Is an extended warrantee worth it?

On Sun, 27 Feb 2005 08:32:58 -0500, BenAndMarsha.DeleteThis@mail.com wrote:

 >I have an '03 LS430 with 49000 miles on it.
 >
 >I plan on keeping the car 2 more years until the new '07 comes out.
 >
 >If I'm still under 50,000 miles, I can get a 100,000 mile extended
 >Lexus bumper to bumper warrantee for about $2300.
 >
 >I wonder if the resale value in 2 years of my car with about 80,000
 >miles will be enhanced enough with the warrantee to make it pay for
 >itself.
 >
 >Anyone have any experience with this?

Yes. Don't do it.

My technique:

Find out the cost, but don't buy it. Put the identical amount into a
bank account you open (expressly for this purpose) and draw on it at
your leisure, whenever you need to. Use it for service, tires, brakes,
RainX, etc., whatever.

Just don't give it to the salesman. Please.<!-- ~MESSAGE_AFTER~ -->
 >> Stay informed about: Is an extended warrantee worth it? 

I had an extended warranty through 1stSource on my '98 Audi. The last year
I had the car 1stSource coughed up almost $5,000... not bad for a warranty
that cost $1,500. Many of the repairs were suspicious from Keyes Audi
(parts mysteriously going bad while they were working very close to the
other end of the wire they were attached to) and they still forked over the
funds without hassle.

I still had 5 years left on the warranty and they refunded a couple of
hundred dollars when I traded the piece of #*&! in on my IS300 Sportcross.

I did purchase another warranty through 1stSource on the IS. I don't do a
lot of driving and the 10 year, 100,000K total "covers everything but the
exhaust system and gas" warranty was about $1,500 ($50 deductable). Since I
bought the NAV system which depends on the original Lexus radio I figured
that one jammed CD would eat up $500-800 alone (I checked, it's covered).
 >> Stay informed about: Is an extended warrantee worth it? 

I agree with the person who said put it into a bank account, the Is300
does not have enough mechanical breakdowns from 50k-80k to justify the
cost. Then you can take your bank account money and put it into the
deposit on the new IS330. Yes the IS300 is going to a V6 3.3L and
should eventually have a Hybrid model.
 >> Stay informed about: Is an extended warrantee worth it? 

"Cary Scheck" <cary.TakeThisOut@compcond.com> wrote in message
news:UEsUd.9913$Pz7.9182@newssvr13.news.prodigy.com...
 >I had an extended warranty through 1stSource on my '98 Audi. The last year
 > I had the car 1stSource coughed up almost $5,000... not bad for a warranty
 > that cost $1,500. Many of the repairs were suspicious from Keyes Audi
 > (parts mysteriously going bad while they were working very close to the
 > other end of the wire they were attached to) and they still forked over
 > the
 > funds without hassle.

Audis are notorious for breaking down... if I were to buy a Euro I would buy
extended warranty...<!-- ~MESSAGE_AFTER~ -->
 >> Stay informed about: Is an extended warrantee worth it? 

<BenAndMarsha DeleteThis @mail.com> wrote in message
news:noi321l1tdb2iiipbp1shcjlhsktel0jus@4ax.com...
 >I have an '03 LS430 with 49000 miles on it.
 >
 > I plan on keeping the car 2 more years until the new '07 comes out.
 >
 > If I'm still under 50,000 miles, I can get a 100,000 mile extended
 > Lexus bumper to bumper warrantee for about $2300.
 >
 > I wonder if the resale value in 2 years of my car with about 80,000
 > miles will be enhanced enough with the warrantee to make it pay for
 > itself.
 >
 > Anyone have any experience with this?

I had the extended warranty pay off once, when my nav died... there was no
deductible and Toyota replaced it no prob... it would cost 1500 or so if i
were to pay for it myself, and the warranty was 700...<!-- ~MESSAGE_AFTER~ -->
 >> Stay informed about: Is an extended warrantee worth it? 

An extended warranty is nothing more than an insurance policy. If you can
afford to self-insure, you should not buy it. If an unexpected $1500 bill
will sink you, then you should. The exception to this is if you're buying a
warranty on something that is likely to break a lot (like a video camera for
example). It all boils down to probabilities and economics. If it's not
likely to break (like the car) and you can afford it if it does, then don't
buy it. If it's likely to break, then even if you can afford to fix it,
you're better off with the warranty.

My 2 cents.

-C
"Dan J.S." <me.TakeThisOut@hyperx.com> wrote in message
news:1126potdihglj30@news.supernews.com...
 >
 > <BenAndMarsha.TakeThisOut@mail.com> wrote in message
 > news:noi321l1tdb2iiipbp1shcjlhsktel0jus@4ax.com...
  >>I have an '03 LS430 with 49000 miles on it.
  >>
  >> I plan on keeping the car 2 more years until the new '07 comes out.
  >>
  >> If I'm still under 50,000 miles, I can get a 100,000 mile extended
  >> Lexus bumper to bumper warrantee for about $2300.
  >>
  >> I wonder if the resale value in 2 years of my car with about 80,000
  >> miles will be enhanced enough with the warrantee to make it pay for
  >> itself.
  >>
  >> Anyone have any experience with this?
 >
 > I had the extended warranty pay off once, when my nav died... there was no
 > deductible and Toyota replaced it no prob... it would cost 1500 or so if i
 > were to pay for it myself, and the warranty was 700...
 ><!-- ~MESSAGE_AFTER~ -->
 >> Stay informed about: Is an extended warrantee worth it? 

Language and terms vary greatly ... as do prices. I strongly recommend
against the extended warranty from Honda. Honda does (or did at one
time) offer extended warranties on other car brands. I had a Honda
warranty plan, and the company weaseled out on me big time. They denied
coverage because my failed item was not specifically itemized in the
list of covered components. My reading of the Honda contract suggested
the repair should have been covered, but a weasel-like Honda rep
labelled the component as something different from what was described in
the "components covered" language of the contract. That tactic has
soured me on anything having to do with Honda ... and is one of the
reasons I'm now driving a Toyota and a Lexus.
 >> Stay informed about: Is an extended warrantee worth it? 

<BenAndMarsha.TakeThisOut@mail.com> wrote in message
news:noi321l1tdb2iiipbp1shcjlhsktel0jus@4ax.com...
 > I have an '03 LS430 with 49000 miles on it.
 >
 > I plan on keeping the car 2 more years until the new '07 comes out.
 >
 > If I'm still under 50,000 miles, I can get a 100,000 mile extended
 > Lexus bumper to bumper warrantee for about $2300.
 >
 > I wonder if the resale value in 2 years of my car with about 80,000
 > miles will be enhanced enough with the warrantee to make it pay for
 > itself.
 >
 > Anyone have any experience with this?

I've never bought an extended warranty on anything and have never
regretted my decision.<!-- ~MESSAGE_AFTER~ -->
 >> Stay informed about: Is an extended warrantee worth it? 

Actually there is a way to cost-justify an extended warranty. Just go
through what I went through without one -- I could have purchased an
extended warranty for $900, but I didn't. My regular warranty had expired
and the engine failed and was a total loss.

So in the end I dropped a new engine in the vehicle to the tune of seven
thousand dollars. At Christmastime, no less.

I will never again drive a vehicle that doesn't have a warranty. I have
read Consumer Reports opinions on the topic and they do feel that getting
an extended warranty from a company other than the manufacturer is a good
idea, and is usually cheaper. The guy who says he got his warranty from 1st
says it all, I guess they're a good company and their prices are
reasonable.


wdg@[206.180.145.133] (New Owner) wrote in
news:kt0421p23rbedg6tapo8bdroir7oek79od@4ax.com:

 > There is no way to ever cost-justify an "extended warranty".
 >
 > First of all it's not a warranty. Rather it's a mechanical breakdown
 > insurance policy. Most of these come with a per-occurrence deductible
 > and a extremely expensive. They are also very profitable for the
 > seller. As much as 50% of the high up-front cost goes to the seller.
 >
 > Next, read the fine print, or have an attorney explain it to you. You
 > will be sadly disappointed to learn that many things you though were
 > covered may actually not be covered or else have "weasel clauses" to
 > let them off the hook.
 >
 > Then look at the repair history of the fine automobile you are
 > driving. As long as you keep up the required scheduled maintenance,
 > you probably have a greater chance of being struck by lightning than
 > experiencing the type of breakdown that the warranty would cover.
 >
 > Finally, a transferrable "extended warranty" does not in any way
 > embellish the resale value of your car. What affects the value is two
 > things; mileage and condition.
 >
 > just my 2¢ worth on the subject.
 >
 >
 >
 >
 > In article <noi321l1tdb2iiipbp1shcjlhsktel0jus RemoveThis @4ax.com>
 > BenAndMarsha RemoveThis @mail.com writes:
 >
  >>I have an '03 LS430 with 49000 miles on it.
 >
  >>I plan on keeping the car 2 more years until the new '07 comes out.
 >
  >>If I'm still under 50,000 miles, I can get a 100,000 mile extended
  >>Lexus bumper to bumper warrantee for about $2300.
 >
  >>I wonder if the resale value in 2 years of my car with about 80,000
  >>miles will be enhanced enough with the warrantee to make it pay for
  >>itself.
 >
  >>Anyone have any experience with this?
 >



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 >> Stay informed about: Is an extended warrantee worth it? 

On Wed, 2 Mar 2005 15:43:56 -0600, Renard3.DeleteThis@webtv.net (A A) wrote:

 >Language and terms vary greatly ... as do prices. I strongly recommend
 >against the extended warranty from Honda. Honda does (or did at one
 >time) offer extended warranties on other car brands. I had a Honda
 >warranty plan, and the company weaseled out on me big time. They denied
 >coverage because my failed item was not specifically itemized in the
 >list of covered components. My reading of the Honda contract suggested
 >the repair should have been covered, but a weasel-like Honda rep
 >labelled the component as something different from what was described in
 >the "components covered" language of the contract. That tactic has
 >soured me on anything having to do with Honda ... and is one of the
 >reasons I'm now driving a Toyota and a Lexus.

Oh come on. Details on the item that was weaseled!<!-- ~MESSAGE_AFTER~ -->
 >> Stay informed about: Is an extended warrantee worth it? 

I bought the Honda extended warranty on the strength of Honda's good
name. The warranty covered a Mercury Mountaineer. The new Mountaineer
was purchased from a company that owned side-by-side Lincoln-Mercury and
Honda dealerships. After the Mercury warranty ran out, my heater/ac
(temp) control would not work. No matter where I set the mechanical
control, I got hot air only. The warranty covered a long list of
specified parts that appeared to be comprehensive. As I recall,
heater/ac controls were among the items covered, but the warranty weasel
maintained that the contract covered the mechanism or knob on the dash
only, not other parts of the control linkage that froze up or rusted in
place. I've forgotten the name he used to identify the failed part, but
it was definitely part of the heater/ac control system. A repair
required removal of the dashboard, and took a couple of days, at a price
over $1,000. The Honda warranty weasel claimed that the failed part of
the control assembly linkage was not precisely specified as a covered
component, so the warranty claim was denied. This type of contract is
vulnerable to weasel-like language interpretation ... something I would
not have expected from Honda.

Interestingly, a friend of mine purchased a virtually identical vehicle
as "used", and had the very same problem. His aftermarket warranty was
not from Honda, and his repair was covered.

I have heard that some warranties specify what is NOT covered, and that
may be more workable. A buyer does not expect coverage for "wear items"
like belts, hoses, tires, etc. However, the Honda extended warranty was
clearly full of holes because no matter how many hundreds of items are
listed as "covered", there are hundreds more that are likely not
specified. So, it becomes a matter of trust and good faith to a large
degree. My trust in the Honda name dropped sharply after this
experience. Perhaps other companies are no better, but they should be.

I must admit that Lexus balked at repairing a bad trunk release
mechanism on my ES300 under terms of their extended warranty, but they
did agree to the repair after I grumbled about it. I was frankly
surprised when they initially told me that it might not be covered, but
pleased when they did accept responsibility.
 >> Stay informed about: Is an extended warrantee worth it? 

That is what I like a Lexus the most is they take good care of you!

Whenever I buy a Ext. Warranty, I always buy the plan listed "What is
NOT covered" that is the way to go, got my last one for $695.00 from a
Toyota Dealer on a 99 Camry XLE V6.

Bummer is I haven't had to use it! At least I think that is a Bummer.

It's like I buy a term life insurance policy, it's nice if I need it,
BUT I have to die to use IT!
 >> Stay informed about: Is an extended warrantee worth it? 

On Thu, 3 Mar 2005 10:58:41 -0600, Renard3 RemoveThis @webtv.net (A A) wrote:

 >I bought the Honda extended warranty on the strength of Honda's good
 >name. The warranty covered a Mercury Mountaineer. The new Mountaineer
 >was purchased from a company that owned side-by-side Lincoln-Mercury and
 >Honda dealerships. After the Mercury warranty ran out, my heater/ac
 >(temp) control would not work. No matter where I set the mechanical
 >control, I got hot air only. The warranty covered a long list of
 >specified parts that appeared to be comprehensive. As I recall,
 >heater/ac controls were among the items covered, but the warranty weasel
 >maintained that the contract covered the mechanism or knob on the dash
 >only, not other parts of the control linkage that froze up or rusted in
 >place. I've forgotten the name he used to identify the failed part, but
 >it was definitely part of the heater/ac control system. A repair
 >required removal of the dashboard, and took a couple of days, at a price
 >over $1,000. The Honda warranty weasel claimed that the failed part of
 >the control assembly linkage was not precisely specified as a covered
 >component, so the warranty claim was denied. This type of contract is
 >vulnerable to weasel-like language interpretation ... something I would
 >not have expected from Honda.
 >
 >Interestingly, a friend of mine purchased a virtually identical vehicle
 >as "used", and had the very same problem. His aftermarket warranty was
 >not from Honda, and his repair was covered.
 >
 >I have heard that some warranties specify what is NOT covered, and that
 >may be more workable. A buyer does not expect coverage for "wear items"
 >like belts, hoses, tires, etc. However, the Honda extended warranty was
 >clearly full of holes because no matter how many hundreds of items are
 >listed as "covered", there are hundreds more that are likely not
 >specified. So, it becomes a matter of trust and good faith to a large
 >degree. My trust in the Honda name dropped sharply after this
 >experience. Perhaps other companies are no better, but they should be.
 >
 >I must admit that Lexus balked at repairing a bad trunk release
 >mechanism on my ES300 under terms of their extended warranty, but they
 >did agree to the repair after I grumbled about it. I was frankly
 >surprised when they initially told me that it might not be covered, but
 >pleased when they did accept responsibility.

Bad. Somebody in this or the related thread said to only buy an
extended warranty that was *not* offered by the manufacturer. In
my experience (I bought 2 in my life) the one offered by the third
party was the most hard to collect on. But I *did* collect, the
bastards.<!-- ~MESSAGE_AFTER~ -->
 >> Stay informed about: Is an extended warrantee worth it?