Friday 8 May 2020

Why Buy a Lexus Extended Warranty?

  • Lexus is a luxury brand known for reliability.
  • The Lexus factory warranty is average compared to other brands.
  • A Lexus extended warranty can only be added before the factory warranty expires.

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Lexus’ powerful engines and luxurious interiors are backed by a company with a history of reliability. When repairs come up, however, the Lexus extended warranty can reduce their impact on your budget. 

You also have the choice of a third-party extended warranty, which can offer more freedom over a dealer-backed plan. Learn about the basic Lexus warranty and find out what options you have for extending coverage. There are a number of reliable providers, so get multiple quotes to find the best plan for your situation.

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Lexus Factory Warranty Overview

All new Lexus vehicles come with a selection of warranty terms:

  • Basic limited warranty: 4 years/50,000 miles
  • Powertrain warranty: 6 years/70,000 miles
  • Hybrid warranty: 8 years/100,000 miles
  • Hybrid battery: 10 years/150,000 miles
  • Corrosion perforation: 6 years/unlimited miles
  • Parts warranty: 12 months/unlimited miles
  • Adjustments: 12 years/12,000 miles
  • Roadside assistance: 4 years/unlimited miles

The basic and powertrain warranties are usually the most important to consider when buying a car. Compared to other luxury brands, Lexus’ basic warranty coverage is an average length. Genesis and Jaguar offer longer terms, but most luxury brands share the same terms as Lexus. 

The basic warranty is an exclusionary, bumper-to-bumper contract. The warranty covers repairs due to defects in materials or workmanship on almost any mechanical or electrical part in the car. Only a short list of items are excluded. 

The Lexus powertrain warranty of six years/70,000 miles is longer than what a handful of other luxury auto brands offer, including Porsche. Again, Genesis gets the prize by offering a 10-year/100,000-mile powertrain warranty. This type of warranty covers the basic parts required for movement – the engine, transmission, and drivetrain. 

The corrosion warranty will replace sheet metal rusted through with a hole. Its length is standard, which is also true of the factory parts and adjustment warranties. 

These Lexus warranties are transferable to any other private party who buys the vehicle. The transfer is automatic and it does not require a fee. 

Lexus Hybrid Warranty

Lexus offers good coverage for hybrid vehicles, as well. The hybrid power system includes the battery voltage sensor, power management control module, and inverter with converter. It’s covered for eight years/100,000 miles while the battery itself is covered for 10 years/150,000 miles. 

That’s actually longer than Porsche’s hybrid battery coverage, which lasts for 8 years/100,000 miles. So, the hybrid battery in the new 2021 Lexus LC 500h would be covered until 2031 provided the mileage doesn’t run out before then. 

What The Lexus Warranty Doesn’t Cover

The Lexus basic warranty comes with a list of excluded items. Here are a few examples:

  • Wear and tear.
  • Cosmetic damage.
  • Water contamination.
  • Normal maintenance services.
  • Wear items like filters and tires.
  • Damage from accidents or theft.
  • Damage from misuse or lack of maintenance.

Lexus Certified Pre-Owned Warranty

If you’re OK with buying a used vehicle, you can save money and go with a certified pre-owned (CPO) Lexus, also known as an L/Certified vehicle. A Lexus can be certified if it is still within the powertrain warranty of six years/70,000 miles. 

In addition to whatever is left on the basic warranty, all CPO Lexus owners get a two-year certified warranty with unlimited miles. This warranty is identical to the Lexus basic warranty. 

The certified warranty kicks in after the original basic warranty expires. If the original basic warranty has already expired, the vehicle will get two years of coverage from the time of purchase. 

An extended warranty option is available for CPO vehicles, as well. The L/Certified Vehicle Service Agreement comes in one-year increments and covers repairs up to five years after the CPO warranty expires. It covers fewer parts than the factory warranty, and it doesn’t have a mileage restriction. 

Is a Lexus Extended Warranty Worth It?

If you’re looking at buying a Lexus or own one now, you already know the vehicles are built to last. Since Lexus is a division of Toyota, it benefits from all of Toyota’s engineering. Parts are easy to find, and thousands of repair shops can work on Lexus vehicles across the U.S. 

RepairPal gives Lexus a four-star rating since drivers spend an average of $551 per year on maintenance and repairs. Lexus’ average is about $100 less than the average cost across all brands, which is impressive for a luxury manufacturer. 

At the same time, no car part lasts forever, and there’s still the chance an expensive repair could come out of the blue. Here are a few repairs you might encounter with a Lexus (based on RepairPal data):

 

Lexus Repair Cost Estimate
Lexus SC400 power steering pump Replacement $545–$765
Lexus RX330 camshaft position sensor Replacement $169–$177
Lexus RX350 radiator replacement $638–$736
Lexus GS400 catalytic converter replacement $2,941–$2,956

An extended warranty can be a good idea if you plan on driving your Lexus up to 100,000 miles or beyond. Having one can help cover repairs, so you can enjoy the vehicle for as long as it lasts. Many people also enjoy peace of mind considering a range of repairs are covered and they don’t have to fill out any paperwork or do any negotiating at the shop. 

Lexus Extended Warranty Options

The Lexus extended warranty is called the Lexus Vehicle Service Agreement (VSA). There are three different coverage options:

  • Extra Care Powertrain: Basic coverage for essential systems.
  • Extra Care Gold: Mid-tier coverage for many parts on most systems. 
  • Extra Care Platinum: Highest level of stated component coverage for most systems on the vehicle.

There’s one big difference between the Lexus basic warranty and extended VSAs. Lexus extended warranties are all stated-component contracts. They list out every covered item, so they don’t cover as much as the basic warranty, which only lists excluded items.

You can purchase a Lexus extended warranty in two ways. If you bought a new Lexus, you have until four years/50,000 miles to add an extended warranty through your dealership. After the factory warranty expires you won’t be able to get a VSA. 

The second option applies if you purchase a used Lexus from a dealer. You can add a Platinum or Gold extended warranty if the vehicle is less than 10 model years old and has fewer than 125,000 miles. You can add a Powertrain plan if the vehicle is less than 13 model years old and has fewer than 100,000 miles. This only applies at the time of sale. 

Lexus doesn’t publish the mileage limits for its extended warranty, but the Longo Lexus dealership shows new vehicle plans max out at 10 years/100,000 miles. 

Lexus Extended Warranty Perks

All Lexus VSAs share the following benefits:

  • Transferability: The Lexus extended warranty is transferable to a secondary owner for free, but only once. 
  • Cancellation: You can cancel within 30 days for a $50 fee. If you cancel after 30 days, you can get a prorated refund. 
  • Roadside assistance: The program includes towing, flat tire assistance, lockout, jump-start, and fuel delivery (up to three gallons). 
  • Rental coverage: Platinum VSAs offer $50 per day for five days per occurrence toward a rental car, while Gold and Powertrain VSAs offer $35 for five days. 
  • Deductible options: You can choose a $0 or $100 disappearing deductible. The extended Lexus warranty deductible is waived if you visit the selling dealership. 
  • Trip interruption: For breakdowns more than 100 miles from home, Platinum provides up to $150 per day for five days over the life of the plan. Gold and Powertrain plans provide up to $100 per day for four days.

Lexus doesn’t offer a lifetime factory or extended warranty. Some dealers offer lifetime warranties on the powertrain, but it’s not clear if this program is backed by Lexus or a third party. 

Like the basic warranty, Lexus vehicle protection plans require you to visit a dealer for repairs. Out of these three plans, the Lexus Platinum warranty is worth having for the better coverage options and perks. 

Lexus Extended Warranty Price

Lexus extended warranty costs are based on your own vehicle. For example, pricing for a Lexus UX would be different than a Lexus LS 500. Also, the same level of coverage typically costs more as your car’s age and mileage increases. A $0 deductible plan will cost more than a plan with a higher deductible, as well. 

With all of these variables, you have to contact a dealership to get a quote. The base price from Longo Lexus starts at $2,495 for 7 years/75,000 miles. A few drivers on Club Lexus also shared these prices for the Platinum service agreement:

  • Driver A: $2,700 for 7 years/100,000 miles, $2,960 for 8 years/100,000 miles.
  • Driver B/first dealership: $2,975 for 6 years/70,000 miles, $3,525 for 7 years/75,000 miles.
  • Driver B/second dealership: $1,350 for 6 years/70,000 miles, $1,865 for 7 years/75,000 miles.
Lexus extended warranty
While the particular dealership you visit might not be flexible on price, it seems like you can find different prices by visiting different dealerships. 

To get the best price on a Lexus Platinum extended warranty, you can shop around from different dealerships while your car is still under basic warranty coverage. See if your own dealer will match prices you find elsewhere. On the other hand, if you’re buying a used car, you only have the option to buy a plan from the selling dealer. 

Comparing Lexus & Third-Party Extended Warranties

The quotes the drivers found above are all over the board. While it’s hard to say exactly what an extended warranty should cost, average prices are between $350–$700 per year according to third-party provider Endurance. 

If your warranty provides four years of coverage, it could cost $2,800 assuming the higher average amount. However, Lexus vehicles are cheaper to repair than many other brands, so you should expect to find more affordable warranties. 

Third-party extended warranties usually come with similar benefits like roadside assistance and trip interruption. While the maximum mileage available from Lexus isn’t totally clear, third-party plans usually provide much longer coverage options than manufacturers. 

For example, CARCHEX can cover vehicles with up to 250,000 miles or 20 years. Even if you already have a Lexus extended warranty, you might want to think about covering the vehicle up to 200,000 miles or beyond. 

Also, third-party warranties allow drivers to visit a wider network of repair facilities. Typically, any ASE-certified mechanic can make a repair under warranty. Finally, many third-party providers offer exclusionary contracts, which cover more than the Platinum Lexus protection plan.

If you’re looking to buy an extended warranty for your Lexus online, get at least three quotes from different providers and compare your options.

Top Used Car Warranty Companies
We reviewed the top extended warranty providers, and here are our top picks. 
Best Overall Best Quote & Claims Process Best Direct Provider Most Popular
CARCHEX autopom! Endurance CarShield
Get Quote Get Quote Get Quote Get Quote
(866) 254-0205 (888) 691-2354 (877) 374-1840 (800) 563-2761
       

Original article: Why Buy a Lexus Extended Warranty?



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