Chances are the 3rd party warranty company would be dancing around issues and refuse to cover certain repairs! It is a real headache to deal with them.

 

For what it's worth, I've had EXCELLENT luck with WARRANTYDIRECT.com. I had three different contracts on 3 different Ford products and the last one paid over $4000 in claims in just a few years. Paid directly to the dealer via credit card, provides rental car etc. Now with all of that being said, my RX is a Lexus CPO car. I have no connection to WARRANTYDIRECT other than being a satisfied customer. Actually, I just bot a contract from them for my kids CR-V and for my 2007 LS460. But my RX was CPO'd so that's the way I went with that.

 

you're in a similar situation now that myself and wifey were 2 yrs ago, when were looking for a 2-yr old RX with around 40k mi. In our geographic area, all Lexus dealers seemed to have made a covenant with each of not sell a used RX without CPO'ing it and charging 3K more for it. It was really hard to find, and I had to call on the same sales guy several times over a month, when he called me when the right vehicle came to their shop

My rationale for not wanting a CPO vehicle is that any respectable dealer will always recondition the vehicle before putting on the lot, and that includes new tires, brakes, and full detail. That's why the dealer charges premium over private party value. Lexus comes with 50k mi bumper to bumper and 70k powertrain wtty. If you buy a vehicle with 40k mi, 10k mi is enough to get all kinks worked out under the wtty...and the powertrain on these things is reliable, or you wouldnt be buying a Lexus in first place. Basically, you got yourself at least 2 yrs of driving while being covered. Why spend 3k for something don't need?

 

Find the RX you like, the color and options' combination, then decide. If it is a CPO, then it is a matter of how much you are willing to get the car.

Find the combination and then consider the price. You will be much happier.