Last June ('03) I purchased an extended warranty (Platinum) on my 2000 LS400 . I was planning to sell the auto privately and purchase a new LS430. The idea was to offer the warranty, which could be transfered to a buyer for a small fee, and give the buyer a 100k/ mi. 7 yr assurance. At the time, thru Lexus, you HAD to purchase the warranty prior to 3 yrs/36k mi even though the warranty for the auto was 4 yrs.50k mi. The warranty cost $2210 for a 7yr/100k policy. In Feb '04, when I began negotiating with Lexus dealers for a 2004 LS430 and found out it could not be transfered to the new Lexus, I cancelled it, thereby having it for only 8 months. And changing my mind about going thru selling to a private owner I traded it for the 2004 LS430.
I was dumfounded when I found out that the charge for the 8 months was more than $380!. The Lexus pro rata refund formula uses the date of application (june '03) and the expiration date of the extended warranty (june '07), a total of 48 months or mileage (in my case 45020 at cancellation) to compute ratios, whichever results in a lower refund to the customer. Lexus charged me 16.3 % and refunded 87.7 %. What's wrong with that?
Plenty as I see it. In the period between 3 yrs/ 36000 mi until 4 yrs, 50k mi. there is no mechanical repair liability on the insurers part as that period is still covered by the manufacturer yet that period is used to compute the refund. When I complained to the customer service rep, she told me other liabilities were present. Like what? Towing to the nearest Lexus dealer. I mentioned that Lexus owners already have that.
She mentioned Travelers protection. Big deal, I get better coverage on my auto policy for $16 yr.
Bottom line: I paid twice for the same coverage in between 3 yrs/36k and 4 yrs/50k. I feel ripped off. My 2000 was only owned for 44 mos. and the original warranty had never expired. I don't know what the extended warranty claim experience is but I think their refund policy is unfair. Imagine if I had purchased it soon after buying the car how little I would have gotten it back.! I think the Lexus is a wonderful car but I don't recommend the extended warranty. Thanks for listening. I had to get that off my chest.

 

Robert

I only buy the extended coverage for my wife's vehicles as she keeps them forever. Other than that scenario, the are usually not a good investment.

Just consider it a lesson learned and move on as they say.

Murph

 

I won't buy an extended warranty if I plan change the vehicle every 3-4 years especially a LS4. LS4 has been one of the most reliable car in its class . I bought a pre-owned 93 LS4 with 54K miles and trade it at 95K miles four years later and not a single problem.

 

Interesting thread. When I bought my 99 sc300 a little over a year ago, the dealer boasted of the CPO warranty and what a great deal it was for $2000+. Since I planned on modding the car, I told them I would waive the warranty and they could just knock $2000 off the price. Not so fast! They only knocked $1K off the price. The CPO warranty is definitely a double-edged sword.

DN

 

An important update to the original complaint. I wrote 2 letters to Lexus Financial complaining about the unfair pro rata formula used to calculate a refund I received . Their 1st reply was a wishy washy form letter telling me how sorry they were that I misunderstood their refund policy. They then attempted to explain what it was although I understood it the 1st time. I just didn't like it or think it was fair. After that letter I called again, talked to a "supervisor" and got nowhere. She again refused to adjust the refund amount. I contacted and sent the details to Consumer Reports. I then sent a another letter to Lexus Financial asking them to put themselves in a consumers position and being charged $380 for 8 months worth of insurance that they never paid a claim on or had little or no liability to pay anything. I also enclosed a copy of my letter to Consumer Reports. After waiting about 2 weeks and receiving no reply, I contacted the Finance manager at the Lexus agency I purchased the warranty from. I didn't contact him originally because I mistakenly thought he was no longer with the dealership. Without hesitation, as soon as I explained the details, he too expressed the idea that the charge was unwarranted and the refund should have been much higher. He called me today and said Lexus will refund the entire amount less the sales tax paid on the original warranty purchase.! That, he and I both agree, is the right thing to do. My trust in Lexus has been restored and I want to set the record straight with those who have read the threads on this post. Also, if anyone is thinking about the extended warranty on the LS, the new rules say it can be purchased anytime before 4yrs/50k miles is reached, not 3 yrs/36k miles as was the case. That is a much fairer way to do business.

 

Yes, I recently learned about the change in Lexus' ext. warranty policy (i.e. allowing the purchase up to the factory warranty expiration @ 4 yrs/50k mi.)
I plan on getting the Platinum ext. warranty soon since my time period is almost up, even though I am nowhere near the mileage limit (just over 10k miles )
Shopping around now for the best deal on a 7/100 policy, best quote so far was around $1700 or so...