Extended Warranty, Toyota Care....etc

oh you know they have bean counters that tell them exactly what to charge for it and the results of the warranty.

 

it's a form of insurance...and just like every other sort of insurance, you may never need it BUT if you do need it, you'll be glad you have it!

 

Yes, but most insurance is to protect you from catastrophic loss. Most extended warranties will have a cap on what they will pay out over the lifetime of the contract, I doubt you would ever get more than $15k payed out. While that is not a small amount of money by any means, other insurance protection dwarfs this.

I'm willing to take the small chance I'd have to drop a new engine in my truck, I'm not willing to risk being personally response for property damage or personal injury by not having car insurance. I'm not willing to forgo health insurance and potentially be on the hook for 100's of thousands in hospital bills.

My point is, the average person can easily save enough money to cover pretty much any breakdown not related to an accident. Very few can save enough to cover loss of their home, serious illness or being sued. The insurance companies still make money off of you, but you get a lot more protection in return.

 

So essentially it cost $2000 for replacement u joints by my math...

 

WHERE DID YOU GET THIS QUOTE ?

 

This is true, peace of mind is worth some amount of $$$...better to have it and not need it as previously mentioned as it’s such a small % of the cars value. They make money off those who never use it. So they aren’t losing anything...10 people at $1,000 a piece is more than enough to cover the 11th person, because the dealer is getting reimbursed by corporate.

 

same

 

Damn! I got hosed! I Paid $2000 for the exact same thing for my 17 TRD OR. And that was beating him down from $4000!

 

This is the quote I got from fd-warranty.com

 

Nope. I bought an extended warranty on my 2017 for 2K. The u-joints went out on my 2011 and were covered but I don't remember what that warranty cost. I also had the radio head unit on my 2011 replaced 3 times all under warranty.

The 2017 has already needed a fuel pump.

 

With all warranties either backed by the manufacture or not you need to maintain the vehicle. Most people can’t seem to do that and the 2k warranty means zip when you have a problem.

Your first two years of course are covered through Toyota Care. After that the maintenance gets a bit more expensive.

Always best to get a manufacture sponsored plan when buying. Those others head south quickly and rarely pay out.

 

You should be maintaining your vehicle anyway so that really should not be an issue, definitely stick with the Manufacturer and not a 3rd party warranty.

 

There seems to be a lot of mis-information being passed on.

First, these are not "Extended Warranties", they will either be labeled as an Extended Service Contract or Agreement. This is because the Warranty is something provided by the manufacturer at time of purchase. The service agreements are sold after-the-fact on the product and thus would have their own set of liability on said product. My suggestion in regards to which company to go through for your Agreement is to do your research. In my experience, there are times where you may want to look at the plan that is backed by the Manufacturer. There will most likely still be a separate Administrator to the Agreement, but the Manufacturer tends to side on to consumer for good faith and future sales potential.

In regards to the "Amount" that these Agreements will pay out is no different than your car insurance. I think it's pretty obvious that nobody is going to pay more than what the car is worth at any given point. Read the agreement, find out what the Limit of Liability is on it, find out how it's calculated. Knowing this information could help you in the long run, especially if you have any big ticket claims.

As for modifications/alterations to the vehicles. Again, these are not a Warranty, and those quoting Magnuson-Moss are misleading. From my experience, if the Agreement/Contract excluded any electrical or mechanical alterations/modifications to the vehicle, and you have either, any claim could be declined. However, again just like before with the manufacturer backed agreements, there are states that are very consumer friendly. And thus have special provisions or have re-written parts of the Agreements to remove any ambiguity. Again, you need to read the Contract/Agreement to find this information, typically under a section called State Disclosures. Toyota even gave us a second book on warranty for just this information per state.

My main point for this post, is that not all contract's are the same. They are each written in their own language and have their own tiers of coverage. Do your homework, and read the contract before you buy. Just like the old G.I. Joe cartoons "THE MORE YOU KNOW"

 

I know this is an old post, but I thought it's pretty interesting. I'm researching an extended warranty since I'm close to my 36,000 and came across this thread.

I was thinking about other factors I would put into creating this formula if I was toyota.

1. The ticket/token factor. How many vehicles are sold, totaled, or traded and the warranty is basically forgotten about even though there is life remaining. Think of going to an event and buying tickets for rides or games, or even car wash tokens. There's a lot of loss when people overbuy and don't use them.
2. Re-buy cycle estimates. Toyota can use the data to get better estimates of when customers are going to replace or upgrade their current vehicles. Warranties are often an indicator of expected life of ownership. This is good for sales, repairs, maintenance, and aftermarket support.
3. Complex rationale: You can refactor cost of repairs into a different business unit outside of COGS or your service departments. Toyota can actually buy insurance against the customer's insurance (warranty) policy. Imagine if 100% of customers bought a warranty. Toyota could fund all repairs and recalls from their own manufacturing quality insurance. This could also potentially improve the profit margins of the vehicles by offloading repairs and warranty work. But I'm not completely sure how this works at Toyota.
4. VERY complex rationale: If Toyota could extend the life of vehicles longer, it creates a more predictable formula for customer lifetime value. When evaluating revenue, sales, and other forecasts, Toyota can use this data for financing debt, stock offerings, or even investing in commodity futures. Hell, even understanding car buying tendencies can hedge against oil markets.

There's some really cool stuff here if you're nerdy enough to think about it. lol

 

For what it’s worth, I’m at about 65K miles now and haven’t used the warranty since the first service when I noticed my center console outlet wasn’t working ... turned out to be a blown fuse. A couple of TSB items (trip odometer and crank position sensor) as well as ECU updates and that’s it. I bought the 100K warranty but (knock on wood) it may be pure profit for Toyota. I did pay for Toyota Care through 45K but it hasn’t been back to the dealer since, so they’re not getting any service revenue.

 

I did the same as this, and am of the ilk that I would rather pay small amounts with my payment over a longer period of time than perhaps pay out of pocket at one time for a sum that would hurt the day to day.....like I have stated in another warranty thread. Getting an "extended" warranty isn't just about repairs, it's about how you conduct your life and day to day. Do you have expendable income!? Do you have a lot of free time!?! How many cars does your family have?! Do you personally know a lot about cars!? Some people need to consider more factors than just dollars and cents. All insurance and warranties are a scam until you really NEED it.

 

I bought 7/75 for my 2006. Never touched it. Parts didn't start wearing out until around 120,000. I had leaf spring TSB and timing chain cover TSB completed before factory powertain warranty had expired.

Shopping a 21 now. Pretty sure I'll be skipping the extended, unless they want to throw me a bone on it.

Many years ago here there was a member who worked at a dealership who was selling factory warranties cheap. IIRC it was the top 7 year Platinum warranty for like $700? Again, many years ago.

 

The extended warranties are pretty expensive these days . We were offered 3 options. The first 2 included a lot of perks such as travel planning and stuff. We chose the third option which covered mechanical and electrical. Our new Rav4 has all kinds of lasers and radars so we decided thats where we need the extra warranty. Extended warranty to 7 years for 900 bucks.

 

7 years for 900 bucks sounds reasonable to me. I think im going to shoot for a 10 year 100k

 

So, I’m guessing if you make any mods to your truck then all bets are off as far as any warranty is concerned.

Would that be a true statement?