riknchar

I'm in the final negotiations to buy a Certified Pre-Owned 2008 LS600hL. The car I'll be buying currently has 58,000 miles.

Part of my negotiations includes an extended CPO warranty (also known as a CPO Wrap Warranty). For those who have studied these warranties, you know that up until fairly recently, CPO Wrap policies HAD to be purchased at the point of sale, meaning you had to buy the extended warranty from whichever Lexus dealer you were buying the car from. However, a recent change to the rules now allows CPO Wrap policies to be purchased at any time during the CPO period (3-years, 100K miles), BUT only up until the car would no longer be eligible to be considered a CPO (less than 6 years and 70K miles). So in my case, I would still need to buy the CPO Wrap policy before the end of 2014 (since a 2008 would no longer be able to be CPO'd after the 6-year period). But for many of the newer vehicles being sold as CPO, this would give you a nice time delay before you'd have to make a final decision.

To sum up, this is great news for two reasons:

1) You don't necessarily have to buy the warranty at the time you initially buy the car, if you're not sure you will be keeping it for longer than 3 years.

2) You don't have to buy the warranty from the same dealer who sold you the car.

As many on the various Lexus forums have discovered, there are a couple of dealers around the country who will sell extended warranties at a big discount. I called one of those guys, Troy Dietrich from Toyota of Greenfield (in MA), and was quoted prices substantially lower than full retail.

Hopefully this is useful info to those considering purchasing a CPO Lexus, or those who have already bought one and decided to forego the CPO Wrap policy (you now have a second chance).

Joeb427

iTrader: (1)

I don't believe Troy Dietrich is selling discounted warranties out of state anymore.Same with Jerry Johnson.
Toyota stopped it.
You have to buy a warranty in their dealership.

riknchar

True, but if you happen to live in MA or MO (or have an address to send the warranty paperwork to in one of those states), you'd still be in luck!

You can also use the prices you get from Troy or Jerry as bargaining chips to get your local Lexus dealer to not gouge you excessively on the CPO Wrap policy. These policies are very profitable for the selling dealers, and I think they count on the "excitement of buying a Lexus" to make people not too smart about negotiating the price of the warranty. If you come back to your local dealer a year or two later, your head will be in much better shape to logically negotiate...

CJITTY

whoa, major development..folks are gonna be getting some ups store po boxes in those states lol

riknchar

That would be smart!

I plan to show my local Lexus finance guy the price I was quoted from Troy to see if he'll match it... Bet he will!

I'm just trying to decide between 5 yr/125K miles ($1635) or 6 yr/125K miles ($2205). Based on my current driving, I could make it all the way to 6 years and still be just under the 125K mile threshold.

Seems pretty cool to be able to one day own a 12-year old LS600 with over 100K miles still under full factory warranty! I'd have to think something would break in 6 years that would get my $2200 back (air suspension, Nav system, Lower Control Arms, door actuators...). Seems like a no-brainer...

Joeb427

iTrader: (1)

The thing is without the warranty sales volume,will Troy sell the warranties at the usual discount?

sktn77a

iTrader: (2)

I think the deal is they just can't advertise warranties on the internet any more. Try calling Troy to confirm.

riknchar

My local Lexus dealer says the prices Troy is charging are below their cost, and that there's no way they can match. The Finance Manager seems sincere on this point. Hmmmm.... Guess I'll stick with Troy on this deal, since he seems to have served many others on the forum well.

sktn77a

iTrader: (2)

Remember, the "finance manager" is just another car salesman. Maybe he's too lazy to do the paperwork for less commission (Troy can't sell the warranties for less than his cost, can he!)

Joeb427

iTrader: (1)

True.
I've read or heard the profit Troy's dealer makes is $100-$150 on a warranty.

hfahmy

I bet they will require re-inspection of the car before they extend. This is about $250-$300

hjones4841

I upgraded my CPO warranty to 6 years today at the local Lexus dealer. I bought my 2011 LS there in December and balked at the warranty extension then. But after having the car for 6 months and seeing all that can go wrong with it, I thought the extension is a good idea - peace of mind, insurance, etc.

Finance manager said he is getting a lot of calls about the upgrade, thinks that letters are going out to owners about this. He did not say if the letters were coming from his dealership or from Lexus.

BTW, he said cost went up across the board when Lexus changed the policy.

riknchar

I also went with the 6-year plan (125K miles), although I've never really kept a car longer than 3 years. I figure it's a fairly cheap insurance policy if I decide to stick with the LS600, and if not, it is refundable (pro-rated from the day you buy it). I ended up paying $2400 for my policy (with a $100 deductable) through my local Lexus dealer (at the time of my CPO purchase). This was a bit more expensive than Troy charges, but it was very convenient to do it all at once and did give me some "good will" from my dealer.

I'm curious what kind of deal you were able to get on your 6-year policy? Do you mind sharing?

hjones4841

I probably should not quote the price since the finance manager quoted me the wrong price over the phone, but honored it when I got to the dealer. I will have to check to make sure, but I thought I saw zero deductible on mine.

BTW, he said that the price went up for everyone when Lexus made the change, so even those who purchase it at the time of sale will pay more.

ladshomes

I want to say a BIG THANKS to all the folks who posted here and on other threads I read!!
Troy Dietrich (413 772 0989. Toyota of Springfield MA http://fd-warranty.com/ ) was the lowest warranty by far; however, as others have said, you need a Massachusetts accomplice with an address you can have the warranty sent to, who will then forward to you.
I live in TX near the border of OK, LA & AR & can cross state lines.
Toby Rivers (Business Mgr) at Lexus of Shreveport (888) 226-6084 TobyToyota@aol.com
also had good prices--several hundred $$ higher than Troy but well under the original quote from my dealer.
I never heard back from Jerry in Kansas.

My dealer's finance mgr. told me he couldn't match the price too at one point. But then did, by shuffling the sales price, so I got a great deal ! ! ! I had no idea you could negotiate extended warranties.

I just bought an 2013 ES 300h from Park Place Lexus in Grapevine, 8 months old and with 6800 miles. They were really good in general--sales guy Jae Lee, and Jeff (finance mgr) I opted for the 8 yr / 125000 miles (even after reading the vehement responders who said it would never be worth it!) . I have the luxury now of keeping the car a long time, or giving added value down the road to a buyer who doesn't have to "trust me" but has a factory warranty, or of cancelling it and getting a pro-rated refund.

Thank you, thank you, thank you, Club Lexus members for saving me $800 ! ! (or allowing me to purchase 2 extra years of warranty for the same price).