I have never been a believer in aftermarket warranties, but I was talked into one by the dealer when I picked up my car on the weekend. I have 30 days to cancel it. I am seriously thinking about doing just that. I am confident that this car will be relatively trouble-free. The warranty I was sold cost $1800.00 for 4 years or 40k miles. Covers all the usual, but I do notice exclusions that bother me (valve seals, entertainment/nav system etc etc). If after the 4 years I don't use the warranty, I receive all the money back, minus 500 dollars.
I dunno....should I cancel it? I only lose 100 bucks if I do.
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[QUOTE=roadfrog;8313592] If after the 4 years I don't use the warranty, I receive all the money back, minus 500 dollars. /QUOTE]
I don't know but this sounds a little fishy. Be sure it's in writing in the policy and it's from a reputable company. Insurance exists since the premiums from insureds who have no claims pay for those that do. If they refund premiums where no claims are paid, where do the funds come from to pay claims? Just my 2 cents.
I know absolutely nothing about these third party warranty companies, but I too question how they can give you all your money back if you don't make a claim.
The exclusions also concern me. Not the valve seals as they are highly unlikely to fail, even on the 2007 models, but the nav system costs at least $11,000 to replace and electronics are....... well ....... electronics. Of course without a warranty you have to foot the bill yourself.
So basically I don't know what to tell you.
07 LS460 SWB
08 Ferrari 612 Scaglietti
03 HD CVO Screaming Eagle Deuce
I would not feel comfortable with an aftermarket company. I would get a refund and put the $1800 into an investment or just a simple bank account and over that four year period if funds are needed for repairs, I would go to that account to help offset the costs. Odds are good that you will still have your $1800 plus minimal interest at the end of the four years.
but I too question how they can give you all your money back if you don't make a claim.
You don't get it all back...you lose 500 dollars. Still....I like the idea of just putting the amount into a mutual fund or whatever, and let it sit as an emergency fund.
Most aftermarket warrantees make you use aftermarket parts so it can not be fixed at a dealer. I found this out the hard way.
Not in this case. It is being sold at a Lexus dealer and they are approved as one of the shops. HOWEVER, the warranty company has the authority to only permit the use of jobber, remanufactured or whatever, for parts.
Thanks all....you've helped to confirm my reservations and will cancel the policy. It'll cost me a penalty of 100 dollars to do so, but better than 1800+
Location: Vancouver Island, BC -ex Illinois &Toronto, ON
roadfrog - I have the Lexus extended warranty purchased through my Canadian dealer and, as far as I know, the Lexus extended warranty in the US does cover such things as the nav screen, while for Canada it does not. I do recall that there was a least one other Canadian poster who had purchased an extended warranty from one of the US providers who stated even though they were in Canada that their US purchased warranty provided much better coverage.
I should add that I too rarely buy extended warranties. However I intend to keep the car for seven years and, given the complexity, I felt it would be worth it. I also intend to sell with one year remaining on the coverage to hopefully coax a hesitant buyer.