Prepaid maintenance plan
Just leased a new 2019 ES 350 for 3 years. We do not drive that much. At most 5000 miles a year , if that. Do we need a prepaid maintenance plan for $3400?
Pre-paid maintenance plans are a pure cash grab for the dealers.
First, the first year of service for your ES is complementary. Beyond that, at the end of your 2nd year, the recommended service for that second year would be just an oil change and a tire rotation, and if you were to take your car, say, to a Toyota dealer for that service, the cost would be somewhere between $50 and $60. Even at a Lexus dealer's service department with their inflated pricing, the cost would still be under $150. At the end of the 3rd year, the cost would be similar if you were keeping the car, but, if you are turning in the car at the end of the lease, there is no need for you to do that service. The only other service that might be required during the first 3 years would be a brake fluid flush, but that would only apply if you had driven 30,000 miles, which doesn't seem to apply in your case, and the cost of a brake fluid flush should only be around $100, anyway.
So, as you can see, paying $3400 for the pre-paid plan would result in virtually pure profit for the dealer.
First, the first year of service for your ES is complementary. Beyond that, at the end of your 2nd year, the recommended service for that second year would be just an oil change and a tire rotation, and if you were to take your car, say, to a Toyota dealer for that service, the cost would be somewhere between $50 and $60. Even at a Lexus dealer's service department with their inflated pricing, the cost would still be under $150. At the end of the 3rd year, the cost would be similar if you were keeping the car, but, if you are turning in the car at the end of the lease, there is no need for you to do that service. The only other service that might be required during the first 3 years would be a brake fluid flush, but that would only apply if you had driven 30,000 miles, which doesn't seem to apply in your case, and the cost of a brake fluid flush should only be around $100, anyway.
So, as you can see, paying $3400 for the pre-paid plan would result in virtually pure profit for the dealer.
Pre-paid maintenance plans are a pure cash grab for the dealers.
First, the first year of service for your ES is complementary. Beyond that, at the end of your 2nd year, the recommended service for that second year would be just an oil change and a tire rotation, and if you were to take your car, say, to a Toyota dealer for that service, the cost would be somewhere between $50 and $60. Even at a Lexus dealer's service department with their inflated pricing, the cost would still be under $150. At the end of the 3rd year, the cost would be similar if you were keeping the car, but, if you are turning in the car at the end of the lease, there is no need for you to do that service. The only other service that might be required during the first 3 years would be a brake fluid flush, but that would only apply if you had driven 30,000 miles, which doesn't seem to apply in your case, and the cost of a brake fluid flush should only be around $100, anyway.
So, as you can see, paying $3400 for the pre-paid plan would result in virtually pure profit for the dealer.
First, the first year of service for your ES is complementary. Beyond that, at the end of your 2nd year, the recommended service for that second year would be just an oil change and a tire rotation, and if you were to take your car, say, to a Toyota dealer for that service, the cost would be somewhere between $50 and $60. Even at a Lexus dealer's service department with their inflated pricing, the cost would still be under $150. At the end of the 3rd year, the cost would be similar if you were keeping the car, but, if you are turning in the car at the end of the lease, there is no need for you to do that service. The only other service that might be required during the first 3 years would be a brake fluid flush, but that would only apply if you had driven 30,000 miles, which doesn't seem to apply in your case, and the cost of a brake fluid flush should only be around $100, anyway.
So, as you can see, paying $3400 for the pre-paid plan would result in virtually pure profit for the dealer.
We bought my wife a new ES300h in April. We got the 5 year/50k mile prepaid plan for $1,800. Really isn't prepaid as it was rolled into the note. I probably overpaid some, but they also included tire balancing with each rotation, plus it was just easier for my wife when she takes the car for service, which means easier on me in the long run.
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We bought my wife a new ES300h in April. We got the 5 year/50k mile prepaid plan for $1,800. Really isn't prepaid as it was rolled into the note. I probably overpaid some, but they also included tire balancing with each rotation, plus it was just easier for my wife when she takes the car for service, which means easier on me in the long run.
Answer--Because they know that there are people who will buy the plan if it is offered to them.
Question--Why would anyone be willing to spend $2000-4000 on a pre-paid maintenance plan when the actual cost of the maintenance that they are buying is only 10-15% of what they will be paying for the plan?
Answer--Because the dealer offered them the plan and said it was a good deal.
Last edited by lesz; Aug 8, 2019 at 05:26 PM.
Since I joined these forums back in 2012, I've learned that when one brings their car in for service, whether prepaid or not, one must be very specific as to what service one wants done to their car. Recently a member was charged for a throttle body cleaning - that he didn't need or want - when he asked for "60,000 mile service". Apparently this service was included in the all encompassing "60,000 mile service". He got screwed... Another member was asked if he wanted rear differential service on his Lexus. Uhh, Lexus doesn't have a rear diff. There have been numerous other posts regarding additives, (don't do it) waxes, prepaid maintenance programs, etc, etc... Point is, be very specific what you ask for and state what you don't want done. These service writers get a percentage of what they write so there is an incentive to suggest extra cost items. And apparently, some of these writers know very little about cars in general, and Lexus cars specifically...
Since I joined these forums back in 2012, I've learned that when one brings their car in for service, whether prepaid or not, one must be very specific as to what service one wants done to their car. Recently a member was charged for a throttle body cleaning - that he didn't need or want - when he asked for "60,000 mile service". Apparently this service was included in the all encompassing "60,000 mile service". He got screwed... Another member was asked if he wanted rear differential service on his Lexus. Uhh, Lexus doesn't have a rear diff. There have been numerous other posts regarding additives, (don't do it) waxes, prepaid maintenance programs, etc, etc... Point is, be very specific what you ask for and state what you don't want done. These service writers get a percentage of what they write so there is an incentive to suggest extra cost items. And apparently, some of these writers know very little about cars in general, and Lexus cars specifically...
Not a believer of a tire rotation?
Easy to prove, measure the tires and again 5k miles later. The results will make you a believer.
I almost NEVER buy extended warranties, but when we bought out the lease for our 2013 RX 3 years ago, we bought a warranty that covers us until 100K miles. This week, we're having the radio replaced. I expect it would coast north of $1500 to replace it (a guess, based on the ridiculous prices Lexus dealers normally charge for parts and labor), but it is covered at 100%. There isn't even a deductible. Plus, it's a hybrid, and have less confidence in the battery life than some folks. I figure I have another 30+K miles to get the other $500 back from the cost of the warranty. That should get me another 3 or 4 years of peace of mind. Seems like a deal to me even if we don't recover the entire cost.
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