Extended Warrany Discounting? - Lexus IS Forum
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post #1 of 12 (permalink) Old 12-08-2005, 03:14 PM Thread Starter
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Extended Warrany Discounting?

Hi I'm looking for a place to buy the Lexus Extended Warranty. Are there any websites or dealers that discount it from list price? Thanks.
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post #2 of 12 (permalink) Old 12-08-2005, 04:25 PM
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Extended warranties are a waste of money. They charge you what they estimate the repair costs will be over the life of the car. With a Lexus, you may not have many. Put that money you would spend on it in an interest-earning savings account and see how much better off you will be. You will have more money, and you can just pay for any repairs you need as they occur. They are just a way for the dealers to make money. With a Lexus, peace of mind is built in. Just my two cents.

Last edited by cryostate; 12-08-2005 at 04:32 PM.
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post #3 of 12 (permalink) Old 12-08-2005, 04:34 PM
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If you're going to buy it, get it from the dealer. There are lots of warranty companies that put some serious restrictions on their policies and are more trouble than they are worth.

If you are buying a car at the time, you might get some discount.

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post #4 of 12 (permalink) Old 12-08-2005, 04:34 PM
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To me 1500 for a 6 year 100,000 mile warranty on a Lexus is really a waste of $$. A Lexus should be fine for well beyond this if you take care of it. If anything is going to go wrong with the car due to a bad part or something, chances are it'll happen well before the normal warranty of the vehicle expires.
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post #5 of 12 (permalink) Old 12-08-2005, 05:04 PM Thread Starter
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But do all dealers have the same price?
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post #6 of 12 (permalink) Old 12-08-2005, 05:09 PM
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Quote:
Originally Posted by stuartpm
But do all dealers have the same price?
As far as I know they may slightly vary from region to region
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post #7 of 12 (permalink) Old 12-08-2005, 05:42 PM
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Quote:
Originally Posted by stuartpm
But do all dealers have the same price?
Roughly the same price, yes. The variation is like $20/$30. If you find a dealer who's finance dept. is trying to make a quota, they might take off some of their profit (maybe all of it).

I bought warranty for my last car when the finance lady (who sells warranties) was trying to win a prize for selling the most. She sold it to me at cost. They make about $100 on each warranty they sell.

I will be purchasing an extended warranty (7 yr 100K) this month for my 02. You will get a lot more for the car if you sell it two or three years down the road, not to mention a lot more people will LOOK at your car if it has a Lexus-backed warranty.

Its a good 'insurance policy' to have. It'll probably never be needed, but ya know, my headlights needed to be replaced b/c of condensation and that alone would have cost near the extended warranty.

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post #8 of 12 (permalink) Old 12-08-2005, 05:58 PM
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Quote:
Originally Posted by YellowIS300
Roughly the same price, yes. The variation is like $20/$30. If you find a dealer who's finance dept. is trying to make a quota, they might take off some of their profit (maybe all of it).

I bought warranty for my last car when the finance lady (who sells warranties) was trying to win a prize for selling the most. She sold it to me at cost. They make about $100 on each warranty they sell.

I will be purchasing an extended warranty (7 yr 100K) this month for my 02. You will get a lot more for the car if you sell it two or three years down the road, not to mention a lot more people will LOOK at your car if it has a Lexus-backed warranty.

Its a good 'insurance policy' to have. It'll probably never be needed, but ya know, my headlights needed to be replaced b/c of condensation and that alone would have cost near the extended warranty.
actually warranty prices vary greatly from dealer to dealer, more than $20/30 bucks...just depends on how good the finance guy/salesman is and how dumb the customer is...it's just another add on, and as you said the lady who sold it to you at cost did so to win a contest...well since there is a "cost" they can mark it up to however much they want/can. just for future info...

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post #9 of 12 (permalink) Old 12-08-2005, 06:16 PM
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They dont make $100 per warranty... warranty is a variable cost.
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post #10 of 12 (permalink) Old 12-08-2005, 10:10 PM
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Quote:
Originally Posted by YellowIS300
Roughly the same price, yes. The variation is like $20/$30. If you find a dealer who's finance dept. is trying to make a quota, they might take off some of their profit (maybe all of it).

I bought warranty for my last car when the finance lady (who sells warranties) was trying to win a prize for selling the most. She sold it to me at cost. They make about $100 on each warranty they sell.

I will be purchasing an extended warranty (7 yr 100K) this month for my 02. You will get a lot more for the car if you sell it two or three years down the road, not to mention a lot more people will LOOK at your car if it has a Lexus-backed warranty.

Its a good 'insurance policy' to have. It'll probably never be needed, but ya know, my headlights needed to be replaced b/c of condensation and that alone would have cost near the extended warranty.

That's just my point. You paid almost what the warranty would COST for the headlights. Pay out of pocket when and IF problems happen, instead of giving the dealer free money up front. I disagree that it makes a big differrence when selling the car. It's a Lexus. They have fewer problems than every other make on the road. You won't get that money back in the sale.

Again, put the money in a savings account of some type, earn interest on it, and make money over the years you have the car, instead of giving the dealer what amounts to no better than a free loan if you do end up using it for any repairs. It's like our income taxes. We give the government an interest-free loan every year so we can get a partial refund.
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post #11 of 12 (permalink) Old 12-09-2005, 10:51 AM
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Dealers make huge profits ( like 40%) off of extendeds, but you might check ClubLexus or a more general forum for info on deals. Some dealers are willing to deal on OEM warraties, just watch out for third party warranties from the dealership. If your Levison amp goes out or your NAV goes caput it could save you some money..er, cost you less for the warranty than the part. Just remember that Lexus has some warranties that don't cover NAV, stereo and stuff like that so read the fine print about your level of protection.
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post #12 of 12 (permalink) Old 12-09-2005, 06:07 PM
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Quote:
Originally Posted by cryostate
That's just my point. You paid almost what the warranty would COST for the headlights. Pay out of pocket when and IF problems happen, instead of giving the dealer free money up front. I disagree that it makes a big differrence when selling the car. It's a Lexus. They have fewer problems than every other make on the road. You won't get that money back in the sale.
Lexus or not. I know plenty of people who exclusively shopped for pre-owned Japanese performance sedans and would not buy one unless it had a warranty. Plenty of people will pay an extra $1,000 for a car with a warranty. I am one of them. You're exactly right, the warranty would cost the same as the headlights. BUT if something else, as minor as it is, has to be fixed it ends up saving you.

Dont get me wrong, I'm a diehard Lexus fan (for reliability) but very few cars Lexus or not will go 100,000 miles without one, two or three little things malfunctioning. Since I'd be going to the dealer to get whatever fixed (with or without a warranty) its better to cover your ass than pay their ridiculous rates.

But, do what suits you.

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