Do yourself a favor and decline not only the exorbitant tire/wheel policy but the extended warranty as well. These cars are well designed, well built, and rarely have major breakdowns. Search threads on "extended warranties" and you'll find that the great majority of members on this forum recommend passing on the purchase of any extended warranty for tires, wheels, and the entire car... Instead of laying out thousands of dollars on a policy that earns dealerships about 90% profit, take a few dollars from each payday and stash it in an account for repairs. If none come about, spend the money and take your significant other on a nice vacation. Don't spend your money on an extended vehicle warranty. BTW, I had scraped my wheel in a parking lot and after searching around I saw a wheel repair guy at a dealership. I asked him if he could fix my wheel and he came to my home and did it in the driveway for $40.00. Sanded, buffed, primered, color, clear coat... GOOD LUCK with whatever you decide...

 

The managers pressure you because these packages are almost 100% profit for them. So you're not missing anything here. Years ago it was a "special wax" or "undercoating to prevent rust". Today it's VIN etching on a window, pin stripes (UGGH), nitrogen filled tires, extended warranties, and chemicals to increase your mileage. All carnival tricks to separate you from your money. The smart buyers keep their hands in their pockets...

Check out this thread from a happy and satisfied forum member and you'll see why NOT to buy extended warranties...
https://www.clublexus.com/forums/es-...hits-200k.html

 

Do they still do a show and tell in the finance office where they display a blown tire with a damaged wheel? Academy award presentation.

 

While I get that a lot of the crap dealers try to sell you is overpriced or simply not worth it, I can still see why you'd want a wheel and tire road hazard plan.

If you live in an area with poorly maintained roads, like I used to when I lived in KCMO, I would not blame you for buying a tire and wheel package. I tried my absolute best to avoid potholes, yet I still hit them from time to time because of visibility issues or being on an unfamiliar stretch of road. I bent a wheel on a pothole, and lost no less than two tires to bubbles caused by potholes. One of those was on the highway traveling ~70 MPH. There was a truck in front of me, so I didn't see the pothole until I was too close to react. I could've ended up shelling out $200 or so for a new tire but got it covered. And yes, I can hear you now saying "Well, you paid for it either way, whether it be out of pocket at the time or included in your monthly payment." It's a wash. But I also managed to bend a wheel, which needed replacement, which would have cost over $500 to replace (parts + labor) on its own. Combine this with a couple of instances of curbed wheels, and I definitely got my $900 worth out of it. It would have cost $100-$150 to fix each wheel rash instance based on my experience.

Now, I live in an ATL suburb which has much nicer roads, and even the interstate highways around here are better-maintained than the ones in KCMO. Having less-severe winters probably helps. So, I don't have a wheel and tire plan now. I haven't hit a single pothole that I can recall since I picked up my 2021 IS 350 last year. I did manage to get a screw in one of my tires, which was patched for free at a Discount Tire. That could happen anywhere and is almost always free to fix.

So ultimately, I don't think there is anything wrong with getting a wheel and tire plan, and I don't like this weird pride associated with not having one. Sometimes things happen that are unexpected or unavoidable, and having some insurance softens the blow. Do I recommend it for everyone? Absolutely not. If you don't put that many miles on the car or if the roads where you drive are very clean, sure, be like me and skip out on it. But if I still lived in the Midwest or up north in general, I would probably buy it if the price was right. If nothing else, I can see the reason why you might want it.

Now, as for your general car insurance covering these damages, that is a great question. I would think it prudent to point out that using a separate plan for wheel and tire means you don't need to file a claim on your general car insurance policy.

 

I never ever touch the wheel/tire stuff. I always decline. Always always. Profits are tiny for dealers, if at all, based on outright car sales... so they push extras up the wazoo. I am always very aggressive, at times downright rude when it comes to signing final papers because I make it clear "I don't want any extras" and they try anyway. They're always visibly frustrated.

Those warranty companies aren't in business for free. They have calculated the risks and they know 98 times out of 100, the warranty will never be used, so win=them. It's not like a 50/50 flip of the coin. That wouldn't be a very good business model. Chances are you won't receive more benefits than you pay money into such a warranty.

 

I’m not worried about the reliability of the engine and transmission on the Lexus. It’s all the computers, electronics and all the hardware that I’m concerned about. People that I know have told me that an ABS sensor costs $400 to $500 to replace if it stops working. Other sensors and computer modules in these vehicles costs even more. The infotainment screen costs anywhere from $4,000 to $6,000 to fix if it stops working. These are the things that will go first and burn out and break on the Lexus vehicles and they are very expensive to fix and replace. That’s why I want to purchase the 150,000 mile/10 year warranty. I would like to keep the car at least 5 years if I can and I would like to be covered if anything breaks. I don’t want to have to pay out of my pocket if anything breaks and needs replacement.

 

Does this type of policy cover curb-rash damage?

 

Yes it does. It covers everything and all types of damage to the rims and tires.

 

I work in the auto business and bought it on my car.

 

You did the right thing by purchasing it. I would rather have the protection and not have to worry about paying to refinish or replace expensive rims and tires on a vehicle like the Lexus. The same goes for the extended warranty. I don’t want to have to pay thousands of dollars out of my pocket to replace computer modules and infotainment screens or electronic sensors. All that stuff costs thousands of dollars to replace once the vehicle reaches 70,000 miles and these items start breaking when the car goes beyond 100,000 miles. The 150,000 mile/10 year extended warranty will buy some extra time and another 4 to 5 years of free warranty repairs if the vehicle doesn’t reach 150,000 miles in the first 5 to 6 years. The extended warranty is worth it for all the computers, sensors, modules and infotainment system and screen on the ES. That’s how I see it.

 

You summed up the case for buying insurance. I agree with CT that financially, no insurer is in business to lose money, and we can rest assured they've set the premium at a level where they will on average come out ahead. But what you've really bought it for is to ease your stress, and it's hard to measure that in dollars. While I'm neither an advocate nor a buyer for any such warranties, the emotional factor makes it really a personal decision.

 

You’re right. I don’t want to worry about anything that’s computer, module, sensor or electronic related breaking. That’s the only reason why I’m purchasing the extended warranty. I know that the engine and transmission on the ES is very reliable. But you never know about the engine or transmission either. Something may go wrong with either one and may need repairs that will cost over $1,000. It’s better to have the warranty just in case. That’s how I see it.

 

Many years ago I was in the finance office buying my 1994 Supra. The guy was trying to sell me an extended warranty, and gave me horror stories about costly failures. I looked at him and said, "Wait a minute. Your salesman just got done telling me how reliable these cars are, and now you're telling me it's going to break and cost me a lot of money? Maybe this isn't the car for me." That seriously changed his tune quickly. Price started out at $2k. At every drop I said, "There's nothing on the car I can't fix myself (true) and even if I can't, I know someone in town who can." He finally offered, "I have to know, if I offered you this at my cost, $715, would you buy it?" This was the 5 year 100k mile plan. I figured one turbo would be more than that, so I bought it. Don't jump at the first price. Put them on their heels and give them the impression you're ready to walk and all things get affordable. It did pay for itself with a couple of issues before it expired.

If you buy a tire and wheel warranty (I only did this one time) READ THE CONTRACT. The coverage is widely variable and many times doesn't cover what you think it should.

 

Actuaries are paid a lot of money to calculate that most of these plans are pure profit. Aka decline coverage.

 

You didn't read my post did you. WHY should I decline coverage when I want to have coverage for all the electronics, switches, sensors, computer modules and infotainment screen for the Lexus that I want to keep for more than 5 years? I do not want to pay thousands of dollars out of my pocket for these particular repairs if you know what I mean.