How much does extended warranty add to resale value?

Toyota tells me that everytime also,I always respond with if your product is that bad,maybe I should buy elsewhere.

 

Only to you. It would mean nothing to me or most other people. And, if I bought a used car and wanted a warranty, I can buy one easy.

 

Zero

 

All else equal, wouldn't a buyer want to go for a truck that still has warranty coverage, and pay more for it, than buy the truck that is completely out of warranty?

yes, if we were talking about a fiat, mini or bmw.

 

It is laughable to say zero.

When you buy used, no warranty there is an inherent risk, and any little odd creak, Noise etc factors into the offer.

If buying used and the warranty is still valid, you know that vehicle is worth more than one that doesn't have it. How much? Depends on how much warranty is left.

Saying it has zero value suggests that someone would buy a brand new truck with zero warranty for the same price they paid for the truck with a new warranty. Never

 

When buying used most want to know why the seller is getting rid of a vehicle. An extended warranty is a piece of mind...

 

well in my case it would be zero. the used oem toyota car warranty is better than the oem new car warranty. the new car warranty starts after the 3/36 factory warranty.

if you get the used oem car warranty, it starts from the date/mileage you buy the vehicle.

i would tell the owner to get his money back since i would get the used oem warranty route.

 

What does significantly mean to you?

If you're thinking thousands... that's not reality. A couple hundred over an exact vehicle for sale without it? Maybe.

The value likely will come with you being able to have more potential buyers and sell it faster than the others without the warranty. Maybe you'll get less haggling. But you arent' going to get thousands more for a year or so warranty coverage to the new buyer.

 

Well this must be a Hilarious thread, as practically every poster has stated -0-.

 

Why pay for a warranty that lasts longer than you plan to own the truck? To me that's just wasted money.

I never understand why people make decisions on their truck based on what the next owner might think.

 

Most of the time, vehicle warranties are used in the first few years of ownership. After that, the major issues that would be covered under warranty have been flushed out.

If I was looking for (in your example) a seven year old vehicle, found two I liked equally and you were asking more because of the warranty, I would go with the other or make an offer to drop your price. It’s not worth a penny more IMO.

However, don’t fear, there’s a sucker born every minute willing to buy the extended warranty and feel like they got something special.

 

It doesn't make sense because people are either bad at math or bad at life.

At best, someone could argue that the warranty was no worth to them personally. I get that, but that is not what the OP asked.

There is a whole industry that sells after market warranties and those warranties are not free.

So there is obviously a value to some buyers and I guess not others. So anyone who says it is worth zero is answering personally or incorrectly.

The question OP should ask is "do you want to buy the truck for $x or $x plus what the dealer will give me if I just cash out the pro rated value at the dealer"?

 

It's not worth anything to the original purchaser, why would it add any value to the 2nd purchaser. Extended warranties are a scam to separate people from their money.

 

I'm not sure if it's true everywhere or on every warranty, but in some cases you can get the prorated value back from the warranty seller.

 

$0.

There is not much life left on that warrenty anyway and most people wouldn't trust it to A. Transfer and B. Payout if there were happend to be an issue. Getting a used third party warrenty from anyone but the dealer with clear literature seems sketchy to me.

OP, do you have the paperwork stating who services the warranty, literature on what it covers, in writing that its transferable? Because of all those hoops, would I pay more for it? Not likely, but as others have said you might find a buyer who will buy your truck over another because it has it, but I dont think you'll get dollar for dollar back. Just cancel it and get the remaining value back before selling.

 

The reason there's a whole industry that sells warranties is that it's a very good deal for the warranty companies but typically not such a good deal for the majority of the purchasers.
Basically, all they are is insurance policies.

 

I don't disagree with you. As vehicles get more complex with computer controls, the ability to DIY any issue that occurs is less and less likely. Toyota reliability reputation has been mechanical, not electrical. I guess I'm saying that the warranty is more meaningful tonto me now than in the past.

Some people don't have the space or resources to handle even basic DIY, so it has value to them.

I carry insurance on my truck and a spare tire which could be seen as flat tire insurance.

 

From my experience working in the Toyota service dept. extended warranties are worth it imo. I’d consider it to be worth a few hundred dollars extra if you plan on selling, but nothing “significant”

 

Do you remember the cost of repair related to ECU replacement, etc?

I had one fail on an old BMW and felt lucky it was plug and play replacement for only a few hundred bucks and a core.

Also, am I wrong about these repairs being both expensive and or more frequent than mechanical failures?

Just asking due to your experience.