "There is no downside," he says.
Lexus sold 3,970 certified used vehicles in April, a 7.1 percent decline from the year-ago month. From January through April, it sold 13,996 certified vehicles, 6.4 percent fewer than it sold in the same period of 2005.
Source: http://www.autoweek.com/apps/pbcs.dl.../60508013/1041
Marv Ingram, national fleet manager of Lexus' certified program, says the division and its captive finance company are developing "four or five" service agreements. They will enable buyers to add time and mileage coverage to certified warranties, he says.
Ingram says the new agreements are likely to be introduced in October.
Certified Lexus cars and trucks are covered by a 3-year/100,000-mile warranty that extends from when the vehicle was sold as new. The certified program allows buyers to extend coverage to five years for an additional charge.
Ingram says Lexus dealers asked for the new service agreements. They say the modifications will enable dealers to align warranty coverage with customers' driving habits, Ingram told Automotive News.
Other automakers offer protection plans to buyers of certified used vehicles. General Motors' GM Certified vehicles have a 3-month/3,000-mile warranty that takes effect after the new-vehicle warranty expires. Certified-vehicle customers can buy protection that covers the powertrain for as much as 3 years or 75,000 miles.
GM Certified manager Paul Pejza says the company believes in giving customers a choice of how much coverage they want to buy.
"Our average (certified) vehicles are around two years old with 27,000 miles on them," Pejza says.
"We don't like using a cookie-cutter approach and charging every customer an additional $500 to $1,000. We give the customer the option."
Tony Pez, used-car manager at Meade Lexus of Lakeside in Utica, Mich., says he welcomes the new service agreements. "There is no downside," he says.
Lexus sold 3,970 certified used vehicles in April, a 7.1 percent decline from the year-ago month. From January through April, it sold 13,996 certified vehicles, 6.4 percent fewer than it sold in the same period of 2005.
Source: http://www.autoweek.com/apps/pbcs.dl.../60508013/1041
05-11-06, 08:44 AM
#2
i thnk that's a good idea, especially since for new lexus you can get 7yr/100k warranty anyway. it's just a way to give more peace of mind to buyers, and they are paying for it anyway. if lexus is confident in their quality and the cpo program, it should be cool 
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