How much does extended warranty add to resale value?

Depends on which ECU, but yeah can get expensive. I haven’t seen many type electrical failures on the Tacoma’s. A lot of timing cover leak issues which out of warranty is gonna cost 3k give or take a few hundred dollars, cylinder head failures (typically cyl.5) which would cost even more. Those extended warranties can pay for themselves quick

 

All i can say is when they offered for our prius we didn't take it either. So far just about 80k miles on only oil changes and tires. Brakes still have all the original pads.

 

If Extended Warranty's saved the Customers money on average, they would never sell them. Rule #1- nobody sells things that don't earn a Profit. Rule #2- The harder they push something , the higher the Profit. The reason they push them soo hard is because the Profit is huge and the Commission is also large. 1st step is to sell you the Warranty, 2nd step is figuring out a way to not cover a repair to keep the profits high. The commissions on selling a Warranty or Service Package were not only the best way to make more money, if you didn't sell them you would get in trouble with the Boss. When I worked at a Dealership (not in Sales) I saw many people upset because their extended Warranty didn't cover the problem, and they could've used that Money to pay the bill they were stuck with anyway. Maybe if you had a Chevy or Mercedes, but no way for a Toyota or Honda.

 

Reading the fine print on some warranties you find out electrical components aren’t covered unless you splurge on a more expensive option (in my specific experience buying my Tacoma)

I don’t buy extended warranties so don’t recall if that was some 3rd party warranty they were offering or the one from Toyota, I just said no to it all after taking a quick glance - only reason I noticed was because the no electrical component coverage was called out in big print on the cheaper options.

 

This sounds like a Friday thread..

Edit: lol it is. Too funny

 

I couldn't disagree more, the Extended Warranty question is very common and involves lots of Money.

 

Might be worth a hundred or so dollars at best.

 

You are disagreeing that this thread was created on a Friday? LOL

 

This isn't some crappy third party warranty.

It is the Toyotacare platinum 10yr/100k mile extedned warranty from the dealer.

It is black and white in the terms that it is transferrable once to a new owner.

It is beyond me that everybody is saying this is worth zero dollars.

 

a) Not everything a person buys is worth the money paid
b) People seem to believe that this product is not needed with Toyotas
c) Just because you deemed it important enough to purchase does not mean someone else wants to pay for it

Not a criticism, just the way I see it. Note that c) also applies to mods done to trucks. IE lifts, ditch lights, aftermarket wheels, etc.

 

1. its technically a 7yr/64k warranty since it only takes effect after the 3yr/36k factory warranty.
2. you can get a used oem vsa toyota warranty that starts from the date/mileage you bought it (used oem vsa toyota warranty : 1 year/12,000 miles to 5 years/60,000 miles)
3. majority of used car buyers will probably not pay the money for an extended warranty on a toyota
4. if you over paid for the extended warranty, i will not take it and get the toyota used warranty for probably cheaper than what you are asking for it.

#4 is probably the biggest issue i see with people trying to transfer the extended warranty. i see people paying $1800 to $2700 for toyota platinum vsa when you can get them below $1500 for a decent term toyota vsa warranty.

i have one on the 2014 4runner (84m/100k, paid $1350) but i havent used it once and probably wont before the next gen comes out in fall 2022. i dont have one on the tundra but was thinking about it but we probably wont have it longer than 4-5 yrs waiting for the 3rd gen to come out in fall of 2021

your best bet is to go with that most people will not want the added cost when buying a used vehicle if they can save some $$$. so yeah i can see the point of it being $0


edit: wanted to add, on my last 3 toyota's (2004 4R, 2016 tacoma, 2015 camry), i had an extended toyota vsa warranty and not once have i used them. but i did get a pro-rated refund from the warranties to apply to the next vsa i bought.

on the tacoma i got back $913 on the 72m/84k warranty that we had for roughly 2 yrs. we paid $1355 for it and was never used cause we didnt even get past the factory 3yr/36k warranty.

 

Many of us got it for zero dollars....

I have the platinum warranty...so what.

Most of your troubles come after 100k so there isn’t a particular need for one.

 

Exactly this. Every new Toyota I've bought they've included the extended warranty for nothing. Toyota has devalued this warranty themselves, those that pay for them....well that sucks but that still doesn't mean it's worth something.

 

I agree with you.

My suggestion which may have been lost in the reply above is to find out the cash out value (it will be pro-rated) and use that as the price.

Price of the truck......plus the cash out value of the transferable warranty.
If the buyer does not want the warranty, then they can purchase the truck as is, and you cash out the warranty.

For example, I totaled a car with an extended warranty, and got the pro-rated value back. Of course i lost some because the pro-rated begins day 1, even though the OEM warranty was still good.

 

☟☟☟☟☟☟☟☟☟☟☟☟ THIS RIGHT HERE! ☟☟☟☟☟☟☟☟☟☟☟☟☟☟

^^^^^^ THAT RIGHT THERE! GO BACK AND READ IT ^^^^^^^

Most if not all extended warranties are not worth the paper they are written on. All things being equal, and they never are, as a buyer I might give a slight preference to the truck with the warranty. But, if the seller tried to convince me that some after market extended warranty was worth a lot, I'd probably walk from the deal altogether.

On a side note for my day job I do tech support for a large, 40K users, organization. The users are addicted to tech and we buy literally tens of thousands of different devices every year. Every single one of them comes with an optional extended warranty. Guess how many we buy? None, nada, zip. What we save by not purchasing the warranty way more than covers the occasional bad device. The same thing applies to all of us here. Don't buy extended warranties, put the money in an "oh shit" jar and over time the jar will be full of your money, to spend the way you want to.

 

I think this is well put. Value is subjective, but the OP did not ask what the value was personally, but rather what the value would add to the resale price of his truck.

A set of truck nutz has zero or even negative value to me, but they have a cost and a value to someone.

I wonder how many people who think the warranty has zero value, would argue that a hood scoop, snorkel and mid grade suspension is worth $10k more, and increased the resale value.

 

Well I can answer that. I'm obviously someone who places little to no value on an extended warranty in the OP's example. I'm also someone who would place little to no value on nearly all truck mods. I prefer a vehicle as it came from the factory or reasonably close to it. A heavily modded truck would add $0 over NADA/BB values for me and I likely would offer far less for a heavily modded vehicle. Or as you put it, "negative value".

 

I guess it all depends on the buyer.

If there were two used trucks of the same condition at the same price but one offered the remainder of a warranty I would lean towards that truck because of more value for my money. It would be a benefit to the seller offering a more attractive product at the same price.

If one was more expensive only due to the warranty I'd buy the cheaper truck. I would be concerned about it's reliability to need more warranty at a cost, in this case it could be a detriment to the seller.

 

Sadly I don’t think it would add much, but it probably depends on the buyer. I’ve been off and on with extended warranties. Last one (not a Toyota) I got nearly double what I paid out of it. I see it more like insurance, if someone says pay $2500 today and you won’t have to pay for a repair for 10/100000 would you do it? Entirely personal, both pros and cons and likely depends on the persons past experience with extended warranties.

 

Why people come on here asking questions and then argue about it is beyond me.