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Extended Warranty on a CPO

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Old 10-05-12, 06:09 AM
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qbno12
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Default Extended Warranty on a CPO

Hi,
I am finalizing a deal on 2010 RX 350 which is a CPO. I was told the the certified warranty is good for 3 yrs from the date of purchase or 100,000 total vehicles miles. Dealer insists I buy the extended warranty on the vehicle. I am on a budget here and am wondering if I can buy the extended warranty at a later time (before the certified warranty expires on the vehicle).

If I have to buy the extended warranty at the time of purchase, can I negotiate the price of warranty? RX currently has 54k miles, new tires and as per the dealer the brake pads have been replaced recently. Please suggest.

I am completely new to this car buying experience and would greatly appreciate any help.

Thanks !
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Old 10-05-12, 06:56 AM
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Originally Posted by qbno12 View Post
Hi,
I am finalizing a deal on 2010 RX 350 which is a CPO. I was told the the certified warranty is good for 3 yrs from the date of purchase or 100,000 total vehicles miles. Dealer insists I buy the extended warranty on the vehicle. I am on a budget here and am wondering if I can buy the extended warranty at a later time (before the certified warranty expires on the vehicle).

If I have to buy the extended warranty at the time of purchase, can I negotiate the price of warranty? RX currently has 54k miles, new tires and as per the dealer the brake pads have been replaced recently. Please suggest.

I am completely new to this car buying experience and would greatly appreciate any help.

Thanks !
What does the extended warranty gives you?

Do you think you'll drive as much as or more than 46K miles in three years from now?

How much are they charging for it?

You could ask them to reduce the price of the car accordingly but it they may not budge on the price of the car if you've already "finalized" the price.
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Old 10-05-12, 07:06 AM
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qbno12
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Thanks Gymniac. I have not looked into what is covered under the extended warranty yet. Most likely I won't be driving more than 46 miles in the next 3 yrs. The dealer didn't give me fixed price on the warranty as he mentioned it would depend on what kind of coverage I choose and also if the warranty is based on number of years or number of miles.
Price has already been finalized. Since it's a certified car, I wouldn't have to worry about it for the next 3 years. I was wondering if I can pass on the extended warranty at this time and buy it 2 yrs later.
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Old 10-05-12, 07:06 AM
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The dealer can obviously see that you are "new to this car buying experience."
You do not have to buy an extended warranty on this car or on anything you buy - ever. If you did, the cost would become a part of the product and the price would be factored in.
I'm not sure how he is "insisting," but when the subject arises just tell him that you decline to purchase an extended warranty, and decline to discuss the issue further.
Don't tell him why. Don't tell him it's just a big money maker with giant profit margins for dealers. Don't tell him every reliable observer who has analyzed the economics of extended warranties advises against it. Don't even tell him you can't afford it. He is not entitled to a reason and he is fully armed for this argument.
He is not allowed to "insist."
If he continues to press the issue, you may insist on speaking to another salesmen or, better yet, the manager. Also, there are other salesmen at other dealerships, and used RXs are plentiful.
Don't get pushed around. Walk away if you feel uncomfortable.
If you have signed a contract for the car already, you will see that the contract does not include an obligation to purchase an extended warranty (or it shouldn't). Your position is that we have a deal on the car, how do I make out the check.
As for the question of purchasing it later, you don't want to do that anyway, but I think you can almost always purchase an extended warranty while a manufacturer's warranty is still in effect. They make good money on these things - why wouldn't they want to sell you one?
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Old 10-05-12, 07:29 AM
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tfischer, thanks for the information. This car is out of factory warranty at 54k miles and model year is 2010 (but is lexus certified). Since, I have committed by word of mouth and haven't signed anything yet I can still look at another RX which is 2010 but has 27k miles.
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Old 10-05-12, 08:36 AM
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Originally Posted by qbno12 View Post
tfischer, thanks for the information. This car is out of factory warranty at 54k miles and model year is 2010 (but is lexus certified). Since, I have committed by word of mouth and haven't signed anything yet I can still look at another RX which is 2010 but has 27k miles.
So this one is still under factory warranty? If so, and if it is also "certified," do they add "three year/100K" on top of the remaining factory warranty? Or does the "three year/100K" only from the date of the purchase?

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Old 10-05-12, 09:55 AM
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The CPO warranty is 3 years from date of purchase. If that overlaps with a factory warranty (which it does not in this case, but which it did when I bought my RX, which was 3 years old at the time), then the warranties run concurrently. In my case, that meant I had one year of factory warranty and two years of CPO warranty, which is slightly less comprehensive.
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Old 10-05-12, 10:43 AM
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How much for the car? What dealer are you buying from?

You can only get the extended warranty yourself if you are within factory warranty, which you are not. Just go with the cpo warranty and enjoy the car.
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Old 10-05-12, 11:14 AM
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32,900 is the price.. it's a 2010 RX with Navi .... it has 2 DVD systems in the headrests ..
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Old 10-05-12, 11:45 AM
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Originally Posted by qbno12 View Post
Hi,
I am finalizing a deal on 2010 RX 350 which is a CPO. I was told the the certified warranty is good for 3 yrs from the date of purchase or 100,000 total vehicles miles. Dealer insists I buy the extended warranty on the vehicle. I am on a budget here and am wondering if I can buy the extended warranty at a later time (before the certified warranty expires on the vehicle).

If I have to buy the extended warranty at the time of purchase, can I negotiate the price of warranty? RX currently has 54k miles, new tires and as per the dealer the brake pads have been replaced recently. Please suggest.

I am completely new to this car buying experience and would greatly appreciate any help.

Thanks !

I don't think it is really certified. I think the dealer is forcing you to pay extra for certification which includes the 3 year warranty.
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Old 10-05-12, 11:52 AM
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Is it in the lcpo.com listed as certified ?

CPO warranty you can only purchase at the time of car purchase, not after. Regular extended warranty, like online dealers that's recommended here can be purchase before the factory warranty expired.

I was trying to buy the extended from the recommended online dealer, non of them can help me, they all told me I can only buy extended for the CPO during the time of purchase. My dealer only marked up 100 for extra 2yr + 25k, so I would have 5yr 125k on my cpo.
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Old 10-05-12, 11:56 AM
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Originally Posted by rsutoratos View Post
Is it in the lcpo.com listed as certified ?
It is listed on that site.
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Old 10-05-12, 04:25 PM
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i was in the same position with the finance manager like you. You DO NOT have to purchase the extended warranty and/or gap insurance. They will try to weasel you out. If you dont want to, but they insist/demand, they are just trying to scare you. I say....report them to corporate lexus.
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Old 10-05-12, 04:32 PM
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Originally Posted by qbno12 View Post
tfischer, thanks for the information. This car is out of factory warranty at 54k miles and model year is 2010 (but is lexus certified). Since, I have committed by word of mouth and haven't signed anything yet I can still look at another RX which is 2010 but has 27k miles.
lets just say you purchase a 2010 and up while UNDER the 50K mileage. You can purchase a extended warranty through Jerry at Toyota in Kansas. A lot of people here on the forum has used to purchase a extended warranty. He has several options and can beat any
Lexus dealer's price. You can search on the forum to read members experiences with him.

Jerry Johnson
Midwest Toyota
Midwest Superstore
1100 east 30th
Hutchinson, Ks 67502
Phone 800-530-5789
Cell 620-664-8844
Email [email protected]

The Lexus must be at under 4yr and/or 50,000k to purchase, so remember and good luck
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Old 10-05-12, 07:14 PM
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Not a bad price with the certified warranty and rear DVD, it could be worse.
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