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Old 10-07-14, 07:07 AM   #1
lexus114
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Default high price for extended warranty?

hi guy`s. i got a quote for a lexus 8 year/ 125,000 mile platinum zero deductible warranty for my 2015 rx 350 for $3275.00. and that is with an extra $100.00 off. doesnt this price seem a little steep?

thanks.
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Old 10-07-14, 07:40 AM   #2
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IMHO, if you are going to spend $3,000+ to get an extra 2 years of powertrain warranty and 4 years of bumper to bumper, you might as well lease the vehicle and get a new one every 4 years. Or just put this money in a bank and use it as a downpayment on a trade-in in 4 years.

I have owned my IS300 for 11.5 years now. I only had to replace what would qualify as a wear-and-tear items on it.
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Old 10-07-14, 07:43 AM   #3
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Originally Posted by vlad_a View Post
IMHO, if you are going to spend $3,000+ to get an extra 2 years of powertrain warranty and 4 years of bumper to bumper, you might as well lease the vehicle and get a new one every 4 years. Or just put this money in a bank and use it as a downpayment on a trade-in in 4 years.

I have owned my IS300 for 11.5 years now. I only had to replace what would qualify as a wear-and-tear items on it.

You`v got some good points vlad. I`m considering because my 05 RX 330 had multiple radiators go bad. But also for piece of mind too.
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Old 10-07-14, 07:53 AM   #4
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You probably could have bought the same warranty from Troy Dietrich or Jerry Johnson for at least $1K less but Toyota stopped both from selling discounted warranties out of state.
Seems greedy dealers complained and Toyota folded.

For over $3300 with tax,I'd pass.
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Old 10-07-14, 08:00 AM   #5
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I opted for an 8-year extended warranty on my Rx450h and got it for $2500. I tend to keep my vehicles for at least 8 years; otherwise, I wouldn't have bothered with it.
I just looked up my paperwork and it shows 8 year platinum, $0 deductible, but only 75,000 miles. Guess that's where they got me.
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Old 10-07-14, 08:02 AM   #6
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I opted for an 8-year extended warranty on my Rx450h and got it for $2500. I tend to keep my vehicles for at least 8 years; otherwise, I wouldn't have bothered with it.
I just looked up my paperwork and it shows 8 year platinum, $0 deductible, but only 75,000 miles. Guess that's where they got me.
Yep, that's why it was less.
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Old 10-07-14, 08:03 AM   #7
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Originally Posted by Joeb427 View Post
You probably could have bought the same warranty from Troy Dietrich or Jerry Johnson for at least $1K less but Toyota stopped both from selling discounted warranties out of state.
Seems greedy dealers complained and Toyota folded.

For over $3300 with tax,I'd pass.

I know right? ^^^
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Old 10-07-14, 10:13 AM   #8
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Quote:
Originally Posted by Joeb427 View Post
You probably could have bought the same warranty from Troy Dietrich or Jerry Johnson for at least $1K less but Toyota stopped both from selling discounted warranties out of state.
Seems greedy dealers complained and Toyota folded.

For over $3300 with tax,I'd pass.
That's sad news, I did not know that. So now we have no more good options for buying extended warranties?!
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Old 10-07-14, 10:16 AM   #9
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That's sad news, I did not know that. So now we have no more good options for buying extended warranties?!

There's a way to get a discounted warranty if you have a friend or relative in the state where Troy and Jerry have their dealerships.The warranty booklet/paperwork has to be sent to a in state address and then....
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Old 10-08-14, 08:20 AM   #10
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Originally Posted by lexus114 View Post
hi guy`s. i got a quote for a lexus 8 year/ 125,000 mile platinum zero deductible warranty for my 2015 rx 350 for $3275.00. and that is with an extra $100.00 off. doesnt this price seem a little steep?

thanks.
There is no real need to get the warranty now. You can get it any time prior to your current warranty expiring in 4 years. Why don't you wait to see if you're going to keep the car after the 4 years.

If you do get the extended warranty now, and decide to sell the car, they will rebate what's left of your warranty.

I got the extended warranty just before the 4 year warranty was up on my 05 RX for $1800.
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Old 10-08-14, 08:24 PM   #11
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I opted for a 6 year extended warranty through USAA, which is where I got my loan. I chose to go with the gap protection- basically it extended the bumper to bumper warranty from 4 years to match the 6 year powertrain warranty that lexus gives. Why pay for redundant powertrain coverage for those first 6 years with a typical extended warranty? My plan doesn't go to 8 years but I only paid $500. No deductible. Lexus will cover the powertrain for the first 6 years and my extended warranty will cover the rest of the car. I keep cars 5/6 years so it was perfect for me.
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Old 10-09-14, 07:18 AM   #12
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good points 4482 & viperdoc. thanks
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Old 10-10-14, 01:05 PM   #13
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Quote:
Originally Posted by viperdoc View Post
I opted for a 6 year extended warranty through USAA, which is where I got my loan. I chose to go with the gap protection- basically it extended the bumper to bumper warranty from 4 years to match the 6 year powertrain warranty that lexus gives. Why pay for redundant powertrain coverage for those first 6 years with a typical extended warranty? My plan doesn't go to 8 years but I only paid $500. No deductible. Lexus will cover the powertrain for the first 6 years and my extended warranty will cover the rest of the car. I keep cars 5/6 years so it was perfect for me.


That seems really inexpensive. Do you have to finance with them to get that deal?
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Old 10-13-14, 06:52 AM   #14
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If you are not already contributing to an IRA, the best place to put extended warranty money (and all money that would have been spent on other extended warranties) is in Roth IRAs for you and your spouse. Over your lifetime you will come out way ahead, especially if you buy high quality stuff like Lexus RX cars. BTW, if you do have an expensive repair later, you can always withdraw your Roth IRA contributions with no taxes or penalties.
There are a lot of people who buy all those extended warranties that say they can not afford to max out their retirement plans. These people are doing it backwards and might end up eating dogfood if they live long enough. They should think more about growing their own wealth instead of padding the pockets of the folks who sell extended warranties! That's a sincere opinion from a guy who never failed to max out all retirement plan options for him and wife. We are now enjoying a nice retirement with income 130% of what we earned in our best income years.
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Old 10-14-14, 07:47 PM   #15
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Keep in mind that like many non-essential insurance products, these extended warranties are extremely over-priced. I'd steer clear of them - especially on a Toyota vehicle given their excellent reliability. My philosophy on insurance is that you should only buy insurance to hedge risk that you cannot afford and that you should only sell insurance (options trading for example) when you can leverage fear or information asymmetry to gain a pricing advantage from the counter party - as is exactly done by the finance guy when you buy a new car and they want to take advantage of your emotions.
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Old 10-14-14, 07:47 PM
 
 
 
 
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