Extended Warranty Thoughts - Worth It?
04-08-15, 08:06 AM
#16
To answer the OP's question I would say there is no one size fits all answer as you can see from the debate in this thread with both sides making valid points. I will try to be objective as possible. I think the answer lies in the details of what is covered in your warranty. $1700 for 4 yrs/48k miles sounds cheap which leads me to believe it is an inclusionary policy covering mainly powertrain items, some suspension items and misc parts. Our cars do not have a track record of powertrain failures so that's not a good bet to warranty. Everything else just depends and no one can definitvely say it's worth it for sure. You don't have air suspension so that's an item that can fail on our cars that you don't have to worry about. Control arms and brake actuators are other common repairs on our cars so I would double check if the warranty covers those items. If they are covered then these repairs together could easily approach $1700 depending on how you choose to get them repaired. This math may lean you towards pulling the trigger. The qualitative side is how reputable this company is and whether they will play games with you when filing a claim. You can research that online. At the end of the day it comes down to how much your peace of mind, free time and risk aversion is worth to you.
04-08-15, 09:16 AM
#17
Now that I have hopefully given the OP a useful answer to his question, I'm going to chime in on the other points raised here.
I went through this process of consdiering an extended warranty starting with reading the Consumer Reports article on how most people do not recover the cost paid for an extended warranty through repair claims and therefore it is not a good investment, all things being equal. I read that article before I ever bought my LS and I decided in my mind at that point to never buy an extended warranty.
After a lot of research on this forum and deep thinking I am now of the opinion that there is no one size fits all. It comes down to your aversion to risk and how much you value your free time.
I agree with roadfrog and others that when citing dealership repair costs and OEM part costs the numbers are much higher than those of aftermarket part costs and independent mechanic rates. So using Lexus OEM numbers in the cost benefit analysis skews the conclusion towards a 3rd party warranty being a good investment.
However, I also agree with ascari in that in order to go with aftermarket parts and independent mechanics you have to be willing to take on some additional risk (not much in some cases), invest time, and be willing to go through some trial and error. And if you're going to do repairs yourself then this is doubley true.
Back when I was young, single and was just starting my career with limited income I always went with aftermarket parts and did as many repairs myself on my Nissan Maxima as I could (armed with my Haynes manual). I scoured discussion forums, became best friends with the people at Autozone, and spent hours reading reviews, looking for cheap vendors and trying to find trustworthy/competent mechanics. When I did repairs on my own I inevitably would make mistakes and always had to budget extra time for those inevitable mistakes. I was and am today at best a novice DIY'er. But the journey, no matter how painful, was worth it to me at that time.
Now that I have a more demanding job with long hours, a wife and child, my free time and mental energy are worth much more to me than they did when I was young and single. The evening and weekend hours spent researching aftermarket parts and repair procedures as well as hours actually fumbling through repairs under my car are now better spent helping my wife, spending time with my child and researching ways to make my child go to sleep faster. For me there is tremendous value in this tradeoff.
God knows not all Lexus dealerships are perfect but on average I think they are more likely to fix my car the right way on the first try than an independent, and most certainly better than me.
In the end I did end up buying a 3rd party warranty and so far it has worked out for me (fingers crossed). I brought my car to Lexus with an issue that they determined was a bad wheel bearing. They gave me a loaner and I drove away while they called the warranty company to file the claim (which was approved) and completed the repair. All I had to do was drop my car off, "deal with" a loaner and then pick up my car. It was seamless and the repair was done right because all noise and vibrations were gone. That process was well worth it to me considering the alternative of my local independent mechanic who doesn't have loaners and does not usually deal with warranty companies.
This is all not to mention I got a 3rd party warranty that is an exclusionary policy that covers a lot and has a cancellation clause where I can cancel at any time and get a pro-rated refund on the policy cost minus approved claims. The risk is low if they turned out to be shadey and the benefit is pretty high. The warranty cost me $2400 for 3 years and 36k miles and within the first month of having it I had the wheel bearing replaced under warranty to the tune of $1400. I'm sure I could have gotten it done a lot cheaper at an independent mechanic but the time needed for additional running around and sourcing of aftermarket parts would havr "cost" me in time and mental energy. Add that to the peace of mind that the work was done by Lexus people with OEM parts and the cost-benefit analysis of 3rd party warranties changes a little when you consider the non-monetary benefits.
Right now my LS is back at the dealer for a power steering rack and rear air strut replacement. These are big money repairs north of $6k. I have a loaner and Lexus is dealing with the warranty company. Hopefully it gets approved today. If they play games with me I will cancel my policy, get my refund and walk away having lost nothing.
Just my two cents from my own personal experiences. Others will find a differe t path that works for them.
I went through this process of consdiering an extended warranty starting with reading the Consumer Reports article on how most people do not recover the cost paid for an extended warranty through repair claims and therefore it is not a good investment, all things being equal. I read that article before I ever bought my LS and I decided in my mind at that point to never buy an extended warranty.
After a lot of research on this forum and deep thinking I am now of the opinion that there is no one size fits all. It comes down to your aversion to risk and how much you value your free time.
I agree with roadfrog and others that when citing dealership repair costs and OEM part costs the numbers are much higher than those of aftermarket part costs and independent mechanic rates. So using Lexus OEM numbers in the cost benefit analysis skews the conclusion towards a 3rd party warranty being a good investment.
However, I also agree with ascari in that in order to go with aftermarket parts and independent mechanics you have to be willing to take on some additional risk (not much in some cases), invest time, and be willing to go through some trial and error. And if you're going to do repairs yourself then this is doubley true.
Back when I was young, single and was just starting my career with limited income I always went with aftermarket parts and did as many repairs myself on my Nissan Maxima as I could (armed with my Haynes manual). I scoured discussion forums, became best friends with the people at Autozone, and spent hours reading reviews, looking for cheap vendors and trying to find trustworthy/competent mechanics. When I did repairs on my own I inevitably would make mistakes and always had to budget extra time for those inevitable mistakes. I was and am today at best a novice DIY'er. But the journey, no matter how painful, was worth it to me at that time.
Now that I have a more demanding job with long hours, a wife and child, my free time and mental energy are worth much more to me than they did when I was young and single. The evening and weekend hours spent researching aftermarket parts and repair procedures as well as hours actually fumbling through repairs under my car are now better spent helping my wife, spending time with my child and researching ways to make my child go to sleep faster. For me there is tremendous value in this tradeoff.
God knows not all Lexus dealerships are perfect but on average I think they are more likely to fix my car the right way on the first try than an independent, and most certainly better than me.
In the end I did end up buying a 3rd party warranty and so far it has worked out for me (fingers crossed). I brought my car to Lexus with an issue that they determined was a bad wheel bearing. They gave me a loaner and I drove away while they called the warranty company to file the claim (which was approved) and completed the repair. All I had to do was drop my car off, "deal with" a loaner and then pick up my car. It was seamless and the repair was done right because all noise and vibrations were gone. That process was well worth it to me considering the alternative of my local independent mechanic who doesn't have loaners and does not usually deal with warranty companies.
This is all not to mention I got a 3rd party warranty that is an exclusionary policy that covers a lot and has a cancellation clause where I can cancel at any time and get a pro-rated refund on the policy cost minus approved claims. The risk is low if they turned out to be shadey and the benefit is pretty high. The warranty cost me $2400 for 3 years and 36k miles and within the first month of having it I had the wheel bearing replaced under warranty to the tune of $1400. I'm sure I could have gotten it done a lot cheaper at an independent mechanic but the time needed for additional running around and sourcing of aftermarket parts would havr "cost" me in time and mental energy. Add that to the peace of mind that the work was done by Lexus people with OEM parts and the cost-benefit analysis of 3rd party warranties changes a little when you consider the non-monetary benefits.
Right now my LS is back at the dealer for a power steering rack and rear air strut replacement. These are big money repairs north of $6k. I have a loaner and Lexus is dealing with the warranty company. Hopefully it gets approved today. If they play games with me I will cancel my policy, get my refund and walk away having lost nothing.
Just my two cents from my own personal experiences. Others will find a differe t path that works for them.
04-08-15, 01:54 PM
#18
By the way for what it's worth, I just spoke with my dealership and they just got approval from my third party warranty company to replace the power steering rack and rear air strut. Total costs are about $5,900.
04-08-15, 06:55 PM
#20
Yes, like you, I'm too old to deal with finding a competent independent (haven't found one yet near Chapel Hill) and hoping they can fix things right first time. I hate paying dealership prices but at least I'm pretty confident things will get fixed right first time and with my Lexus Platinum warranty, I'm hoping to avoid many of the expensive repair costs noted on this site.
04-08-15, 11:12 PM
#21
Pole Position
Warranty in some form is essential for an LS
Get whatever you can that offers the maximum coverage cause you'll need it no matter how good your car is ...see the following reply I just posted on my car
Perfectly normal repairs .. I've had way more fixed in the last 2 years and all on a very low mileage car pampered by a previous elderly owner . It's typical I think of Lexus in that period by all accounts especially the LS . I still love my car as it's basically a great car and thank god for the $2200 lexus care warranty I bought when I purchased it . I so nearly said no it won't be necessary based on all my previous Lexus experiences ! To date over $20,000 has been rectified by Lexus without a blink on their part . In 12 months when my warranty expires even though I sometimes feel the car has been practically rebuilt I'll be down there getting a new RX or used 2014 LS
Perfectly normal repairs .. I've had way more fixed in the last 2 years and all on a very low mileage car pampered by a previous elderly owner . It's typical I think of Lexus in that period by all accounts especially the LS . I still love my car as it's basically a great car and thank god for the $2200 lexus care warranty I bought when I purchased it . I so nearly said no it won't be necessary based on all my previous Lexus experiences ! To date over $20,000 has been rectified by Lexus without a blink on their part . In 12 months when my warranty expires even though I sometimes feel the car has been practically rebuilt I'll be down there getting a new RX or used 2014 LS
04-09-15, 06:56 AM
#22
Waylman: Great to hear about the approval. From the sounds of it, even if you were to use an independent mechanic and aftermarket parts you will be close to breaking even on your warranty investment.
One thing that I think is worth pointing out is the periodic discrepancy in how the dealerships are viewed. I think it's fair to say that when anyone posts a question about a potential LS purchase, there is almost always a reply which points the potential buyer to the online Lexus service records database. If we see a complete history of the car being comprehensively serviced by a Lexus dealer, that's a reassuring positive. Likewise, if we don't see any history, that leaves a huge question mark about who did the work and how was it done. The takeaway here is that when buying an LS, most of us have some faith in the dealer's work and view that work as having been performed by someone who should know a thing or two about these cars, making it more likely that the car will be a good purchase. On the other hand, in other instances (such as this thread) dealer's service is sometimes portrayed as being sub-par to the grimey Midas shop down the street.
One thing that I think is worth pointing out is the periodic discrepancy in how the dealerships are viewed. I think it's fair to say that when anyone posts a question about a potential LS purchase, there is almost always a reply which points the potential buyer to the online Lexus service records database. If we see a complete history of the car being comprehensively serviced by a Lexus dealer, that's a reassuring positive. Likewise, if we don't see any history, that leaves a huge question mark about who did the work and how was it done. The takeaway here is that when buying an LS, most of us have some faith in the dealer's work and view that work as having been performed by someone who should know a thing or two about these cars, making it more likely that the car will be a good purchase. On the other hand, in other instances (such as this thread) dealer's service is sometimes portrayed as being sub-par to the grimey Midas shop down the street.
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