Cost of extended warranty

I am finalizing the payments on my new 2020, manual, access cab, tech package and premium package. The told me they are giving me their cost of the extended warranty. I know there is a lot of negotiating and mark up for Toyota. I'm wondering if this is a deal or not....

100,000/7years, 0 deductible, bumper to bumper, Toyota's extended warranty.
$2025.00

Tomorrow I sign all the papers.

Thanks

 

seems right in line with what I was offered.

included warranty is ...

Basic Coverage1 36 months/36,000 miles (all components other than normal wear and maintenance items).

Powertrain Coverage1 60 months/60,000 miles (engine, transmission/transaxle, front-wheel-drive system, rear-wheel drive, seatbelts and airbags).

Rust-Through Coverage1 60 months/unlimited miles (corrosion perforation of sheet metal).

up to you if you think it's worth it.

 

Call all the dealerships for the best price, when I bought my 15 I didn't know any better and paid almost that for the same coverage. After seeing threads on here about it, I called around and got it down to 925.00. You can decline there and shop around after you buy.

 

Cost is about right.

The question you must ask yourself is - in the latter 48 months/64000 miles of that warranty, do you anticipate the possibility of facing >$2300 worth of qualifying repairs? ($2000 plus 4.5% interest)

Some say yes, some say no. Its up to you and your piece of mind.

 

When I bought my 2017, I called all the dealers and got better prices (to hook me in to them), and it turned out they were third party warranties (even at the dealership) and not the Toyota warranty. I assume I want the real thing from Toyota.

 

Could be mine is Toyota.

 

So much is electronic/computer components that everyone advised me to go with the warranty for sure. Parts and repairs are huge for this technology. No fixing usually, just replacing expensive modules.

 

My 100k mile Toyota platinum warranty was right at $1100.

 

Cars and trucks have been electronically controlled for quite a while now; as someone else mentioned do you expect something to break between when the extended warranty and factory warranty end? Is that worth $2000 for something you are unlikely to use? To me extended warranties are never worth it but to some they are. It would be worth shopping around on extended warranties if you're set on having one.

 

• Shop around as other's have said. You don't have to get the warranty from the truck-selling dealer. You can even purchase the warranty from a dealer in another part of the country. ECP carries high margins for the dealer. The dealer may end up making more money selling you the warranty than on selling you the truck!
• ECP is more like insurance than a warranty. On "average" the repair costs in years 4-10 will not exceed dealer's cost for this plan. The insurance co. (Toyota Financial Services) has an army of analysts forecasting repair costs to ensure they don't lose money. This means the decision depends on your individual financial situation. If you can swallow a sudden $3k repair without severe hardship to your day-to-day living, then it's better to decline the ECP. If you can't, and your truck is your DD, then buy the ECP.

 

My 7yr/ 100K Toyota extended warranty was $1700 on CPO 16 OR. I used the warranty 2 months after purchasing it as my blind spot assist failed. Warranty paid the $2600 bill with no issues. If your truck has blind spot assist I highly recommend the warranty as this is a very common failure. I see it all the time on the MB side I work on as well. In areas that use road salt the sensors corrode on the inside from salt water intrusion.

 

Been checking around with 4 Toyota dealers in the my area. They all assured me it is the genuine Toyota VSC 100,000/7years, bumper to bumper plan, not a third party plan. I got prices so far of, 2025.00, 2850.00, 1375.00, 1275.00. Unbelievable. Makes you wonder if the less $ ones are for real? How can there be such a difference? I pick up my new Tacoma tomorrow, morning. I think I will NOT add the extended warranty into the 4 year loan payment, and take time to research this a little better. My dealer wanted 2025.00, and said this was their cost, doing me a favor. I know I have time to add it.

 

Thank you for the advice. Do you know if the 5yr/55,000 maintenance agreement is also negotiable and can I shop around and also use any Toyota dealer for my service with this agrement. My dealer wants 770.00.

 

They make a Ton off warranties because only 1 in 100 people ever have too use them.

 

Contact Jennifer Taylor a Wolverine Toyota in Wisconsin.
jtaylor@gowolverinetoyota.com

They had the best price when I bought mine about 6 months ago.

And be prepared, the F&I guy will try to tell you that their best price is only good that day; it will be more if you wait...….BS. You can actually buy it from any dealer up until your 36/3 basic warranty is about to expire.

 

I use to think extended warranties were bullshit and just a way to steal money from the customer, however now that I am a dealer mechanic I think they are worth it especially if its gonna cover bumper to bumper, now I work at Ford but I just did a timing cover on a 3.5 non eco boost explorer that was customer pay and that was 8 hours of labor. Labor rate of $130/hr equals $1040 plus new gaskets and sealant. I'm not saying that your gonna need a new timing cover gasket but that's a big ass bill that would have been covered. If the warranty also covers modules then that's surely worth it since those are rather expensive, they don't break often but I don't think I've seen a Ford OEM module for under $500.
Sometimes they don't cover everything, I have a 3rd brake light waterleak on a mustang that's not covered, not sure why though.

I will say that I have been unimpressed with aftermarket warranties, they are weird about what the cover such as yeah your front calipers are stick and cooked tour pads and rotors, now you need 2 rotors, new pads, 2 new calipers. But the aftermarket warranty only covers the calipers and your stuck paying for the rotors and pads.

I have never looked into buying extended warranty but I am assuming that is a single one time payment of $2025.

 

...^^^... FWIW ... and I get nothing ... I had a 125,000, 10 year with zero deductible on my 2016 SR5 2WD from Jerry Johnson out in a midwest Toyota dealer and it was best price around for a REAL TOYOTA PLATINUM WARRANTY ... his cell was: 620-664-8844.

I have sent several people to him and they liked their prices and I get ZERO ... he is just a good and honest guy.

Good luck and please stay away from the regional, dealer and 3rd party warranties that are not TOYOTA CORP.

PS .. I have owned 12 Toyota trucks and over 10 Toyota cars in my life.

 

So my personal philosophy - every time I waffle on whether to purchase a warranty, whether cell phone, car, appliance, etc... I take the price of the extended warranty and I make it an effort to add that amount to a high yield savings account before the original manufacturers warranty expires. On some items I have wound up needing repairs or replacement that the extra warranty would have otherwise covered, but in the grand scheme, lets just say that the savings account has never had a negative balance.

 

...^^^... I agree with you 99% ... but the newer vehicles scare me with all the computers and etc and they are super expensive to replace.

A friend jumped another car and caused over $3,000 worth of computer damage to his car and he was lucky to have an extended warranty .. it was a Toyota Platinum Warranty.

I had a cowl piece replaced and it was $475 + labor.

The cost to work on and the complexity of these newer vehicles in crazy.

 

Because the dealer cost on it is less than $1000 As I said earlier, it's very possible for the dealer to make more money selling you the warranty than selling you the truck.