Cost Of Lexus Extended Warranty

[ihpj]

I wanted to let other LOC folk know that Lexus have increased their prices for the extended warranties. Speaking as an RX owner the price has gone up from £825 to £865 for the year. Although a slight increase, but annoying none the less. Thankfully as I chose to renew early, and paid for it in full, my local Lexus Dealer has told me that I will not need to pay the additional premium - which is definitely well done Lexus.

But if anyone is thinking about extending their Warranty, I would say you do it now - I'm sure that the increase is across the product ranges.

I have glanced through the document to see if there are any obvious differences, but can't see anything of note. This policy remains excess-free if a claim needed to be filed, which is a bonus IMHO.

Hope you find this of use!

[NickS]

In case it's worth looking around, I was recently quoted £338.40 by Warranty Direct, though this was curiosity only as my Lexus used warranty runs until June/July '08.

Not had experience of this firm myself, but it seems to be the only one recommended by anyone remotely independent, e.g. Honest John.

Nick

[ihpj]

I think WD offer a good alternative product. They do appear to be the only 'recommended' company and to be fair to them, the general consensus of opinion is that they will pay out fairly.

My issue is that there are certain benefits associated with any manufacturer warranty that these Third Party Companies cannot offer - one is seamless claims handling. You drop off the car, the Dealer seamlessly files the claim and gets instant authorisation. No quibbling/arguing over costs (from the Warranty Company) and certainly little (or no) headache for you.

This is just one experience I have had with a Third Party Warranty Company:

I owned a BMW E46 3 Series. It suffered both rear coil springs snapping. No problem I thought as I knew these items would be covered under the terms of the Warranty. Booked the car into my Dealership, asking them to liaise with the Warranty Company to organise repair. One whole day goes by and not a word on repair. It transpired that the Warranty Company had not sent through their claims papers despite having been chased by my dealer twice. So got involved, finally, just before close of business documents arrived. Next day dealer filled them in and sent them off. TWO DAYS go by and nothing - apparently the Warranty Company haven't had time to 'assess' the claim. More of my time (wasted) getting involved and getting them moving. Another TWO DAYS later I get informed that they have agreed to the claim BUT the cost of parts quoted by the main dealer is too much (in their considered opinion) and they will only pay the cost of a non-genuine part.

Now, I ask you, which main dealer will fit non-manufacturer original parts to a car? None of them. Because my Warranty Company deemed the cost of originals parts to be excessive they stood their ground and would only pay 70% of the price - citing this was reasonable. The dealer of course wouldn't fit anything other than genuine BMW parts. So I had to pay the 'extra' - however the real icing on the cake was that my Warranty Company stated they would only pay for ONE snapped coil spring as (again in their considered opinion) it was unusual for both springs to snap at the same time. So they would only pay for one. Ridiculous situation to be in.

Now I have been without my car for almost a week and its close to a full time job to argue the case with the Warranty Company at each stage. I just don't need the hassle (and don't really have the time).

Still think Third Party Warranty Companies are worth the money? I personally don't think they are worth the paper the policies are written on. I know that if my BMW had had a BMW Warranty I would have had it back same day it was booked in. Me? I'm sticking with Manufacturer Warranties as they are the only ones worth having. Money saved now only = aggravation come claim time and not every main dealer will want to deal with a Third Party Warranty Company.

My time is valuable, and so is not having the hassle. You have a problem, you book it into the Dealer and make it their problem to sort everything out. Remember, paperless claims and no excess - nothing could be easier. Thats why I will always gladly pay up for such a Warranty.

[NickS]

I'd be horrified if my Lexus needed over £800 of repairs in a year, unless it had done 120,000 miles or more!

Let's see how much you actually claim in 12 months time?

Cheers

Nick

[ihpj]

I don't thik that it is an extortionate amount to pay. With labour rates (currently) at £100 +VAT at many Lexus dealerships, they can only go higher (BMW are running @ £140 +VAT), the slightest of issues can cost you a couple of hours labour easily...and thats before the cost of the part.

Nothing has gone wrong with our car and I hope it never will. But if it should then £800 is a neglible cost IMHO to protect against it. But as I cannot be doing with the uncertainty of it all and I'm electing to 'fix' my costs.

[eXOBeX]

ihpj, if your statement is 100% accurate (especially if you have documentation to back it up) why not name-and-shame? Or even give-us-a-clue-and-shame? At least we'll then know who to avoid!

[ihpj]

I don't think its about 'Name and Shame' with regards to the labour rates. These sorts of costs are the norm - well here in the South East anyway.

You can find out for yourself what the labour cost is by calling the dealership direct. Its no secret. Call Lexus Hatfield, Oxford, Woodford, Park Lane, Milton Keynes etc. and ask them. The average appears to be £100. Last time I checked BMW and Merc. in Milton Keynes they were £140. Audi aren't too far behind either.

I don't like or agree with such high labour rates, but this cost will only go up, up and up...just remember to +VAT on any figure they quote ;)