Toyota Care Plus Maintenance Plan Worth It?

I just picked up a 4x4 V6 SR double cab magnetic grey with convenience package and tow package for 30,035 +TTL. I was talked into the toyota care plus prepaid maintenance program which is a 5 year /55k mile plan to cover maintenance. I was told the 30k and 45k (or 50?) would cost more than the plan so it was worth buying the plan at $1580. Is this BS? I was told I can cancel the plan as well to put towards the principal which I may end up doing. I just didn't have the actual numbers in front of me to see if it was worth the cost so I went with their word. Only had to finance 10k but rate was 4.6% with 800 credit score which was way too high I thought so I may just pay it off early. I tried to get the $750 credit for recent college grad but could only print my unofficial transcript so they said I probably couldn't get it.

 

Most likely not, Not really sure what else they give you besides Towing and oilchange, but AAA is most likely less I have it with my parents and you can do your own oil change for less than 40 bucks when Oil is on sale and just buy filter from ebay/dealer

But just FYI you can cancel that anytime and they will just cut you a check.

 

Short answer is it seems you got shafted. Did they at least buy you dinner first?

Anyway, this is all pretty easy to figure out on your own.

Look in your Warranty and Maintenance guide for the 30k & 45k service items. For most folks usage these are pretty minor service intervals.

Call a couple *other* dealers service departments as well as a reputable independent shop and ask for a rough estimate on these 30k and 45k services.

IMHO a 4.6% rate on an 800 credit score is usury. Check with a credit union and get that note refinanced.

 

Being a service advisor, I wouldn't purchase the service plan. They (finance manager) makes it seem like you're getting a great deal at the time of signing all the paperwork but keep in mind, the reason the service plan is cheaper is due to the services not including everything compared to if you were to simply walk-in and request a certain service. For example, for a normal customer pay service, a 20k service may include the oil service, cabin air filter, wiper blades, brake fluid flush, etc. When you show up with a service plan, the 20k does not include the wiper blades or cabin filter.

If you're still interested in the service plan, talk with your service advisor and asked for a detailed list for each service visit then compare it to the service plan they are looking to sell you. Don't forget that the first 2-yrs of service is included with the vehicle.

I just reread your original post. With your credit score that high, I would definitely consider having the loan refinanced with a credit union for a better rate. The finance manager tried to pull a quick one on me with some BS APR like that. I told him I would be financing it through my credit union unless they were willing to offer a more competitive rate. At the end of the day, the higher the APR they are able to sell you, the better profit on their end.

 

^This. 4.6% is way high. As long as there is no pre-pay penalty you should definitely check a credit union and see what they can do for you.

I don't know if the plan is worth it or not for you. Probably need to factor in how far away the dealership is, how comfortable you are with (albeit minor) wrenching on the truck. I basically stole my truck and they included the Toyota care with it, so I'm just going to use it up and go back to doing maintenance myself afterwards.

 

They are trying to take you to the cleaners. Toyota care runs to 25k and is free so you are basically over paying for 3 oil changes and 6 tire rotations.

If you look in the maintenance booklet there is practically no maintenance or major fluid changes until after 100k miles.

4.6 is also very very high. Also you should be able to get the student rebate even if you don't have transcripts. Just offer $750 less when negotiating. Rebates are incentives to make you think you are getting a deal and limit negotiating.

 

Yes. I just double checked and my credit unions rates are still the same as when I got my truck. Their rate for 48mo loan with a 740+ score is 1.8%. Discount the rate a quarter point if you're making a big enough down payment.

4.6% is nearly *three times* that... Gravy train for them, their cost on the loan is likely 2 or maybe even 3 points under what they have you paying.

Not to be ugly about it, but this is a perfect example of what can happen when you go into a dealership without *already* knowing your financing options. They will often take advantage of those who haven't done their homework.

(FYI, at the same CU the rate for loans 49-63 months is 2.15%, and IMHO if I have to finance more than that I'm spending beyond my means.)

 

Hi MeFryRice: i was offered $1999 for a 7 year and xxx miles (whichever comes first) Extended Warranty. it felt a bit high on the price. do you think i can shop around toyota dealerships to find better extended warranty prices?

 

Incentives, especially 0% offers, exist for a reason.

 

If it were me, I would hold on purchasing any extended warranties until you're closer to the end of the factory warranty. Why pay for something you may not use for a few years?

 

check https://www.lightstream.com/

I got 1.84 with high 700's. Looks like the rates have gone up, but still can get 1.99%

 

that's a good idea. that's $2K i can use on mods.

 

A lot of previous relevant discussion on this if you try the search function you should find some threads.

 

Get a cash refund from the dealer and apply it directly to your loan. Your vehicle should have come with free maintenance though 25k miles. The 30k maintenance is only $375 (that is the inflated rate i paid with the EXTRA dealer included 30k services above and beyond the required maintenance). You'll get coupons monthly for full synthetic oil changes for $50ish. Let's say you go over board and change it every 5k instead of the 10k the oil is rated for, that puts you at 4 more oil changes through 55k (one is included in the 50 k). that's $200. So unless the 50k service is $1005 or more, i'd say they were not very honest with you.

 

Congratulations, you got 5 oil changes and 10 tire rotations for $1600.00, Toyota loves you, but not as much as that dealership. They are probably getting at least 2% from your loan too, especially with your 800 FICO score........my advice......REFINANCE NOW AND DROP TOYOTA "CARE".......

 

This.

 

- Yes. Get your $ back.
- 1/2 the items are simple checks you can do yourself. Change your own oil and simple things like wiper blades and filters you can save ~50% vs what you prepaid for this plan easy.
- If you want to stay hands-off there are much more cost effective means:
o Day-1, you are on the mailing list and will start getting coupons and offers for service equal to or less than this plan.
o You can also piece meal the service, most dealers offer some kind of complimentary multi-point inspection with any service. i.e. on my VW, I bought the Express Lube Service for ~$99, it included ~80% of the service items specified in the owners manual, then I just ad-hoc added on a few big ticket items like fuel filter change.

- True, to get the college grad or military rebate you have to finance thru TFS and these rates are pretty much fixed and IMO a little higher than market rate but in my case well worth the variance. If they did not give you the rebate then you got screwed.
1) ASAP confirm did you get the rebate or not? Call the finance manager, what do you need to do to get it? (Were talking 500-800 bucks right?)
2) Read all the fine print in your contract T&C, is there a pre-pay penalty? If you got no rebates and only a fair APR probably not... I got a $1k military rebate and 3.5% with TFS and have no pre-pay penalty. (I'm going to refi with the CU in the next month or so @ 2.75)

 

One thing that sucks is if OP refinances now , he will be getting used cars interest rates. At least that is how it used to be . They still should be lower than 4.6

 

not always. But again even still the rate has to be better.

I went through https://www.lightstream.com/ and they didn't even need to be put down as the lean holder. In fact I got the title already.

 

Depends on where you go. My credit union bases it on model year not new/used status. 2016-2017 rates are the same for purchase or refinance.