cpbradshaw

My wife and I purchased an RX330 from Lexus of Concord in May 2006.
They sold us the optional service contract for $2500.00, and we were told that if we went through the 84 months (or 100 k term) without a claim, the full dollar amount would be refunded to us.

We contacted the sales manager on May 30th, 2013, and were told that the dealership did not have responsibility to refund us the full $2500.00, but could give us $1700.00 in service discounts for our Lexus.

We no longer live in the Bay Area, and could probably never use anything near that service amount.

Has any one run into this situation?

Joeb427

iTrader: (1)

Do you have in writing that the $2500 will be refunded?

trinh76

Call the number on the contract and file the paperwork with them not the dealer.

cpbradshaw

yes I do have that in writing

cpbradshaw

The administrator, N. A. D. S. is no longer in active.

JLeffler

This happened to us, non Lexus related, but a warranty that gave a full refund after four years. One year in, they collapsed with the economy. For our "troubles" we were awarded $25 per year for a whopping $100. Nothing we could do.

trinh76

Oh boy...I googled N.A.D.S reimbursement and there are a lot of people on the same boat as you. Looks like N.A.D.S filed bankruptcy.

http://www.bbb.org/denver/business-r...441/complaints

This might help if it's worthwhile..

https://www.facebook.com/permalink.p...90307087652804

JLeffler

I'm thinking this was similar to what happened to us. It went to class action, hence the minor refund we got back. I guess this was a common practice that didn't boad well with the economy.

RX330inFL

These third-party warranties, unfortunately for yourself, are usually not worth the paper they are printed on and are pushed by the dealerships as an easy cash flow for themselves. The dealership does not have to stand behind them and many times, such as in this case, the company goes out of business shortly after it collects a sufficient number of contracts to give management a good bonus. I always recommend car purchasers avoid all extra warranty packages with the exception of those backed by the manufacturer on a national basis. Even those backed by the dealerships are suspect since they can be made void by the dealership being sold, declaring bankruptcy or just plain going out of business. They can also be made void by you just moving out of the area, such as the case with the OP, since only the dealer who sold you this bill of goods is willing to give you any value as worthless as it is.

mandyfig

That is why I opted to get the LEXUS warranty. 3rd party warranties are hit or miss. The dealer gets a huge rebate after selling the junk product. Sorry for your loss. But have $1700 credit. That's their cut on the $2500 that you paid. Business, though rotten is business.

tfischer

Your heading is incorrect. This is not a "dealership's" warranty. Had you made the contract with the dealership, you would be OK (although that would not have been a wise move either, as dealerships also close and go out of business). When I first started to become aware of third party "warranties," I looked around and was even able to get my hands on one to read in full before purchase, which is not easy. The history of these companies is checkered, at best. Many have just folded and gone out of business, which leaves the purchasers virtually no legal recourse. Your contract is with the company offering the warranty (it's not really a warranty, but let's call it that for now). When you have a repair that falls within the coverage, the mechanic (an independent shop or a dealership, etc) may but does not have to send the bill to the "extended warranty company," which pays the bill with a return check. Remember that your contract to repair the car is with the mechanic, and it's your obligation to pay the mechanic, even if the warranty company folds while your repairs are being done.
You should always know with whom you are doing business, which is why I agree with the notes above that if you are going to buy one of these "extended warranties" (another questionable decision, well discussed hereinbefore), it only makes sense to do so with Lexus, who surely appears to be in the game for the long term.

libsnibs

Is there anyone else in California that has this problem? NADS warranty and now I cannot get my refund after not using it for 7 years? Thanks.

pauljcl

I just read the thread to this day, and it looks like: 1. You got a bad deal, 2. The dealership is trying to help in some way. If it were me, I would be very upset, but at least try to get something out of it. I would suggest you see whether the dealership would extend the 'discounts' to someone else. In the event, maybe you can 'sell' the discounts to a customer in the Bay Area at a discounted price and recoup a little of your losses(?). On a more positive note, I would say that being comfortable for 84 months (7 years!) feeling that any problem would be covered, and not having a problem to check it out, is a great thing. Yes, it sucks, but not so sour..... Good luck!

libsnibs

I found a lawyer in Foster City, CA who says he will take all the cases in California and get the dealers to pay dollar for dollar because the dealer is the one who made the representation. They knew of the risk when they sold the warranties. And they are the ones who took at least half (if not more) of your money. If the dealer is out of business, then the bank who financed the car is liable. His website is car lawyer.com

Libs

emjayef

I have one of these warranties from Lexus Concord, and have been trying to get in touch with someone there, but they don't seem to want to return calls.

But I first contacted the NADS company at the number I had on the contract, and they checked and told me that I haven't used it, so was entitled to the refund, but to call the dealer. They said I could request a form from them saying I had no uses for it, and I even got the guy's email address at protective.com.

I have the original paperwork, which says "100% maoney back guarantee". Also, I have a pamphlet from Lexus Financial Services that says the warranty is factory backed, but I think it's general, and not specific for this NADS contract. Hard to tell, but it's definitely misleading.

So far, I have not been able to talk to anyone at the dealer except the receptionist who told me there is only one person who handles this, but I cna't get hold of him so far.

As far as I'm concerned, if I don't get a 100% refund, I will sue the dealer, and Lexus USA.