Should I get Lexus Extended Warranty and are the estimates reasonable. (1 Viewer)

[Carpati]

I researched Toyota's extended warranty policy when I bought my 2003 LandCruiser new. They said you can buy the warranty new from any dealer. I bought my cruiser new from a dealer in Long Island NY, and bought the extended warranty from a NJ dealer for $1000 cheaper! Check if there is any differntial in price amongst dealers in your area. (I believe I spent $1500/2000 and within that period the warrantied repairs overall equalled that amount. ) The newer cars have so much computers and electronics that it worries me about outyear warranty expenses. It may make sense just to lease if buying new - maybe that's the route they want everyone to follow.
I still have my LandCruiser w/135K.

 

[McDuff123]

Don’t buy it, what a money scam.

Tell them no and ur going to shop around, watch how fast they come down on Their prices.

Agree 100%
This is all “margin money” for them. High profit territory…
walkaway, bargain, negotiate, whatever lets you sleep better, but you can probably get those costs reduced by half or better if you are firm.

 

[Redbull]

Is it a fidelity platinum warranty? That’s the gold standard of warranties.

I have had some very risky cars out of factory warranty and under extended warranty - high end BMW and Mercedes. Only on one Mercedes did the warranty pay out more than the warranty itself. The other ones didn’t come close - $500 claim for the AC in the M5. I had to fight tooth and nail to get stuff covered even under Mercedes CPO for two different cars on one of them didn’t cover some stuff and I just ate it and didn’t fight needed the car back ASAP.

So as a portfolio I was way worse off with warranties and didn’t buy one with my 2017 LX with 31k when I bought it. Put 8k on it no issues so far.

Some cars known for catastrophic failures (991.1 GT3 comes to mind after 2024) I would totally get one otherwise just set some money aside. That being said I don’t know how much you want piece of mind that’s a personal decision.

 

[quantumizet]

Currently lexus provides unlimited miles (see image attached). Given the LX 570 I am getting has 38k miles, I don’t foresee any mechanical issues happening with low mileage truck at least for another 60k miles. Now probability of mechanical or cooling failure will go up for high mileage truck > 100k miles. Now obviously it’s also a matter of luck as mentioned by other posters.

The electrical issues are probably more of an issue, DVD player, display panel, sensor, navigation, phone BLE syncing etc. LX has more electronic feature than LC given hence more failure points.

What I am trying to understand what are most recurring failures best would be to know how much they occur but that data point is something probably not available to public. I drive 4Runner currently and did not buy any warranty it has 96k on the clock no Mechanical issues but there are electrical issues such as door not responding remote lock.

Would be good from folks who drive 2016+ LX to chime in about some failures that have occurred with their vehicles and whether they think it is advantageous or not to get extended warranty.

View attachment 3145422

 

[cpcc]

I get the 10 year 125k miles platinum lexus warranty from Jerry Johnson at Midwest Superstore , I've bought 3 from him so far. plan for another one on my upcoming purchase, I would highly recommend him. Best price

 

[quantumizet]

I have decided not to opt for extended warranty, as 5 additional years cost $5650. The longest warranty makes sense not short term ones since stuff usually breaks at high mileage past 100k miles.

Reason for not choosing extended warranty is the cost and the fact is one is hinging on something that *may* break in future, if nothing breaks you lose funds that you paid for warranty. if does break then you use funds more or less than warranty cost. That said, I will still negotiate the cost of warranty with them but if they are stern in price, then I will deal without it.

 

[quantumizet]

I get the 10 year 125k miles platinum lexus warranty from Jerry Johnson at Midwest Superstore , I've bought 3 from him so far. plan for another one on my upcoming purchase, I would highly recommend him. Best price

Yes I have contacted Jerry Johnson. And I may consider it. These are the pricing I got from him few days back.

 

[Redbull]

I have decided not to opt for extended warranty, as 5 additional years cost $5650. The longest warranty makes sense not short term ones since stuff usually breaks at high mileage past 100k miles.

Reason for not choosing extended warranty is the cost and the fact is one is hinging on something that *may* break in future, if nothing breaks you lose funds that you paid for warranty. if does break then you use funds more or less than warranty cost. That said, I will still negotiate the cost of warranty with them but if they are stern in price, then I will deal without it.

Good move. I hope you never have anything other than preventative and normal maintenance costs.


When are you picking up your truck?

 

[quantumizet]

Good move. I hope you never have anything other than preventative and normal maintenance costs.


When are you picking up your truck?

End of next week.

 

[LSCHROCK]

Agree 100%
This is all “margin money” for them. High profit territory…
walkaway, bargain, negotiate, whatever lets you sleep better, but you can probably get those costs reduced by half or better if you are firm.

It is not dealer margin. They charge the same cost for the warranty on the LX570 or their lowest end car - at least in 2017 when we bought our certified LX570 with the official Lexus unlimited mileage 7 year zero deductible warranty. It would likely be a scam on a cheaper and simpler car. I googled to find costs online and called around to a few different dealerships. They ended up selling it to us for around $150 over cost I think in 2017. We paid somewhere in the $4,500+/- range I think then and I'm sure it's more expensive in 2022 vs 2017. It is an exclusionary warranty that covers everything but the few things it specifically excludes. It is directly through Lexus/Toyota Financial Services. You can change your mind at any point and get your money back - either fully or pro-rated.

 

[quantumizet]

It is not dealer margin. They charge the same cost for the warranty on the LX570 or their lowest end car - at least in 2017 when we bought our certified LX570 with the official Lexus unlimited mileage 7 year zero deductible warranty. It would likely be a scam on a cheaper and simpler car. I googled to find costs online and called around to a few different dealerships. They ended up selling it to us for around $150 over cost I think in 2017. We paid somewhere in the $4,500+/- range I think then and I'm sure it's more expensive in 2022 vs 2017. It is an exclusionary warranty that covers everything but the few things it specifically excludes. It is directly through Lexus/Toyota Financial Services. You can change your mind at any point and get your money back - either fully or pro-rated.

What was the mileage on your truck when you bought it? Had a chance to use your warranty? If yes on what?

 

[LSCHROCK]

What was the mileage on your truck when you bought it? Had a chance to use your warranty? If yes on what?

We bought a 2013 model in October of 2017 with about 60,000 miles. It has always been serviced at Toyota/Lexus dealers ahead of schedule. (oil, driveline fluid, radiator, brakes, spark plugs, etc). We have five children and have averaged about 20,000 miles a vehicle a year on this vehicle. (at 159,000 now)

Yes, we have used the warranty. We did not use it at all during the 2 year certified warranty. We have two years left and have used it several times since the five year/unlimited miles kicked in:

Blend Door Actuator (Around $950)
Brake Booster - do not remember the cost, but it was pricey.
TPMS sensor / issue with it not resetting: do not know cost
Rear Hatch Motor (Around $900+).
Transfer Case ( I think the parts were around $3,000 on this?). Locking Differential Light would keep flashing all of the time - disabling cruise control. It would go away if you turned the car off and restarted it. This fixed the issue.
Rear Height Sensor (Several hundred dollar repair)
It is in the shop now because the hydraulic actuators have collapsed in bank 1. (This is very expensive - I think two full days of labor + parts)
The front struts are leaking, we have not used the warranty on this yet, but likely will within the next two years
We have had an intermittent front right parking sensor issue where it was going off randomly. This seems to have resolved for now without warranty.

There may be one or two other issues, but I believe this is most of it.

It works across North America and they reimburse a loaner car at $50/day up to five days if needed.

I am not sorry that we purchased it. These are expensive cars, we plan on keeping it a long time, and drive a fair amount of miles and a lot of trips around town.

Thanks!

 

[LSCHROCK]

We bought a 2013 model in October of 2017 with about 60,000 miles. It has always been serviced at Toyota/Lexus dealers ahead of schedule. (oil, driveline fluid, radiator, brakes, spark plugs, etc). We have five children and have averaged about 20,000 miles a vehicle a year on this vehicle. (at 159,000 now)

Yes, we have used the warranty. We did not use it at all during the 2 year certified warranty. We have two years left and have used it several times since the five year/unlimited miles kicked in:

Blend Door Actuator (Around $950)
Brake Booster - do not remember the cost, but it was pricey.
TPMS sensor / issue with it not resetting: do not know cost
Rear Hatch Motor (Around $900+).
Transfer Case ( I think the parts were around $3,000 on this?). Locking Differential Light would keep flashing all of the time - disabling cruise control. It would go away if you turned the car off and restarted it. This fixed the issue.
Rear Height Sensor (Several hundred dollar repair)
It is in the shop now because the hydraulic actuators have collapsed in bank 1. (This is very expensive - I think two full days of labor + parts)
The front struts are leaking, we have not used the warranty on this yet, but likely will within the next two years
We have had an intermittent front right parking sensor issue where it was going off randomly. This seems to have resolved for now without warranty.

There may be one or two other issues, but I believe this is most of it.

It works across North America and they reimburse a loaner car at $50/day up to five days if needed.

I am not sorry that we purchased it. These are expensive cars, we plan on keeping it a long time, and drive a fair amount of miles and a lot of trips around town.

Thanks!

Sorry, Brake Master Cylinder - not booster.

 

[LSCHROCK]

What was the mileage on your truck when you bought it? Had a chance to use your warranty? If yes on what?

I just looked up the transaction paperwork.

We paid $43,485 for the vehicle and paid an extra $4,325 for the five year unlimited mileage Lexus warranty. I figured out the dealer cost at the time and it was around $100 more than cost. It was the first time that I financed a vehicle and we did finance the cost of the warranty. The vehicle is paid off, but we could still get 40% of what we paid for the service agreement refunded or transfer it to a buyer. (Not going to do that)

 

[quantumizet]

I just looked up the transaction paperwork.

We paid $43,485 for the vehicle and paid an extra $4,325 for the five year unlimited mileage Lexus warranty. I figured out the dealer cost at the time and it was around $100 more than cost. It was the first time that I financed a vehicle and we did finance the cost of the warranty. The vehicle is paid off, but we could still get 40% of what we paid for the service agreement refunded or transfer it to a buyer. (Not going to do that)

Thanks for the detail response. Warranty for sure paid off for you given the list of repairs that it has gone through.

I negotiated with the lexus dealer on warranty for 5 year unlimited miles that expiration is Feb/20/2030 (8 more years from now) and they came done from $5650 to $3870 ($1567 difference) which I think is a good offer, still some markup would be there but this price is even more affordable than Jerry Johnson which is at $4455 125k miles expiry at Feb/20/2029.

 

[Sandroad]

It is not dealer margin. They charge the same cost for the warranty on the LX570 or their lowest end car - at least in 2017 when we bought our certified LX570 with the official Lexus unlimited mileage 7 year zero deductible warranty. It would likely be a scam on a cheaper and simpler car. I googled to find costs online and called around to a few different dealerships. They ended up selling it to us for around $150 over cost I think in 2017. We paid somewhere in the $4,500+/- range I think then and I'm sure it's more expensive in 2022 vs 2017. It is an exclusionary warranty that covers everything but the few things it specifically excludes. It is directly through Lexus/Toyota Financial Services. You can change your mind at any point and get your money back - either fully or pro-rated.

It could be that Lexus charges the same for warranties regardless of vehicle, but Toyota has price brackets based on vehicle costs. The Land Cruiser is in the highest bracket.

 

[CharlieS]

And sticker price versus dealer cost is where all the margin is. I had a dealer give me a Toyota platinum warranty at what they said was "their cost" and it was less than half of what they offered it to me for originally and I declined (and half of what I had paid for a Toyota platinum warranty on a 4Runner a couple of months prior).

 

[linuxgod]

Is Lexus warranty pricing that much higher?

 

[PDoyle]

Looks knida like your mad at you sig there.....

 

[linuxgod]

Looks knida like your mad at you sig there.....

What do you mean? That is my signature...