Should I buy the extended warranty?

So, I'm the new guy. I've posted a few questions on here so far and I'm really blown away by the response of the forum members! You guys are great!

So now I have my very first taco: 2011 Tacoma Double Cab 4x4 TRD Off Road MGM. I LOVE it! It's such a nice truck and I really can't wait to go wheeling. I've had several Jeeps in the past, but I think the Taco is going to blow the doors off of what I used to have.

On to my question... The finance guy at the dealership is still trying to close me on the extended warranty. I know the game - they went under invoice on the truck and would like to make something back on the warranty (blah, blah, blah). (I got it for a steal and even talked them into swapping the BFG Rugged Trails for BFG AT KO 265/75R16's!) I'm *really* inclined to say no, but he's come down to about $1,050 to extend the warranty to 7 years / 100k miles. That really seems like a good deal, but would raise my payment by $16/mo and it's already a steep payment as it is.

Is the warranty worth it? Would you buy the extra 4 years for that $1,050? I have to decide tomorrow (12/10) because I have to finalize the loan papers...

Thanks everyone!!

 

For 16 bucks a month I'd do it .

 

is it just drivetrain?

one thing to check is with your auto insurance. geico now offers a warranty that matches that exact year and mileage you've mentioned, but they are the only ones i know of that do it. i never knew it until i deleted my mazda and montero and added this tacoma a couple weeks ago. they ran through the stuff and said something about a warranty and i was like "wait, what?"

i didn't want it, so i had them take it off, but you have a certain amount of time and/or mileage to decide.

it might be cheaper than paying 200 a year for the toyota deal.

 

in a heartbeat. think of it as free service and parts for 7 years, other than wear items. that $1050 can get eaten up in 1 small repair at mile 35001. yer gettin it for about $100 over cost from what ive read on here.

 

i would buy it. 16 extra bucks a month isn't a ton more when you're already paying several hundred each month. and you will be really glad that you got it if something ever goes wrong. because these things seem to be timed to start having trouble at 3yrs/36months.

 

no shit huh? its like theres a computer on board.... HEY! WAIT!

 

so it's a bumper to bumper 7 year/100k?

 

mine was but there are diff options. i also opted for a 0 deductable theft and total loss replacement (gap insurance) all at 2.9% on the same payment. pretty sweet. even my state farm gal gave me the thumbs up.

 

i think it's stupid to buy it
here's why
1). you can buy it whenever you want before the 3year/36k expires.
2). whenever you do decide to buy it, you can get it cheaper from the 2-3 competeting agents that sell toyota/lexus warranty online.
3). why pay interest on your warranty???? wtf

so yes that 7 year/100k is really 4 years 64k, so why buy now?

 

Good point .

 

I'll be pissed if I have to use mine and pissed if I don't.

 

Is it a warranty? Really? Does it say "warranty" in writing anywhere, or are they just verbally calling it a "warranty" and really in writing it's a"service agreement".

OK, so you're thinking that is not a big deal.. the salesman (yes the finance guy is a super salesman just like the ones out on the lot)will tell you as much when you call him on it. After all he'll point out how it covers everything bumper to bumper.. he'll emphasize that these new Tacoma trucks have a lot of expensive electronics and just one repair can cost you thousands of dollars (which is actually true) The problem is that in the fine print, oh yeah there is a lot of fine print.

They give you a colorful simply worded flyer on the "warranty" (careful not to use that word). It seems pretty strait-forward that it covers almost everything on the truck. But it doesn't. Nope. Look carefully at that colorful flyer and it'll say somewhere on it in fine print that coverage may vary from that presented on the flyer and that the flyer is for illustrative purposes only and you need to review the contract for specific covered items and so forth.

One funny note here is that going to the website for those flyers you'll never find the terms of the contract. But no worries the dealership has that contract and will slide it over to you to sign. Look at it, about six pages of fine print. Doesn't look like six pages, they print it on both sides of the pages and disguise the thing like a multipart form so you don't suspect there are more pages to it. Well, back on page two or three or so will be a few paragraphs about "wear items". Anything that fails due to wear, by their discretion, is not covered.. then it lists all the items that were listed as being covered.

The wonderful part of this scam is that everything on your truck is a wear item and they do not have to cover anything.

Oh there is more too. The "warranty" will include towing and reimbursement for lodging and meals.. sounds pretty good. Wait, only for covered items. So if it is determined to be wear, or if an item under coverage is not replaced then you are out the money for the tow, etc.

Also, I can probably guess what "warranty" company it is.. you know why? Because almost all Toyota extended warranties are handled by one company. Google that company name and add the word complaint after it - a real eye opener.

Well, trust me I know a lot about this. Don't walk - RUN from this.

Now, that is not to say all warranties are bad. AAA (Automotive Assoc of America) and many insurance companies (Farmers, State Farm, Safeco, National) all offer extended warranties that are more "honest" about what they cover.

I mean think about it.. did you really think you'd get any sort of good coverage on your $25k+ vehicle for $1k for seven years of bumper to bumper coverage? Did you?

We read about folks all the time taken in by Ponsi schemes and bad investments. In this case you get exactly what you pay for... next to nothing.

That's my take on it anyway.

And let me say that I generally am a warranty guy and think a good warranty is a great idea (if it has the actual word WARRANTY written on it somewhere). All my computers and my home appliances have extended warranties. I carry full replacement coverage on my autos. Have umbrella liability coverage. Even have loss protection on my cell phone.

 

Assuming it is the official Toyota Platinum ECP, $0 deductible, 7 year, 100K miles, which covers everything except normal wear parts - wipers, belts, brake linings etc. - go to www.toyota.com > finance> ECP which will have a list, it is a good price. Agree with others that you can buy it after the 3 year regular warranty runs out and save money on interest or in case circumstances with your vehicle change.

The cost of one bought from Troy Dietrich paid for itself in one air conditioning repair. We argued off even the diagnostic charge. While I like Toyotas, I'm no fan boy and notice quality has definitely declined over the years.

 

no shit? and here i was thinkin i was so damn smart coverin my ass and suggestin the same to others. i need to check this out. thanx man. heres a green m&m for yer troubles.

 

Extended Warranties sold are pure dealer profit.

Statistically speaking the chances of you ever using any part of the the "extended warranty" are very remote. This is exactly what your sales guy is counting on. This warranty offer often exploits a buyers emotions just before you get ready to sign the purchase docs. Your sitting there thinking....well 16.00 a month..I can afford that. In reality its the the last stand of a salesman attempting to control everything about the sale, don't buy it.

Tell the salesman you want free oil changes for the first 50,000 miles before you even consider signing to close the deal. Watch the look on his face. hahahaha!

Extended warranties fall into the fabric and paint protection sales pitch file which I call "snake oil" and would not reccomend you purchase it.

Just sayin.......

GL

 

They are good at selling extended warranties, and even better at denying an extended warranty repair/service.

 

After having an extended warranty essentially snuck in under my nose as the last Toyota finance guy rushed me through the paperwork, the whole thing left a bad taste in my mouth.

When I bought my new Taco last week, everything was going great until I got to the finance scheister. I made it VERY clear upfront that I wasn't interested in any extra warranty/service plan/whatever they wanna call it, and even after I told him I didn't want him to waste his time or mine, he kept pushing and even brought in the finance manager who pushed some more. I finally started turning beet red, began to raise my voice, and exclaimed that I didn't know how to make it any more clear that I wasn't interested. They finally backed off (thankfully... I was about to get up and walk out) and ended up getting me a 4.04% interest rate.

Not a fan of last minute extras and add-ons. Definitely not a fan of finance scheisters.

 

The other question is whether you're planning on modding the truck at all. I understand that "the law" states that the dealer has to prove that your mod caused the item to fail but once you start modding you're going to quickly run out of things that are stock and, therefore, covered by an extended warranty. Just food for thought...

 

I got duped on the warranty on my old Mercedes E class and fell for it again on my Tacoma. Eventually I contacted them and canceled. It just comes off the end of your loan. Your just betting on getting into a situation and this is your "get out of jail free card". In the end I doubt it'll work that way for you.

I resent their fear tactics.

RZ Rob

 

+1. I was so caught up in finally owning my first new vehicle, that I thought it was a great idea. Son of a...