Extended warranty question?

Okay so I am going to throw my business all out there about the deal I got when buying my truck.

So I recently bought a 2017 Toyota Tacoma TRD Off Road with a manual transmission on 19 FEB 2017. Looking over the sticky post of the invoice prices on here I got a pretty good deal on the truck. As they only made 484 dollars over the invoice price with options. Pretty good right?

The deal we worked out was zero money down payments of 598 a month for 60 months at 3.9% interest. I was informed this was the best they could offer and after shopping around for different rates, it wasn't a horrible rate. Not bad but not super great either. They gave me 3000 for my car, which needed about 1500 in repairs so I wasn't too worried. Also they gave me another 500 for being in the military.

So I get into the financing. Dude is pushing the extended warranty hard. I tell him I don't want it. He reworks some numbers, I tell him the monthly payments were too high. Also by this point I am hungry, I'm running a fever, and it was my first day off in 3 weeks so the delirium was setting in by this point.

So dude reworks the numbers again and tells me okay the extended warranty will only cost me 10 bucks more a month! Sounded great to me! So I agree sign the paperwork and drive home in my brand new truck.

So this morning I finally run all the numbers and look over my paperwork....

So yes the dealer only made 484 dollars off selling me the truck that doesn't bother me.

What does is the extended warranty. They charged me 2207 for the extended warranty but what they also did was drop the financing percentage from the advertised 3.9% back to their old 2.9% which that part is great, saved me 909 dollars so after working the deal out that brings the difference down to 1298 dollars.


So this is what the breakdown looks like:

484 is what the dealer made off the deal
2207 is what they're charging me for the extended warranty. After changing my interest rate its only costing me a difference of 1298.


So here is my question.

I am still within my 30 days with the extended warranty (Which I believe is the cancelation period). What is the likelihood I can cancel my extended warranty, saving me 2207, keep the 2.9% interest, and then re-buy the extended warranty with one of the cheaper dealers that have been recommended here on TW?

Thanks for reading all that mumbo jumbo and any assistance you guys may provide!

 

I would try. Just shows you how they were screwing you with the finance rate to begin with. When I bought mine, they screwed around with me, wouldn't send info to my credit union, kept asking me what rates I was approved. I finally said to him, " why would I tell you my rates, so you can offer just enough and not the best you can do for me? He got a little flustered and snapped back, so I know what I have to beat, I said exactly. In the end I went through lightstream.com and got under 2%.

 

You can cancel it. Looks like he was gaming you with the numbers.

Funny thing on my deal, I got the out-the-door number I was shooting for, and when I went to financing (credit score over 800 btw), the guy tells me the best he can do is 3.4% for 60 months or 2.9% for 84 months. I was incredulous, as the longer term should be the higher rate!

So I took the 2.9% deal and will refi through my local credit union for 1.25% (a special they run every year around Thanksgiving).

 

My wife and I just bought a Highlander this past Saturday and sure enough, they pushed the warranty hard. But I expected it, they always do.

You could tell that guy was getting annoyed because I kept responding "yeah it makes sense, but I'll pass". They were charging $2,404 for it. He got his manager to come in to tell me how it made sense for me to get it. I would listen to him patiently and say "yeah it makes sense, but I'll pass". He got pissed as well and left.

They make a killing with these warranties. I've owned 5 Toyotas and only bought the warranty on the very first one and never used it. I told the guy that the day I start having enough issues with Toyotas that I need the extended warranty, I'll just stop buying Toyotas.

 

Depends on the warranty they offered you.. Which one was it there are several that include maintenance some do not and they are all different lengths of time and coverage.

To answer your question we would need to know the details of the extended warranty.

If it was a 10yr 100K including maintenance - good deal for 12hundy... just sayin.

 

the cheaper deals have pretty much gone away. toyota put a stop to those dealers from wholesaling the extended warranty's on the internet. last info being posted was the only way a dealer could sell a discounted extended warranty was in person at the dealership.

 

8/125,000 warranty for just under $1181 bucks started out $2499.... I did get 1.9% for 60 months

 

Any extended warrenty is a rip off. Just say no. Tell them to stop with the BS or you will walk.

Same with any dealer financing, it's a rip off. Get financing from your bank or a credit union.

When I got my taco they wouldn't stop trying to sell me warranty, financing, clear coating, etc. I made the mistake of telling them I can't afford any of that, and they started with the "if you can't afford it now then you have to buy it, because you'll be in trouble if you need it in the future." that pissed me off and I told him flat out, stop wasting my time, I'm not stupid and I'm not buying any of your crap. Get up and let them know your angry and walk towards the door, they'll shut up real quick then.

You have to realize that the last guy you see, they guy that tries to add warranty and financing and clear coating and all the other overpriced shit to the deal, that guy is the best, most experienced, most merciless salesman in the place. Have no mercy, and don't be polite, because this guy is always the hardest nosed salesman you will ever find. He's seen it and done it 10,000 times and has no mercy, neither should you.

 

Do a search here on TW. There are places still selling warranties remotely according to recent reports.

I must have had a Unicorn of a finance guy. I used a dealer that has a direct relationship with my credit union. Finance guy wrote the CU loan from his computer in his office at the same rate table as I'd have at my CU's office. (I knew the CU rates before going in of course)

He even made a suggestion that saved me a quarter point. Yes he offered up the extended warranties but I only had to say "no thank you" once. Four years @ 1.3%.

 

i got mine from the guy Toby in oct 2015 and soon after the was shut down along with others. may be there are some out there still offering it?

 

^^^ That's a good deal... similar to what I got but I don't have the extended maintenance ... I should have asked but wasn't paying attention as my attention span was WAY past its limit in the dealership for 4 hours "closing" a cash deal, WTF.

 

Prolly was reading about all the issues @smitty99 was having .... shut down the cheap warranties.

Basically I got my extended warranty to cover any electrical issues like needing a new head unit or some other electrical gremlin that shows ugly head @50K miles and new engine! Otherwise I'd have passed.

 

Common trick the finance guys use to make some extra commission. You have to watch those finance guys. They are slippery dicks. They tried the same thing on me. I secured 1.69 before going to dealer. When I refused the extended warranty the finance guy said he could drop it to 1.29% First question I had was would you have offered the same rate without the warranty. Answer was heck yes. Lying SOB was my thought. I told him next time I buy a vehicle I will be bringing my laptop so we are on equal footing. So then he pulls out the same $10 per month trick. I ran it in my head and said $10 will do it for $600. Problem was what he was comparing to. He was comparing to the original APR. I got to work the next day and was reviewing the paperwork when I realized that I had been had. I called the sales director immediately and told him that I would be in after work and expected to have new paperwork to sign. If not he was getting the keys back and by the way do not sell my trade.

 

Typically, you can cancel your extended warranty at any time. The first 30 days is the time span that you can get 1 100% refund for it. After that they are prorated.

Dealers make good money on extended warranties. The F&I people individually make good money on them as well.

Dealers also make money on financing. Front end, back end or both. That's why you don't tell them about your preapproved financing until all of the numbers are worked out.

 

Speaking of extended warranties, what exactly is the deal with them now?
From what I've pieced together, you have to buy in state state and in person? i purchased my truck out of state the the dealer was laughably high with his pricing. Figured I'd look later and its later.
If what I gathered is true anyone know of a dealer with good pricing in PA?

 

When working with car dealers you never want to work in monthly payments. Always work with the real cost of everything. They all do the same shit- "how much can you afford a month" or "this only costs you an extra $10 a month".