Cancelled My Extended Warranty VSA Today Due to Dealer Being Dishonest

I bought a new 2021 TRD OR about 3 weeks ago (and love the truck) and after like 4 hours of filling out paperwork and listening to salesmen talk through their masks, my mind was pretty numb by the time I finally met with the finance guy to seal the deal. He upsold me on a Toyota Platinum 8yr./125K Vehicle Service Agreement by claiming they we’re having a “super special deal” on them right now at 1/2 price (the “regular” price he showed me was $5000 and I bought it for $2500).

After thinking a bit more about it now that my head wasn’t spinning from being at the dealership for hours, even my “special deal” seemed really high to me. So I pulled out my paperwork on our 2017 4Runner Limited (which we also bought new with the same 8yr./125K plan). And I found that I paid just $1350 for the same VSA only 3 years ago - on an even more expensive vehicle. Then I did some research on the net the last few days and I found the average price people said they really paid for this warranty seems to be right about $1800 or less, with some people claiming they bought it as low as $900-1000, and that all seems to jive with what I know I paid for it on my 4Runner. Even if the average price went up by a few hundred in the last 2 or 3 years, the $2500 I paid for it on my new Tacoma is still at about the top of the mark... and certainly not the “1/2 price” I was told it was by the finance guy. I haven’t found a single soul saying they paid anywhere near the $5K the dealer claimed was normal price.

So I went in there today and cancelled that shit before my 60 day window was up to get the full refund. They weren’t happy about it and gave me a long spiel to try to get me to change my mind. I told them IF I decide I want to repurchase this warranty, I have 3 years now to shop around and find a better price from a different dealership who doesn’t claim it costs twice as much to try and convince me I got the “super 1/2 price deal” at regular price. They STFU, we signed the cancellation form and now I’m good, the truck is good, and I didn’t allow them to take advantage of me. Always gotta watch those car dealers, they’ll say anything to separate you from your money.

 

Good on you! Never buy anything from the dealer along with your new car that you didn't intend to buy before you arrived.

You can always buy all the add ons later after you have a chance to shop around.

 

Good for you! On the sales side, Dealers make all their money on warranties and interest points.
I can't remember what I paid for my extended warranty, but it's 75k or 85k. I've been considering seeing if I can (or it would be worth) cancelling, and shopping for a longer warranty/better price.

 

From what I've seen, most extended warranties aren't worth the money anyway.

 

Yes, from what I’ve read up on it if something big is wrong, it does tend to usually make itself known within the first 3 years, or after the car is about 10 years or older (or longer on most Toyotas). Statistically, you are betting against the house on extended warranties, and the car manufacturers all know it.

 

Good on ya. Something similar happened when I bought my 2016, I specifically asked finance guy if I had to decide right then or if I had a time to think about it, he lied and said I had to buy it on the spot. Like you, I was tired of being there all day and let my guard down and said OK. This was my first brand new vehicle and I had done my research on everything else, and was planning on saying no to the warranty but caved. Felt irritated when I got home and read that you don't have it on the spot. I called the cancellation number the next day as the dealer was over an hour away and was pissed. Had to write a letter and got the money refunded. Shady mofos I tell ya!

 

I bought a Mazda CX-30 a couple of weeks ago for my wife and the finance guy put an extremely hard sell on the extended warranty. It was 4K and he pissed when I told him no. He asked why and was upset when I told him I thought it was too much money and I'd give him $900. He actually wrote "Customer refused extended warranty on the paperwork". What a tool.

 

If you're over 20 years old and haven't figured out all dealerships are crooks I don't know what to tell you. Believe zero of what you hear and have all your decisions made before you show up.

 

So they took you. You fixed it. And?
There's a reason I buy Toyota and Honda, so I don't need extended warranties.
I have never had issues after standard warranty. I have purchased over 35 Toyotas for me, my wife and two children. If you figure a grand for each extended warranty, I have basically saved $30K.
I like my method and for those idiots who say "piece of mind," start carrying two spares.

 

i cancelled my extended warranty a few weeks after buying the car. the dealership led me to believe that it was a toyota warranty, but i found out later that it was a third party warranty. fuck them.

 

When I bought my 2019 they were trying their hardest to up-sale me on the warranty. I told the guy I was here because it’s a Toyota and I shouldn’t need to buy an extended warranty. If I do I might need to look somewhere else! He did not like my response. He kept throwing out different deals and package. Tire care, paint protection,on and on and on. I said no to everyone. By the time we got to the end the dude was pissed and had a rude attitude. He got very short with me and treated me like I was a second hand customer. Couple weeks later I got the survey on how my experience was. I told the truth and laid down the law. The next day my phone was blowing up with numbers from the dealer. I never answered. Hoping they got their ass chewed by a hire up!

 

My lifetime warranty was less than 5k

none of that lifetime (250k mile) bs

covers my manual tranny and all
Even replacing my whole tranny at 30k miles!

 

Atta boy Brian - way to go!

 

Dealership tried to up sell me an extended warranty and I declined. Salesman tried to scare me into it saying if my stereo head into died it “could cost up to $4,000 to replace and there’s a lot of electrical that could fail”.

He stfu after I said are you sure and showed him a replacement pioneer for $1,000 on Amazon via my phone.

They still argued for another 30min and had to tell them no THREE times. They also wrote “buyer refused extended warranty” LOL.

 

The sales man "you can't find any truck better pitch" followed by the financial guy saying " this thing is a giant turd and you should get a warranty" pitch

 

You hit the nail on the head. “This things awesome!” 5 minutes later “All this awesome will go to crap on you, give me $3k and I’ll make sure it doesnt”

 

I wonder how much they make on selling the extended warranty? Any ex or current sales guy know? I’m guessing they making anywhere from 100-1000 on the car sale.

 

I would think it’s nearly full profit on top factoring in what it actually covers and how often they’re utilized?

I would be curious to learn also, if there is anyone who has more knowledge on it.

 

Also when there is warranty service Toyota pays for it not the dealership. And Toyota pays the dealership very very well to do the repair work.

 

Too bad the shop guys don't get paid a bigger chunk of what I have to pay the dealership for service work.