Advice needed "Comprehensive Wrap" coverage

Hi guys just looking for a little bit of advice or opinions. Recently purchased a Certified 2012 Double Cab Off Road 4x4 with 31,000 miles from a dealership near home. The "Toyota Certified" vehicles come with a 12 month 12,000 mile comprehensive warranty which starts from date of purchase 01/21/15.
Also a years worth of roadside assistance. And last but not least a 7 year 100,000 mile powertrain warranty that starts from when the vehicle was sold new 11/15/2011. Going by all that it would mean that just from that coverage I have comprehensive coverage until 1/21/2016 and powertrain warranty until 11/15/2018 or 100,000 miles (which i won't get to by then).

Now looking at that the dealership offered a comprehensive wrap coverage for the vehicle which is basically bumper to bumper to last until that same powertrain warranty expired. The price tag on that was 1,873.00 . The dealership also declared that i got additional coverage of 3 year lost key replacement and 2,500 dollars of theft protection included, however when i look back on my sales sheet those were each 199.00 a piece putting the grand total of the extra coverages to 2514.64 .

So what this really boils down to is I would like to hear from quite a few people to let me make a decision on canceling this "wrap" coverage to see if I would actually need it in the period from now till 11/15/2018. Thinking about it in the next 3 years and 10 months i would need to replace over 1,800.00 worth of equipment that is not related to powertrain just to break even on having purchased this coverage. Not to mention this just covers parts and not the cost of wages to remove/install this equipment.

I am already going to cancel the lost key replacement and the theft protection because that is $400 of extra stuff i will never need. I have enough money and auto insurance i do not need to pay for extra theft protection and i have never lost a key (i always keep spare at the house).

I can cancel all this coverage if within the next 59 days and it will be reimbursed to my financial institution and be removed from the loan. I have owned 2 toyota trucks and my wifes 4 runner and we really haven't had any issues. I do all the maintenance myself if we are out of our toyota care and i can really take care of any work that needs to be done aside from major engine work which would be covered under powertrain anyway.

Thoughts? opinions? At this point i believe I will cancel it all but just want to hear some other points of view.

 

Bueller.... Bueller.... Anyone...

 

Save your money and learn to do maintenance on your own. 31k? Does it have new spark plugs? Should I even mention rear diff oil change, yet or ever? Ya, IMO they can keep their warranty.

 

I would pass too, With maintainance kept up to date you don't have anything to worry about. Just think of all the things that would have to break to warrent $2500 in repairs that would not be part of an accident.

 

So the general advice on all forms of insurance (and that's what an extended warranty really is) would be:

1) Never pay someone to insure you if you can afford to self insure instead.
2) Never buy insurance from someone that isn't an insurance company.

As to point 1 that means if you can have an emergency fund around to handle any unexpected repairs then just do that. The financed extended warranty is just an expensive way for someone without enough savings to pay someone else to create an emergency fund for them. The warranty isn't necessarily "bad" - it could be good for someone who needs to be able to fix a vehicle quickly but can't afford to "self insure" with a repair fund. We can get into further discussion as to whether the better financial decision for such a person is to just buy a less expensive vehicle instead and create their own repair fund. This same principle applies to deductibles on all insurance policies. Only ever pay for insurance you "need" - meaning catastrophic problems you can't hand yourself. And consider all your insured risks as well. Many people carry unnecessary extended warranties while not carrying far more important policies (medical, life if you support a family, etc. etc.).

As to point 2, behind anything that acts like insurance is an insurance company somewhere. If you buy an insurance policy from someone other than an insurance company you are just paying a middleman along the way. Usually various marketing tricks are used to hide the presence of the insurance company and make you think you are getting something "better" directly from an OEM or retailer. Typically you aren't and that OEM or retailer is just pocketing some profit along the way.

Only you know your own financial situation, but in general the best advice is to avoid these kinds of policies and if in fact you do "need" them you should really consider if you are overbuying in the transportation category already.

Enjoy the truck!

 

I think you answered your own question. My opinion is don't get sucked into paying for an extended warranty. The dealers wouldn't sell them if they didn't make money on them, and that should be enough to say no right there.

I like to play the odds, and the odds are that you will not need it. Plus even if you do need it, better to save the warranty money and just use it for repairs if you need them and not have to hassle or fight with the dealer about what is covered under the warranty and what isn't. Not having one gives you the freedom to go to whoever you want for repairs as well.

 

I'll echo what everone else said. Cancel it. Chances are any non-powertrain repairs you will need won't total up to the $2,500 that the warranty cost you.

 

10-4 thank you everyone for our input, i will be canceling the coverage next week when i get a chance to drive up there.

 

Yeah when I ran through the carfax it didn't say anything about having the service done. Ive already ran through the manual and ordered the plugs,engine oil, diff/trans case fluid, cab filter, and engine filter to do the 30k service. I didn't order oil filter because i had 4 left over in the garage from my 2014 taco. I wasn't gonna ask the dealership either how they could have done a proper 160 point inspection on a vehicle that hasn't been serviced with the proper 30k mile service. Frankly i would be scared of the job that the dealership would do on changing out the fluids.

 

X2

 

Is it through TFS or a third party? If it is a TFS extended warranty then parts and labor are usually covered which it wouldn't be hard to go through $1,800 worth if something happened.

If it is a third party warranty I would dump it.

 

yeah its first extended service corp.

 

I bought a certified 2013 in December (originally sold in December of 2012) with the same "certified" coverage as you. I was offered an 8yr/125k Comprehensive wrap coverage, extending the Toyota certified drive train warranty by a full year as well for $1800. I said "no". They then offered me what you were offered for $1100. For me, both of those extended coverages were through Toyota.

The drivetrain warranty covers the most expensive stuff. But it doesn't cover all the expensive stuff. Suspension, electrical, computers and some other things can be a lot more expensive than you might think. That being said, I owned both an Explorer and a Mountaineer that had a lot of stuff break not covered by the drive train warranty by only 60k miles (and cost a lot more than $1100). On my 2010 Tacoma, by ~55K miles, I had only a fuel door issue and squeaky cabin blower motor, both fixed under warranty (fuel door) or recall/TSB (blower motor). At 55k miles, the Tacoma was much more reliable and trouble-free than the Mountaineer or the Explorer. Basically it's a crap shoot. You're betting you're going to have $1800 worth of repairs before the warranty is up. If this were the Mountaineer/Explorer forum, I'd say that wrap coverage will pay for itself a few times over. But for the Tacoma, it's not so clear.

EDIT: Wait, i just read that it was a parts-only coverage? Did I really read that correctly? It doesn't cover the cost of labor? Dump it.

 

I appreciate your input. I think I'm gonna cancel and take a gamble with it. I honestly think I'll be alright plus I still have a comprehensive for the first year.

 

If you change your mind, you can purchase the Toyota extended warranty anytime in the first 12 months (because you are already covered by the "certified" comprehensive coverage). That is, if you can get your dealer to sell you the Toyota coverage at a reasonable price. The prices I mentioned, were for the Toyota Platinum coverage.

 

Be prepared for a fight, these warranty companies make it intentionally difficult to cancel anything, let alone get your money back. I predict multiple phone calls leaving you full of rage. I hope I'm wrong though.

 

It will be in person at the dealership.

 

From what I understand, you don't "get your money back". The cost of the warranty is built into the financing, so unless you specifically pay for it seperately, they just shorten the term of your financing but your payments stay the same. So, if the term of your loan was 60 months, and the cost of the extended warranty was $1800, and your payments were $300/month, they would shorten the term of the financing by six months ($300 x 6 = $1800).

 

Yeah if that's the case that's fine too. I'm not looking for cash in Hand I'm looking for them to reimburse or whatever the loan company.