Extended Warranty
03-20-05, 07:26 AM
#1
Extended Warranty
Just purchased an 01GS430 with 50k miles so the warranty just expired. Anyone get exended warranty from the dealer? What was the term and how long? Or does anyone know a reputable extended warranty company that offers reasonable prices. Thanks
03-20-05, 08:15 AM
#2
Driver
Join Date: May 2001
Location: Missouri
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Options are limited to inclusionary policies
Once the factory warranty expires - you're limited to inclusionary (what's listed is what's covered) policies.
FWIW, I bought an exclusionary policy (bumper to bumper coverage) for 4 years or 100K, $50 deductible from viking warranty for $1,150.
Good luck,
Eric
FWIW, I bought an exclusionary policy (bumper to bumper coverage) for 4 years or 100K, $50 deductible from viking warranty for $1,150.
Good luck,
Eric
03-20-05, 06:49 PM
#5
Racer
Original warranties are factored into the price of the car, so they cannot be valued separately, except as a variable in your purchase decision.
Extended warranties are designed to generate enough profit to pay for their administration (and extra padding, to cover error factors in risk calculations), which means the cost of all warranties (in total) must exceed the anticipated cost of all repairs.
Insurance companies (who provide the extended warranties) know precisely what future repairs are likely to cost because that is their business, and they charge you more than this number because that is how they make money.
Extended warranties cannot pay for themselves in aggregate. They are, by definition and in fact, financial vehicles sold for more than they are worth.
Lexus extended warranties are among the cheapest in the industry, and thus appear to be really good deals. This is only the case because your Lexus is an awesome-super-reliable-feat-of-design-and-manufacturing and as such is not likely to have major problems during the term of the warranty.
Extended warranties are designed to generate enough profit to pay for their administration (and extra padding, to cover error factors in risk calculations), which means the cost of all warranties (in total) must exceed the anticipated cost of all repairs.
Insurance companies (who provide the extended warranties) know precisely what future repairs are likely to cost because that is their business, and they charge you more than this number because that is how they make money.
Extended warranties cannot pay for themselves in aggregate. They are, by definition and in fact, financial vehicles sold for more than they are worth.
Lexus extended warranties are among the cheapest in the industry, and thus appear to be really good deals. This is only the case because your Lexus is an awesome-super-reliable-feat-of-design-and-manufacturing and as such is not likely to have major problems during the term of the warranty.
Last edited by jonathancl; 03-20-05 at 06:52 PM.
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