Don't Do This: Extended Warranty

I don't think this should be a big problem. After all, you owe them money, and now you owe them less money! As a bonus, you'll have to pay less interest, as well. And if they treat it the same way they treated my balloon payment (I threw an extra $5k at TFS a few months after financing, with money that wasn't available for a down payment), they'll push your due date for the next payment out enough to make up for it. So if you pay $500 a month, and they refunded $1000 for the warranty, your next payment will be due 2 months later. Of course, check your statement to see if this is what they actually do, or if they do something different.

So, as long as you have the money to pay for the platinum warranty temporarily, you'll have basically made it back if they let you skip your next few payments.

Also, this post is likely to attract a whole bunch of "why in the world would you buy a warranty when Toyotas are so reliable???" posts. Just warning ya. (There's plenty of threads on that elsewhere if you're interested in hearing the debate. So that means no need to start it here too, folks. )

 

I think Macman is right. Buy the plat warranty if you want to, and as for your refund -- well you got it so no big deal. I also suspect you can skip some payments if you want to, but be sure to check on that first. The only real difference here is not being able to roll your new warranty into your car payment.

Here is the solution: save for your new warranty now, and buy it before 36 months are up from when you bought the car. Till then you are covered bumper to bumper by the standard new car warranty anyway, so it makes no sense to buy now.

Lastly, a Toyota dealer named Troy sells the warranties through this website for quite a bit less than what your dealer probably charged you. Check him out.

p.s. Learn your lesson: anything said is worth hot air. Your written contract matters -- read it next time. This goes for any agreement, not just Toyota warranties.

 

I've never been wild about extended warranties...but they work for some people.

IMHO it's always better to purchase the warranty after you've had the car for a while, and never from the dealership at the time of sale. Most car manufacturers (and I suspect this is also true of Toyota) offer the factory extended warranty for some period of time, and for a discounted rate after you buy the car. Don't confuse this with the non-OEM "extended warranty" offers that you always hear about.

I'm still getting OEM extended warranty offers from GM for my Sierra, which I bought two years ago.

If you buy the 'super-diamond' coverage from the dealership, and roll it into the car loan then you're paying too much for the coverage---and you're usually paying interest for five years on the amount that you (over) paid in the first place. If you get a “zero interest” loan?...that usually means that you paid too much for the car in the first place. (or you got screwed on the trade in amount for the car you drove in with!) The dealership makes a commission on the warranty, and they make a commission on the loan that they used to overcharge you.

Situations vary wildly---but it's usually much better to sell your current car first, then negotiate a low pre-approved loan rate through a bank or credit union---then negotiate for the price of the car. After that you can tell them to pack sand on the "credit life coverage" and gap and extended warranty, and all the other things that they do to increase their profit margins.

 

If you bought the warranty through the dealer, they made a huge bundle off of you, any real dealer should have simply transferred you over to a platinum warranty, that you had really wanted, for little or no cost to keep a good customer, since you have never even used the warranty you ended up buying.

 

I don't think Toyota is the only one that does this. If I recall, a Mazda I had was the same way. I think it works that way for most manufacturers.

 

These are rock solid rules.

1.) All dealers are scum bags. If their lips are moving they are lying.
2.) Never buy an extended warranty on the most reliable cars (Toyota) in the world. You will not make out.
3.) There is no such thing as a bumper to bumper warranty. Refer to rule 1. If you do something wrong with your car, you have to pay.
4.) Never buy the pre paid maintenance.

 

Here are a list of items not covered by Platinum protection.

"List of Excluded Components

• Accessory Drive Belts
• Batteries
• Body Panels
• Brake Linings, Pads and Shoes
• Bumpers
• Carpet
• Chrome
• Clutch Friction Disk and Pressure Plate
• Dash Cover and Pad
• Door Trim, Handles and Fabric
• Filters
• Fluids
• Glass (including Windshield)
• Headliner
• Heating Hoses, Lines and Tubes
• Hinges
• Hybrid System Main Relays
• Hybrid Vehicle Battery
• Hybrid Vehicle Battery Module/Pack
• Hoses
• Interior and Exterior Trim Moldings, including but not limited to, Cup Holders, Ashtrays, Covers, and Vents
• Lamps
• Light Bulbs
• Nuts, Bolts, Clips, Retainers and Fasteners
• Paint
• Rotors and Drums
• Rust and Corrosion Damage
• Seat Covers
• Service Plug
• Shiny Metals
• Spark Plugs
• Structural Framework and Wells
• Tires
• Vacuum Hoses, Lines and Tubes
• Weather Stripping
• Wheels and Rims
• Windshield Wiper Blades (Rubber Component)"

Plus any user errors. If you hit a huge pot hole and bend a rim, break a strut, take the car out of alignment, and any body damage you have to pay 100% out of pocket.

 

Thanks for sharing your extended service experience. You certainly feel as if you did not get what you wanted. I'm not a person who buys extended service contracts, so I can't quite relate to what happened to you. If there's an upside, your loan principal just reduced, plus appropriate interest expense. I'm sure that's little consolation, but you didn't totally loose your money, either.

I hope you love your Prius and continue to benefit from high MPGs, technology and low-emissions.

 

If that is the warranty price the dealer charged you way more than the price through PriusChat.

I am curious why you think your repair bills will be so much higher than average.

 

Do you know more about this dealer? I found a T dealer from Troy, Michigan, but didn't see anything on that website. Is there another?

 

http://priuschat.com/forums/sponsor...rius-extended-warranty-service-contracts.html

I think you have to go through PriusChat to get the advertised price. The forum owner also receives some money which is a good thing, as it helps to defray the costs of running this website.

Mind you, I am not saying that buying this warranty is a good idea, but rather if you have decided to buy one this way is likely the least expensive. Troy is the fellow who sells the warranties. I have only read positive posts about him.

 

Hi Everyone...new here. Just bought a 2011 Prius III yesterday and know exactly what BlueWhale is referring to. Glad I asked all the right questions and paid separately for the extended warranty. I did get him to put in writing that I had 30 days to cancel with 100% reimbursement and no fee for canceling.

Question is...do I need the extended warranty? I live in AZ and the finance guy gave me this whole spheil around all the dust and "elements" here and how it can effect the $5K battery in the trunk or make the calipers go out more quickly thus decreasing my 50MPG fuel efficiency. He also made a point to tell me that the reason they give away maintenance for 2 years is because when then run the diagnostics during the free oil changes, they will make a bunch of recommendations about what needs to be "repaired." If so much needs to be repaired, why get the car??

From what I have researched this AM, it doesn't sound like most people have problems with their Prius' so I was hoping someone with more experience could point me in the right direction about whether or not to keep this warranty ($2250) or cancel it. Thanks!!

 

The battery in the trunk (hatchback) is a 12v over-the-counter auto battery; probably cost about $100. According to other posts, the hybrid battery could be replaced for under $1,500.

After I bought my car, I had xxx days to decide if I wanted to purchase the extended contract. I like that approach better than giving out my money and deciding within 30 days if I want a refund. IMO, you don't need the contract.

 

Oh, I forgot...congrats on your new Prius and welcome to PriusChat. Enjoy the high MPG's and technology. This car is awesome!

 

I don't think that you would need the extended warranty. When I bought my prius, I just bought the basic maintenance warranty, and have had no problems since. I got nervous when they wanted to included extended warranties as part of my car loan. Of all the options that they offered to give me were a few thousand dollars extra. Interesting about all of the dust lowering the MPG. I had never considered that. Do you know what the company would do to fix that? Congratulations on your new Prius! I am sure that you will like it.

 

Plan A: Cancel the warranty
Plan B: Cancel the warranty and buy through this forum for less when you car approaches 36k miles.

Dust: shake out and vacuum your air filters a bit more often than usual. Cost: 0.
Giving the dealer the finger: priceless

 

You do not need us to tell you that the finance guy gave you a load.