Did you buy extended warranty?

I've not looked. The lifetime powertrain warranty wasn't the reason I was aiming to use that dealer. Since it didn't add any cost I bother digging further. Just remember it has a $100 deductible, it's only good for the original owner, it doesn't do a thing for you until you've passed 5 years or 60,000 miles, and you better keep good maintenance records showing you did everything you were supposed to when you were supposed to.

 

They are pretty much hoping that those that buy this type of policy forget to redeem! I only have 4 weeks after expiration to send in the paper work, if a day late no money back.

 

Yes. Worth it. Price can be negotiated.

 

I think of warranties as a form of insurance and spreading of risk. They give some peace of mind, but for most they are money makers for the underwriter. If they did not make money on them, they would not be selling them, meaning they take in more money than they have to spend for repairs.

The devil is in the details. First, the underwriter has to be credible. If they go out of business, the purchaser is out of luck. Second, what are the details on what is covered and what are the exclusions? Like the TV commercial says, I did not buy the wrong policy, I bought from the wrong company.

Ask them if you can review a copy of the terms and conditions. I am betting they will have a hard time producing it.

As others have stated, by law in almost all states, you typically have three days to call and cancel. Sort of a cooling off period. There will AWAYS be another chance to purchase. If you did not purchase on the day of the sale and went back a month later, I am sure they would be willing to sell you an extended warranty. Once your title is registered, you will also probably get cold calls from extended warranty companies.

I was suckered into a home warranty way back when, only to find out it did not cover most of the expenses. So now, I never purchase extended warranties and have never regretted it, but if they give you peace of mind, or if you do not have the discipline to put that extra cash away for the future repair, then it might be for you.

 

Bumper to bumper including roadside assistance for 5yr/100k (whatever comes first) for $900

 

The Extended Warranty is direct from Toyota and not some 3rd party, makes it easy to pull into any Toyota Dealer across the Country and get a Loaner Car while yours is being repaired.

 

Good point. If you elect to purchase an extended warranty, go with the one sold by Toyota vs a third party.

Also check your auto insurance policy. Many included roadside assistance.

 

It's not the monthly cost, it's the total cost that matters. Most of the time they bump your term up so that it seems like a cheap monthly cost.

 

The problem is many get bumped from 48/60 months to up to 84 months just so the the monthly price for the warranty is small.

 

Probably because I am a repeat buyer and he knew it would be waste of his time, and mine.

 

I have found that to be the best trick. To have financing set by other means. If the dealer gives you a better rate you go with them otherwise you still know you going to get the car with your other financing.

 

When I bought my truck it was hard to get them to move on price. When negotiating the purchase price i also negotiated for the 8 year 125,000 mile platinum warranty. I got the warranty part for $1200. since I keep my cars for 12 to 15 years or so I think its a good choice. it wasn't the power train I was worried about, its the braking, electrical and steering system. These parts draw some really big numbers and with the platinum warranty service rentals and towing are also included. Read the list of whats covered and what isnt and make your own choice.
Oh since I paid all cash and the sale was fully vetted through the sales manager, the finance manager was pissed with his only commission was on the super low warranty sales price that he had no control over. The time to buy the warranty is before you leave the sales counter not at the finance screw you center. So I pay and extra 240 bucks a year for the 5 years after the original warranty to feel warm and fuzzy its OK by me. Its paid and done for, for the next 7 years its Toyota's problem.

 

I bet the monthly payment on a 2017 TRD is more than my first house payment. Wonder how many new vehicle purchaser's keep the vehicle for 84 months?

 

In our case he tried to slide in a higher rate over a longer period to try to get us to buy the warranty and having a lower monthly payment. The credit union at work had the lowest rate I could find.

 

I got 10 year 100,000 mile warranty on mine.

 

So what you're saying is, trade my turd gen in for a Honda Accord Hybrid and lease it!

No but seriously you're hitting all valid points here. I had a 335D which was CPO and that CPO Warranty coverage saved me thousands on just one repair alone (DEF Tank Sensor Failed) ~$3000 in parts and labor IIRC. Audi and BMW both will get good use out of a warranty. Based on my experience with the new Tacoma, it too has had plenty of warranty use.

 

Owning a 335d or any other modern BMW without a warranty is financial suicide, IMO. The maintenance and repair costs for a car like this are simply astronomical. That's why by the time your warranty craps out, your $60k BMW when new is worth $10k. My taco cost $22k new, and after 7 years and 155k it's worth about $7k. You are comparing apples to asparagus.

However, we are talking Toyota's here, and extended warranties in general. If you are "in the business", maybe you can inform us all what the profit margin is on extended warranty sales? Here's one thing I know for sure: the day you buy it, the profit margin is 100% for the dealer. Nothing else is quite like this, so it's no wonder they push them as hard as they do. Imagine the impact if the sales line went more like this - "give me $1,500 today, and IF you need a repair many years from now that's actually covered, you won't have to give us any more money!". Sounds pretty effin stupid when you put it like that. Instead they show you a horrifying list of major repair costs, and sell it through hard sell scare tactics.

Just say "no". Always.

Here's what you do if you want "piece of mind". Take that $1,500 and buy an index fund, and promise yourself not to cash it in until the day comes when your basic new car warranty expires, if you still own the car, and if you actually need some of it to pay for a repair. If you never need to cash it, hang onto it for retirement. Do this every time you buy a car, and you'll be able to retire earlier than me. Tell the dealer "no". If pressed, say "no". Practice in front of a mirror if you need to get the hang of it. Buying a new car is not a social event. It's not a job interview, or anything that requires you to impress someone, make them feel good, or make you feel intimidated or pressed. It's a financial transaction, with you holding all the leverage. Learn how to say "no", and say it every time you get run through the post sale sales pitches.

After a few times, it'll be second nature to you.

 

I got it on the wife's 07 4Runner when we purchased it new. That was the deal where they would refund 100% of it or some shit at the end of 7 years if you didn't use it. Then the company went out of business and screwed everyone. We have had that car for 10 years. It just tripped 95k and all I have ever done is replace the alternator. A real PITA on the 4.7 but other than that just maintenance so should have not gone for it on that one.

 

I don't think you are providing a complete picture here. A CPO BMW comes with a pretty staggering price premium vs. a 3rd party sale outside of any covered warranty. There is simply no "free ride"; owning a BMW with or without a warranty is going to cost you a large amount of money, period. When you compare with an Accord or similar, it's mind boggling. I've owned 4 BMWs, 3 bought new. The way to go is to buy one that still runs well with 120k miles on it or so. It will have depreciated 95% or so from new. Drive the living hell out of it; enjoy it for what a truly wonderful machine it is. When something costly breaks, haul it to a junk yard and hand them your title.

I've read your posts about your new taco & all the problems you've had. I'm truly sorry, that's really a damn shame. But, you are still under the new car warranty, and I doubt you will keep this vehicle for a very long time, so your situation is not really applicable to the question of whether anyone should buy an extended warranty (unless I'm missing something.. if so apologies in advance!). You are also a pretty extreme statistical anomaly, and that's not a place to make a financial decision like this from. Just my opinion..

 

I think we can all agree in the end the dealer always wins. It's all just a matter of how hard they want to screw you.