Negotiations and the Lexus Extended Warranty

[Jeeves]

Hey all,

New to the forums, just posted in the intro page - and glad to be here. My new Premium + should be arriving within the next couple of weeks. As I'm graduating from some reliable Toyota V8's (2008 4runner, 2012 Tundra), and we typically keep our cars for a long time, I am contemplating the Lexus Platinum extended warranty. Seems to make sense to put down around $2700 "insurance" for a complicated car that I would keep for 7 years or more. I have read through the warranty thread in this forum and gotten info from Reddit - all great info.

I do have a specific question that I don't think has been answered anywhere: Is it possible to figure out the dealer cost for various extended warranty packages. What's a fair profit margin to give them? $200? $500?

I figure my sales rep spent 20 minutes on my pre-sale - I called him, we discussed the available models set for delivery, I picked one, he sent me a link, and sent him the deposit. As per usual these days, they got MSRP with no negotiations - easiest job ever for him! Haha. Anyhow, I am hoping to work some negotiations into the warranty package. I would be glad to give them something over cost. If no, I can ask them to match some prices that people have posted from the famous "Jerry" and go from there. I don't NEED the GX right now, so I do have the ability to walk if I don't feel that the dealer can't give a little.

Here are some prices I pulled from a Reddit thread - do these seem like good deals, or could we do better?

7 YEAR 100,000 MILES $2,605.00
7 YEARS 125,000 MILES $3,410.00
8 YEARS 100,000 MILES $3,015.00

Thanks in advance for your thoughts!

 

[YellowLab]

I went with the 8/100K extended - and paid about $2400 as I remember. Also did the prepaid maintenance for the same time period. There is room in everything to negotiate

 

[Bluegill]

I went with the 8/100K extended - and paid about $2400 as I remember. Also did the prepaid maintenance for the same time period. There is room in everything to negotiate

That's a great price.....I paid $2605 for the 7/100k. But I went through Jerry after my purchase so no real negotiation there.

 

[YellowLab]

That's a great price.....I paid $2605 for the 7/100k. But I went through Jerry after my purchase so no real negotiation there.

The prepaid maintenance deal is the other no-brainer - I think the cost over 7 years was something like $7k and that was about $2k of bought during purchase.

 

[Bluegill]

Yes, the maintenance plan will really pay off. I paid $3795 for 6 years/75k miles. My selling dealer wouldn't negotiate 1 penny on this price. You got a killer deal at $2k. I researched it a bit and I think the services over 75k miles will add up to $8k easy.

 

[YellowLab]

Yes, the maintenance plan will really pay off. I paid $3795 for 6 years/75k miles. My selling dealer wouldn't negotiate 1 penny on this price. You got a killer deal at $2k. I researched it a bit and I think the services over 75k miles will add up to $8k easy.

Both the extended warrantee and prepaid maintenance deals I thought were a typo when they put those on the sale documents - but I did not fight them at those prices.

 

[BryanM68]

That's a great price.....I paid $2605 for the 7/100k. But I went through Jerry after my purchase so no real negotiation there.

Who is Jerry please?

 

[YellowLab]

Who is Jerry please?

 

[Bluegill]

LOL

Jerry is the man! He has hooked a lot of us up with low-priced Lexus Premium Warranties. I originally paid my dealer $4405 for my 7 year / 100,000 mile extended warranty (that's 3 years and 50,000 miles added to the original 4 year and 50,000 mile warranty). I thought that was a pretty good deal. Then a friend of mine gave me Jerry's info. That friend has a Tundra and he found Jerry on the internet. That friend has since bought a GX550 for his wife and he, of course, went through Jerry. Anyway, I reached out to Jerry and he sold me the exact same 7/100k warranty for $2605. I got a refund from my original dealer for the $4405 I had paid them.

Jerry Johnson
Warranty Manager
Midwest Toyota
Midwest Ford
Midwest Superstore
1100 east 30th
Hutchinson, Ks 67502
Phone 800-530-5789
Cell 620-664-8844
Email jerryj@midwestsuperstore.com

Tell him Bill Gill referred you!

 

[BryanM68]

LOL

Jerry is the man! He has hooked a lot of us up with low-priced Lexus Premium Warranties. I originally paid my dealer $4405 for my 7 year / 100,000 mile extended warranty (that's 3 years and 50,000 miles added to the original 4 year and 50,000 mile warranty). I thought that was a pretty good deal. Then a friend of mine gave me Jerry's info. That friend has a Tundra and he found Jerry on the internet. That friend has since bought a GX550 for his wife and he, of course, went through Jerry. Anyway, I reached out to Jerry and he sold me the exact same 7/100k warranty for $2605. I got a refund from my original dealer for the $4405 I had paid them.

Jerry Johnson
Warranty Manager
Midwest Toyota
Midwest Ford
Midwest Superstore
1100 east 30th
Hutchinson, Ks 67502
Phone 800-530-5789
Cell 620-664-8844
Email jerryj@midwestsuperstore.com

Tell him Bill Gill referred you!

Thank you so much for the info! I will gladly let them know you sent me!!

 

[Jeeves]

Yes, the maintenance plan will really pay off. I paid $3795 for 6 years/75k miles. My selling dealer wouldn't negotiate 1 penny on this price. You got a killer deal at $2k. I researched it a bit and I think the services over 75k miles will add up to $8k easy.

Thanks for this info! I saw that work up on the prepaid maintenance. I’m in a town without a Lexus dealer, however, so I was going to get my maintenance work done at a local shop, and hit the Lexus shop up for any warranty concerns. Now I’m wondering if should run the numbers….

 

[vraa]

I used Jerry too for the warranty, but I'm not sure if I did the prepaid maint, seems like a no brainer since labor rates keep going up

 

[Bluegill]

I used Jerry too for the warranty, but I'm not sure if I did the prepaid maint, seems like a no brainer since labor rates keep going up

And you're also paying the maintenance program in today's dollars. I paid 2024 dollars for maintenance work I'll be having done in the year 2030 (unless I go over the mileage number early).