My dealership is pressuring me to sign up for a multi-year Platinum ECD for my soon-to-be-delivered NX-450h in Ontario, Canada. The plans seem quite expensive, so am wondering if it makes sense or not. Any feedback? Or is there an alternative way to get the same coverage elsewhere in Canada but at a lower price? (And is this something that can be negotiated?)
- Thanks

 

Pressuring the customer to buy something usually means it’s too expensive and they are making money off you.

 

We bought the platinum plan, also had it on our previous RXs. The price can be negotiated a bit, but like anything these days, it's tougher than it was. They tell us this every time, but the level of tech in these newer vehicles is insane. Replace one part and you're likely ahead. It also includes 3 years of basic service as well, which adds value. But it's a personal choice.

 

It depends on how long you intend to keep the car. You do have the new car warranty for protection, so if you plan to trade it in 3 or 4 years, I personally would rely on that. The warranties are a high profit item for dealers, and one of the reasons we love Lexus is reliability. If you're buying a BMW, definitely get the warranty.

 

You have a 4 y full warranty (plus additional power train related coverage beyond), so you've got lots of time to consider it. No need for pressure. My dealer gave me the brochure on initial order, explained the details, asked if I had questions, and politely asked if I was interested, I politely declined, and we moved on. No pressure. That's the way it should be. As to whether its worth it, most of the time the value you get out of an extended warranty is piece of mind. That's something you need to judge for yourself what that is worth to you. Piece of mind can have a lot of value, so I would never discount that and neither should you! But always keep in mind that for extended warranties to actually work, the monies put in have to pay for all repairs/services incurred by all holders + pay a significant profit for the dealers et al. That means on average and by necessity you are much more likely to lose money in the process (speaking strictly financial, not considering the PoM factor). Its a bit like going to the casino, a few will win big, a few might break even, but most will lose, and the house, it always profits. Doesn't mean extended warranties (or casinos) are bad, you just have to understand the odds and your own comfort level for participating.

Just as a side note, the last 3 Toyota/Lexus cars I've had which I kept to age of 6 yrs, 18 yrs, and 13 yrs. None had extended warranties and none would have been a benefit to me if I had one. That's my own experience and why I generally don't care for them. Your results may vary.

Good luck with your choice.

 

We have owned Lexuses for the last 20 years plus. 3 in our current household. 08 RX350 AWD, 17 ES350, 24 NX350H.
I have never ever bought extended warranties, I choose to maintain it accord to "My own" schedule. The rest of any repairs are always self insured.

 

I've only ever owned one car with an extended warranty. It seems counter-intuitive, but I ended up having LESS peace-of-mind because I wanted to use the warranty for every little thing. (Zero-deductible policy.) Granted, the car was a GM product, and there were many "little" things, hah!
I wouldn't buy one for a Lexus.

 

This is an excellent, well balanced explanation. I never bought an extended warranty until cars became rolling computers. I do it for the peace of mind. My first one did not benefit me at all and my second paid for itself. Negotiated $800.00 off the warranty for my 2022 NX and will not regret it a bit if I never use it.

As stated above, judge your comfort level.

 

You don’t have to buy the extended warranty now. You just have to get it before the factory one expires

When I hear about the warranty at the dealership. I tell them the same story every time. I don’t need it because I only keep a car for a couple years. Then trade it in. They never seem to be smart enough to realize I’m driving a 6 year old car.

For any one who does want a warranty. Call Jerry

 

Phone 800-530-5789

Cell 620-664-8844

Email jerryj@midwestsuperstore.com

 

I wasn't intending to buy an extended warranty but my wife felt more comfortable with one. We used prices provided on this forum from Jerry at Mid West to negotiate a fair price, which matched Jerry's. I realize this is house money but with the supply chain issues and a new model year (ours is a 22) decided to go for it.

 

They shouldn't be pressuring you on getting the ECP. I did get ECP for 5 years 100,000km which includes 3 years of maintenance service. If you plan to do the service at the dealership then it maybe ok. But if you are like some who just do their own maintenance or go to a local garage to do the maintenance, then don't get it. Your local dealership maintenance will keep on going up within the 3 years. It's a piece of mind thing and it depends if you plan to keep your car as long as possible as well. Keep in mind that the NX450h+ has the most components and electronics as well. But of course you are buying a Lexus, it shouldn't have major issues too. The hybrid system is 8 years warranty and the battery has 10 years. I just included it into my finance and just part of the payments. If you do plan to sale it before earlier, the car is worth more money due to the ECP as well. Before the pandemic I was able to get $1000 off the ECP, but nowadays especially with the 450h+, it's going to be hard to negotiate, but you should still try - you have nothing to lose.

 

I got the 4yrs 100k ECP but this year they included Tire road hazard (I don't recall they had that previously)
Maintenance price goes up year after year, peace of mind to have the 3yrs included is nice to have from my point of view and it is not much more if you add up the $ you pay without the ECP. Unless you do everything as DIY then no need

 

My first Lexus was a certified pre own. Had a few issues with the car. My next Lexus was brand new and came with navigation. It had all kinds of trouble around years two and three. With the Nav and XM radio. And the flip down monitor for the rear seats.

Since then I have never owned a Lexus that didn’t have a warranty available. This came in handy on my 2012 ISF. The A/C had control issues. And the last visit to the dealership was for almost 3 weeks. They ended up replacing every component in the car. In total with all of the visits to get it fixed. Came to almost 10k