Negotiations and the Lexus Extended Warranty (1 Viewer)

[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).

 

[Seaweed_GX_2025]

I got a refund from my original dealer for the $4405 I had paid them.

Bill, how did the refund work? Did Jerry take care of everything on this end?

Also, does Jerry do the prepaid maintenance? Can I get refund on the one I purchased to get a longer-term one?

I got 1-yr free maintenance (2 services) and paid $2,800 to add 4-yrs (8 services) more. I decline the extended warranty since I knew you can purchase them at anytime before the basic warranty ends.

 

[Bluegill]

No, my dealership refunded my money. Jerry just sold me the extended warranty. I don't know if he also sells prepaid maintenance.

 

[Razor488]

So from a prepaid maintenance and an extended warranty standpoint, what is worth buying? Traditionally I have always passed on this stuff...

 

[jstbelieve44]

Just bought my Lexus yesterday, and was able to negotiate the pricing for the extended warranty and prepaid maintenance plan. I usually pass on all the added services, but felt I was getting an OK deal. 5 yr prepaid maintenance - $2300. 8 yr/100k extended warranty - $2800, 5 yr GAP - $690, tire, wheel, and 6 yr dent protection - $1450. They were all added into my auto loan, but I now wish I paid those all separately up front.

 

[Seaweed_GX_2025]

Just bought my Lexus yesterday, and was able to negotiate the pricing for the extended warranty and prepaid maintenance plan. I usually pass on all the added services, but felt I was getting an OK deal. 5 yr prepaid maintenance - $2300. 8 yr/100k extended warranty - $2800, 5 yr GAP - $690, tire, wheel, and 6 yr dent protection - $1450. They were all added into my auto loan, but I now wish I paid those all separately up front.

Congrats on the purchase. $500 cheaper on the prepaid maintenance than what I got. Nice. I'm still looking for an extended warranty myself. From the OC also. What trim did you get?

 

[MikeyGinSD]

Just bought my Lexus yesterday, and was able to negotiate the pricing for the extended warranty and prepaid maintenance plan. I usually pass on all the added services, but felt I was getting an OK deal. 5 yr prepaid maintenance - $2300. 8 yr/100k extended warranty - $2800, 5 yr GAP - $690, tire, wheel, and 6 yr dent protection - $1450. They were all added into my auto loan, but I now wish I paid those all separately up front.

Would you be able to send me contact info for your dealership that ended your warranty? Looking for same 8/100k

 

[m32]

Just bought my Lexus yesterday, and was able to negotiate the pricing for the extended warranty and prepaid maintenance plan. I usually pass on all the added services, but felt I was getting an OK deal. 5 yr prepaid maintenance - $2300. 8 yr/100k extended warranty - $2800, 5 yr GAP - $690, tire, wheel, and 6 yr dent protection - $1450. They were all added into my auto loan, but I now wish I paid those all separately up front.

I think you got a good deal on the 8yr/100k. Based on Bluegill's rec, I too refunded my ext warranty from my purchasing dealer and bought from Jerry. I had to cancel the first one on my own and once Jerry saw that it was cancelled in the Lexus/Toyota system, I bought it from him.

I highly recommend Jerry...super nice guy and great pricing

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

Edwin