Extended warranty worth it?

You are correct. It is a hit or miss with extended warranty serving it's purpose much like car insurance.

 

-Wrong, the dealer has a cost on these just like the vehicles, its not pure profit.
-Hardly a large expense, and when you add up cost of parts/repairs for various repairs incomparison far from
-Where are you facts? Your facts are its a bad decision based on YOUR experience of never having one of YOUR vehicles need a repair outside of warranty
-You basically said they are uneducated, a sucker, etc. its a few pages back.

Again your argument is based soley on your conclusions, opinions and experience, no facts. When you post facts let me know until then keep rambling.

 

Exactly, but no one would ever say car insurance is a bad investment or life insurance. Robert is living in his own world.

 

Quick recap for those who missed my issue. 2012 Tacoma with failed air injection pump and valves at 74,000 mIles about two weels ago. Extended warranty good for 8 years 125,000 purchased just before my 3/36 ran out for $1,450.00.

I received my Explanation of Benefits today. Toyota paid $236.64 labor, $1,441.91 parts, $88.90 towing, and reimbursed me $150.00 in rental fees.

Grand total of $1,917.45 AND I have nearly 4 years/50,000 miles remaining.

I know it is a gamble, but for me it worked, I just have to share this again because of all the extended warranty hate in this thread!

 

Thank you!

 

Exactly, there's evidence that can sway someone both ways, its really about what you feel comfortable with, how long you keep your truck, etc. For me, this truck has to get me through the last 2 years of my AF career and 3 years of grad school and would rather have a bumper to bumper warranty for that time especially on a truck that I know little about or is known about's powertrain, sure its a Toyota, but there's no guarantees, just look at the guy above, I could work on my 2nd gen with my arms behind my back and blind folded and felt comfortable being it was a well proven 200k+ powertrain, until the new trucks prove that and given some of the small hiccups so far I would rather have the safe bet for a small price. I paid for it upfront, no interest and according to a guy on here only $100 or so above dealer cost, over 6 years it costs me $200. No biggy here. I spend that in a month riding MX.

 

It's worth it if they give it to you for free. I originally purchased it with the vehicle because they gave me close to dealer cost on it. I cancelled it a couple of months down the road. Now Toyota is offering me an 8 year 125k platinum warranty for free because of the trouble with my vehicle. However I am waiting to accept until they fix my leaf spring issue and some other problems first. I haven't ruled out lemon law down the road or potential buy back if they can not successfully fix the other issues within a reasonable amount of time.

 

Smitty99 I heart you bud and know you've had a rough road with yours, but hard to get one free when your truck dosent have issues like a lot of ours, lol, dosent mean they won't down the road, but doubt they offer free ones like your case after the truck is a few years old.

 

Agree but you can wait to buy one before 36k is up, and usually get a great deal on it then too... which is what my plan was going to be.

 

True, but I got mine pretty much at dealer cost, and the pricing does change, so would rather get it now, get a refund later than risk the price going up, etc.

 

It is pure profit to the dealer if it is a dealership warranty. Pure profit. What cost do they have if you don't make a claim???

Zero.

If the dealership does it through a third party, part of the cost is pure profit to the dealership, the other part of the cost is pure profit to the company that provides the coverage, unless the plan is used.

When you have a fact to post, feel free. As far as uneducated comments go, I believe those were directed toward YOU. My data was 100% factual. I've actually looked at failure rates on new vehicles and discovered something pretty interesting that many know. And I discovered the reason why the dealerships push these protection plans. It is NOT a benevolent decision.

Btw my experiences ARE _facts_. You need a dictionary. No more can be said, if you don't get it, you don't get it...

 

But what about that 75% that threw their money away? Which is more probable? That you are in the 25% that will break something or in the 75% that won't? Doesn't that seem like an unnecessarily wasteful approach to this? If you plan, you can create an emergency fund with this money, and let it grow. Every time you buy a new vehicle, put the extended warranty money in your emergency fund. Won't take too long before you will have enough money to buy a new vehicle if the old one dies.

Consumer Reports had a good article on this stuff a while back. I don't remember the exact numbers, but something like 55% of the people that bought an extended warranty (a) paid a little over $1,200 for the coverage and did not use it. The rest had an average claim of about 800 bucks, leaving them 400 bucks in the red as well. Yes, a very few probably got a good deal. But the dealerships got a REALLY good deal.

Turns out new car failures occur on an exponentially decreasing curve. Far more in the first year than in the second. Far more in the second than in the 3rd. All covered under the basic original warranty.

 

Where are you facts? Post them please, because all you did was ramble your opinions (not facts) and experiences (which we have to take for facts, so not really a fact without proof/reference more anecdotal evidence if anything, working on my graduate degree and thesis so ya, you aren't using facts dude) it's clear you're a bit slow so will give you a break. 2nd I don't think you understand how the Toyota warranty works, the dealer buys it from Toyota Financial Services at a cost just like the vehicles, so they don't pocket all of it, the warranty is through Toyota not one single dealer, so the claim is paid through Toyota to whatever dealer did your service/claim. So yes you are a bit confused on this. Again when you start posting facts besides your opinions then let us know. 2 posts up is an example of how a warranty paid out to benefit the guy who bought it. So the coin can be flipped and land either way dude. Until you can point to actual statistics, numbers, something in regards to this powertrain, tacoma, etc and repair costs outside warranty then you are solely spitting off your opinion and not a single damn fact. Again stop being a tool here, just admit that its opinion and a choice like everything else in life, buy it or don't, buy the kia or the honda, one may be the better investment one may not. We get you think its a waste, but for some it isn't and WASNT.

 

FACT! It doesn't get any more fact based than this! I have the paperwork to prove it.

 

It's not pure profit to the dealership as it is a Toyota Warranty. It's like saying selling a Tacoma for $30K is a $30K profit to the dealership which would be incorrect. Dealer has to pay Toyota for the truck. As for profit for Toyota if you don't ever use it until it runs out, yes. Like I said, at least it's not government mandated auto insurance where you are forced to buy and hope to never use. If people have the money and gets peace of mind out of it, so be it.

 

OK, WHERE does that money go? WHAT has to be bought and paid for prior to a claim being filed? Absolutely nothing. When I say pure profit to the dealership, I wrap Toyota into that wad. It is 100% profit until they have to pay something out. Based on the Consumer Reports article, almost everyone loses, even when you do have a claim as the 45% that do file claims only get about 66% of the cost back on average, the other 55% get zilch. Numbers don't lie.

 

I've been driving with full coverage insurance for 15 years now and let's just say it's $1k a year and never used it. Does that make me a sucker? Absolutely! Pure profit to insurance companies but in the instance that I need to use it, I will be glad I have it.

 

You are correct. It is hardly being used by consumers who bought it and it is pure profit to whomever. People buy it for peace of mind - simple as that. People who did buy it and use it - priceless.

 

So start a thread on "dealership" warranties. For the most part folks here are talking about "Toyota" extended warranty. How long you going to beat your dead horse?

 

Where are my facts? I listed EVERY new vehicle I have bought since 1968. Only ONE had any sort of failure that might have been covered by an extended warranty, but it happened at 130K miles which most don't reach to. You can scroll back up and find year, make and model. THOSE are "facts".

Or you can go to consumer research and read their article which is ALSO based directly on fact. Summary was 55% never have a claim on an extended warranty, of the 45% that do they average recovering only about 2/3 of what they spent. So 55% threw the money away, the other 45% could have banked the average 1200 selling price and walked away with 400 bucks in their pocket after they paid for their own failure...

Seems straightforward to me. You are trying to use a lottery winner as a justification for buying lottery tickets. But they are a massively losing proposition.

Let's do some math. Suppose a super-dealer sells 10,000 extended warranties for $1000 each. He takes in ten MILLION dollars. 5.5 million of that will never be touched at all (55% don't make a single claim). Of the remaining 4.5 million, those pay out about 2/3 of the cost, so about $3 million bucks cost, leaving them a paltry 7 million dollars pure profit. I'd be selling them if I could.

Good deal? For who?