manulexus

Getting a 2013 ES with 34k miles, Lux package, navigation and options like parking assist etc.The original bumper to bumper warranty is over on the vehicle (>4 yrs, new was sold in Nov 2012).
I know the CPO warranty provides 2 yr unlimited miles coverage.

1) The dealer mentioned that if I wanted to buy extended warranty, I would have to buy it through him only and at the time of purchase and cannot be done later. Is this true? I am thinking, I will have the car for a year or so and depending on what I think at the point of time, I will buy extended warranty then. Will this be possible?

2) Does the bumper to bumper warranty include the powertrain warranty. I guess in this case, they both probably will end around the same time and its just a matter of words as to what one would call it.

Thanks....

Ratchey

It is true that you cannot buy the specific warranty they are offering later. There are other warranties that you can get, but they may not cover as much.
A bumper to bumper warranty would cover the drivetrain since it is between the 2 bumpers

manulexus

Thanks for the reply. The original warranty of 4 yrs expired a few days in this case. If I get an extended warranty on the original warranty from Lexus Corp (or another person, some ppl have quoted some good deals on this forum), then would my CPO warranty start from the end of the extended warranty?

The dealer is quoting me 1450/1yr, 1850/2yr. 2250/3yr, 2750/4yr, 3250/5yr for warranty. Are these reasonable? Are the rates fixed by Lexus Corp or is it a dealer determined value?

lesz

Extended warranties are among the biggest profit generators that dealerships have if they can convince people to buy them.

No, the CPO warranty does not start when the extended warranty ends. It starts right now. Thus, if you spend $1850 for the two year extended warranty, you are essentially giving the dealership $1850 and getting nothing in return because your CPO warranty already covers everything that would be covered by the extended warranty. And, if you buy the 3 year extended warranty, you are paying $2750 to buy only one more year of coverage than what you get with the CPO warranty. Plus, much of what might be covered in the extended warranty is also covered by your factory power train warranty, which still should have a couple of years left on it.

These are very reliable cars. Yes, there is a chance that, if you buy the warranty, you could have a covered repair that exceeds the cost of the warranty, but the chance of that happening is small. Put the money that you would have spent on the extended warranty into an "emergency" fund, and you will likely end up with enough money in that fund to cover any needed repairs with money left over.

manulexus

Hmm. this is interesting.. As far as I remember, the dealer explained that this extended warranty is on the CPO warranty meaning when I say 1 yr, that means 3 yrs of CPO warranty. Maybe I got this wrong, but I will confirm and get this in writing from the dealer if I do buy the warranty...

But if my understanding is right, and I am getting 2 yrs of CPO warranty + what ever 1/2/3 warranty I buy, do you think it is worth it? I guess the answer is prolly "no"

manulexus

Btw, I am paying 24.5K for a 2013 ES350 with 34k miles on it, Lux Package, Navigation, blind spot monitor addon, HID headlamps, Parking assist, Rain sensing wipers, Wood & leather trimmed shift ****, Accy package, Body side moldings....Is this a good deal?

lesz

You could well have understood correctly, and the extended warranty might well start after the CPO warranty ends. Actually, that makes more sense because, otherwise, the first two years would just be duplicating what the CPO warranty covers. I misunderstood your original question and thought you were asking if the CPO warranty started after the extended warranty ended.

In any case, the extended warranties are still huge profit generators for the dealership, and I still would suggest that, while there is a chance of having a covered repair that exceeds the cost of the extended warranty, the chances are slim, and, if you put the money that you otherwise would have spent on the extended warranty into an emergency fund, you will, far more often than not, have enough money to take care of any repairs that the warranty would have covered and still have a good amount of money left over.

lesz

If you paid $24,500 for a 2013 CPO ES with the Luxury package and other listed options and if the car is in excellent condition, I think you did well.

I just traded in my 2013 ES for a 2017 ES. My 2013 was equipped very similarly to what you described for the car that you bought. Mine had about 25,000 miles on it, and it was in outstanding condition. I got about $24,000 for it in trade, which is a bit above KBB trade-in value for the car in outstanding condition with 25,000 miles on it. I see that the dealer is selling it as a CPO vehicle, and the initial advertised price is $28,500. I doubt that they think that there is much chance of it selling for that price, but I expect that it will go at somewhere between $26,000 and $27,000. The difference of 10,000 miles between my 2013 ES and that of the car that you bought should be worth about $1000 dollars. So, I think that you did well with a $24,500 price on yours.

PAcommuter

I paid $23k for mine in early November. Mine's similar to yours with just under 28k miles at time of purchase. CPO from a Honda dealer, everything still under warranty.

Ratchey

How do you get a CPO lexus from a Honda dealer?

PAcommuter

I couldn't tell you how, but it's a cpo, the original leaser turned it in to a toyota or lexus dealer, I want to say Serramonte in SSF, but it ended up at Berkeley Honda. I wasn't offered a CPO warranty, but a 3rd party extended warranty which I didn't take.

Ratchey

That doesn't make sense. You aren't offered a CPO warranty, it is included with a CPO car. The CPO warranty is 6 years unlimited mileage from original sale date on a Lexus. If you don't have that, it's not certified. It sounds like you are still under the remaining manufacturer's warranty.

lesz

While a Honda (or other) dealer can sell you some sort of extended warranty, a Lexus CPO vehicle can only come from a Lexus dealer, and the CPO warranty is issued by Lexus. Thus, I'm quite sure that the car bought by PAcommuter is not a CPO vehicle.

Since, for an ES of this vintage, the typical mark-up for a CPO car vs. a non-CPO car should be somewhere around $1500 (or a bit more), the $23,000 that PAcommuter paid for what appears to be a non-CPO vehicle is actually very much in line with what manulexus paid for his CPO car.

azipod

It's a Lexus. Near top, if not on reliability. Don't let them sell you on that "peace of mind" baloney.