Extended Warranty $1250 with full refund - bite ?

Boo · Jul 21, 2008

Porsche998 said: ↑

.... But then they added that for an additional $200, I could have a money back warranty. I asked to look at it - It was all sold by Toyota _BUT managed and run by a third party which I believe that all the warrantees discussed are. We decided to go for the $1250 deal based on the mileage we drive.

Anyway - I think that the real question that one purchaing a new Prius should is-
DO I want to purchase an extended warranty -
THEN - determine if you want to spend the money for a money back offer-
AND - read the warrantee document closely - note that a third party runs it. The way my paperwork reads is that if there is a problem with the solvency of the thrid party, Toyota is not required to cover the warranty. THis was the big issue in my thought process- Too many people have been stung when Warranty Gold and other companies selling extended warranties have gone out of business.
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Hi Porsche,

Don't quite know what you mean by your belief that all the warranties discussed here are third party warranties.

The Toyota Platinum Care extended warranty sold here is sold through Toyota Financial Services, and I believe that the actual contract -- the Vehicle Service Agreement -- is with Toyota Motor Insurance Services, Inc.

Yes, they're technically a third party as Toyota Motor Insurance Services, Inc. is not Toyota Motor Corporation. But its ultimate parent company is Toyota Motor Corporation. And on its own, Toyota Motor Insurance Services, Inc. has a Best rating of A-:

Top Company Profiles - A.M. Best Affirms Rating of Toyota Motor Insurance Company - Toyota Motor Corporation ADS - Portfolio.com

So, the least of my worries re the Toyota Platinum Care extended warranty is whether Toyota Motor Insurance Services, Inc. will go under.

But yes, for the other extended warranties with third parties unaffiliated with Toyota, I'd worry. But then again, I'd never buy their extended warranty anyway.

Cruising7388 · Jul 25, 2008

pewd said: ↑

it is not a gamble at all, tis' cash in the bank. they profit even if they issue a refund - they have the use of your money for 7 years. i prefer to invest that money myself.

the extended is 7 years, right? so they hold your dollars for you for 7 years, if you don't use it they send your dollars back? someone want to figure out 7 years interest on $1000? if they refund it, they refund the $1000 - not the future value of $1000.

and since we get a basic 3 year warranty anyway, why should we spend dollars today for something we wont possibly need until the basic runs out, about 3 years from now (sooner if you put on a lot of miles).

this is just a slick way of getting you to give them a 7 year zero interest loan.

**********************************

Well, the math isn't totally right because you can delay getting the warranty until the 3 year warrranty is just about out, so the period they have your money is about 4 years. Also, you haven't calculated into the equation the fact that while they have your money for that period, you have an insurance policy which refunds the premium if it isn't used during the term of the policy. Yes, it's true, they've got your money for four years and will pay you back in depreciated dollars, but your risk is absolutely quantified, i.e. the dollars you eventually spend. Toyota's risk is unquantified - there is no limit to how much they might have to pay for repairs during the same term. Another plus is that you sleep so much better at night - think of all the money you will save not popping four years of Ambien
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go4less · Jul 25, 2008

Please explain refund of extended waranty cost. If you take your car in tomorrow and the cost is $300 and paid by your extra warrant and you do not use it again so does that mean you get 900 of your 1200 back or because you used it it is now not going to be refunded...

sas0611 · Jul 25, 2008

If you used .50 of the warranty you'd get nothing back. I can see myself paying for small repairs out of pocket so as to keep the total refund thing happening. By the time the contract expired, they'd have really made out well with me. I'd have most likely been nickeled and dimed out of pocket for several hundred dollars and the dealer would have my $1250 free and clear without my having ever made a claim.

penbed · Jul 25, 2008

go4less said: ↑

Please explain refund of extended warranty cost. If you take your car in tomorrow and the cost is $300 and paid by your extra warrant and you do not use it again so does that mean you get 900 of your 1200 back or because you used it it is now not going to be refunded...
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If you use it you lose it.

go4less · Jul 25, 2008

Keep in mind as well business do not offer warranties beacuse they like you---it is big business and if there was a good chance that you would use up the cost then they would not be in business long -----They know the odds of you needing it better then you.

kazots · Jul 25, 2008

There are alot of questions to answer about that warranty. If it is a Toyota 7year/100,00 mile warranty and money back if not used. Sounds too good to be true, I'd take it.

sas0611 · Jul 25, 2008

The price of $1250 was for a 6/100K extended platinum warranty.

Extended Warranty $1250 with full refund - bite ?

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