New Buyer Beware-WARNING-MUST READ THIS

[drdavidr4u]

I'm sure veteran auto buyers know this, but virgin buyers beware!!! I just experienced this when I bought my Yaris and its the same scam with every past toyota I bought...please let me explain...THIS CAN SAVE YOU FROM MAKING A BIG MISTAKE $$$$$

When your car is ready and the salesman takes you into the finance guy to do the final paperwork and or loan stuff, that finance guy will explain to you about the extended warranty you can buy from toyota. This to protect you beyond the 3yr 36,000 mile one standard when you buy the car.

If you are keeping the car forever this is not a bad thing to consider buying and it can be transfered to anyone you sell the car to...

BUT...the finance guy will try to hard sell you the warranty at that time telling you that if you buy it now you save money and if you buy it before the basic 3 yr 36000 miles are up it will cost you more..BEWARE...I believe that if he sells it to you then he gets a nice fat commission on it!!!

RE:
For my 2007 yaris
7 yr 100,000 mile warranty extension bumper to bumper

he said if I buy it now it will cost ONLY $1595 plus tax

If I buy it later(before the basic one is up) it will cost $1595 plus another $500-$700 additional!!!

:evil:

Of course I didn't get it and once home checked out toyotas web site...TAKE A LOOK FOR YOURSELF....

http://www.warrantiestoyota.com/

Plan: Platinum
Model: Echo/Yaris
Coverage: 7 Years / 100,000 Miles
Deductible: $0
Price: $995.00

SO YOU SEE I'M VERY SURE HE WAS TRYING TO SELL ME THE SAME OFFICIAL TOYOTA EXTENDED WARRANTY FOR ALMOST TWICE THE PRICE!!!

THATS DEALERS FOR YOU...They try to scam $$$ out of you every way possible before you sign and drive off into the sunset

PLEASE NOTE: Also you will notice on this toyota warranty web site that you can buy this extension just before you either have the car 3 yrs or before your speedo turns 36,000 miles!!!!!!

YOU DONT HAVE TO BUY IT NOW AND THERE IS NO EXTRA CHARGE LATER!!!!!

CHECK IT OUT FOR YOURSELF CAREFULLY...BE AN EDUCATED BUYER!

please post if you read this and let me know if this helps anyone...I hope this helps you save $$$$

Your Yaris Newbie,

Dave

[palsan]

The best thing to do is put the $1600 in the bank earning interest for 3years - or until you need to make the repairs. If/when the repair is necessary you take the money out of the bank and pay - simple.

Chances are that major repairs will not happen within the 7 year period anyway. SOOOOO, $1600 in the bank for 7 years at 5% turns into $2250. What kind of repair will cost you $2250?

[twixt]

he is quite right.
Plan: Platinum
Model: Echo/Yaris
Coverage: 6 Years / 100,000 Miles
Deductible: $50
Price: $835.00

I have had my car for 4 months and im at 10k :( but id rather fix it myself because i can do whatever repair i need to and it wont cost 835 unless its a tranny. and the tranny should be mint forever cause its a toyota, as long as i keep the fluids up and dont do N drops.

[hasher22]

I have my own Telecommications business (I started yesterday) and i get paid in commission + i have my full time work, the more money people pay the more money i get.

I dont blame him tryin to scam u into paying more warranty, cuz if his gettin like a 12% commision out of it then its worth it. Well to the suckers who think they are gettin a good deal.

Like me i LOVE customers with high phone bills, cuz i get paid in commission.

But it was wrong if his uppin the price of warranty.

[BMGYaris]

The best thing to do is put the $1600 in the bank earning interest for 3years - or until you need to make the repairs. If/when the repair is necessary you take the money out of the bank and pay - simple.

Chances are that major repairs will not happen within the 7 year period anyway. SOOOOO, $1600 in the bank for 7 years at 5% turns into $2250. What kind of repair will cost you $2250?


Well, since you are talking about doing the best thing out of all your options, you might want to make sure all your numbers are correct :iono: .

If you read the first post carefully he suggest that paying the 1600 is not the smart move. Instead he says to go home and get online and you can get the 995 dollar purchase. Now if my numbers are correct at 5% that would be 1,400.06 dollars accumulated in your bank account by the end of seven years. So that means that IF you dont have any problems during that 4 year extended period you will have accumulated 1400.06 dollars in our bank, however :smoking: if you do have a problem during those 4 extra years, say in the 2nd year, you will have accumulated 1,269 dollars in your account to spend on repairs.

So here i ask your own question, but turned on itself, What kind of major repair wont cost you 1269 dollars?

That being said, the insurance is calculated to make sure that the insurance company does not lose money. That means that any individual person is going to be statistically better off not buying the insurance.

Here I would consider a poker analogy. Aces do get cracked, therefore dont wager your life on them if you can help it. In the same way, if your life is truly dependent on this car functioning and not requiring any major repairs you would do best not to gamble your life on the odds that it wont. Aces get busted, and so do cars. Of course you can always wait until you are about to hit 36,000 miles or 3 years and see if you can afford the risk that your car might have a major problem. if you can afford the risk, play those aces baby :thumbup: , do it with every car you own and you will come out on top even if one of them has a problem. BUT If you can NOT afford the risk of losing your car- GET THE INSURANCE!

[palsan]

I stand corrected on the actual numbers.:bow:

I hope I did not offend anyone that purchased an extended warranty. What I was trying to say is that - this being a Toyota and one of the main reasons for buying it is the reliability - the car is not likely to require any repair that would be covered by the warranty within its first 7 years.

As you point out, the insurance company calculates the risk of having to pay out within the warranty period - it bets the car will only break down one day after the warranty runs out and won't have to pay! In most cases the insurance company is right - i.e. in most cases you are better off with the money in your bank account growing with compound interest and use it when the car actually needs to be repaired.

The company takes your money, uses some of it to pay a fat commission to the salesman, it uses a little more to cover advertising and overhead, and invests the rest. It uses the money it earns to cover any expenses for required repairs, and the rest is profit. Therefore, out of your premium a small part is actually used for repairs - meaning that very few customers actually need the coverage. By putting all the money in the bank instead of buying the coverage you are acting as your own insurer - exept that you don't have to pay for commissions, advertising, overhead, and profit.:thumbsup:

My advice is to save your money and use it to buy extended warranties for cars that really need the coverage - i.e. not Toyotas.
Then again ... don't buy cars that need the extended warranties. :wink:

[static808]

for those considering getting the extended warranties, there is a refund procedure to point out that heavily favors getting the warranty right before the end of your 3/36K warranty. others have purchased the extended warranty (for toyota vehicles other than the yaris), only to decide later on that they dont want it after all. your refund gets prorated, but it starts from your extended warranty PURCHASE date. meaning, two people can buy the car at the same exact time and rack up the same exact mileage. person A gets his ext warranty at the time or vehicle purchase. person B gets his right before his 3/36K warranty expires. if they were to get a refund at, let's say, 40K miles, person B would come out waaay ahead, since he's only had his ext warranty for 4K miles whereas person A has had it since mile 1. others have verified this on other message boards, so the tip is to get the ext warranty as close to the 3/36K expiration as possible. of course, if you plan to keep your car past the 7/100K ext warranty, none of this will make a difference. hope this helps...

--B

ps: waiting for a couple more years to get the ext warranty for my '06 sienna. however, we've decided to forego the ext warranty for the yaris, due to reasons mentioned in a previous thread.

[BMGYaris]

Palsan:
I understand what you are saying, but the problem is for thsoe people who simply can not afford to either buy a new car or to get expensive repairs done. If that cost will mean your kids cant eat, you cant get to work, or its coming out of someone's college tuition or some other important money, you want to take whatever steps possible to ensure that you dont get screwed.
Thus the extended warranty would be reasonable for a poorer person (like i will be when i become an elementary school teacher) who could not afford a new car but could afford enough to get the warranty on this one. That way he knows he wont be screwed.
It would be the same idea if you had two vehicles and couldnt possibly buy another one and you and your spouse NEED both vehicles. You simply couldnt risk going without, so you need to warranty it.
Its just like in poker, you never want to risk too much on any one hand. In poker you play the odds. If you win 80% of the time, then you can safely risk 10% of your money on that 80% 1,000 times and you will make alot of money over all, even though you will lose 20% of the time. Risk all of your money on one hand at 80% and you may very well find yourself broke (notice risking everything here doesnt even pay back 100% it only saves you $995). So play it smart, if you have the money to get a new car, you should not get the extended warranty it. If you dont have that money then you dont have enough money to play long term odds so you have to play worse possible scenario; you should get it. but the the 995 right at the end of your "free" warranty:biggrin:

[SimplyYaris]

I have a friend who is a car dealer in Atlanta. I visited when he was out here for a week in Tucson at the most expensive five star resort in AZ. The reason: his dealership won an award for selling the most extended warranty plans....

[Violin]

I used to work with a guy who's previous job was selling warranty services to dealerships. He thought it was the greatest scam going.

[the_saint]

Insurance is the biggest scam going...with extended warranties coming in at a close second. lol

[Russelt3hPirate]

remember the dealers aren't making squat on the Yaris.

Selling a warranty above retail still is frowned upon but there is nothing wrong with it.

It is very common for warranty companies to charge a fee for not buying it when the vehicle is purchased (or after 12 months or 12k miles).

there is a large chance that he wasn't selling a Toyota Ext warranty, he could've been selling any thing.

I deal with warranty books every day.

It's required by state law in florida to sell at MSRP so that is a plus.

there are many states where it isn't required and many dealers take advantage of the lack of knowledge from their customers, but this is capitalism.

If you could turn around and sell a PS3 for 2k over what you paid, you'd do it right? sure it's wrong but you'd still do it.

and yes most F&I managers get a good amount of commission on each deal, but the best commision isn't on warranties, gap, tire and wheel. It's from the 2 or 3 points they added to your loan ;)

[yuiedie]

we got the warranty as we did on our previous car. living in hawaii, its hard not to live paycheck to paycheck, so to get a warranty that covers expensive repairs in the case of an emergency is definitely worth it. even toyotas break down sometimes, especially with all the new computer stuff in cars nowadays. plus, if we dont make use of the warranty at the end of our ownership of the car, then we get a refund anyways, albeit not a full refund, but some monetary amount nonetheless.

[mikeukrainetz]

I got bent over when I purchased my Malibu used with extended warranty, figuring I didnt have the dough to pony up when / if big things happen....
The car was a LEMON and most of the shit covered on the warranty (read fine print) wasnt the stuff going wrong with the car. I put parts left right and center on that thing but never once on warranty, and I didnt have to eat ichiban for a month to do it.... like almost every extended warranty offered at the time of sale its ALL CRAP.

[Russelt3hPirate]

if the car was truely a lemon they should've reimbursed you for everything, inlcuding the purchase price.

at least that's how it is in Florida.

[Black Yaris]

I got bent over when I purchased my Malibu used with extended warranty, figuring I didnt have the dough to pony up when / if big things happen....
The car was a LEMON and most of the shit covered on the warranty (read fine print) wasnt the stuff going wrong with the car. I put parts left right and center on that thing but never once on warranty, and I didnt have to eat ichiban for a month to do it.... like almost every extended warranty offered at the time of sale its ALL CRAP.
you are not the first person to get a GM n-body lemon, my wife has an 03 Alero with 30K miles, we have done the following so far, that was NOT under warranty: New front pads and rotors (at 25k miles), 3 hub assemblies (2 on the left front one on the right front), dash board vinal is pealing up, lower intake plentum gasket... yeah that is just the things I can think of off the top of my head

[drdavidr4u]

I'd like to come back to my original post here and ad a few comments!

First in response to what Russelt3hPirate said:
" there is a large chance that he wasn't selling a Toyota Ext warranty, he could've been selling any thing."

This warranty I was describing in my original post was a toyota warranty and he even gave me the toyota warranty brochure to take home.

Secondly, I'm happy to have started such a large diverse discussion but my real goal was to try and share this info with new car buyer, the unsuspecting buyer who has no idea!

Personally I will drive my Yaris till just before the original warranty expires and then if I'm going to keep it I will buy toyotas warranty, I feel its worth the insurance. I've bought toyotas for over 20 yrs now due to their reliability but you just never know! Thats my way of thinking!

I hope this helped!!!

Dave...."LOVING MY YARIS" :thumbup:

[fearturtle44]

Good point about putting money in bank instead. There is a reason that dealers try to sell the warranty is that is because the dealer gets most of that money instead of the actual car company. I have listened to the "car experts" for years and have never purchased a warranty. Odds are that you will never need it. Of course someone will have the story about how their car blew up with only 40,000 miles and they were so glad to have warranty. But that is the EXCEPTION not the RULE.

Kevin

[sanchez]

hey guys dont feel too bad if you bought the extended warranty cuz if you cancel it within 60daYs you get a 100 percent refund

[Pars]

I got some questions. Is www.warrantiestoyota.com a site actually sponsored by Toyota USA or is it created from a sales department over at Lexus of Greenwich?

Another question. Has anyone on this board actually made use of the extended warranty on their Toyota?

[drdavidr4u]

I believe that Toyota authorizes them to sell their extended waranty to toyota owners....I guess that dealership must be a bit more reputablwe and together than most!

I've got 800 miles on my new Yaris and love it!
Before my manufac warrnty is up I will the think about the extended one...but will keep my $$$ working for me now.

[bigdoglover]

i bought my yaris yesterday and braced myself for the finance man-i had a loan check in my purse so that made him unhappy then he tried to sell me the toyota warranty-the same one mentioned here for $1095-rustproofing and a maintenance plan which i said no to all of them. he quickly wrote declined all-made me sign it and i was out of there in a flash!

[njyaris]

hey guys dont feel too bad if you bought the extended warranty cuz if you cancel it within 60daYs you get a 100 percent refund

sanchez talk to me .. how do i get a refund .. what steps do i have to take.
i bought the 5yr 60K plan.. for $750.00, now I want it back!

:headbang:

[YarisBlazer]

The only bad thing about my dealership experience when I bought my Blazing Blue Liftback baby in April was when he treid to hard-sell me the warranty; this is a friggin Toyota!!!!!!!If you take car of it it's never gonna break!!!!!!!!I just thanked him for the info, compleetd my paperwork, got my keys and drove off into the sunset; alreday saving big $$$ on gas !!!:smile: :headbang: :thumbup: :biggrin:

[grampi]

One of the main reasons to buy a Toyota in the first place is because they're so reliable you don't need an extended warranty. I wouldn't bother with it.

[black2yaris]

i've had 5 new toyota's over the years a corrola got the warranty never used it , got a Pre-runner Tacoma with the warranty, had a power steering pump go ,they paid 350.00 , wife's got a highlander never used it Soo I paid thru the nose for p/s pump .. got my Yaris didn't get it .. Just do all the maint. as told in the manuel ,change the oil every 3,000 miles & them Toyota's will run 300k . I had a Celica GT hatchback that had 360,000 when it sucked a valve (that was my fault i dropped the nut off the aircleaner into the carburator) & i still drove it another 30,000 on three cylinders till the smog test came around