IS - 3rd Gen (2014-present) Discussion about the 2014+ model IS models

Pre-paid Maintenance plan (15k/20k/25k/30k) for 36mo/12k lease?

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Old 11-28-13, 06:25 PM
  #16  
afdavey
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Originally Posted by alexlude
Fair enough. Thanks for the advice. How about the extended wear and tear during lease that takes care of curbed rims, broken windshield, bigger dings and dents not covered by normal wear and tear?

Orig = 875. Negotiated = 600.

Having an infant , I wanted to get some extra security as well. Thoughts? I picked up but have 60 days to cancel for 100% refund.
Your auto Comprehensive coverage should take care of the windshield if cracked among other items. Just carry a low deductible i.e. $100. - the cost to lower the deductible is not much at all. Comp also takes care of vandalism. With a car like this, be prepared.

If you cannot afford to pay when / if an incident arises - then buy the insurance for that peace of mind. Remember - the odds are in the favor of the insurance company making $$$ and not paying out.
Old 11-28-13, 06:30 PM
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afdavey
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Originally Posted by Bass Mech
Alex don't waste your money!
I've leased many vehicles and the only maintenance my vehicles get at the dealership are warranty repairs and the first free complementary oil change.
I just bought 3 new filters and a filter wrench, a bag of drain plug gaskets.
They will never question you about maintenance and will not ask for proof!
Imagine if a sales guy or dealership brought that up and accused you of not maintaining the car while on lease, how do you think the rest of that sale would go?
If you had read my other posts a while back I said never never never buy anything in the finance office!!!!
Never prepaid maintenance, no sealants, no extended warranties and no gap coverage no paint less debt repair and no anything else I didn't mention! (I usually ask the finance guy if I give him 20 bucks to not ask me any questions and just print out the papers exactly how I agreed with the sales department')
Why go through all that trouble to get the great deal you got just to have them unwind 1900 dollars of it!
Trust me they are not saving you ANY money!

Especially on a leased car!

Would you buy prepaid maintenance or an extended warranty on a rental car? I think not!

Save yourself the money and to the maintenance yourself. Sewell Lexus sold me the filters for 3 bucks each!
When you buy oil look for it at walmart in the 5.5 quart jugs

We are very much on the same page...
When I purchased my car the Finance guy says to me "I know you are not to going buy anything, but it is my job to tell you". He did the whole routine in 5 min and I would initial each line as we moved along.
The BEST Finance guy I have ever dealt with.
Old 06-30-15, 12:04 AM
  #18  
BroSharp
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Originally Posted by Bass Mech
nope i wouldn't do that either!
Bass. Just wanted I say thank you for writing that. I am a newb that that gave me some great perspective and was very informative. I really appreciate it.
Old 06-30-15, 09:18 AM
  #19  
gmanusmc
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Originally Posted by Bass Mech
nope i wouldn't do that either!

now that i am up this morning and nothing better to do on thanksgiving i have prepared a very lengthy post here for you. sorry for the length, but please read it all. this will help you and hundreds of others reading this how to save thousands on buying a new car.

don't you see whats going on here? all this garbage they sell you is dollars in their pocket! what do you think their actual cost is to fix dents when the dent guy shows up on their lot once a week? they can get a dent removed for 35 bucks because they are a dealer and always have repeat business for the dent guy.

wheel repair? they can get one touched up for 50 bucks.

of all the vehicles that come in used how many do you think they spend money doing dent repair on? likely they leave the dent for the next guy and he may not even care! if they have to fix it they can get it done cheap. they will probably throw it in on his deal free to get the sale. they get it fixed if the next buyer even bothers to complain about it.

so you negotiated the price down a little, it's all part of the game. you beat them up over the purchase price of the car and now they try to give you something else they can sell you for more than it's worth..
just take a look at the maintenance, do you really think they are going to nitpick your trade about some curb rash and a couple dings when you go to trade it in?
put yourself in their shoes. they will be looking to sell you another car! so they nitpick and you walk to another dealer! how smart would that be?

(BY THE WAY curb rash is NOT covered under that wheel repair crap! i know because my wife curbs rims and i actually almost bought that coverage on my GS. i asked specifically and they said NO!)

just make the buying experience simple and remember this simple rule! NEVER buy anything from the dealer except the CAR!
if you go against this simple rule you walk out of the dealership and the GSM will breathe a sigh of relief because rather than making nothing on a deal, they eventually won and got the money back you spent all that time negotiating.
you think you got a great deal, but all the while THEY were playing you!
trust me man, the dealerships are full of some of the slickest sales people you will ever meet.

i am in sales myself! i sell insurance, trust me when i tell you i know every trick in the book! and I've almost fallen victim to the sales tactic myself. they are damn good at what they do. they spent a lot of time around a conference table talking about the add-ons that will make them profit and they know just exactly what to sell you and how much profit they can make.

if what you sell has an actual real cost to your dealership why would you be willing negotiate it?

in other words, let's take it's oil changes for example let's say it costs the dealership 30 bucks to change your oil, knowing they get the oil in bulk and the filters for cost.

but they charge $40.00 for the oil change. if a customer were to walk in and get that done. if all you did was oil changes you would not be willing to negotiate the price because your profit is pretty clear.

in your case you need an oil change every 10,000 miles so in 3 years with average driving during a 3 year lease your going to need 3-4 oil changes. The cost to the dealership for 3 changes is about 120 bucks but they offer to sell it to you with maintenance for 1k! they are going to make about 880 bucks off you.
the rest of the visits are just inspections and really cost them nothing but 30 minutes of a techs time. what do you really think they are going to find on a car with less than 36k miles during the lease?

here is where the trick comes into play… if you inflate the perceived value of the maintenence to 1865 bucks it sounds like your really getting a deal.
they play on your heart strings because they know you LOVE the car and want to take care of it. it's your baby!

i copied this right out of your owners manual…
let's break this down to the fundamental LABOR related components..

15,000 miles
❏ Inspect and adjust all fluid levels
❏ Replace Smart Key battery
❏ Reset maintenance reminder light
❏ Rotate tires1
❏ Visually inspect brake pads, calipers and rotors
❏ Check installation of driver’s floor mat
❏ Road-test vehicle
❏ Inspect the following:
___Axle shaft boots
___Ball joints and dust covers
___Body
___Brake lines and hoses
___Engine coolant (see page 69)
___Exhaust pipes and mountings
___Front differential oil (IS 350 AWD)
___Rack-and-pinion assembly
___Rear differential oil
___Steering linkage and boots
___Wiper blades

looking at the above the 15k maintenance is basically an oil change. they can't rotate the tires on a F sport because they are staggered fitment. so this entire list is Moot. they visually inspect a bunch of stuff, so they get it on a lift and while the oil drains they look at a few areas with a flashlight trying to find something wrong so they can get more labor to fix something.
since they are not going to rotate tires, it is very unlikely they actually look at the brake pads, but if they did great! job well done!
i doubt they replace the battery in the key fob!
oh, and don't forget to reset the maintenance indicator! DUH!
total shop labor costs $30.00 (oil change)

20K maintenance
❏ Replace engine oil with 0W-20 oil; replace
oil filter
❏ Replace air conditioner filter
❏ Reset maintenance reminder light
❏ Rotate tires1
❏ Visually inspect brake pads, calipers and rotors
❏ Inspect wiper blades
❏ Check installation of driver’s floor mat
❏ Road-test vehicle

again, another oil change with filter. oh and this one says air condition filter (cabin filter) ok lets assume they replace the 6 dollar filter while the oil drains out. (big deal!)
total cost 30.00

25k maintenance
❏ Inspect and adjust all fluid levels
❏ Reset maintenance reminder light
❏ Rotate tires1
❏ Visually inspect brake pads, calipers and rotors
❏ Inspect wiper blades
❏ Check installation of driver’s floor mat
❏ Road-test vehicle

i think its fair to say we would simply skip this maintenance interval!
they would not have to even put the car up on a lift to perform this one!
total cost, 0

30k maintenance
❏ Replace engine oil with 0W-20 oil; replace oil filter
❏ Reset maintenance reminder light
❏ Rotate tires1
❏ Replace air conditioner filter
❏ Replace brake fluid
❏ Replace engine air filter
❏ Replace Smart Key battery
❏ Visually inspect brake pads, calipers
and rotors
❏ Check installation of driver’s floor mat
❏ Road-test vehicle
❏ Inspect the following:
___Axle shaft boots
___Ball joints and dust covers
___Body
___Brake lines and hoses
___Brake rotor thickness and runout
___Engine coolant (see page 69)
___Exhaust pipes and mountings
___Front differential oil (IS 350 AWD)
___Fuel lines and connections, fuel tank band
and fuel tank vapor vent system hoses
___Fuel tank cap gasket
___Rack-and-pinion assembly
___Rear differential oil
___Steering linkage and boots
___Transfer case for signs of leakage
(IS 350 AWD)
___Transmission for signs of leakage
___Wiper blades

ok this one has a LOT of things mentioned i hope the batteries in the tech's flashlight are charged up!
unfortunately as far as labor goes we have an oil and filter change, Cabin filter and the air filter. replace the brake fluid. ok we are now but 6k miles away from the end of your 36 month lease. do you think the brake fluid will make it another 6k? ok well let's say they take pride in their work and actually changed it.
actual value i would give this is about 1.5 hours labor assuming they performed every step on this list. shop rates are usually about 100 bucks per hour and you have about $50.00 worth of oil and parts. let's round up and say $200 total cost to the dealer.

so in 30,000 miles we have a whopping $260.00 worth of actual labor done but let's just give the benefit of doubt and say my numbers were off by a LOT and double that figure!
$520.00
so had you bought the maintenance agreement congrats! you talked them down from 1865 to 1,000 still leaving nearly 500 profit for the dealer!

the problem is obvious, dealers make their money on used cars and SERVICE!
because looking at your deal, they certainly aren't making it on new car sales are they?
the service department makes money from Lexus for warranty repairs as well.

i copied the following to answer your question at the beginning of this post..

You are responsible for performance
of the required maintenance indicated
in the Owner’s Manual and this guide.
Lexus will not deny a warranty claim
solely because you do not have
records to show that you maintained
your vehicle. However, any failure or
noncompliance caused by lack of
maintenance is not covered by this
warranty.
When maintenance and repairs are
paid for by you, these services may
be performed by you or by any automotive
service provider you choose.
Lexus will not deny a warranty claim
solely because you used a service
provider other than a Lexus dealership
for maintenance and repairs.
However, any failure or noncompliance
caused by improper maintenance
or repairs is not covered by
this warranty.

so heres the deal..
if wasn't obvious the service is way overpriced to begin with.. why do you think they would be willing to negotiate it with you? you already stole the car from them in the sales office (and they already expected that might happen)
if they sell you nothing, they make nothing! if they negotiate you to 1k on maintenance they make 500 bucks! (last i checked SOME money is still better than NO money)

now in the finance office they got you! your already visualizing yourself driving this new car home to show your friends. They know you can still smell the new car smell even though your not sitting in it! they know your but just a few signatures away from driving it home and your filled with anticipation!

They have your mind right where they want it.. and they tell you how much it will cost without the maintenance agreement to pay out of pocket (which is seriously inflated to begin with) and they also offer you dent repair wheel repair and they let you know it's a lease and needs to be returned in good condition besides normal wear and tear.
at this point they can scare you a little because the sale is already basically done! they know you want to take care of your baby and you want to keep it perfect the entire time you own it.
they know you would do anything at this point to keep it that way. and they have done market research to find out just how much perceived value there is and how much the average person is willing to pay for it.
then they negotiate with you to make you think your getting a great deal! (just like they did for you)
and if you agree to buy at the negotiated price, they just made 1,000 profit in the sales office for that negotiated maintenance agreement.
(keep in mind the sales side and the service side of a dealership might as well be 2 different businesses.)
so the sales department just got back that 1500 below invoice price you negotiated by selling you the maintenance and the dent / wheel repair.

and IF (and thats a big IF) you actually keep the car for the entire lease they MIGHT actually have to spend some money on service (at their cost)

you know how i know all this information? because this is not by far the first car i have bought!
and if you had agreed to buy these things they have to write up a different lease agreement because the stuff you bought will be listed on the sales invoice as "things we owe" and the net result is the sales price just went up by $1600 dollars (based on your negotiated figures)
do you think that money went to the service department? NOT!
why does this matter?
because the service department is already making plenty of money by charging people 4 times what stuff should cost to maintain the vehicle that needs little if any maintenance for the first 3 years!

This is exactly why i do my own oil changes, i learned how to reset the maintenance light, and i know a good dent repair guy and a good alloy wheel repair guy.

if I get lucky, I may never need any dent's removed and if I am careful never need a wheel fixed either.
(another 600 saved using your example)

so having said all that, I think it is painfully obvious these 2 commonly sold items do nothing but generate money for the stealership! so why then would you be lead to believe any of the other things they offer would be any different?
this entire sales process is a carefully thought out and orchestrated GAME they use to get you to give back some of the money they already agreed to discount the car in the sales process!

DO NOT FALL FOR IT!!!

heres a personal experience of mine that happened to my 2008 Lexus GS 350 AWD
at 18,000 miles the brakes started squeaking so i took it in for what i thought would be a warranty repair.
i was told that the brakes needed replacing and thats not warranty, its normal wear and tear! because the car uses the special soft pads to increase braking efficiency, ill be dammed they weren't lying, the brakes pads were totally GONE at 18k (how often have you eaten up a set of brakes before needing tires? YIKES!)
I looked in the manual and sure enough LEXUS said these brakes would last approximately 17-18k miles! and they were right!
the dealership quoted me…. are you sitting down??

$880.00 bucks to replace the front brakes!!!

I about s#!T myself!
so i took the car home and pulled the rotors, dropped them off at autozone and had them turned for 10 bucks each and picked up a set of their premium ceramic pads at 80 bucks. put everything back together (took a total of 2 hours including wait time to get the rotors turned) and for 100 bucks i had new brakes!
even at shop rates this should have cost 200 in labor and 100 in parts! (most brake shops have a lathe and can tun in house making the labor a lot less time)

the moral of the story is if your even average mechanically inclined and have some tools you can save yourself a lot of money doing your own maintenance. but even of you aren't and have to go to a shop the LAST place to take your car is the dealer because all the people who go there for anything but warranty repairs and free service are just paying 4x the cost so the dealer can make money for the dealership and make up for the money lost on the new car sales side.

i hope this helps clear up any confusion!
I know it's been almost a couple years since BassMech made this great post with a lot of valuable informative info in it but much of it bears repeating. Don't allow emotion to get the best of you in the finance office and be convinced to spend money on stuff that is not needed. Actually, the routine maintenance on these cars is fairly easy and can be accomplished by people with not all that much mechanical experience and know how. If you are able to remove a tire, the brakes are pretty easy to do. If you are not inclined to tackle the routine maintenance on your own, try to find a trustworthy independent shop in your area to do your maintenance - you will save a significant amount of money. Just start a file to keep all your maintenance records in and all is good.
Old 06-30-15, 12:19 PM
  #20  
azmojo
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Another consideration is if you would lose that money you paid if the car were totalled or stolen and you got rid of it prematurely.
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