Extended Warranty - Toyota Extra Care
A dealer offered me 7year 100,000 miles extended warranty through Toyota Extra Care Platinum for $940. Do you think this is a good deal or not? They said that why would be able to lower my interest to 5.5% if I purchase this extended warranty. I have a few questions.
1) Do you think at $940 is a good price?
2) Do you think I can cancel the extended warranty and get the refund and keep the low APR?
See also: Secrets of Negotiating a Car Extended Warranty
1) Do you think at $940 is a good price?
2) Do you think I can cancel the extended warranty and get the refund and keep the low APR?
See also: Secrets of Negotiating a Car Extended Warranty
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Now I am having 2nd thoughts abt this. I have 30 days to cancel. I spoke to the dealer today abt my concerns with the warranty and he said it was from Toyota which made me feel better. Fidelity is owned by JM Moran Company which owns Southeast Toyota - they distribute all the Toyota in the Southeast.
I don't think they would be very happy with me if I cancel this policy yet I am wondering if it's worth it.
What do you all think?
Fidelity Warranty Services, Inc. sounds not like Toyota to me. GPR is definitely a sales gimmick. You need Toyota Extra Care warranty. Use link bellow for reference but I'm sure you can find lower prices.
http://www.bernardiwarranty.com/Departments/Toyota-Extra-Care/Corolla/New-Coroll- - - - a-Personal.aspx
Keep in my mind that you can buy extended warranty any time before you car hits 3 year/ 36K miles limit.
I did find out that Fidelity is owned by the JM Moran Company which owns and they own Southeast Toyota which means that they supply the Toyota's around the Southeast.
The SET Fidelity warranty should be different from the Toyota one, but there may be some agreement between Toyota and that distributor that may come back to bite you. Probably not a problem, but it wouldn't hurt to ask.
Ah, that depends on who you ask and how well you sleep at night knowing it may cost you $1200 to fix your navigation (or other expensive computerized doo-hickey, like the ECU) in your SUV a few months after the manufacturer warranty expires.
I think extended warranties are a big profit center for the dealers and I've never thought they are worth it. I have made buying decisions based on long factory drivetrain warranties though. (5/50 and 7/70 for my last two new cars).
Personally I'd rather keep the cash in my interest bearing bank account and hope for the best. Plenty of people report that an extended warranty has paid in spades for them though.
I think the best ones are like the ones Subaru and I think Honda offers, and you say the one you got has this deal - you buy them, but if you don't use them during the extended warranty period, you get your money back. Maybe Lucky_777 knows something about this gimmick that I don't though.
I don't really trust the non-manufacturer warranties much - too many of those outfits have gone bankrupt leaving owners holding a worthless scrap of paper.
Are they legally bound to honor their service contract?
Well, they are supposed to do what the contract says they'll do, right? The reputation that many of the aftermarket companies have is that they have a long laundry list of items that aren't covered, and will take any opportunity to deny your claim. So then you have to go to the BBB or court to try to enforce the contract.
The manufacturer backed warranties are supposedly a bit better about spelling out coverage since how they treat their warranty customers also reflects on how they treat their car customers in general. And dealers may be more familiar with how the factory backed ones work, which may be a factor if you plan to move, or you travel a lot or if your dealer folds.
Other talking points:
You have a factory warranty so any extended warranty will be running at the same time as the factory warranty, and you may not get any benefit from the extended one until after the factory warranty expires. This harkens back to another point of Lucky's - since you can buy one before your car hits the 3 year/ 36K miles (or whatever) warranty limit, if you wait, that gives you ample time to predict whether your SUV is a creampuff or has some issues. If it has lots of issues, you may decide to trade, and that may negate your ability to get your extended warranty money back and it may not be transferable to the new owner.
An aftermarket extended warranty company may require you to pay for the repair up front, submit paperwork and then wait for payment. Or they may take a few days to authorize work, which can mean an extra trip to the dealer. Rumor has it that the manufacturer backed warranty is easier to deal with in this area.
Hope this hasn't made your decision harder.
As far as blndamb15 paid $1562.00 for the COROLLA warranty... If you look at the car price vs extended warranty price ratio then warranty cost was 5-6 times highier for blndamb15's Corolla then for my HL. For the money he spent on the car I'd rather buy a 2008 Camry with most of the bugs worked out by now and wouldn't worry about a thing. I wouldn't buy any warranty for Corolla. It is dependable, relatively cheap, and had been around for a while.
My advise to blndamb15 - cancel your warranty, get your money back and invest them somewhere. When you'll be close to 3year/36K limit then revisit extended warranty issue again.
I had a Honda before, bought it used, and I seemed to have so many problems with it that the thought of having a warranty to save me some money in the event of a breakdown for my new car seemed like a smart idea.
I did call Fidelity Warranty Services yesterday and they seem legit and they did confirm the refund policy.
Does anyone know how much the dealership makes on selling these warranties? I am curious to find out.
Thanks so much for your time. This is really a great education for me!
I have another question, and you might now know the answer, but why are businesses allowed such bad business practices? Shouldn't stuff like this be against the law?
I am getting the feeling that their livelyhood is based on selling these warranties.
Any suggestions on the best way to handle this? I know I sound clueless, and I am, so any suggestions would be helpful.
I've seen reports as high as 60 to 80% profit on each plan:
shadow5599, "Malibu/Malibu Maxx: Warranty/Extended Warranty" #19, 31 May 2006 8:02 am
My gut tells me 40 to 50% is more typical and my guess is that the profit margin is lower with the factory backed ones.
Here's another option to further muddle the issue - you could tell the dealer you paid too much and you're going to cancel unless he lowers the price $500. :shades:
Can someone give me some courage here to do this?????
You never said how much you paid for the car, I'm sure your were taken there too.
My mom is like me, very passive, so she wouldn't be much help.
Geez, I hate this type of stuff!
How do you do it? You sound like nobody gets one over on you. What the secret?
I've purchased three new cars since 1982. There's no way I'm not going to leave money on the table when I buy my next one - the dealers sell cars every day and they'll get me one way or another. That's ok, as long as my deal is fair. They have to eat too.
Check the Prices Paid discussions, TMV and watch out for the rip-off room (where the F&I person tries to sell you the etching and mop & glow), and then get your best deal and then forget it. Life's too short. Go take a nice drive and enjoy your new car. :shades:
And next time do it all by email or fax and never go to the dealer after you've done all your test-driving.
Thanks for all your help. You've been really great
I'll post later on the results of this whole thing.
Well, thanks for all your help as well. I've learned a lot through this entire process.
Was going to get one for my sienna from SamsClub in 2001. As time went by the warranty costs went up dramatically. In 2001 it started at like $1200.00 a few years later the quote was for over $2000.00 for the same warranty. I think with Toyota you would do better with out an extended warranty. Specially since the drive train has moved up some. Our sienna repairs added up to about $550.00 during the time the warranty would have been in place. So spending 2k would have been a really bad idea. Start running synthetic oil as soon as they allow you to prevent engine problems it also helps prevent wear and tear and its realitivy cheap. Do your maintence as it states. Transmission fluid drain not a flush, antifreeze etc. I did them every 30k
Where did you buy your Toyota Extra Care warranty and what were the terms? I had just purchased a 2008 Highlander Sport 4X2 for my wife and the dealer was trying to sell me the Platinum Toyota Extra Care 6yr/100K for $995.
I believe I can do better, but don't want to go with anyone but Toyota.
Any recommendation would be greatly appreciated.
Thanks again to all.
Thank You, this forum has been great
call and ask for financial department.
7/100,000 for 900.00
I would not have had the leverage had it not been for this forum. Thank you everyone.
It is a little higher than some posted here but seeing how I bought the Highlander Limited 2x4 MSRP 40,300 for 35,300 OTD I felt I had an excellent deal. In my state we pay sales tax seperately directly to the state. So to keep all the paper work in one place it was worth it.
I'm going to buy a Toyota certified '03 Matrix if things work out with the price. Car purchasers don't generally know that they can purchase an extended warranty from a dealership OTHER THAN the dealership they are buying the car at. It's most important for those that willing to share their extended warranty "bumper to bumper"/ "wrap around" pricing deals to list the amount, type of policy (gold or platinum) and dealership contact info. Without that info, no one will know which dealership to contact and to patronize. Query: Desperately in need of some contact info for dealerships that offer great prices for extended warranties and their prices. The more info, the better. Thanks a bunch in advance. Time is of the essence! :shades:
Looks like they are in Mass. Don't see a warranty link off-hand.
Greenfield, Massachusetts. Their web site is http://www.toyotaofgreenfield.com/
I saved hundreds of dollars from other Toyota dealers. This is a "standard" Toyota warranty from Toyota. Toyota of Greenfield just sold this for less (I guess make a profit on volume)
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