Last post on Jun 22, 2011 at 4:56 AM
You are in the Lexus ES
What is this discussion about?
Lexus ES 350
#1446 of 2769 Re: Extended Warranty [shop4mywife]
Jun 11, 2006 (3:39 am)
I think that extended warranties - more properly called service contracts, since they are not truly extensions of the original factory warranties - are a bad idea. You're paying hundreds of dollars today for something that will have no value for you until the factory warranty runs out 4 years from now. If you're planning to keep your car beyond the expiration of the factory warranty, use those 4 years to build up your savings. Why let someone earn interest on your money?
Anyway, we have a '99 Lexus ES 300 that's been out of warranty for over 3 years - since January 2003. In that time, we've paid out a total of $500 to fix things that broke unexpectedly. These cars really do deserve their reputation for reliability.
#1447 of 2769 Pulled the trigger
Jun 11, 2006 (3:48 am)
On Friday, my wife put down a deposit on a Tungsten Pearl / light grey Ultra ES 350 at Rallye Lexus in Glen Cove (Long Island, NY). No word yet on a delivery date.
#1448 of 2769 Re: Pulled the trigger [jimbres]
Jun 11, 2006 (5:39 am)
That's where I bought mine.
Good people and very professional service.
You and she will love it.
#1449 of 2769 Re: Pulled the trigger [jimbres]
Jun 11, 2006 (5:44 am)
Good for her! Hope she doesn't have to wait long for the Tungsten Pearl. We have seen a Tungsten Pearl/light grey at the Lexus of Seattle; it is really very cool color combination.
We also appreciate the advice on the extended warranty.
#1450 of 2769 Pre Collsion and Dynamic Radar
Jun 11, 2006 (7:32 am)
Has anybody seen or got this option(Pre Collsion and Dynamic Radar)yet? I'm curious because that was the only thing lacking on my ES350 UL equipped car. My dealer, in the New York City area told me that this option is a special order, and they haven't received delivery on any cars with it, as of yet.
#1451 of 2769 Re: Extended Warranty [jimbres]
Jun 11, 2006 (9:30 am)
A Lexus Authorized Extended Warranty can be "shopped" just like the automobile itself. I purchased the Lexus warranty on a 2004 ES330 from Longo Lexus (they were not my dealership and the purchase was after the sale of the vehicle), after an exhaustive price search, for $100 over dealer cost. You can also coerce the finance guy/gal, at your dealership, to show you the dealer price for the Lexus warranty and get him/her to sell you the warranty for the same deal. There is a huge markup on the warranty, if you buy it at the Lexus MSRP.
The advantage to buying the warranty early is that the price later will be based upon the residual value of the vehicle at the purchase time (anytime prior to the original factory warranty expiration).
If you trade the vehicle before the expiration of the original factory warranty, the reverse is true. You will be refunded a pro-rated amount of the Lexus extended warranty based upon the residual value. 25,000 miles on the vehicle is equivalent to about 87% of the original dealer cost.
The advantage of the Lexus warranty, versus a third-party warranty, is, it is entered into the Lexus service program. When the service advisor looks up your car on the Lexus data system, it reflects the extended warranty. There is no hassling with deductibles or authorizations, it is just like an extended factory warranty.
As for getting the dealership to "throw in" the warranty to "sweeten" the deal: the dealer cost of the warranty is around $1,000 bucks for a 6-year-72,000-mile Lexus warranty. You're no longer dealing with the sales person and the finance person is not likely to "give" you anything below dealer cost.
#1452 of 2769 Re: Extended Warranty [ncdaydreamer]
Jun 11, 2006 (11:44 am)
Good advice, although you probably intended to direct your reply to shop4mywife - not to me.
Nonetheless, I just don't like service contracts - they really aren't warranties - because I view them as poor substitutes for money in the bank. If you're doing a good job of managing your finances - if you're maintaining a favorable savings-to-debt ratio - you don't need one. When a big repair bill comes along - as it will, at some point in your life - you'll have plenty of money in the bank to cover it. And if your household balance sheet isn't up to snuff - if you've got too much debt & too little savings - then you shouldn't be shopping for a new Lexus. You should stick with your current ride & concentrate on repairing your finances. Pay down your debt & build up your savings.
An old axiom of casualty insurance is that you should self-insure whenever possible. Don't pay others to assume a risk that you can handle on your own. I need insurance to protect me from a $200K house fire, but I don't need it to protect me from the occasional $2K car repair bill.
My ownership experience with Japanese cars goes back over 30 years, & I've never owned one for which a service contract would have returned its purchase price.
#1454 of 2769 Re: Miscellaneous Ramblings.... [psychdoc]
Jun 11, 2006 (12:48 pm)
Love the color. My wife went with silver for her new ES, but red is my personal favorite for this car.
Jun 11, 2006 (1:09 pm)
Question for Jimbres post#1448 regarding purchase from Rallye Lexus. What was MSRP and price agreed upon?