After market or Extended Warranties

I have been checking out warranty companies to purchase an extended warranty for my 2005 Lexus ES330. I can’t find out where to check out the different companies. Any suggestions? Alos, anyone have any input good/bad on a company called Warranty Direct? Thank you

It’s a waste of money.

All they are is a very very very expensive insurance policy.

Google extended warranty.

Don’t buy an extended warranty. They are insurance policies with terms that favor the insurer. They are usually a waste of money. Take the money you would spend on a policyand put it in an interest-bearing account. If you ever need it for an expensive repair, you’ll be covered; if not, you’ll still have your money.

These service policy companies can and do go bankrupt.

 Well any car can have major expensive repairs.  

The profit to the salesman and company is usually over 50%. So for every $1,000 you spend the insurance company has less than $500 to pay for repairs or they will loose money, something insurance companies do not do. Some peop;le will get nothing back and some will get a lot more than they pay.  Most will get far less. In addition you need to keep in mind that the insurer has worded it to eliminate as many expensive things as they can.

Remember that the seller is out to make money and they get to write the rules and set the price.  They are not going to sell them at a loss so one way or another they are going to have you pay more than they will pay out.  

Would you gamble with a car dealer who gets to set all the rules and knows all the odds?   

Your decision has to do with the value of the piece of mind it gives you. If that is worth the cost then buy it. Don't expect it to cover everything however, most are written to keep cost down and exempt what they know will cost them money. 

Good Luck

Save your money. Lexus is one of the most reliable vehicle brands, and the products you are searching for are not much more than profit for the seller. Put the money in the bank instead, and earn interest on it.