internalau

Is it cheaper to get upfront (when dealership wants to seal the deal) or shop later?

I mean if it's 25% less paying upfront, maybe it makes sense to do it since savings accounts only pay below 1.5% nowadays.

winst0n

well the guy selling me the warranty said he's giving me a very good deal and will normally cost higher if i purchase later on.. he said the offer was good only at that moment upfront or max of 30 days.. otherwise it will go up to the regular price which is much higher he said.. who knows..

bhlerman

Just bought a new NX and the extended warranty for$2000. Is that a good price or should I cancel and buy it later if want it?

4482

You have 4 years to decide if you like the car or not, and want to keep it, then buy the warranty.
You can even shop around Lexus dealers for the best price on the extended warranty at that time.

wildeklave

This is true and usually the smartest way to do it. You typically have 5,000 miles to buy without an inspection of the vehicle. I am not sure if Lexus allows this anymore but in the past I have seen people call out of state dealers (ie. Sewell who used to have a parts shop online) to get the best prices. Many out of state dealers will sell you the warranty for like $100-250 above cost since they know they aren't getting your car buying business. The only caveat is I think I saw a post somewhere that the US Lexus dealers agreed that they wouldn't sell the warranties to out of state customers or customers outside of a certain distance from the dealer. Not sure if that is true or not. The extended warranties sometimes have commissions up to 40% for the dealers.

In the modern day of car buying with Edmunds / True Car pricing the dealers only make $250-500 for each car sold. They make their money on trade ins, service, warranties, and financing. With financing they may claim they get a flat $500 for each contract but many times they are getting anywhere from .25%-.5% of the financing rate inside. If you get a new Lexus at the Edmunds price of $500 over invoice the dealer still may make a few thousand from you from selling you a warranty, your trade in, financing, the documentation fee, a dealer preferred customer fee, car shipping fee, and other dealer options you go for.

4482

When I purchased the extended warranty for my RX there was no mileage limit other then the 4 year standard warranty limit. You had to buy the extended warranty anytime while the standard warranty was in effect.
As a matter of fact I sold the car during the extended warranty period and received a rebate from Lexus for the unused time.