"Ray O" <rokigawaATtristarassociatesDOTcom> wrote


<jkarevoll (AT) yahoo (DOT) com> wrote

In general, I am not a fan of extended "warranties" which are actually
insurance contracts, but if you opt to get one, I recommend only getting one
backed by the automaker because third party contracts usually are so full of
loopholes that they hardly cover anything, or they end up going out of
business. The price of service contracts is negotiable.

Your other option is to put the $2,350 into a savings account and use it if
any unforeseen repairs arise.
--
your reasoning is correct. however, how many would actually put the $2350
aside for repairs?

it's kind of like 'buy term insurance and invest the difference (from whole
life)'. very few would invest the difference.

On 6 Dec 2006 07:53:05 -0800, xyzzy.dude (AT) gmail (DOT) com graced this
newsgroup with:



Well, we have two Lexi with extended warranties and they both are
from Lexus with zero deductable and I've never had any problem with
having an item repaired.

Additionally, I called the extended warranty department concerning the
rear lifts on my car to ensure it was covered under the warranty (it
was)..and the greeting I received was a Lexus recording before a
customer service rep answered the phone.

"oklaman" <ok (AT) dum (DOT) org> wrote

Very true!
--

Ray O
(correct punctuation to reply)

oklaman wrote:
Yup. That's one advantage of CPO with the extended warranty rolled into
the price of the car -- you can finance it. I doubt very many car
buyers have an extra 2350 cash laying around to stash for possible
repairs, and if they did they probably wouldn't worry about the cost of
downsream repairs (or the extra cost of getting a CPO car)

Ray O wrote:
That's a very good point. It was 2001 when I bought mine so I forgot
that I did look at non CPO LS400's, both at the Lexus dealers and
elsewhere, and they were all pretty much skanks.

<xyzzy.dude (AT) gmail (DOT) com> wrote


Good Grief.........................You're buying a Lexus , and yet you don't
have an extra 2 or 3 thousand in the bank for whatever problems may arise .
Perhaps you should drive a less expensive vehicle untill you have more of a
surplus of funds put away.

-Dana

Yes Dana, that is right! They are buying a Lexus so they have an
unlimited supply of money to fix things that break, should any things
like that ever happen. It only takes one or maybe two of those cute
little electronic thingies breaking to pay for the warranty - but then
you have an unlimited supply of money and don't care about that. Please
give some realistic advice based on your experience - like you have
owned Lexus cars for 12 years and had only $500 repair items. My
experience with Lexus indicates the extended warranty has a better than
even chance of paying for itself on the Es series based on the $5200
repairs I have had on two of them. So you bet I will get one for the
bag of bumpy bones they call an LS if I am going to keep it for one
mile beyond 50,000.

Taking or not taking insurance is a gamble. If you don’t have
insurance you are gambling you will pay out less then the insurance
coverage cost over the span of the policy.

Suggest checking exactly what the warranty covers and does not cover
(if the contract is readable). Each Toyota model seems to have items
that go bad but with routine maintanence what are the odds of them
occurring within 120K miles. What does the warranty say about normal
wear and tear issues?

Normal maintanence (at your expense) will most likely still be
required. If you are planning on keeping the car after 120K miles,
preventative maintenance is even more important. Thus, during the
warranty period you will still be spending your money on maintenance on
top of the extended warranty cost.

Dealers sell these warranties because they make a lot of profit.
Contract prices are flexible and you can negotiate a lower price. What
part of the total price the dealer gets, don’t know. In other
service type contracts such as electronics, it is not uncommon for the
contract seller to get 50% of the price up front.

How miles per year do you drive? If read correctly, when broken down
the dealer is offering you a 3-year/25K warranty. You would have
already gotten the 2-year/100K warranty for free. Is this correct?

If the car has 60K miles now, this means averaging 20K per year to max
out the free warranty before it time expires. Do you drive this much?
If so, after these two years, your next 3 years driving will be limited
to about 8K per year to stay within the warranty.

If you get the extended warranty, you can drive 13K miles per year
without maxing out the mileage clause before the time expires.

Does your state or the federal government already mandate longer
warranties on certain emissions items?

At $2350, this is $470 per year for 5years. But if this warranty just
extends the free 2-year 100K warranty by 3 years, this is $783 per
year.


--
toyomoho

Anyone have any ideas on how much we pay in advance for the warranty on a
new car?
"toyomoho" <toyomoho.2ilbyz (AT) no-mx (DOT) forums.yourdomain.com.au> wrote

stu wrote:
Regarding insurance, statistically insurance carriers pay out about 50%
of the premiums they take in, otherwise they lose money..... so already
if you are collecting 50% of what the policy is costing you, you are
technically speaking breaking even. Then when time comes to collect,
you are at the mercy of the carrier's decisions and whims.

I much prefer buying the mandatory insurance, and paying for the repair
work out of pocket. In this case you are the boss, you determine if
you are satisfied, etc. Let insurance take care of catastrophic
incidents. As so many suggest, assume you will pay an extra $100 or so
a month in premiums, and put that money in a savings account instead.
I think you'll come out ahead, statistically speaking.

Also, has anyone ever replaced Lexus run-flat tires with regular radial
tires. Run-flats are nice though noisy, but if I ever get a flat, I
need to replace the tire. Replacing a tire that is almost 75% worn
means I have to replace four tires, should I ever have a flat, that's a
very expensive proposition. So I would like to opt out of run-flat
tires, any ideas out there????

/Nick