Aftermarket Extended Warranty from Dealer ??

Hi, My Dealer was pushing this Extended Warranty ..... I'm "considering" buying. He's been using them for years and Prefers these to Toyota for both pricing and ease of coverage payouts.

I'm looking at this ...


Automotive Preferred CareSM — Our top-of-the-line “exclusionary” coverage. All parts, services or conditions not specifically excluded are covered. Available on most vehicles with up to 125,000 miles at time of sale.

https://www.cnanational.com/product-detail-vsc

As I'll be putting on less miles on my car n- I'm looking at 90K Miles or 10 years for well under 1K ??? No Deductible at my Purchasing dealer - otherwise Just $100

 

Don't buy an aftermarket warranty. Of course he'd say that, they pay him to sell those. There are endless accounts of denied claims and those companies just dragging their feet to get stuff done

 

I have 2 experiences with aftermarket warranties.

The first was with my 1999 VW GOLF - 4 years 48,000 miles from Warrantech. I got some good use out of it, but it didn't pay for itself in the end. They were easy to work with and fair. Warrantech is now called something else - I forget what - but the new version of it allows you to buy the warranties from them directly - a better idea since you're not giving the dealer any fluff - the good news is you pay monthly for the warranty instead of all up front.

the 2nd warranty i purchased was $1700 for my Honda civic, with 77,000 miles, 4 years old. 4 yrs, 48k miles. I didn't get one dime out of it. The car never broke the fuck down.

Japanese vehicles seem like a waste to warranty esp if the history is clean and well cared for. My honda was well cared for and the maintenance history read like a bible.

My current opinion is, they are a waste of money and I agree with what Clark Howard says. They are a waste, and the exclusions usually bite you in the ass and they may fight you on claims.

I wouldn't buy one. Just my .02

https://clark.com/cars/extended-car-warranty/


Take care of the car and do the maintenance on time or ahead of time.

 

If buying the extended warranty just stick with one from Toyota.

 

Agree with the above posts. Too much wiggle room in the "fine print" for these companies to use to deny claims. These companies don't make profit unless they routinely deny claims. They often resort to trickery or stall tactics to avoid valid claims. Never had an extended warranty that paid for itself. Instead, take the thousand dollars and use it to pay off the truck sooner.

The insurance industry in general is a gimmick giving the consumer a false sense of security. In reality they are a LEECH in the free market system, sucking out profits for themselves and just drive up the cost of the product or service. (Health insurance is the worst. Every insurance company made RECORD profits in 2018 as premiums/deductibles drastically increased and payments to healthcare providers continually decreased. Ask how I know).

Mitigate and manage your risk instead by researching and purchasing quality products, planning for and setting aside funds for unexpected repairs and keeping up on maintenance. Be a smarter and better informed consumer.

 

I bought a Toyota Platinum warranty for my wife's Sienna (5/100K) for a little over $700. The prices are very negotiable, so shop around if you decide to go that route. You can buy the Toyota warranty at anytime up to the expiration of the standard 3/36 new vehicle warranty, so no rush.

 

I got my extended Toyota warranty for $100 when I bought my truck 7 years bumper to bumper. Guess they were trying to meet some kind of corporate goal so I got lucky. I was ok with spending the $100 but would pass on anything over $500 prob never get my money out of it on this truck.

 

I agree, never go aftermarket. When I worked in a garage, it was always a Hassel with them.

 

I bet he doesn't use that warranty himself, sales people are lying scum. It's always best to remember that when dealing with them.

 

OP, 3rd party warranties are sold by dealers because they have higher profit margins.

You can buy a Toyota extended warrranty from ANY Toyota dealer. There are threads here showing who those low-price leaders are. I got mine from Troy Dietrich at Greenfield Toyota.

 

I manage a large company tire/auto repair shop. I don't know the one you're talking about by name but I try not to deal with customers that have these. They are horrible to work with. They only will approve minimum repairs at minimum prices forcing the customer to pay the difference and that's only on what they do approve. Getting them to approve anything is a major hassle. They simply aren't worth dealing with in most cases for a busy shop.

 

The dealer I purchased my OR from was pushing the Toyota 7 year/100k extended warranty - normal price $4,500 but was offering it for $2,100. Found out that GEICO had included the same coverage for $32/policy period (~$450 total over 7 years). Have had several extended warranty claims with GEICO on my VW with no issues so I went with them. Only catch is that you need to go to a repair shop who is willing to work with GEICO, which isn't a problem where I am located.