Extended Warranty

if your financing it along with the payments on the truck then you will end up paying at least twice for it over a 4-5 year loan. put your money in an emergency fund for it instead.

 

Having a wealthy person as a spokesman for Car Shield is ironic, and laughable. But I'm afraid the irony would be lost on the kind of people the ad is directed to.

 

Huh? 1500 at 1.9% over 60 months you end up paying back 1574... Not even close to double.

I've always fixed my own cars and don't buy extended warranties. I bought one once when I bought my 01 cobra. I knew I'd blow the trans up and it'd pay for itself. I did and it did.

I'm on the fence for my taco. 1500 for a 125k mile warranty is great peace of mind. Probably won't do it but give it some real thought before I hit 36k. Its just like going to the casino. House wins overall but sometimes you get lucky.

 

I have a short commute and have other vehicles so $685 for 8 years/75000 miles was a no brainer.

 

The issue is not so much the tacked-on interest charge, but the psychology. $1,500 over 60 months comes out to "only" $25 a month. A small price for peace of mind, right? This is how the salesmen get those who are focused on monthly cost. If you see the whole deal as a cash transaction, the perspective is entirely different. $1,500 is serious money.

 

That's not just done in extended warranties, that strategy is used across all industries from "for less than $1 a day..." to "for just 4 easy payments of $89.95". Ever wonder why all those places on TV trying to get you to donate are always $19 per month? Because countless market research studies have shown that $20 is the consumer break point for what they consider a "significant" expense. Keep it below that and your response rate goes up exponentially.

The fact that the F&I guy gives the car buyer the increase in their monthly payment rather than the total cost of the warranty means he/she got sales training on how to sell them. They use these strategies because they are proven to work. You're much more likely to get a sale if you tell someone it's $25/month instead of $1,500. The amount of interest they are paying to buy that warranty is part of the total finance charge on their auto loan so they never know how much of the total interest on that disclosure is for the warranty. You are absolutely right to call out that you should look at the entire cost of the transaction, not just the payment. The fact is though that most people don't.

 

Where are these prices from? I'd like to give them a call.

 

She is a forum favorite when it comes to the Toyota Platinum Extended Warranty.

Contact Jennifer Taylor at Wolverine Toyota in Wisconsin.
jtaylor@gowolverinetoyota.com

 

I bought my 2019 sport last year used with 18k miles. Previous owner purchased extended warranty 6 years / 125,000 miles for $2,500 as well as prepaid maintenance both of which were transferred to me. I have about 30k on the odometer now. I have the option of canceling the warranty and getting a prorated refund which as of now would be about $1500. I’m not a warranty guy and thought about canceling before but just left it alone. What do you guys think? Leave the warranty alone or take that $1500 and add more mods

 

I'm a bit surprised they transferred it. As someone that wouldn't buy one I'd say leave it. That said, $1500 extra in the bank wouldn't be too shabby.

 

If I remember correctly the warranty can transfer multiple times for no cost. The prepaid maintenance can only be transferred once and I had to pay a $50 fee.

 

I am doing the Geico Mechanical Breakdown Insurance. It has a $250 deductible and is currently costing me $8.32 every six months. It started out a little higher in cost ($15ish??) but has since gone down in price. It goes to seven years or 100,000 miles. I have never needed to use it. This seems to be the way to go.

https://www.geico.com/auto-insurance/mechanical-breakdown-insurance/

 

Well I think technically 3rd parties offer a maintenance contract not a warranty. Some differences. The way I see it is if it makes you feel better, get it. Personally I think dealerships are out to make money.

They sell these "warranties" and only 2 out of 25 people ever use them ( made up statistics) dealerships cash in. Warranties are paid for by Toyota that's why dealerships have to get approval. It's a cash grab based off of paying for piece of mind.

Take the cost of the maintenance contract and put it into your own account. If something should happen you have cash, if not, you have Mod money!

 

Plus a little interest...

 

Shit my 2016 is at the dealer for the leak right now and you’re making me not feel too confident in their ability to repair the leak the first time. I’m at 76K miles and only covered because I bought CPO and I’m covered through 100K.

 

I had the extended warranty once and never again waste of money. Nothing but a burden when it comes to fixing anything under it. There is always an excuse e.g it is not covered when it is and after arguing with them and proving that it is then they come through and fixed it. This happened a few times never again.

 

Be careful with this. I had it too but dropped it when I researched it and found out when you use it it's considered a comprehensive coverage claim. They don't tell you this unless you specifically ask. You might want to call them and verify for yourself.

 

Interesting, I’ll have to check into that.

 

There is always a catch to everything. It always sounds so good at the moment of buying till you use it. Never fails.

 

When I bought my truck new, I purchased an extended warranty through the dealership for $1400. It was through a 3rd party (CNA National) but was essentially “platinum” and covered all but normal wear and tear things up to 100,000 miles. I felt sick when I left the dealership having agreed to throw money down the toilet that id never see again.

Fast forward nearly 5 years and 83,000 later, I identified a timing cover leak which was confirmed by the dealership. Big job requiring pulling of the engine to reseal - $4000 ($3500 labor alone…). My warranty company approved the work same day, I paid a $100 deductible and within 48 hrs had my truck back, leak fixed.

this is obviously not the norm. Yes insurance companies make a ton of money bc warranties are generally a bad deal for the consumer, but I was sure glad I had it!