salesguy

I just got a quote from Toby on my 2013 LS460 which has 2 years of L/Certified warranty left. The quote is for VSA, which kicks in after my 2 years are up.

The car remains eligible for this VSA extension anytime up until the L/Certified warranty expires.

So my question is, why buy early (ie, now) vs waiting until 1 year and 11 months from now? If I total the car then I'm out the money I paid for the extended warranty.

comotiger

Hi Salesguy, I think you answered your own question. There is no benefit to buying early, unless you want to lock in the price because it is quite possible that the cost would increase a few percent in a couple of years when you are ready to buy. You could check with Toby whether the VSA is refundable if your vehicle is lost/totaled before the extended warranty kicks in. I bought the Platinum VSA on my vehicle at 49800 miles just before the new car warranty (50K / 4 year) expired.

There was some discussion on other threads that the extended warranty would have to be purchased at the same time one purchases the CPO vehicle. I am glad that you confirmed with Toby Rivers that Platinum VSAs can be purchased for CPO vehicles at any time before the CPO warranty expires. This was my understanding too, but since my vehicle was not CPO, I wasn't sure about this point. But I also believe there are different types of CPO coverages in different states, so it is important to confirm the details before purchase. In your case, if your CPO warranty is valid for another two years and unlimited miles, you can buy a 4-8 year Platinum VSA that would provide unlimited mile coverage! That is unbeatable. Can you share the prices quoted by Toby for various terms?

salesguy

Sounds good. I do remember that discussion, and Toby confirmed what we now know. From the lexus website, it also clearly states what an eligible car is:Qualifying Criteria5Vehicle must be an L/Certified vehicle to be eligible for the L/Certified VSA. L/Certified VSA available for purchase any time prior to the expiration of the 2 years/unlimited miles L/Certified Limited Warranty.4

Nospinzone

Yup, no sense in buying early. You could keep that money in the bank and earn a whopping 0.001% interest.

Although if you did buy it now, I'm pretty sure you could get a full refund if you totaled the car before the warranty kicked in.

salesguy

I'll ask Toby about a refund, though I see no reason to have to go through that hassle.

0.01% Come on - we didn't get to the point in life that we drive the LS460 by earning 0.01% on our money!

(not to turn this into a business or investing discussion - which I'm happy to have as a real estate/private equity guy...but still)