My IS200 SE is 3 years old tomorrow and the standard warranty is going to expire. Got a phone call from the Lexus dealer asking if I was interested in getting an extended warranty.

For 1 year - £610
For 2 years - £1110

The extended warranty is the same as the standard warranty offered for the first 3 years but it will NOT cover water ingress, interior trim and corrosion. I can even spread the cost of the extended warranty over 10 months without any interest/additional charges.

what do you guys think - worth it or not?

[quote name='Red_Panda' post='377516' date='Aug 25 2006, 04:13 PM']My IS200 SE is 3 years old tomorrow and the standard warranty is going to expire. Got a phone call from the Lexus dealer asking if I was interested in getting an extended warranty.

For 1 year - £610
For 2 years - £1110

The extended warranty is the same as the standard warranty offered for the first 3 years but it will NOT cover water ingress, interior trim and corrosion. I can even spread the cost of the extended warranty over 10 months without any interest/additional charges.

what do you guys think - worth it or not?[/quote]


From my experience no..I once had a claim for suspendion joints..told it was wear and tear They usually need approval from third party insurance companies who try to wriggle out of any claim..just my opinion though

alan

I would have thought that the £610 would cover quite a few problems, should any occur in a 3 year old Lexus.

Ditto for 2 years.

If you want an extended warranty then look at [url="http://www.warrantydirect.co.uk/"]http://www.warrantydirect.co.uk/[/url]

I thought about it, but thats a lot of money for a car that is pretty reliable.

[quote name='Red_Panda' post='377516' date='Aug 25 2006, 04:13 PM']My IS200 SE is 3 years old tomorrow and the standard warranty is going to expire. Got a phone call from the Lexus dealer asking if I was interested in getting an extended warranty.

For 1 year - £610
For 2 years - £1110

The extended warranty is the same as the standard warranty offered for the first 3 years but it will NOT cover water ingress, interior trim and corrosion. I can even spread the cost of the extended warranty over 10 months without any interest/additional charges.

what do you guys think - worth it or not?[/quote]


The sole purpose of any insurance is to make money for the people selling it. In other words, on average, your car will suffer less than £610 worth of faults during the period they are covering.

With some insurances, eg home insurance, the ratio of premium vs risk is so low as to make it an extremely cost effective way of protecting yourself. It's very unlikely that your house will burn down, but if should then the £300 premium will save you the cost of replacing £300,000 worth of house and possessions. But with a car warranty, especially one that's pretty reliable to start with, the benefits start to look somewhat less clear-cut - it's not hundreds of thousands of risk, the cost of a fault is likely to be rather closer to the cost of the premium itself. Sure, you could be unlucky and your engine could throw a con-rod through the block, but how often do you hear of that happening?

Put the money for two years worth of insurance into a high-interest savings account - if you need it the money's there, if not enjoy the proceeds!

Mike

[quote name='Mike_B' post='377696' date='Aug 26 2006, 11:25 AM'][quote name='Red_Panda' post='377516' date='Aug 25 2006, 04:13 PM']
My IS200 SE is 3 years old tomorrow and the standard warranty is going to expire. Got a phone call from the Lexus dealer asking if I was interested in getting an extended warranty.

For 1 year - £610
For 2 years - £1110

The extended warranty is the same as the standard warranty offered for the first 3 years but it will NOT cover water ingress, interior trim and corrosion. I can even spread the cost of the extended warranty over 10 months without any interest/additional charges.

what do you guys think - worth it or not?[/quote]


The sole purpose of any insurance is to make money for the people selling it. In other words, on average, your car will suffer less than £610 worth of faults during the period they are covering.

With some insurances, eg home insurance, the ratio of premium vs risk is so low as to make it an extremely cost effective way of protecting yourself. It's very unlikely that your house will burn down, but if should then the £300 premium will save you the cost of replacing £300,000 worth of house and possessions. But with a car warranty, especially one that's pretty reliable to start with, the benefits start to look somewhat less clear-cut - it's not hundreds of thousands of risk, the cost of a fault is likely to be rather closer to the cost of the premium itself. Sure, you could be unlucky and your engine could throw a con-rod through the block, but how often do you hear of that happening?

Put the money for two years worth of insurance into a high-interest savings account - if you need it the money's there, if not enjoy the proceeds!

Mike
[/quote]

I was in the same position as you with a 3 year old, but have gone for 'warranty direct' policy costing me £260 using Lexus main dealers as opposed to their network repair agents. Having examined the policy it looks good, they also cover many wear and tear faults and also come out well in independant reviews.
PS dont accept there first quote, I was quoted £350+ when I did online qoute but they wrote to me twice reducing the cost each time..

I was told by Lexus Newcaste that they have never taken an engine out of a 200 for major repair
and they are servicing cars some with well over 250k on the clock.

Bank the cash for a rainy day or use it for wear and tear.