Most all extended warranty coverage always prohibits pre-existing conditions. Proving the owner had prior knowledge is another thing but it's certainly not a game you play when it's knowingly committing felony fraud. There have been people that had their claims denied with what they said online and although I have not heard of a case where someone was prosecuted it's still a form of criminal activity to knowingly steal coverage.
It is the same as fraudulently reporting items stolen in your house to collect on the insurance.
If they were to prosecute the reality is it might get bumped down to a misdemeanor offence with a fine I suppose but it's still shameful behavior that should not be tolerated in civil society by those who are law abiding. The 30 day waiting period and even the inspection does not absolve you of pre existing conditions. It can be proven the the condition existed prior to the warranty coverage and denied . It can even be proven on inspection of the claim.
This is certainly not a victimless crime as it affects everyone with a warranty.

 

Good points. I've done additional research and reflected it in my post. It appears that extended warranties indeed prohibit pre-existing conditions (I can't find any exceptions to this) and the 30-day waiting period is used to at least lessen the chance for fradulent claims.

in any event, claims submitted within the first couple of months will reportedly raise red flags with the warranty company and will get scrutinized very carefully.

I can think of one exception to the pre-existing condition rule: the purchase of a CPO vehicle. I would contend that any pre-existing conditions in such a vehicle are the dealer's (and thus the car manufacturer's) responsibility, not the buyer's and should thus be covered.

 

I think with a CPO warranty there is no pre-existing conditions for the simple fact that that it's a real extension of the factory warranty and a safe bet because the car was covered prior to the new coverage so there is no motive to commit fraud. If it's being sold through a Lexus dealer network they would have checked the car over to qualify but lately they have become a lot more complacent about what qualifies as CPO so they can sell cars like they do bad mortgages.
Although I rail against the consumer committing fraud I wish more warranty companies and the dealers that sell them would be investigated for their unethical behavior. The door swings both ways and that's why I hate extended warranties. Thankfully I know a way out of the madness and that's the salvage network and fixing my own car.

 

@Devh: I know that pre-existing conditions can occur on a CPO vehicle...

 

I had a Carmax warranty on my Mercedes and the MB dealer *loved* me. If I had the car in for anything they would go over it with a fine-tooth comb and turn up thousands of dollars of "repairs". Carmax always paid and would only fuss about high parts prices - sometimes Carmax provided OEM parts overnight.

In the case of the OP, clearly someone is getting paid off. The dealer is getting away with murder so he must have someone in his pocket - probably the inspector for the insurance company.

As for your cheap warranty, it sounds too good to be true. Perhaps the cost was concealed elsewhere in the deal you got for the car?

 

Is 1500 for 4 yr 48k miles also good deal then?
Was offered to me by my credit union

 

I would say so.

 

That's a very good deal. A little over $1 / day.
To replace all front control arm bushings at a local indy shop will cost you almost $1K and over $4K at the dealership.

 

That depends! While the price sounds right, you need to look at all the exclusions. Many policies exclude bushings (for those who are concerned about the control arms), and also exclude NAV, stereos, etc (for those concerned about the ML amp).

 

My jaw just dropped at that "repair". That's insane. This is Lexus reliability? In their flagship car?

 

Well, I was wondering the same since OP posted his list. I didn't want to be the first to mention about 'reliability' in this thread as I had expressed my concerns about Lexus reliability in other threads many times. Somehow, this thread turned into a warranty discussion thread.......

In all honesty, I didn't even check this LS forum ones before I purchased my LS. I expected Lexus reliability as a baseline in all Lexus model and be exceptional on LS models. One can say only issues get reported here and sampling may not have sufficient data. What ever the case may be, I am bit disappointed with all these reported issues in LS.

 

Still beats any german cars especially 7 series or s class or a8...
What other better choice do we have in this class?

 

There are no other choices. Also, there are MANY members here who have had zero issues in any regard, or if they did....minor. Like me.

 

I don't seem to understand what is an acceptable car forum standard to judge the reliability of any car based on anecdotal reporting. It's not scientific or otherwise. The closest we have to objective data is from publications that show that this Lexus is reliable. We must first discredit the publications and their method of collection.

It seems to me if there was very few reported problems or someone with a lemon that had to pay an enormous bill it still would not meet that mythical Lexus standard.
It's sad that we form our opinions based on outliers.

I have seen threads like this before on other forums for just about every hobby I'm involved with. If there was a major goof this thread would have evolved into other people piling on with their own 9k bills but instead it has drifted into a warrenty discussion.

 

Funny, as I JUST commented on this topic in the "This past Saturday" thread, and it was actually directed towards the comments that rxonmymind wrote.

I don't know much about the previous LS generation, but it would seem as if the car was flawless.
I don't know if expectations are too high or if Lexus really flubbed on its reliability.
I do know that Lexus had admitted to a possible decrease in quality due to rapid growth and shifting of leadership around the time of 06-07, and that people tend to feel that the 07 LS is/was the worst of the 4th Gen LS's, but I honestly think that with everything taken into consideration, the car is solid.
And even for some of the issues that one may encounter with this car, Lexus has done a stellar job regarding TSIB's and recalls.

And if you're in the market for a higher-end luxury car, as I stated in the other thread, your options are the Jag and German makes, as I don't really consider the RL up to this arena's luxury/performance standard and though Korea is emerging with the likes of the Genesis, its not quite there (but still a nice car).

Other makes may be emerging in the reliability category, but as of now, in the luxury segment, the LS has and still takes it, hands down.