Cost of extended warranty

I Purchased my new truck this morning and took the extended warranty off for now. Turns out the $2025 is a genuine Toyota warranty, the much less ones are not. I am going to check further, or if anybody has any thoughts, if I should be screwing around with those cheaper warrantees and not buying the original Toyota one. My dealer will honor the $2025 price if I come in to buy it. Of course it could not be added to my financing doing it this way. But if I am saving $700 it’s worth doing it this way.

so the question is, what is the difference getting the third-party product versus the original. opinions?

 

I should add that I have had a few times where third party warrantys dont want to pay for diag labor or wont pay the full labor time needed and the customer is stuck with it, I had a F150 with a rear door latch that would not release so I couldnt open the door, had to remove the door panel with the door closed and brake apart the latch piece by piece till I could get get the door to open. Well book time was like 0.9 hours to remove nad replace the door latch but thats assuming the fucking door will open like normal, the warranty company would only paid the 0.9 labor and the customer was stuck with the extra 1 hour labor. To be clear it actually took me about 3 hours but I didnt want to be a complete asshole to the customer so I didnt charge the actual time I spent. We have had third party warrantys also defuse to pay diag and left the customer with that charge.
Basically third party warrantys will try to get out of paying anything they can and I would not trust them in the slightest, I know some dealers are really bad about the OEM warranty but by and large auto manufactures will pay for whatever the mechanic says needs to be replaced.

Please note that like I stated before I am a Ford mechanic so this is all based off Ford warranty but I would assume Toyota warranty is roughly the same.

 

You're dumping a '17 for a '20, right?

Will you keep/drive the '20 enough to significantly exceed the base warranty? As in does it really matter?

Always remember insurance is what make Warren Buffet rich, counting on the fear of the unknown.

BTW, unless you actually have a personal relationship with someone at the dealership (and maybe not even then), no one is doing you a 'favor'. Their job is to close the sale with the most profit possible. Period.

Anyway, picked this off another website. Doesn't matter where you buy, especially if it's genuine Toyota. This may be worth being on your shopping list. Could be outdated, but if this person is not there, someone else should be making their deals.

Jerry Johnson
jerryj@midwestsuperstore.com

Midwest Toyota
1100 East 30th
Hutchinson, KS 67502
(800-530-5789)
Midwest Superstore 866-796-3495 | Lincoln Dealers | Hutchinson, KS

 

I was able to get a 10year/100k bumper to bumper, from the dealer for $1250 after I turned down the 3, 5, and, 7 year extended plans. I was told that is "at dealer cost" and I'm sure that's true.......... I mean if you can't trust a car salesman what is this world coming to?? I've been a mechanic for almost 20 years now, and I feel like $1250 is a small price to pay for the warm and fuzzy feeling.

And going with a genuine Toyota plan means you are getting genuine Toyota parts, and I feel like that few hundred dollars you can save by going with a second party warranty isn't worth it.

 

The warranty I bought from Wolverine is a genuine Toyota warranty. Platinum, no deductible. Shoot Jennifer an e-mail, only takes a minute. BTW, congrats on the new truck

 

Same here. Jennifer at Wolverine Toyota was amazing and made it simple, cut and dry. 100K mi 10 yr $1136 as I recall.

 

Extended warranty companies make money hand over fist. Anyone ever ask themselves why?

You're honestly better off plugging that money in a slot machine, or lottery tickets. You'll be much more likely to come out ahead. Only a tiny percentage of people get things covered on extended warranties.

 

I will definitely get the genuine Toyota warranty. I just need to pin down the sales person to assure me that’s what it is.

 

One of the concepts thats useful to understand in these situations is the bathtub curve:
https://en.m.wikipedia.org/wiki/Bathtub_curve


If it's gonna fail due to a factory defect, it'll fail relatively fast. I always look at extended warranties with a very skeptical eye.

 

imo: ~$2,200 buys a lot of repairs. Underwriter for this has calculated after the dealer profit (lets say on average $500) he will have less than ~$1,700 outlaid for the average person in your category. Thats where your mindset should start.
1) Across the board, I almost never buy any of these, All combined I am certain I am ahead, the big ones like this are hard to resist, but they have the biggest cash outlay. (The $19 warranty at Home Depot for a $100 drill is pretty easy).
2) There is no rush, shop around again when you are in the 30,000 mile range. Dealers will be more than happy to compete for your business then. The factory warranty is pretty good. Might as well take advantage of it why you can.
3) Pay very, very close attention to the details and requirements. Does it require some kind of maintenance or paper trail you are not willing to meet. Once they have your $, there is are people(s) in this "Machine" who's job it is to keep money in their company and deny your claims.
4) In the event of a total loss or sale etc. Will they give a pro-rated refund of your $
5) I would never consider anything less than a genuine toyota factory warranty. Do some googling or read this: https://www.google.com/url?sa=t&rct...ankrupt-can/&usg=AOvVaw0eYMGFGTIi6XXG9W0OWpSF

note: The only one I would consider would be a limited scope one for high end cars with expensive wheels, tires, headlights or windscreens. (i.e. BMW and Audi). A stone chip thru a BMW headlight housing is stupid expensive ($700+). And I found out the hard way, BMW rims are also fragile and ~$500.

 

SOSHeloPilot is right about Jerry. He's got the best prices for actual Platinum warranties.

Hey, sometimes it's worth it, and sometimes it's not.

Check out my thread titled Dealer said my transmission is shot.

 

That is absolutely insane! The first 2 oil changes are free so that plan would only cover 3 more oil changes and tire rotation for $770, you can do that at home for $60.

 

100k/6yr platinum Toyota warranty ran me $1095.

also, the 5yr/60k manufacture warranty comes with the vehicle, it does NOT need to be an additional “fee”. I’d try a different dealer, sounds shady.
I would take your time and shop around, you have until 3yrs/36k miles to decide if you want extended warranty.

 

I would put that $2,000 in a savings account and leave it there in case something does break after the standard warranty expires. And if nothing does break (which Toyota is banking on or they would not sell these stupid things), then you can use that money to buy yourself a brand new guitar!

 

As a rule of thumb, all extended warranties are a consumer rip-off. Put the money aside (that you would have spent on an extended warranty) and self-insure for needed repairs.

 

Even more so, throw that $2k in the stock market and forget about it. After a few years your gonna have more than enough money to cover any repairs (that the warranty wouldn't cover anyway)

 

If that's the case, I will sell you one for $5,000!

 

The dealer is getting parts and labor at cost. It's possible for them to make a profit off these AND for you to save money at the same time because you would've paid consumer rates to do the repair.

I wouldn't pay retail for these but a well negotiated price seems like a reasonable insurance premium to me. Let's see what me guy throws at me for a price (2 more weeks!)

 

Don't be afraid, Dave, I would never hurt you.

 

The toyota dealer gave me basically the same bs. 10 year 100k extended warranty. After i refused their finance guy dropped the price to $1,750. I still refused. You should have seen this guy how pissed he looked. I refused it all together. So far the trucks been great.