Extended warranty
11-15-13, 02:05 AM
#2
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Location: New York
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Hey Mike. I've bought factory extended warranties for our Lexus ES 350 and our Toyota Sienna from Jerry Johnson. Great service and price, less than half of what the local dealer wanted to charge.
Jerry Johnson
Warranty Manager
Midwest Toyota
Midwest Ford
Midwest Superstore
1100 east 30th
Hutchinson, Ks 67502
Phone 800-530-5789
Cell 620-664-8844
Email jerryj@midwestsuperstore.com
Good luck, Tom
Jerry Johnson
Warranty Manager
Midwest Toyota
Midwest Ford
Midwest Superstore
1100 east 30th
Hutchinson, Ks 67502
Phone 800-530-5789
Cell 620-664-8844
Email jerryj@midwestsuperstore.com
Good luck, Tom
Last edited by Tpcorr; 11-18-13 at 06:44 AM.
11-15-13, 06:03 AM
#3
Yes, the prices are negotiable.
11-15-13, 06:05 AM
#4
Lexus Champion
Hey Mike. I've bought factory extended warranties for our Lexus ES 350 and our Toyota Sienna form Jerry Johnson. Great service and price, less than half of what the local dealer wanted to charge.
Jerry Johnson
Warranty Manager
Midwest Toyota
Midwest Ford
Midwest Superstore
1100 east 30th
Hutchinson, Ks 67502
Phone 800-530-5789
Cell 620-664-8844
Email jerryj@midwestsuperstore.com
Good luck, Tom
Jerry Johnson
Warranty Manager
Midwest Toyota
Midwest Ford
Midwest Superstore
1100 east 30th
Hutchinson, Ks 67502
Phone 800-530-5789
Cell 620-664-8844
Email jerryj@midwestsuperstore.com
Good luck, Tom
11-15-13, 03:31 PM
#5
Driver School Candidate
Join Date: Oct 2013
Location: CA
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11-15-13, 04:22 PM
#7
Lexus Champion
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11-15-13, 06:12 PM
#8
Prices are negotiable in some States, and in others not. I live in Florida and prices are regulated and non-negotiable.
I have bought a couple of warranties from Jerry Johnson in the past and he saved me a lot of money.
If you have insurance with Geico, you can get a great warranty for about $10 a month for up to 6 years, so it is a fraction of the cost of a typical warranty It covers pretty much everything. The only drawback is that there is a $250 deductible per occurrence.
I have bought a couple of warranties from Jerry Johnson in the past and he saved me a lot of money.
If you have insurance with Geico, you can get a great warranty for about $10 a month for up to 6 years, so it is a fraction of the cost of a typical warranty It covers pretty much everything. The only drawback is that there is a $250 deductible per occurrence.
11-16-13, 12:42 AM
#9
Lexus Champion
The geico warranty sounds like a good deal, even with the 250 deductible. Even at 6 years or 72 months, that comes to only 720. The extended warranty they tried to sell me, albeit a Lexus backed, was more than twice that. But not having Geico, I may consider the extended warranty if even for 1200 if Jerry sells it at that price.
11-16-13, 06:19 AM
#10
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I called Jerry before I purchased my car and got the price on a 6yr/125K. When sitting in the finance office they gave me their price. I said "No thanks, I can get a better price" and then they asked the price and changed it on the spot, no questions asked or validation.
My plan was to go with Jerry but they did everything right there for me. I guess it all depends on who is doing the paperwork but I would call Jerry regardless.
My plan was to go with Jerry but they did everything right there for me. I guess it all depends on who is doing the paperwork but I would call Jerry regardless.
11-16-13, 07:08 AM
#11
Lead Lap
It really is wise to be very careful when considering purchasing an extended warranty. Whether it be an extended warranty from the manufacturer or from a third party, extended warranties have profit margins that are among the highest levels of any product that you can buy for a vehicle. For several years, I brokered cars, and I sold extended warranties with the cars that I brokered. I would typically sell an extended warranty for 20-25% of what the suggested and advertised price for those warranties was, and I was still able to make a modest profit on each warranty that I sold. The insanely high mark up on these products is the reason why the prices are so highly negotiable.
It is also important to carefully check to see just what the warranty covers. When you look at the list of parts and repairs that are covered, it typically looks, at first glance, as if the warranty has very complete coverage. But, unless you are very familiar with the parts in a car, you are unlikely to notice what is not covered. Thus, for example, while some parts for a transmission repair might be covered, others won't, and the warranty might well end up covering only a fraction of the cost of a major transmission repair.
Further, you need to look very closely at the length of the coverage. Typically, the time and mileage covered starts from the day and mileage when the vehicle was first put into service. Thus, typically, a 7 year and 100,000 mile extended warranty is not for 7 years and 100,000 miles after the manufacturers warranty ends, but, instead, it runs out when the vehicle is either 7 years old or has 100,000 total miles on it. Considering that the Lexus factory bumper-to-bumper warranty is 4 years and 50,000 miles and that the power train warranty of 6 years and 70,000 miles covers the bulk of most potentially very expensive repairs that are likely to be needed, the typical extended warranty doesn't add that much additional protection for the vehicle owner.
While you are likely to hear from the relatively small number of extended warranty buyers who came out ahead during the term of the extended warranty that they bought, the majority of those who buy extended warranties are not going to come close to recovering the money that they spent on those warranties. It just makes sense. Extended warranties are offered to customers as a profit maker and not as a benefit for the customer. And, even if they are heavily discounted, the profit is still likely to be very large.
It is also important to carefully check to see just what the warranty covers. When you look at the list of parts and repairs that are covered, it typically looks, at first glance, as if the warranty has very complete coverage. But, unless you are very familiar with the parts in a car, you are unlikely to notice what is not covered. Thus, for example, while some parts for a transmission repair might be covered, others won't, and the warranty might well end up covering only a fraction of the cost of a major transmission repair.
Further, you need to look very closely at the length of the coverage. Typically, the time and mileage covered starts from the day and mileage when the vehicle was first put into service. Thus, typically, a 7 year and 100,000 mile extended warranty is not for 7 years and 100,000 miles after the manufacturers warranty ends, but, instead, it runs out when the vehicle is either 7 years old or has 100,000 total miles on it. Considering that the Lexus factory bumper-to-bumper warranty is 4 years and 50,000 miles and that the power train warranty of 6 years and 70,000 miles covers the bulk of most potentially very expensive repairs that are likely to be needed, the typical extended warranty doesn't add that much additional protection for the vehicle owner.
While you are likely to hear from the relatively small number of extended warranty buyers who came out ahead during the term of the extended warranty that they bought, the majority of those who buy extended warranties are not going to come close to recovering the money that they spent on those warranties. It just makes sense. Extended warranties are offered to customers as a profit maker and not as a benefit for the customer. And, even if they are heavily discounted, the profit is still likely to be very large.
11-16-13, 08:00 AM
#12
Lexus Test Driver
It really is wise to be very careful when considering purchasing an extended warranty. Whether it be an extended warranty from the manufacturer or from a third party, extended warranties have profit margins that are among the highest levels of any product that you can buy for a vehicle. For several years, I brokered cars, and I sold extended warranties with the cars that I brokered. I would typically sell an extended warranty for 20-25% of what the suggested and advertised price for those warranties was, and I was still able to make a modest profit on each warranty that I sold. The insanely high mark up on these products is the reason why the prices are so highly negotiable.
It is also important to carefully check to see just what the warranty covers. When you look at the list of parts and repairs that are covered, it typically looks, at first glance, as if the warranty has very complete coverage. But, unless you are very familiar with the parts in a car, you are unlikely to notice what is not covered. Thus, for example, while some parts for a transmission repair might be covered, others won't, and the warranty might well end up covering only a fraction of the cost of a major transmission repair.
Further, you need to look very closely at the length of the coverage. Typically, the time and mileage covered starts from the day and mileage when the vehicle was first put into service. Thus, typically, a 7 year and 100,000 mile extended warranty is not for 7 years and 100,000 miles after the manufacturers warranty ends, but, instead, it runs out when the vehicle is either 7 years old or has 100,000 total miles on it. Considering that the Lexus factory bumper-to-bumper warranty is 4 years and 50,000 miles and that the power train warranty of 6 years and 70,000 miles covers the bulk of most potentially very expensive repairs that are likely to be needed, the typical extended warranty doesn't add that much additional protection for the vehicle owner.
While you are likely to hear from the relatively small number of extended warranty buyers who came out ahead during the term of the extended warranty that they bought, the majority of those who buy extended warranties are not going to come close to recovering the money that they spent on those warranties. It just makes sense. Extended warranties are offered to customers as a profit maker and not as a benefit for the customer. And, even if they are heavily discounted, the profit is still likely to be very large.
It is also important to carefully check to see just what the warranty covers. When you look at the list of parts and repairs that are covered, it typically looks, at first glance, as if the warranty has very complete coverage. But, unless you are very familiar with the parts in a car, you are unlikely to notice what is not covered. Thus, for example, while some parts for a transmission repair might be covered, others won't, and the warranty might well end up covering only a fraction of the cost of a major transmission repair.
Further, you need to look very closely at the length of the coverage. Typically, the time and mileage covered starts from the day and mileage when the vehicle was first put into service. Thus, typically, a 7 year and 100,000 mile extended warranty is not for 7 years and 100,000 miles after the manufacturers warranty ends, but, instead, it runs out when the vehicle is either 7 years old or has 100,000 total miles on it. Considering that the Lexus factory bumper-to-bumper warranty is 4 years and 50,000 miles and that the power train warranty of 6 years and 70,000 miles covers the bulk of most potentially very expensive repairs that are likely to be needed, the typical extended warranty doesn't add that much additional protection for the vehicle owner.
While you are likely to hear from the relatively small number of extended warranty buyers who came out ahead during the term of the extended warranty that they bought, the majority of those who buy extended warranties are not going to come close to recovering the money that they spent on those warranties. It just makes sense. Extended warranties are offered to customers as a profit maker and not as a benefit for the customer. And, even if they are heavily discounted, the profit is still likely to be very large.
11-16-13, 08:41 AM
#13
Lexus Champion
I've never purchased an extended warranty and probably never will. But I can see if someone really wants the peace of mind it pays to shop around and at least the best price possible for a reputable warranty.
11-16-13, 09:39 AM
#14
Lead Lap
My suggestion to those who want peace of mind, has always been to take the money that they otherwise would have used to buy an extended warranty and put it in the bank. By the time they need to pay for an expensive repair 5 or 6 or 7 years down the road when their factory warranty has expired, the money that was put in the bank and the interest that it has earned will, in the vast majority of cases, be sufficient to cover the cost of the repair and still have a reserve left. In the more likely case that they don't have an expensive repair, the money in the bank is already there for their emergency repair fund for their next vehicle.
My thinking has always been that it makes sense to buy insurance or extended warranties to protect against potential catastrophic loss. I insure my home because, if it burned to the ground, having to pay hundreds of thousands of dollars out of my pocket to rebuild it would be a catastrophic loss. I buy auto insurance because being sued by someone for a million dollars as the result of an accident could result in a catastrophic loss. On the other hand, if I have to pay $1500 for an auto repair or if I have to buy a new TV or refrigerator or have an expensive repair bill and have to pay for it out of my pocket, even though I'm not going to be happy about paying, in the big picture, that loss is going to be insignificant and far from catastrophic. If I had bought extended warranties on every appliance, TV, computer, etc. that I've bought in the last 25 years, I'm sure that I would have easily spent enough money on those extended warranties to replace every appliance, TV, computer, etc. in the house at least a couple of times over.
When I was brokering cars, I eventually stopped even offering extended warranties to my customers because I could not accept selling them something that, even with the heavy discounts that I had been offering, I believed was not a wise purchase decision.
Last edited by lesz; 11-16-13 at 11:59 AM.