wingerty

I am buying my first Lexus, a 2004 RX330 with only 50,000 miles, clean as a whistle. Does anyone have advice on whether I should purchase an Extended Service Contract? I figure any problems I have in the future could be laid to "wear and tear". Any advice from long-time Lexus owners?

RX330inFL

Welcome to Club Lexus, wingerty.

Most of those contracts are not worth the paper they are printed on and especially those sold by the dealers. Many times the company backing the warranty goes out of business leaving you with nothing. If you get one you would be best to check with a long standing company with an impeccable reputation. In the long run you might be best to just take any money you might spend on one, put it in the bank, and have that reserve as needed in the future.

alchemist

iTrader: (1)

Two questions:

1. How handy/mechanically inclined are you?
2. Do you know of a good mechanical with reasonable rates?

rtbrjason

I just got an 04 with 73k and declined their offer to sell me an extended service contract. Mostly due to what RX330inFL said above.

wingerty

Thanks for the input. That's my instinct.

Highway33

I think its better to "Have it and not need it, than to need it and not have it". I picked up a Lexus Platinum 4year/50K warranty that is just as good as the warranty on a new Lexus. Of course wear and tear items are not included (brakes, batteries, etc) and some other items that are clearly defined, but the Lexus warranty is the only one I considered. Most after market warranties are not liked too much by mechanics. In my experience although some of them a fairly comprehensive in what they cover, the reimbursement fees are typically lower than many service facilities care to tell you about. This could lead to substandard parts being used, etc. Lexus warranties are the only way to go.

RX330inFL

The Lexus Platinum warranty is a bit different in that it is backed by Toyota/Lexus itself and they are not going anywhere. However, only a very small percentage of 2nd Generation vehicles being sold at the moment even qualify. Yours was a very low mileage example.

The another drawback is price. These warranty packages are high cost and have very high markups on them which is why the dealerships push them. Pure profit. You would be better served by taking the money you would have spent on that contract and set aside in case needed for repairs later. At least it is there working for your emergency needs instead of in the dealer's pocket.

If you were to have posted the same exact comments over at 3rd Generation RX or were asking there about such a warranty package I would have you contacting Jerry @ Midwest Toyota who has quoted many CL members a much better price than available otherwise.

Anyone looking for a contract on a recent used vehicle purchase best understand the differences between a "warranty contract" and a "service contract" and what is actually being sold to you. Do not take the word of the finance guy pushing this to you along with all the other papers you are signing. Rather, get a copy of the contract and spend a few hours actually reading about what they want you to purchase.

Highway33

Prior to purchasing my RX350 I investigated the vehicle as much as possible because I wanted to fully understand what I was getting into. I also called my insurance company as well for the same reason. Additionally, my ability to get a manufacturer's warranty was also a main deciding factor. I called 2 local Lexus dealerships and got 2 different prices (what a surprise). Then after seeing all the references on this site about Jerry, I called him. Although Jerry could not sell me a warranty (call him and he'll explain) he did provide me with great information that I used as a bargaining tool in securing my 4 year/50K Lexus warranty. I spoke with Jerry for some time and trusted his information explicitly because he had not vested interest (per say). I called back the local Lexus Financing guy and low and behold, got my warranty for basically what Jerry said they'd take. By the way it was 1/3 less then the original quoted price. It has a zero deductible and anytime I bring my car in for service, even an oil change, I get a loaner car. I called Jerry back and thanked him for helping me out. I imagine I'll be calling him again in the future. To me having the manufacturers warranty is more of a piece of mind whether I use it or not. I treat it no differently than an insurance policy. I understand you point with saving the money rather than purchasing a Lexus Warranty, but as you are aware, even a moderate repair could easily suck up that money saved. Then where would I be for any other issues that come up. I guess it's an individual decision.

RX330inFL

Yes, Jerry has been a good friend to members of CL over the years which is why we try to send business his way when we can.