mstrgator

I tried searching this subject but just came up with the stuff you guys posted my last thread so I am asking the question myself, Sorry if it duplicates things...seems like lots of folks would have inquired about this before.

I realize this is a "value in the eye of the beholder" thing. Some people are going to love the concept and like the peace of mind, while others are going to view it as a rip off.

I'll tell you my experience and you tell me yours. I usually don't take extended warranties in general since my practical mind says. like most insurance, somebody is making money off of selling me this stuff so the odds are I will not get my moneys worth. I have never taken the extended warranty on appliances and my track record is good...I have spent much less on repairing them that the insurance would cost.

I did take the extended warranty on my current GX 2003. I paid 1500 for it when I bought the car and it extended the warranty to 7 yr/100,000 miles. I used it once for about 300 bucks. So, like most people I lost money on he deal. Of Course I did have some peace of mind which is worth something but I really like to look at these things as financial considerations only.

My insurance deductible I look at the same way....I take 1000 deductible versus 250 becuase the difference in the premium means if I have one claim every 7 years it is a break even. I have had 2 claims in 35 years....I am way ahead of the cost.

You guys have given me some nice raw data so I can be prepared to talk to the folks when I go get the car in 2 weeks and it looks like the extended warranty for 7-8 yrs and 100-125K would run 3000-3500. I guess my feeling is I can do a lot of R/R for that kind of money and my experience with the GX says these vehicles are put togther pretty good. Now that said, there are a lot of electronic goodies on this RX...Nav, HUD, etc. Those might me more prone to problems and can cost a lot to fix. And of course you got to understand exactly what is covered on these warranties. I am replacing the dash on the GX (lexus is going half) due to cracks...but that is cosmetic and would not have been covered on either the original warranty or the extended one.

Tell me your thoughts and your experiences. If this makes any sense to do, it needs to be when the car irs new and I have some leverage on the cost.

Mastergator

kitlz

Mastergator, I've had Lexus extended warranties on all of my RXs purchased upfront. They paid for themselves on the 300 (replaced A/C compressor) and the 330 (headlights). I have yet to see what happens on the 450h especially with all the new gadgets. I can understand the hesitation. Who wants to pay for something they might not need. Being told you need an expensive repair but it won't cost a thing, now that's priceless. I'm not saying the RX breaks down often. I may have had to make an unexpected trip to the dealer here and there but It's never left me stranded. Loaners were always provided.

That's my experience with the extended warranty. Hope it helps.

The G Man

Extended warranty is like betting on a ball game thru a bookie, sometime you win and sometimes you lose, but either way, the bookie gets his cut. No one can tell you rather your extended warranty on this particular RX you are buying will be worth it, but I can tell you that you have up to the point of when your bumper to bumper warranty expires to decide rather you want to buy the extended warranty or not. Price wise, you can get the warranty cheaper thru the internet, there is really no advantage of buying it now except maybe if you want to roll the cost of the warranty onto your loan.

InRBigness

The way I figured it is that one major repair will cover the cost. It also raises the value of the car if you sell it prior to the warranty running out as it is fully transferable at no cost. I normally dont buy them on consumer electronics and stuff as by the time it breaks i normally am okay getting a new one, but at 70K I thought it was better to do so and i doubled my warranty for $3200. People spend that on televisions every day. Time will tell if it is a good investment.

GRPFAN

Careful about the Internet offerings and check out the outfit offering it.

A friend once bought a company extended warranty from a company called GE Co.( nothing to do with the appliance company.)
It was a "fly-by" company and took his money and left him high and dry

Not necessarily so, depends on how "major".

My question would be why 90% of all financial/retail people I talk to say never buy the extended warranty.


BTW........I bought a new Honda Goldwing in 2003, bought my first extended warranty, and got my 100% $$$$ back within the next 5 years.

The G Man

I agree, I would not buy any aftermarket extended warranty to begin with, there are a few internet websites that sells Genuine Lexus extended warranty at a discount rate.

UCSB

If you are unsure about the purchase, you can always put the money in the bank or buy a CD. Then you know that you will have enough to handle most problems. This always seemed like a reasonable approach to me. I am considering getting the Lexus credit card, which pays back 1.5% in Lexus dollars. This would take the sting out of most maintenance and repairs for me. I have a Subaru credit card that pays 3% back and I don't think I will ever pay for any maintenance or repairs on my new Subaru Outback.

If you go to a site that tracks repairs like truedelta.com, you will see that most vehicles will not have serious problems. But, a percentage will develop problems. There is no way to know beforehand if your car will be in either class. In the end, it comes down to how you want to manage your life.

My Dad looked at this issue and came up with a different approach. He purchased almost new vehicles (used, to get a used price) and then upgraded when the warranty was up. This was a surprising effective approach. He always had a like new car with the latest styling and features. He developed a relationship with his dealer and he would have them give him a call when something special arrived at the dealership. His dealership had a large number of senior citizen customers and the cars would come back with very low miles and really incredibly nice options and custom features.

jeffmust

Two reasons we've purchased Lexus extended warranties on all our RX models.

First, a lot of major repairs, if and when necessary, can't be easily done (or much cheaper in my experience) thru non-dealer garages. For example - had the power hatch mechanism replaced twice on our RX330. Those two items alone paid for the extended warranty.

Second, if you sell your vehicle private party, you should get more for it - and sell it faster - if a Lexus extended warranty still covers it. Offhand, I would say we've received at least $1000-$1500 more per vehicle with it in place - and the sales process went a lot smoother. All you need to have is a couple months left and a thousand miles - the new buyer assumes that any major problem will crop up during that period of their ownership. As a side benefit it can eliminate the "I need to have my mechanic check it over" hassle.

Now if you always trade-in - or return a lease vehicle - still under the 4/50 coverage, none of the above applies to you.

py0413

I don't usually keep the vehicle once the manufacture warranty expires. Of the only extended warranty I bought in the past, I sold that car in less than 2 years and didn't benefit from the coverage. I am sure it will be a worth-well investment if you plan to keep the car long enough.

kitlz

Just to throw in, extended warranties are refundable if the RX is sold/traded before it expires, prorated of course. I got a few bucks back on the 330. Or it can be transferred to the new owner for a fee.

py0413

Really? My dealer didn't mention anything to me when I bought the extended warranty. Or maybe it is only available in USA?

kitlz

I know it's in the contract. You might want to check yours.

mstrgator

Thanks folks....I know this is a personal choice and your answes reflect that. I keep these cars forever...the GX is 2003 and I just can't stand the bug to get the RX or I'd keep that sweetie, so trade in, selling it to someone else etc just won't happen.

I will most likley have this car beyond the std warrenty and likley beyond any extended warranty as well. Thanks to you folks I at least have an idea of what a good price might be. Now I just got to see what it covers and what risk I want to take,

I bet it doesn't cover stuff like NAV screen etc...the GX warrenty didn't cover the radio display which is somewhat foggy. That appearance stuff even the std warranty doen't cover.

MG

rxsuperman

I am not a fan of extended warranty. My analogy would the following: If I have been eating right and exercising living healthy to 30 years old (when the warranty expires), it's not likely that I will become seriously ill between 30 and 40 years old if I continue eating right (premium gas) and exercising (keep up with maintenance)....

The G Man

Using the right type of gas and keeping up with preventative maintenance will certainly help prevent probelms, but unfortunately, mechanical problem are sometimes random and electrical or electronic problems are almost always random. Lucky for us, Lexus comes from good genetics, thats one of the reason why the Lexus extended warranty is so reasonably priced. A one year Mercede extented warranty on the S-class can cost upwards of $2500, thats about the same price for a 7 year extended warranty for the RX350.