Mr645

How long do you expect to own the car?

Also, you can cancel the warranty at any time. Instructions should be printed on the back of the contract, often the bottom paragraph. You will get a refund applied to your loan for the unused portion

GWO

how can I obtain a service plan/ warranty on the 2018 Lexus NX300 vehicle from my local dealership even if the car was purchased straight from Japan and is classified as an import. I am located in NAMIBIA (SOUTH WEST AFRICA) . My Lexus dealership is the ONLY/SOLE dealership In Namibia countrywide and they informed that because the vehicle is an Import, and since it has no warranty it can not be covered by them on a service plan. Now how would that be possible if they are the brand's agents,. Why can they not provide the service for the brand. I mean it does not make sense.....kindly advise because if i as a consumer bought the vehicle from a different country and would like to have aftersales support for a product, is it business sense for the dealership to tell me that they can't provide me with a service plan, even if I opt to pay for it. Where is the sense in that.

robm

I say get the extended warranty. You may get a better price on the vehicle as they make a lot of money on the warranty itself. Cancel the warranty and get that fully refunded later(within 30 days).

RXWes

Purchase the vehicle.

Prior to the original warranty expiring. Decide if you plan on keeping the car. If you do plan on keeping it. Contact Jerry and get a quote on the warranty that serves you best.

Jerry Johnson
Warranty Manager
jerryj@midwestsuperstore.com


if you just plan to keep it a year or more. And you have a basic optioned car. You might get away with just the power train warranty.

But if you get a fully optioned model. Get the warranty.

LexMan2003

I purchased a 1,300 mile 2020. I negotiated into the price the "L Certification" (i.e. CPO - Lexus Certified PreOwned). They have the ability to sell it to me, since they were selling me the vehicle as a "pre-owned".

So instead of getting just the residual of the Lexus new car warranty, I am getting 5 years 7 months of UNLIMITED mileage, bumper-to-bumper warranty. I drive a LOT of miles, so in that timeframe I expect to drive appx. 100k miles.

The reason I wanted that "L Certification" had nothing to do with my concern about mechanical failure. Not at all. I have a lot of faith in Lexus/Toyota, and I'm very big on preventive maintenance and very much in tune with my vehicles. I purchased it simply because the car has SO MANY gizmos, SO MANY electronic components that MAY fail at some point. If any one of those things goes out, the repair could easily come to $1k or more.

Perhaps a lot of people don't think about negotiating for the "L Certification" when buying a pre-owned from a Lexus dealer. It seems that they advertise SOME of their cars with it, and some without. But if it's not advertised with it, that doesn't mean you could negotiate for it, as I did - IF you want it!

RXWes

It depends on the dealership. Some advertise and list as CPO. Some list a lower price with the CPO as an upgrade.

My current vehicle is a CPO 2016 RX350. I’ve owed it for 18 months and have another 18 months of warranty left. Every 5k service visit it’s had repairs made. This last visit it had the Back Up Sensors in the bumper reinstalled. The front Passenger seat belt replaced because it no longer retracted.

My prior visit it had the engine removed for oil and water leaks.

This was all work done after the original 40k warranty expired.

The G Man

So much for Lexus being the #1 rated car manufacturer when it comes to reliability. This is our 4th Lexus and one of them was a lemon and the other 3 bullet proof, 75% reliability rate is not too bad

LexMan2003

RXWes, what dealership is/was this?

chadhargis

I bought the extended warranty on my CPO NX for one reason...peace of mind.

While I'm sure many Lexus owners have piles of cash laying around to pay for an expensive repair, I don't. I'm also sure some financial Einstein will pipe up and say, "if you don't have any money you shouldn't be buying a Lexus". The average price of a car in 2021 is $40,800. I paid $27k for my NX....so I'm hardly living above my means. While I'm sure I could have spent less on a 3yr old Ford or Chevy, my plan is to pay the Lexus off and get many years of use out of it.

So I gambled. And like any gamble...the house knows the odds and they seldom lose. I rolled the price of the warranty into my payment, and I think it bumped it $30 a month. Just was we pay homeowners insurance, car insurance, life insurance, etc....it's all a gamble. I've never filed a claim on my homeowners insurance. I've been a homeowner for 26 years...and I've never filed a claim. Yet the insurance company has taken thousands from me. Have I been ripped off? Of course not. But I promise you the CEO of the insurance company lives in a much nicer house than I do.

The G Man

On the contrary, if you are not well off like me and counting pennies, you should self in-insure and put that $3000 in the bank earning interest. A large chunk of that extended warranty is pure profit, the dealer gets a cut and Toyota gets a cut, everyone makes out good except for the owner in general. I guess someone has to make the share holders happy and pay for the over head. Out of all the extended warranties I have bought, maybe 6 to 8 in total, I have only used it once and the repair was less than. $1000. For those who is willing to pay for a peace of mind, Just realize that chances are, you will end up losing most of that $3000.

chadhargis

I agree. Got $3000 I can have to stick in the bank? I mean, I could take it out of my 401k or my HSA or my kids college fund, but the penalties are pretty stiff. I'll pay you back at $50 a month for 5 years.

lesz

The above quote is absolutely correct. The mark-ups on extended warranties are obscenely large. Pricing is typically such that the expectation is that those who buy the extended warranties will, on the average, collect only about 20% of what they paid for those warranties. A car dealer can give you a great deal and sell you a car for virtually no profit on the car itself, but, if that dealer can sell you a high markup extended warranty and, say, an equally profitable pre-paid maintenance plan, that dealer can turn the sale into one of its most profitable sales.

In a past life, I was involved with brokering the sale of cars. I could not, in good conscience, advise any of my customers to buy an extended warranty, and, if customers insisted on buying one, I would sell it to them for about 25% of their normal cost (and I still made a small profit on the sale).

Note that this is why Jerry Johnson can sell deeply discounted extended warranties. He can sell them for a much lower price than others, and he can still make a very large profit.

If you buy extended warranties on all of the cars that you buy over, say a 20 year period, you may well have an instance where you will be able to claim an amount for covered repairs that is more than what you paid for the warranty, but that is likely to be the exception, and, over that 20 year period of time, it is almost a guarantee that you will be many thousands of dollars ahead by not buying the warranty and, instead, putting that same money into a savings account whose money is earmarked for car repairs.

(The reality is that more savvy buyers should be happy that there are some who buy extended warranties. It is the people who buy extended warranties, pre-paid maintenance plans, and other high markup add-ons that allow dealers to sell other customers cars at minimal profit levels.)

RXWes

All of them

If you are purchasing a car from a Lexus Dealership. Just tell them you want the CPO. And then see if they can inspect and replace the parts on the car to bring it up to CPO standards. Then see what the upcharge is.

RXWes

I am currently on my 5th Lexus. 2 new and 3 CPO. My 2 new vehicles I didn't keep them past the original warranty.

On my 3 CPO vehicles. Each of them had at least one repair past the original warranty that paid for the extended warranty I purchased from Jerry. My ISF had the dash completely removed to fix an Air Conditioning issue. My current RX350 has had numerous smaller issues and had the engine removed at 49K miles. For both engine oil and water leaks. This repair would have also been covered by the powertrain warranty.

I've got another 18 months left on this warranty. Then I plan on getting a new NX. It will be a first year of the remodel. So I will just keep it the 4 years.

lesz

Over the years, the business of selling cars has changed.

It used to be the case that the largest portion of a car dealer's profits came from selling people cars at prices far exceeding the actual costs of the vehicle.

But the car business has changed, primarily due to the fact that, with the maturation of the internet, it is pretty easy for anyone to find information indicating what kind of discount from MSRP would be a decent (or good) deal, and that makes it more difficult for dealers to gouge car buyers with excessively high prices for the cars that they are buying.

So, dealers have had to become creative in finding ways to pad their profits by selling them add-ons for which it is more difficult for car buyers to know the real cost of those add-ons. Now, car dealers make a large percentage of their profits when the business manager sells the customer extended warranties, pre-paid maintenance plans, wheel and tire protection plans, etc. after the customer has already agreed to the price of the car and thinks that he/she has gotten a great deal.

I used to wonder who is better off, the customer who gets a great (or fair) deal on a car but who worries about whether he/she could have done better or the customer who gets taken to the cleaners on a car purchase and walks out thinking that he/she got a great deal. Car sales people will tell you that their favorite kind of customer is the one who has overpaid for a car but who drives away from the dealership thinking that, by out negotiating the dealer, he or she has actually taken the dealer to the cleaners.

Also, note that, when you do make an extended warranty claim, say, of $3000, the amount that the extended warranty paid is not $3000. You may think that you saved $3000, but that $3000 is just the inflated shop rate that the Lexus dealer service department charges, and the actual extended warranty payout to the dealer's service department is much less, and what you would have to pay to have the repairs done on your own would be much lower, especially if you had the work done at a Toyota dealer or by a reputable independent mechanic. Note, too, that many of the covered repairs with an extended warranty are things that would be covered anyway by the 4 year Lexus bumper-to-bumper warranty or the 6 year power train warranty or, in the case of a CPO vehicle, by the CPO warranty.

You are free to believe what I explained. Or you can choose to believe that Lexus and Lexus dealers are just nice guys and that they are selling you extended warranties and other high markup add-ons because they want to save you money.