Toyota Extra Care Extended Warranty

[TroyD]

LOL....Let's try this another way.

It's always tough getting known in a new fourm.

And Mod's (and voodoo22) please either PM or email me if you find this post a violation of your rules, as I'd be more than happy to discuss or modify it to make it acceptable!

I've been involved with various Toyota forums for a number of years...see (Priuchat.com, tundrasolutions.com, spyderchat.com, toyotanation.com, Rav4world.com, etc...) There's many of them.

As an example, here's a link to my thread on TS: TundraSolutions Warranty Thread (It's 12 pages and goes back to 2003).

My previous posting was deleted by one of the mod's because at a glance they just saw my posting as an unwanted solicitation, but as much as I'm trying to help myself, I'm also looking to help the members here from being taken advantage by other dealerships. I think it's a win-win kind of thing, where everyone comes out ahead.

Dealers prey on the uninformed, and most people aren't even aware that you can purchase a genuine Toyota ExtraCare plan after the fact. You don't have to get it right at the time of sale, and different dealers will offer the plans at different prices.

Looking at other posts on this very forum I see where people have paid more than double what I'm offering the exact same plans for.

For more info, either PM me here or email me directly at:

TDietrich@ToyotaofGreenfield.com

Thanks,

Troy

PS...For a limited time, I am going to offer Yaris World members a special price of $745.00 for the 7 yr / 100,000 mile Toyota Extra Care Platinum coverage with $0 deductible. Just make sure and mention you're a member here when you email me.

[brainless twit]

Personally, I'm glad you posted this here, Troy. I have read threads on many forums where people contacted you to get a great deal on the extended warranty, but I wasn't sure if you were still around because the posts were several years old. If half of the testimonials I've read are accurate, you have saved a lot of people a LOT of money! I'll definitely be contacting you before my 36,000 miles are up.

[Weyweyjenn]

I just talked to my dealer about this the other day, and they told me if I get it after it will cost me at least $500 dollar more. I'm wondering if this is true....

[tomato]

Originally Posted by Weyweyjenn

I just talked to my dealer about this the other day, and they told me if I get it after it will cost me at least $500 dollar more. I'm wondering if this is true....

High pressure sales strategy?

[jambo101]

Its a Toyota, the warantee that comes with the car will suffice,if it breaks after that i'll fix it.

[mryaris]

Originally Posted by jambo101

Its a Toyota, the warantee that comes with the car will suffice,if it breaks after that i'll fix it.

Yep.....I agree 100%. An extended warranty on a Toyota or Honda, et. al, is a sucker bet and not worth the money you'll pay for it (unless it is free).

I had this discussion with the sales manager when I bought my Yaris. I told him that it makes little to no sense for me to pay "X" dollars for a warranty that covers me from 36,000 miles to 100,000 miles when the car is just getting broken in at 100,000 miles. A more worthy plan would be up to 150,000 miles. He laughed and said that'll never happen.

Anywho......much like the two drink minimum at the strip club, an extended warranty only serves one purpose......to increase the profit or bottom line for the dealership. Most will get half of whatever they charge the customer back in their pocket after the sale is complete. The dealership I bought my car from actually owns the warranty company, so they get all the money. They quoted me $2270 for this warranty........that's 17% of what I paid for teh car ($13,200).

I did my own little cost-benefit analysis and determined that the liklihood of my little Yaris needing almost $2300 worth of work (upwards of $4000, if you include interest, etc. since it is rolled into the loan) is slim, so therefore the cost of the warranty far exceeds any real benefit I would ever receive.

I know everyone has their own opinions about this.....if you feel more comfortable having some sort of warranty, then get it. I, myself, will never spend the money for one......like jambo101, I will fix whatever breaks myself....if and when that happens.

[tomato]

Originally Posted by mryaris

Yep.....I agree 100%. An extended warranty on a Toyota or Honda, et. al, is a sucker bet and not worth the money you'll pay for it (unless it is free).

I had this discussion with the sales manager when I bought my Yaris. I told him that it makes little to no sense for me to pay "X" dollars for a warranty that covers me from 36,000 miles to 100,000 miles when the car is just getting broken in at 100,000 miles. A more worthy plan would be up to 150,000 miles. He laughed and said that'll never happen.

Anywho......much like the two drink minimum at the strip club, an extended warranty only serves one purpose......to increase the profit or bottom line for the dealership. Most will get half of whatever they charge the customer back in their pocket after the sale is complete. The dealership I bought my car from actually owns the warranty company, so they get all the money. They quoted me $2270 for this warranty........that's 17% of what I paid for teh car ($13,200).

I did my own little cost-benefit analysis and determined that the liklihood of my little Yaris needing almost $2300 worth of work (upwards of $4000, if you include interest, etc. since it is rolled into the loan) is slim, so therefore the cost of the warranty far exceeds any real benefit I would ever receive.

I know everyone has their own opinions about this.....if you feel more comfortable having some sort of warranty, then get it. I, myself, will never spend the money for one......like jambo101, I will fix whatever breaks myself....if and when that happens.

Well, that's a good point, too! I posted a thread a while back called "should I get the extended warranty'

http://www.yarisworld.com/forums/sho...ended+warranty

and the majority of people said pretty much exactly the same thing. Funny you should mention 17%, that's exactly how much the extended warranty / service contract was going to cost me. I might have paid, but a close look at all the exclusions gave me some pause.

I guess what the OP is selling is a bit different, though, IDK.

[TroyD]

Originally Posted by Weyweyjenn

I just talked to my dealer about this the other day, and they told me if I get it after it will cost me at least $500 dollar more. I'm wondering if this is true....

The short answer is NO.

Dealers have a set cost and are fee to mark up the plans as much or as little as they choose. So, if that particular dealer decides they want to charge you $500.00 more after delivery they are fee to do so. However, it doesn't affect the cost of the plan, and you don't have to purchase it from them.

Originally Posted by Tomato

Before I check your 12 pp thread, could I ask a quick question, then? Would anyone be able to purchase an extended warranty on a car that has already passed the 36,000 miles but is still under 60K powertrain warranty? The car was "Certified" by a Toyota dealership, and actually is still under that "Certified" warranty for another 2 weeks.

I've played with the idea of getting extended warranty for my 2007 Yaris, but the dealership's offer was very expensive and the exclusions were too numerous. Thanks.

No, only the New Vehicle version of their plans can be sold after the fact. But it doesn't make any difference if the car was purchased new, used or certified. It qualifies as long as it's still within the original 3 yr / 36,000 mile warranty period. The Used and Certified plans are only available from the selling dealer, and only right at the time of sale of the car.

Thanks for keeping this thread alive!!

Troy

[tomato]

Originally Posted by TroyD

No, only the New Vehicle version of their plans can be sold after the fact. But it doesn't make any difference if the car was purchased new, used or certified. It qualifies as long as it's still within the original 3 yr / 36,000 mile warranty period. The Used and Certified plans are only available from the selling dealer, and only right at the time of sale of the car.

Thanks for keeping this thread alive!!

Troy

Oh, I see. Yeah, that makes sense and that's what they told me as well. Well, I guess I'm on my own, then.

I guess that explains why people turn in their vehicle right around 30K miles, then, uh.

Thanks for the response.

[YarisOwnersDad]

The dealership where I bought my Yaris gives their customers a lifetime unlimited mileage warranty on the drive train. Because I bought my car at invoice, and because it was a dealer trade, they charged me $145 for the warranty.

Tom

[tomato]

Before I check your 12 pp thread, could I ask a quick question, then? Would anyone be able to purchase an extended warranty on a car that has already passed the 36,000 miles but is still under 60K powertrain warranty? The car was "Certified" by a Toyota dealership, and actually is still under that "Certified" warranty for another 2 weeks.

I've played with the idea of getting extended warranty for my 2007 Yaris, but the dealership's offer was very expensive and the exclusions were too numerous. Thanks.

Feel free to PM.

[mryaris]

$800 is a much more reasonable amount for this warranty. Kudos to you for offering it up at such a nice price. I have no earthly idea why the dealership wanted almost 3 times that much for the exact same thing, but there was no way I was buying it.

Good luck with your sales.....I hope I didn't come off too harshly. It's just that you can almost see the dollar signs in the dealerships eyes when you buy a car and they start adding all the "extras" up. :)

[TroyD]

I haven't heard from anyone here in awhile, so I thought I'd give this thread a bump...and try adding a limited time special price for Yaris World members. $745.00 (down from my normal online price of $810.00) for the 7 yr / 100,000 mile Toyota Extra Care Platinum coverage.

[roxy1]

it is still a money maker for them at $800. they are betting you would not have had to spend more than $800 in repairs between your factory warranty expiration and 7 yrs/100k miles. you, the customer, are afraid that you will.

who do you think is winning that bet most of the time? it is not you, the customer.

ive never bought extended warranties on a toyota or honda and ive never spent any significant money to make it to 100k miles. this is why you bought a toyota, right?

if you've got $800 to spend, pay it toward your car and save interest on the loan. if you dont owe on your car, an extended warranty makes even less sense anyway.

[kimona]

Extended warranty on a Toyota? Absolute waste of money!

[TroyD]

$745.00 is only about $100 a year. Which is cheap peace of mind that you won't have some unexpected failure.

While Toyota's are probably the most reliable car on the road today, there are MANY very expensive parts on them that can and do fail. I've seen a Corolla with a steering column failure just a year out of the 3/36K...guess how many day's that car was in the shop for repairs! A/C failures can easily run over $1000 to fix...the multitude of computers in the vehicle rarely cost less than $1000, as I mentioned earlier an ABS actuator costs over $2000...even the factory radio (which is covered by the Platinum coverage), typically costs in the $800 range to replace. All of these things I see our shop repair/replace in Toyota's every day. Never mind the really big ticket items like an engine or transmission.

Toyota's claims typically run at somewhere around 85% of the revenue generated from the sale of their warranty plans. So while there are certainly plently of people that purchase the plan and never need to use it....that's made up for by the people that have claims costing 4-5 times the cost of the warranty. Personally, for about $100/year I'd rather play it safe.

For what it's worth, I've seen the numbers from the plans sold by our dealership, and Toyota is actually losing money on them as our claims rate is over 100% of the sales revenue. I looked into this because Toyota has a program that pays the dealership a bonus (that I wanted a commision on if we qualified ) if the claims rate runs at 85% or lower.

[roxy1]

"So while there are certainly plently of people that purchase the plan and never need to use it....that's made up for by the people that have claims costing 4-5 times the cost of the warranty."

exactly. most people either wont use it, or will use it but never claim enough to make up for what they paid in the first place. its just another add on that often takes advantage of inexperienced buyers.

a good idea for anyone with a loan if you have $745 to spend. make that payment on your car (or borrow that much less in the first place). you will save a fair amount of interest and you will shorten the maturity date of your loan. it is very likely you"ll save more doing this than what you will have to spend on repairs. then, if you dont have significant repairs, its just a bunch of money saved.

[satellite]

Originally Posted by roxy1

"So while there are certainly plently of people that purchase the plan and never need to use it....that's made up for by the people that have claims costing 4-5 times the cost of the warranty."

exactly. most people either wont use it, or will use it but never claim enough to make up for what they paid in the first place. its just another add on that often takes advantage of inexperienced buyers.

a good idea for anyone with a loan if you have $745 to spend. make that payment on your car (or borrow that much less in the first place). you will save a fair amount of interest and you will shorten the maturity date of your loan. it is very likely you"ll save more doing this than what you will have to spend on repairs. then, if you dont have significant repairs, its just a bunch of money saved.

What if you have 0% interest on your loan?