Extended Warrany

When I was looking at a 4th gen the sales manager not finance person . Told me the extended warranty is a waste of money . It’s a Toyota … the factory warranty is sufficient enough . Most buy it will end up trading the truck in for a new one before or right after the warranty runs out . So the warranty is a waste of money .

 

First mistake……..Sales Managers do NOT deal with or sell Ext warranties…….and thus did NOT know the product to tell you, that you can get money back on unused portion of Toyota Warranty and/or transfer warranty to new owner in the event of sale/tradein of vehicle……..

 

Doesn't matter if the warranty is from Toyota or a third party. They are not charity organizations, they make money on warranties. They only way to do that (especially after overhead and commissions - if they're aren't commissions, why do finance managers push them so much?) is by paying out less than they take in.

You're just betting that you'll be the "lucky" one that gets his money's worth from the warranty, meaning your betting your new truck is going to fail. As the warranty period is about to end do you hope your truck is going to be in the shop for a week with a major problem so you'll feel justified about your warranty purchase?

$11 a month, but that's $1,360 and you probably financed it (at least 4%) so $17/mo or $2,013. And you could have invested that $17/mo at 5% and had $2,600.

Insurance/warranty is great when you can't cover the expense. Your house probably won't burn down but if it does, you probably can't afford several hundred thousand to rebuild. Probably a good idea to have home insurance (and if you have a mortgage, the bank will make you get insurance anyway).

You probably won't suffer a serious injury/illness but if you did, you probably don't have several hundred thousand for medical care. Probably a good idea to have health insurance.

You probably won't break or lose you cell phone but if you did, you can probably afford to buy a new phone. Don't need insurance.

Chances of your vehicle, especially a Toyota, needing more than a couple thousand in repairs? Wife's 1980 Corolla (college car) with well over 100K - no repairs (service parts only, i.e. brakes), 1990 4Runner (130K) - no repairs, 1996 Sienna (75K) - no repairs, 2001 Tundra (110K)- no repairs, 2003 Sequoia (130K) - $400 ABS part, 2006 Corolla (90K) - no repairs, 2008 Corolla (85K) - no repairs, 2009 Camry (90K) - no repairs, 2010 Matrix (70K)- no repairs, 2012 Tacoma (88K) - no repairs, 2014 4Runner (122K) - had to replace both seat heater switches (coffee accident) at $40ea, 2016 Corolla (60K) - no repairs, 2017 Rav4 (70K) - auto rear hatch not working properly, out of warranty, $1,100 quote to repair but my daughter decided she could live with it. If any one or two of these had required major repairs I still would have been better off "self insuring" vs an extended warranty.

Las Vegas thrives on people who just spend $11 on their slot machines. Money in the bank.

 

thanks for posting your Toyota “ownership resume” for all to see………., hilarious you thought it makes a difference.

Common denominators of all your previous Toyotas……….previous generation vehicles without many electronics…….mostly Corollas (rAV 4 is a Corolla in an SUV package).
It’s simply NOT the same Toyota Motor Company today.

I bought my Toyota warranty AT COST, and paid CASH………..financing an ext warranty is just plain stupid……

.and a 5% investment with inflation and taxes is a net gain of zero……..and not really an investment.

Toyotas Tundra problems, plus now Tacoma problems is a troubling trend……..not to mention dealers now charging $200 hour/Labor rate…….that $1360 investment is what…….a 4 hour repair plus parts…….

if my 4th gen Tacoma Sport never uses the ext warranty……..great……..$11/month didn’t break the bank……IF however, it does, I made a great investment…..and Toyota fixed it, while I had a loaner car while it was getting fixed.

 

Care to disclose how much commission you get on each warranty you sell?