I have a 2009 Lexus GS 350 AWD 37K mikes with 11 months of factory warranty remaining. Lexus offers an extended Platinum Warranty 8 yrs (essentially 4 years beyond the factory warranty) 100K miles for $2,860. Given the repair history of the 09 GS model and expected relaibity over the next 5 years is it worthwhile to get the extended warranty?
I never buy extended warranties. Put the money in the bank and draw interest until you need it for repairs. Lexus is a reliable vehicle and I don’t see it needing any major repairs in it’s first 100,000 miles.
A warranty is just like gambeling. You are betting you will need repairs totalling over $2860 they are betting you don’t. Just like Vegas the house usually wins. With that said, you should try negotiating down the price. If you can get it for $1500 I say go for it. Everything on a Lexus is big $$$, so even small repairs add up. Honestly it’s not even the motor and trans that you should be worried about. It’s the AC the electronics, the power window motors etc.
The extended warranty is an insurance policy. The underwriter reviews all the data for similar cars and comes up with an estimate of the cost to repair this type of car after certain mileage/time limits expire. Then they add marketing costs and profit onto it. The mark-up on these policies is about 100%, meaning that in the next 4 years or 50,000 miles they think it might cost $1400 to repair. You still have a 6 yr/70,000 mile warranty on the drive train, and that’s where the major expense is. It’s 3 more years and double your current mileage. I think I’d pass.
All good thoughts. Anyone know where they post data on the reliaibility of the GS or what kinds is issues they are prone to?
Consumer Reports 2011 Buying Guide shows this info for 2008 GS RWD models. Not enough data for 2009 models. 2008 ratings: Brakes were rated as much below average; Body hardware average and body integrity below average. None of these issues seem to indicate a need for an extended warranty.
I’d skip it. If you are asking will you likely save money, you won’t. Maybe a 10% chance, that’s all. It’s very expensive for what you get.
Here’s one source for repair costs:
MSN Autos says there are no issues to speak of with models up through 2008.:
Who is offering the warranty? Sometimes you can find a dealer who sells it online (google) for 1/3 - 1/2 of list price.
I am not a fan at all of these warranties but some folks dump cars when warranties expire which is far more expensive in depreciation than the cost of a warranty and few more years of worry free life for certain folks. I go the opposite and buy (upper end) cars out of factory warranty and not certifiable by car maker at great discount.