Extended Warranty Thoughts - Worth It?
03-28-15, 12:16 PM
#1
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Extended Warranty Thoughts - Worth It?
I've read a number of threads discussing the best deals for extended warranties as well as threads discussing the more common repairs of the LS460 such as the control arm bushings and brake actuator.
However, I was looking to get opinions of how much value people see in the warranty, that is, how likely is it to be a good investment and pay for itself versus simply paying for potential repairs out of pocket.
I have purchased a 4 year, 48 thousand mile Route 66 warranty sold through my credit union for about $1,700. I have 30 days to decide if I want to keep it or get a full refund.
My 08 LS460 has 71,000 miles and is in great shape. No control arm bushing issues or anything else yet. I have had the car for about 18 months and since 45,000 miles with no problems. It has the ML/navigation but not the air suspension.
In speaking with a few Lexus service advisers they seemed positive about this warranty stating they didn't have any problems getting them to pay for claims. The warranty can also be transferred to an individual buyer should I decide to sell the car. I anticipate having the car for at least one more year perhaps longer. I appreciate anyone's input on the matter.
However, I was looking to get opinions of how much value people see in the warranty, that is, how likely is it to be a good investment and pay for itself versus simply paying for potential repairs out of pocket.
I have purchased a 4 year, 48 thousand mile Route 66 warranty sold through my credit union for about $1,700. I have 30 days to decide if I want to keep it or get a full refund.
My 08 LS460 has 71,000 miles and is in great shape. No control arm bushing issues or anything else yet. I have had the car for about 18 months and since 45,000 miles with no problems. It has the ML/navigation but not the air suspension.
In speaking with a few Lexus service advisers they seemed positive about this warranty stating they didn't have any problems getting them to pay for claims. The warranty can also be transferred to an individual buyer should I decide to sell the car. I anticipate having the car for at least one more year perhaps longer. I appreciate anyone's input on the matter.
03-28-15, 12:41 PM
#2
Lexus Fanatic
Oh sure....go ahead....open a can o' worms!! There's 3 things we don't talk about here at CL.....Politics, religion and warranties.
But I'll bite.
At the end of the day, if it gives you peace of mind, do it. I prefer to get my peace of mind by SAVING money (cuz I'm a cheap b*stard). Warranties historically (and according to consumer experts etc), have proven to be bad investments.
Oh yes, I know....there are some who will give their anecdotes and examples of how it paid off for them. HOWEVER, in most of those cases, their examples of how the warranty "paid for itself", are based on the cost of OEM parts installed or repaired at a LEXUS facility. Fact is however, these same repairs could have been done for literally a fraction of the price. A good example is the control arm bushing etc. Some have gleefully stated how their warranty has already paid for itself, because the replacemement at their dealership showed a cost of "5000 dollars" (or close to it). Great, except for the fact that those same repairs can be done for 375-1k dollars depending on whether you diy or have an independant do the job. There are countless other examples, but that is the common one.
I've always used the analogy of the Vegas casino. When you gamble, the house almost always wins. The warranty companies feel the same way, which is why they try harder to sell you a warranty, than they do the car you're buying. If that doesn't tell you everything, than I don't know what does.
Also, keep in mind that MANY warranties exclude anything made of rubber (valve stem seals, bushings, hoses, belts, tires, gaskets, etc.) The fine print in these things are what save the warranty company's butt.
But I'll bite.
At the end of the day, if it gives you peace of mind, do it. I prefer to get my peace of mind by SAVING money (cuz I'm a cheap b*stard). Warranties historically (and according to consumer experts etc), have proven to be bad investments.
Oh yes, I know....there are some who will give their anecdotes and examples of how it paid off for them. HOWEVER, in most of those cases, their examples of how the warranty "paid for itself", are based on the cost of OEM parts installed or repaired at a LEXUS facility. Fact is however, these same repairs could have been done for literally a fraction of the price. A good example is the control arm bushing etc. Some have gleefully stated how their warranty has already paid for itself, because the replacemement at their dealership showed a cost of "5000 dollars" (or close to it). Great, except for the fact that those same repairs can be done for 375-1k dollars depending on whether you diy or have an independant do the job. There are countless other examples, but that is the common one.
I've always used the analogy of the Vegas casino. When you gamble, the house almost always wins. The warranty companies feel the same way, which is why they try harder to sell you a warranty, than they do the car you're buying. If that doesn't tell you everything, than I don't know what does.
Also, keep in mind that MANY warranties exclude anything made of rubber (valve stem seals, bushings, hoses, belts, tires, gaskets, etc.) The fine print in these things are what save the warranty company's butt.
Last edited by roadfrog; 03-28-15 at 12:48 PM.
03-28-15, 05:37 PM
#3
I've always used the analogy of the Vegas casino. When you gamble, the house almost always wins. The warranty companies feel the same way, which is why they try harder to sell you a warranty, than they do the car you're buying. If that doesn't tell you everything, than I don't know what does.
The coal minors wages go right back to the company when they buy overpriced goods that is owned by the coal mine.
03-28-15, 08:01 PM
#4
The cost of extended warranty varies. I paid $1500 for a 3 years or 36K miles for my '10 LS. My claims were paid and never an issue with the company. As far as DIY (not for me) or independent shops (just don't anybody working on my Lexus), I just prefer the Lexus dealership unless I had a much older LS. Each to their own.
03-31-15, 07:13 AM
#5
For higher-end vehicles such as an LS, I consider the cost of the warranty as part of the cost of the vehicle. Thus, if the car cost $40k and the warranty was $3k, I see this as a car that costs $43k. This is because I am weary of owning one of these cars without some type of protection. Yes you can do repairs yourself (I've pulled several engines out of cars in my parent's garage when I was younger) but not everyone has the time or the know-how. Similarly, you can take your car to an independent mechanic, but you are still stuck paying for the parts (plus the discounted labor), and if these parts include the dreaded control arms, air struts, NAV components, or anything else that isn't very minor, costs will add up. Lastly, many of us here put a lot of emphasis on service history when buying a car. I believe that a warranty similarly helps the owner have a more comprehensive service history that can be very beneficial when it comes time to sell. In other words, I feel that a slightly higher asking price will be fully justified when I sell my LS and tell the potential buyer that even at 120k miles I was still having everything serviced by a Lexus dealer without worrying about any expenses because the car was under a Lexus warranty.
03-31-15, 04:08 PM
#7
Lexus Fanatic
and if these parts include the dreaded control arms, air struts, NAV components, or anything else that isn't very minor, costs will add up.
Nav is not normally covered by an aftermarket warranty. I know of no company that does.
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03-31-15, 05:17 PM
#8
Oh sure....go ahead....open a can o' worms!! There's 3 things we don't talk about here at CL.....Politics, religion and warranties.
But I'll bite.
At the end of the day, if it gives you peace of mind, do it. I prefer to get my peace of mind by SAVING money (cuz I'm a cheap b*stard). Warranties historically (and according to consumer experts etc), have proven to be bad investments.
Oh yes, I know....there are some who will give their anecdotes and examples of how it paid off for them. HOWEVER, in most of those cases, their examples of how the warranty "paid for itself", are based on the cost of OEM parts installed or repaired at a LEXUS facility. Fact is however, these same repairs could have been done for literally a fraction of the price. A good example is the control arm bushing etc. Some have gleefully stated how their warranty has already paid for itself, because the replacemement at their dealership showed a cost of "5000 dollars" (or close to it). Great, except for the fact that those same repairs can be done for 375-1k dollars depending on whether you diy or have an independant do the job. There are countless other examples, but that is the common one.
I've always used the analogy of the Vegas casino. When you gamble, the house almost always wins. The warranty companies feel the same way, which is why they try harder to sell you a warranty, than they do the car you're buying. If that doesn't tell you everything, than I don't know what does.
Also, keep in mind that MANY warranties exclude anything made of rubber (valve stem seals, bushings, hoses, belts, tires, gaskets, etc.) The fine print in these things are what save the warranty company's butt.
But I'll bite.
At the end of the day, if it gives you peace of mind, do it. I prefer to get my peace of mind by SAVING money (cuz I'm a cheap b*stard). Warranties historically (and according to consumer experts etc), have proven to be bad investments.
Oh yes, I know....there are some who will give their anecdotes and examples of how it paid off for them. HOWEVER, in most of those cases, their examples of how the warranty "paid for itself", are based on the cost of OEM parts installed or repaired at a LEXUS facility. Fact is however, these same repairs could have been done for literally a fraction of the price. A good example is the control arm bushing etc. Some have gleefully stated how their warranty has already paid for itself, because the replacemement at their dealership showed a cost of "5000 dollars" (or close to it). Great, except for the fact that those same repairs can be done for 375-1k dollars depending on whether you diy or have an independant do the job. There are countless other examples, but that is the common one.
I've always used the analogy of the Vegas casino. When you gamble, the house almost always wins. The warranty companies feel the same way, which is why they try harder to sell you a warranty, than they do the car you're buying. If that doesn't tell you everything, than I don't know what does.
Also, keep in mind that MANY warranties exclude anything made of rubber (valve stem seals, bushings, hoses, belts, tires, gaskets, etc.) The fine print in these things are what save the warranty company's butt.
04-01-15, 07:02 AM
#9
As for the NAV, that was a reference to a Lexus backed warranty like their Platinum VSA.
To put it another way, I wake up before 6am, leave for work by 7, and don't get home until about 6:30pm. At that time I have a few hours to spend with our 1.5 y/o son, have dinner when we finally get him to bed, and then do a little bit more work until I crash a little before midnight. On the weekends, the work time gets replaced by family time. As a result, while I used to have the option of spending hours with the car, today I'd rather not worry about having to fix something myself, having to spend time looking for a reputable shop, searching for parts, or worrying about whether the aftermarket parts that are being put on my car rival that of Lexus quality or are made out of cardboard. I like the peace of mind that if I have a major failure at any point before 125k miles, the repair will be done using Lexus parts, the repair will be done at a Lexus dealer, and the work will have Lexus' name on it (which to me is worth something).
Last edited by Ascari_2; 04-01-15 at 07:11 AM.
04-01-15, 09:11 AM
#10
Lexus Test Driver
Again, cheap if you DIY, but the cost still increases even with aftermarket parts and a non-Lexus shop. Also, personally, while I will certainly agree that the factory control arms are far from great, I am very very weary of aftermarket suspension parts.
As for the NAV, that was a reference to a Lexus backed warranty like their Platinum VSA.
To put it another way, I wake up before 6am, leave for work by 7, and don't get home until about 6:30pm. At that time I have a few hours to spend with our 1.5 y/o son, have dinner when we finally get him to bed, and then do a little bit more work until I crash a little before midnight. On the weekends, the work time gets replaced by family time. As a result, while I used to have the option of spending hours with the car, today I'd rather not worry about having to fix something myself, having to spend time looking for a reputable shop, searching for parts, or worrying about whether the aftermarket parts that are being put on my car rival that of Lexus quality or are made out of cardboard. I like the peace of mind that if I have a major failure at any point before 125k miles, the repair will be done using Lexus parts, the repair will be done at a Lexus dealer, and the work will have Lexus' name on it (which to me is worth something).
As for the NAV, that was a reference to a Lexus backed warranty like their Platinum VSA.
To put it another way, I wake up before 6am, leave for work by 7, and don't get home until about 6:30pm. At that time I have a few hours to spend with our 1.5 y/o son, have dinner when we finally get him to bed, and then do a little bit more work until I crash a little before midnight. On the weekends, the work time gets replaced by family time. As a result, while I used to have the option of spending hours with the car, today I'd rather not worry about having to fix something myself, having to spend time looking for a reputable shop, searching for parts, or worrying about whether the aftermarket parts that are being put on my car rival that of Lexus quality or are made out of cardboard. I like the peace of mind that if I have a major failure at any point before 125k miles, the repair will be done using Lexus parts, the repair will be done at a Lexus dealer, and the work will have Lexus' name on it (which to me is worth something).
I would like to say this though - that the quality of aftermarket products may be questionable in some instances, but I believe that there are companies that make products that have obtained and possess a certain reputation for making an aftermarket product because it is in fact just as good or in some instances better then the OEM product. An example would be Akebono brake pads.
Then comes the subject matter of staying strictly OEM because for you, not only does it give you piece of mind, you feel that it will jive with the functionality of the car better.
I remember recently, I was shopping for a radiator for an older car that I own. So I began to start doing research regarding different radiators and of course I started seeing different manufactures and different price points. It became a bit inundating. So I decided to ask a few people at auto parts stores and polled 3 different mechanics I've gotten to know over the course of a few years (all out of state) and asked their opinion whose experience tallies, between them, over 85 years, what is the big difference between radiators, their makers, the functionality the prices...what?? Why?? Their answer: In brief, though there are differences in the multitude or radiators out there, , and credence must be given to certain manufacturers due to the materials used to produce the product, the functionality is relatively the same, and the life expectancy can equal that or be greater than the OEM product that currently in the car. I realize this may not be the case for everything, but the case in point I feel rings true with many repairable/replaceable parts on a vehicle.
Secondly, to reiterate something I believe Road Frog, Doublebase and Devh have stated in past threads, the cost aspect of parts for this car will lower as the existence of the vehicle carries on, thus making it that more affordable to maintain the vehicle.
In regards to finding an indy shop, thought it can prove to be a difficult task, there are great indy shops that can diagnose and repair a car just as well or better than any dealership shop. In some instances, some indy shops have mechanics/techs there that have a wide breadth of knowledge on the Lexus product because they used to work for Lexus. Some people are able to develop relationships with Lexus techs and have them perform the work on the side. And lets not silently assume that JUST because its a Lexus dealership that's doing the work/performing the repair, the work will be A1, top notch work! There's plenty of evidence that supports the exact opposite amidst the numerous pages in this forum.
And for those that DIY...well...I believe that those of us who do DIY, it's not simply to just save money. I'd like to believe that some of us (me) just simply enjoy using our hands, the learning aspect of tackling something yourself instead of reading about it, and depending on the repair, it can allow one to explore other elements and aspects of a car. Let me not forget to mention that it also serves as a way to assure that a job has been done correctly!
The purchase of a warranty is obviously an option many of us have pondered at some point. Should I? Shouldn't I? Is it worth it?
The answer really lies within your budget and level of comfort you desire regarding the ownership of a said vehicle.
04-01-15, 01:05 PM
#11
Reading between the multitude of opinions regarding this well documented and intensely discussed topic, it is clear that while some decide against a warranty, other feel the exact opposite, and for a myriad of reasons. At the premise of all that has been expressed, it is a matter of what makes an individual feel more at ease regarding the purchase and therefore ownership of the car. Hence, there isn't really a "wrong" answer when it comes to what makes one comfortable when discussing this topic.
I would like to say this though - that the quality of aftermarket products may be questionable in some instances, but I believe that there are companies that make products that have obtained and possess a certain reputation for making an aftermarket product because it is in fact just as good or in some instances better then the OEM product. An example would be Akebono brake pads.
Then comes the subject matter of staying strictly OEM because for you, not only does it give you piece of mind, you feel that it will jive with the functionality of the car better.
I remember recently, I was shopping for a radiator for an older car that I own. So I began to start doing research regarding different radiators and of course I started seeing different manufactures and different price points. It became a bit inundating. So I decided to ask a few people at auto parts stores and polled 3 different mechanics I've gotten to know over the course of a few years (all out of state) and asked their opinion whose experience tallies, between them, over 85 years, what is the big difference between radiators, their makers, the functionality the prices...what?? Why?? Their answer: In brief, though there are differences in the multitude or radiators out there, , and credence must be given to certain manufacturers due to the materials used to produce the product, the functionality is relatively the same, and the life expectancy can equal that or be greater than the OEM product that currently in the car. I realize this may not be the case for everything, but the case in point I feel rings true with many repairable/replaceable parts on a vehicle.
Secondly, to reiterate something I believe Road Frog, Doublebase and Devh have stated in past threads, the cost aspect of parts for this car will lower as the existence of the vehicle carries on, thus making it that more affordable to maintain the vehicle.
In regards to finding an indy shop, thought it can prove to be a difficult task, there are great indy shops that can diagnose and repair a car just as well or better than any dealership shop. In some instances, some indy shops have mechanics/techs there that have a wide breadth of knowledge on the Lexus product because they used to work for Lexus. Some people are able to develop relationships with Lexus techs and have them perform the work on the side. And lets not silently assume that JUST because its a Lexus dealership that's doing the work/performing the repair, the work will be A1, top notch work! There's plenty of evidence that supports the exact opposite amidst the numerous pages in this forum.
And for those that DIY...well...I believe that those of us who do DIY, it's not simply to just save money. I'd like to believe that some of us (me) just simply enjoy using our hands, the learning aspect of tackling something yourself instead of reading about it, and depending on the repair, it can allow one to explore other elements and aspects of a car. Let me not forget to mention that it also serves as a way to assure that a job has been done correctly!
The purchase of a warranty is obviously an option many of us have pondered at some point. Should I? Shouldn't I? Is it worth it?
The answer really lies within your budget and level of comfort you desire regarding the ownership of a said vehicle.
I would like to say this though - that the quality of aftermarket products may be questionable in some instances, but I believe that there are companies that make products that have obtained and possess a certain reputation for making an aftermarket product because it is in fact just as good or in some instances better then the OEM product. An example would be Akebono brake pads.
Then comes the subject matter of staying strictly OEM because for you, not only does it give you piece of mind, you feel that it will jive with the functionality of the car better.
I remember recently, I was shopping for a radiator for an older car that I own. So I began to start doing research regarding different radiators and of course I started seeing different manufactures and different price points. It became a bit inundating. So I decided to ask a few people at auto parts stores and polled 3 different mechanics I've gotten to know over the course of a few years (all out of state) and asked their opinion whose experience tallies, between them, over 85 years, what is the big difference between radiators, their makers, the functionality the prices...what?? Why?? Their answer: In brief, though there are differences in the multitude or radiators out there, , and credence must be given to certain manufacturers due to the materials used to produce the product, the functionality is relatively the same, and the life expectancy can equal that or be greater than the OEM product that currently in the car. I realize this may not be the case for everything, but the case in point I feel rings true with many repairable/replaceable parts on a vehicle.
Secondly, to reiterate something I believe Road Frog, Doublebase and Devh have stated in past threads, the cost aspect of parts for this car will lower as the existence of the vehicle carries on, thus making it that more affordable to maintain the vehicle.
In regards to finding an indy shop, thought it can prove to be a difficult task, there are great indy shops that can diagnose and repair a car just as well or better than any dealership shop. In some instances, some indy shops have mechanics/techs there that have a wide breadth of knowledge on the Lexus product because they used to work for Lexus. Some people are able to develop relationships with Lexus techs and have them perform the work on the side. And lets not silently assume that JUST because its a Lexus dealership that's doing the work/performing the repair, the work will be A1, top notch work! There's plenty of evidence that supports the exact opposite amidst the numerous pages in this forum.
And for those that DIY...well...I believe that those of us who do DIY, it's not simply to just save money. I'd like to believe that some of us (me) just simply enjoy using our hands, the learning aspect of tackling something yourself instead of reading about it, and depending on the repair, it can allow one to explore other elements and aspects of a car. Let me not forget to mention that it also serves as a way to assure that a job has been done correctly!
The purchase of a warranty is obviously an option many of us have pondered at some point. Should I? Shouldn't I? Is it worth it?
The answer really lies within your budget and level of comfort you desire regarding the ownership of a said vehicle.
If I might add a little observation that in the last twenty years of using many aftermarket parts for a variety of vehicles I have only found rare exceptions to why you may want to use a factory part.
Every year the manufacturing quality gap has been getting very narrow and indistinguishable.
The biggest threat to Lexus corporate is forums like this one. There are a few forums that I visit where the company makes it's moderators make sure that dissemination of third party brands are forbidden.
In the future all of your spare parts will be printed and cheap.
04-01-15, 02:04 PM
#12
Lexus Test Driver
Very well written post.
If I might add a little observation that in the last twenty years of using many aftermarket parts for a variety of vehicles I have only found rare exceptions to why you may want to use a factory part.
Every year the manufacturing quality gap has been getting very narrow and indistinguishable.
The biggest threat to Lexus corporate is forums like this one. There are a few forums that I visit where the company makes it's moderators make sure that dissemination of third party brands are forbidden.
In the future all of your spare parts will be printed and cheap.
If I might add a little observation that in the last twenty years of using many aftermarket parts for a variety of vehicles I have only found rare exceptions to why you may want to use a factory part.
Every year the manufacturing quality gap has been getting very narrow and indistinguishable.
The biggest threat to Lexus corporate is forums like this one. There are a few forums that I visit where the company makes it's moderators make sure that dissemination of third party brands are forbidden.
In the future all of your spare parts will be printed and cheap.
Devh as usual, and thank you for the compliment.And if I may add a bit of insight...
For those who may NOT understand what Devh means regarding parts will be "printed", the evolution and capabilities of 3D printing are becoming boundless!
04-01-15, 02:41 PM
#13
But I can certainly see the technology changing the way we buy parts in the future especially when storage space to house all those spare parts is at a premium.
04-01-15, 04:19 PM
#14
Lexus Fanatic
Again, cheap if you DIY, but the cost still increases even with aftermarket parts and a non-Lexus shop. Also, personally, while I will certainly agree that the factory control arms are far from great, I am very very weary of aftermarket suspension parts.
