THoughts on extended warranty

^ agree - Got extended warranty for the wifes Talon quite a few years back. Absolutely paid for itself many times over. Nearing the end of the warranty the turbo went out. Replaced for free. Timing belt broke, massive damage. Free replacement of failed parts. Nice peace of mind. I got the 8 year extended for my Taco. Averaged out over the eight years, it's a small price to pay.

 

The dealer I bought from has a lifetime power train warranty.

 

Lots of good points on this thread. As with shopping for insurance policy:

1. price
2. coverage - what's covered and how long
3. provider - is it actually toyota or not?

One other thing I don't see anyone mentioning is your modification plans for the vehicle. While it's true that the Magnuson-Moss act prevents them from denying warranty coverage when there are modifications - the simple fact is that if you've modified anything, you're gonna face an uphill battle trying to get warranty coverage on anything anywhere near that part.

Example:
Lift? - don't expect any warranty coverage on springs, shocks, CV axles or "weird vibrations"
Regear? don't expect any warranty coverage on your differentials
Install aftermarket stereo? expect an uphill battle trying to get warranty coverage on any electronics issues.
Weld on sliders? say goodbye to any frame rust coverage

Now, strictly speaking, they have to prove that the modification "caused" the problem. But the bar is pretty low for them to make the assertion of cause based on "findings from an expert mechanic" and they're in the position of being able to deny the warranty. Now it's an uphill battle for you to prove their denial is wrong and force them to pay.

So, the short answer is: if you plan to do extensive modifications, save your money for the modifications and to apply to any repairs of any "unintended consequences" and don't bother with the extended warranty.

 

And in a case like that, an extended powertrain warranty would be moot. No need for it there.

I would also be curious if the Magnuson-Moss Act includes extended warranties. Factory warranty, yes. It may be possible that an aftermarket warranty could have a stronger case to deny a claim. Something to consider there for sure.

 

http://www.fatwallet.com/forums/hot-deals/918759/?start=360 This and more on the web - do some searching and save serious bucks. I got my dealer down by around 50%

 

Yeah the same thing happened to me in June when I bought my 14 Tacoma TRD Off Road. The finance dude started at $2,700 I offed him $1,500 and declined the coverage he then said $2,500 I then said $1,700 and we met at $1,800 $0 Deductible for a Toyota Certified Platinum VSA 7 yrs/125,000 miles

 

I may be wrong but what I don't get it why they call it a 7 year/100,000 mile warranty. It already comes with a 5 year/ 60,000 mile warranty so you're really only paying for 2 years extra coverage for $2,700?!?!

 

Nope

 

Yep.

 

I've had great luck with Japanese vehicles as far as not needing an extended warranty. It's a gamble like most things, but I agree with other posters that $2700 is way high. Shop around if you feel like you need one.

 

GEICO offers (MBI) Mechanical Breakdown Insurance for new cars & trucks cost is very low with a small deductible and when you use it not a Insurance Claim

 

I went through 3 factory stereos and had to have the idler pulley on my 09, which was all covered by the warranty. I probably wouldn't have purchased the warranty if it had not been that they dropped it to just over $1k. Looking back, it was well worth it for my truck. Yes, it's a Toyota and they are built well, but shit still happens. I like being able to get the work done through the dealerships so there is more accountability for the work (just my opinion) and would have hated to pay their labor costs out of pocket.

 

I bought my 7 year 125k mile warranty for under 1k.

 

If you drive 20k miles per year, then it's only a 3 year warranty. Which is why I went with 7 years, 125k miles. It'll be a 6 year warranty, or hopefully a full 7 if I cut down on my driving. Well worth it over what would essentially be a 3 year warranty.

 

Any salesmen in your group of friends and family? Ask them what their managers tell them to push. Extended warranties are the BIG profit items in any retail business from auto to stereo to refrigerator to home warranty. The only product that comes to mind that doesn't offer an extended warranty is pizza.

 

Easier than that, if you look on TW for info on dealers who have given other members extended warranties just above their invoice price, you can email them for a price quote. Then take that price quote with you and show it to your financing guy and ask him to price match.

I think I paid $874 for 7 years 125k miles but not 100% sure. Normal price was $2800 ish.

 

because not all factory warranties cover the same thing. For example with Toyota, you get an average of this:

Basic 3 year / 36,000 miles Free Maintenance 2 year / 25,000 miles Drivetrain 5 year / 60,000 miles Roadside 2 year / 25,000 miles Rust 5 year / Unlimited miles

So if you get the best extended warranty, that covers EVERYTHING, for 7 years and 100k miles, then if your seat belt retractor say goes bad at 37k, then the extended warranty would pay for it, but if at the same time the transmission developed a leak, the factory powertrain warranty would cover it.

 

Keep in mind they will negotiate the price of the warranty. My dealer offered 8 years 125k miles for $2495. I didn't take it but was tempted.

 

I do realize, and have stated that they are a profit item of course. The point I am trying to make is that it is cheap insurance considering the cost of repairs these days where a simple oil leak from a timing cover can cost you $1500. Look at car insurance. Automotive insurance and homeowners insurance are two of the BIGGEST profit margin businesses in the US. Do you go around without car insurance or homeowners insurance?

 

Now that would be worth considering. With prices all over the place and finance managers lowering the price almost in half without so much as a blink, its hard to resist what seems like such a bargain! One big eye opener is to read the small print on exclusions!