Service Contract Questions

I have a leased 2020 Tacoma that I now am going to buy due to the availability problems and other issues. The truck has 43K miles, not needing to pay mileage fees is another reason to keep it. I normally am not a fan of extended warranties, but there are some issues that have never been resolved with my truck, so, I would like to buy a service contract on this one.

After reading positive reviews of Jennifer at Lexus of Ann Arbor, and Ian at Wolverine Toyota. Jennifer responded saying she could only sell Lexus warranties, and Ian just responded with an email saying he could only sell a warranty if the vehicle was still under the 36-36 period. Another positive review suggested Toyota of Greenfield, they offered only a 5 year, 60,000 mile Platinum warranty $3,470.00.

Does anyone here have any other suggestions? Thirty odd years ago I worked at one of what at the time was one of only six remaining Plymouth only dealerships. There was only one non Chrysler service contact we would accept, and that was because they paid with a credit card at time of service.

If anyone here works in the industry and has any suggestions about non Toyota service plans, I would appreciate the comments.

 

Why don't you want to ask the dealer you leased the car from?

 

What issues does the truck have?

 

Well..just from what ive seen with the adjusters these extended warranty companies send here...there trained to look for any little thing to deny a claim
i would feel better to take the money...roll the window down and throw it out on the side of the road somewhere

 

My feeling is to never buy an aftermarket warranty.

At the price you mentioned, wouldnt turning it in with the mileage hit be cheaper?

 

There are a lot of aftermarket service contracts out there, some good and some bad. Start Googling and make sure to read reviews and info from the BBB. Be sure to read completely any contract before you sign-- what you are getting and be real clear what is and what is not covered. Also find out if the parts used for repairs are OE, aftermarket or used. You will need to do your homework but you will be happy that you did when you decide. Good luck!

 

An update to this story. I called Toyota Financial trying to get a better understanding of what they offer for service contracts. They will not provide specifics, but said they have dealers that have sold the best Platinum on ten year old cars, and the cheapest basic plans on brand new cars. Apparently, Toyota Financial does have plans other than what Toyota of Greenfield offered. This refusal to provide facts leads to the ambiguity of the whole topic.

Someone asked why I don't buy it from the dealership I leased it from? My answer is that I do not want to further reward their failure to resolve things like the radio losing its memory overnight, an issue since day one. The dealers in my area universally disappoint in every department.

 

One of the ones that I saw said that if YOU used aftermarket parts, then their warranty was void but THEY had the right to use aftermarket parts for a covered repair.

 

you mention service contract and warranty. i am going to assume you mean an extended warranty rather than a service contract that provides pre-paid oil changes for example.

check to make sure an extended warranty will cover pre-existing conditions. it sounds like there are issues with your truck that may be documented. if that is the case, and they are not resolved, and either recur or cause other issues, an extended warranty particularly from a 3rd party may not cover them. i do not know this for fact when it comes to automobiles but it has occurred with home warranties.

 

I still believe extended warranties are the worst way to spend your money. Take the money you would have spent and put it in a high yield CD right now. I would call Toyota corporate about the radio issue if you have documentation showing the issue you tried to address while still under warranty. They can not ignore a problem while under warranty until it is out of warranty. If you have proof they will likely help you out. There are more and more trucks available now so if you need turn it in and go buy elsewhere even if it means a plane ride to get there.

 

@CJWinOR What are the "issues that have never been resolved"?

 

If extended warranties were a good deal for the customer, they wouldn’t exist. That said, if you willing to pay for piece of mind, go for it.

 

I'd save your money and roll the dice if you're buying the truck out. Have you thought about what that $3500 could get you towards the purchase of a new truck if you sold your current one to a car buying service like carvana, ect. I'll bet you have equity in the lease.

 

I bought a 2016 and ooted for an extended warranty. As a former service writer at a HM store I delt with many different ones. I can turn my own wrenches but there are specific reasons to use the dealer. Not two days after I bought my pickup the 4wd was acting wonky. Would engage, wouldn’t engage, flased the light for 4 days straight etc. I wanted 30 days in hopes my contract would be active, it wassnt, and took it to my local dealer. Paid my $200 deductible and got the issue fixed saving me around $2500. The selling dealer did reimburse me the $200 since I called them when the issue happened. I did give them the opportunity to pick the vehicle up and fix it on their dime but they choose not too.

ao in the end it all depends. I’ve personally seen claims denied because the owner swapped their crap srock tires out for a 10ply. If you have a kick ass service department around you then they will do what they can to make the warranty company to pay. I used to use extended warranties for all I could especially if parts were in stock and I knew they wouldn’t send an inspector!