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prepaid maintenance agreement

Discussion in 'Gen 3 Prius Main Forum' started by checker board, Aug 30, 2009.

  1. checker board

    checker board New Member

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    Hello everyone,
    just found this site 2 weeks ago and I have done a lot of reading and have learned a lot. I signed the papers for a red 2010 Prius II two weeks ago and I am still waiting for delivery. They are waiting for aproval on the C4C's voucher. I went into the financing room unprepared and got a little blindsided. I got talked into an extended warranty for 1250.00 that doubles the existing warranty to 6 year, 70,000 miles. After reading here, I see that I can get a better factory warranty for less money here. So I went back and told her no thanks. I also changed my mind about paying 600 for gap protection as I realize now that I will only be upside down on my loan with all the add ons they want to pile on. But I could use some help on deciding what to do with the prepaid maintenance agreement. It seemed like a good idea but now I am not so sure. For 500 dollars I get an oil and filter change every 3750 miles for ten years or 150,000 miles. I plan on keeping this car for more than 10 years so this would seem to be a good deal. But now I have learned that the warranty calls for 0-20 oil which is synthetic oil. My contract reads "Generic petroleum-based oil will be used unless diesel, synthetic, or blended oil has been marked in section 4 on the reverse side of this Agreement." which of course it has not been checked. So I went back and asked her if there would be a surcharge added to my oil change if synthetic oil is used. She laughed and said they don't use synthetic oil as that would be pointless with the low milage oil changes. So I have been thinking that when I go in I will just show them that the manual calls for 0-20 and they will be forced to use it at no addicional charge. But after a second thought, maybe they won't. The contract also states "To protect your eligibility for manufacturer warrany coverage, you must select a service interval (Standard Plan or Deluxe Plan) that satisfies the service intervals recommended by the vehicle manufacturer for Your driving habits and conditions as described in Your manufacturer owner's manual. This Agreement is non-cancelable, non-transferable and applies only to You and the vehicle decribed above." Basicaly, I signed a contract whithout even knowing what the manual called for. I belive I can still cancel this contract as all the paper work is in a vault awaiting the voucher. So, should I cancel this? My instinct is telling me I should.
    I am also wondering about the 250 dollars for "Theft Deterrent System Guarantee"

    Thanks, Steve
     
  2. capek

    capek New Member

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    At the least I would take the manual in and show her that it specifies 0w20, and demand that any maintenance contract you enter into specify that that is the only oil that will be used. I would never assume that I'd be able to go in and demand it after the fact, especially since, as you've read for yourself, there is a provision in your contract for using synthetic oil, which is not selected in your case! Most of all, I would be terrified of entering into a 10 year contract for oil changes with a dealership that wasn't expecting to put the recommended synthetic oil in my car! That sounds like a cruel fate for your new baby! OK, just kidding a little there, but the thought of my Prius never getting the oil it requires is a little scary. But ya, $500 does seem like a good deal, especially since I paid, and quickly canceled, $1,300 for the same thing, except 4 years shorter!
     
  3. IraS

    IraS Member

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    The service interval for the 2010 Prius is 5,000 miles. Since your contract is for 3750 miles, you will be getting (and paying for) oil changes more frequently than are required by Toyota.
     
  4. SR45

    SR45 New Member

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    $500 ? for 10 years ?

    Lots can happen in ten years (May never keep the car that long ) and I would not get this extended maint agreement. Just change the oil according to the manual and thats it. Tell them no thank you again
     
  5. neilz

    neilz Member

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    I personally wouldn't worry about the oil. As long as you are going to the dealer for the oil changes, they will have to fix any problems that arise from oil changes. I would seriously doubt that a Toyota dealer would put the wrong oil in your car. Even thought the manual recommends 5,000 mile oil change intervals, 3,750 mile oil changes is nothing to thumb your nose at. The most important maintenance on a car is oil changes. There is no harm and it's good for your car.
     
  6. morpheusx

    morpheusx Professor Chaos

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    You also may have a loophole to get out, the manual requires 0w20 which is only made in synthetic form. Otherwise I'd cancel it if they are not willing to modify it to include the 0w20 syn. oil. It is part of the REQUIRED MAINTENANCE and will also give you the maximum performance and design characteristics for your vehicle.
     
  7. JRitt

    JRitt Bio-Medical Equip. Tech

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    I would worry about the Toyota dealer using the proper oil. There are a few threads on this board about dealers using 5w-20 when the manual calls for 0w-20 (which is only availible in synthetic).
     
  8. octavia

    octavia Active Member

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    Kudos to you for doing your research. If the form has a place to specify (or not) the upgraded oil, my instincts tell me they are well aware that Toyota requests the synthetic and they don't plan to use it. It's a more expensive oil and will lessen the profit they are making.
    Bottom line, they are not trying to do you any favors, they are trying to make money here. Personally, I don't know that I would want to prepay and risk loosing money in the long run if I were to move, sell the car, etc.
    Also, you lose your I'll-take-my-business-elsewhere bargaining chip in dealing with them on future services and issues.

    Just my two cents,
    ~Oct
     
  9. TKY

    TKY Member

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    Checker Board, I will not say what you should do, but based on the number posts here, I have much less confidence in dealerships using the correct oil than Neilz does.

    If my math is right, you have a contract to change oil 40 times at $12.50 per oil change, disregarding the time value of money and potential interest income on $500.00. Does that sound too good to be true, especially if they use synthetic 0W20 oil at $6.27 per quart, or $27.59 per oil change at WalMart, plus filter?

    This sounds too good to be true, to me. If I had this contract and an opportunity to cancel because my car hasn't arrived, thus I haven't taken delivery, I would cancel immediately.

    Whatever you decide, good luck. And, Welcome to PriusChat. --TK
     
  10. Coastie

    Coastie New Member

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    Had my first service a few weeks ago . . .

    They used the synthetic oil. Service manager said a normal 5k service would be $120 (largely because of the synthetic oil requirement), but because of the prepaid maintenance contract, I didn't pay anything (though, of course, I had already paid for the contract).

    I still have mixed emotions about the prepaid maint, but my wife was insistent, so I went with it. If the minimum charge for scheduled maintenance is $120, then it will be worth it in the long run.
     
  11. djasonw

    djasonw Active Member

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    The price seems good IF it were 0-20 synthetic. You also have to factor in the wait time at this dealership's service department. I've seen dealerships that make you leave the car just for an oil change. So, if the service department allows you to come in unannounced for an oil change and they do indeed give you synthetic, it is a great price. I go to an independent that gives me synthetic and a free car wash for $60. I go at least every 5,000. Other factors to consider are as follows:
    1- Is that contract for that specific dealership (most definitely it is)
    2- Will you be moving in the next few years
    3- Is the contract transferable to the next owner in the UNLIKELY event you sell

    Decisions, decisions!!!
     
    1 person likes this.
  12. mindmachine

    mindmachine Member

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    Re: Had my first service a few weeks ago . . .

    That must be a ritzy stealership to charge that much even with synthetic oil. The toyota synthetic oil is only $7 per quart so say $6 premium over the non synthetic junk oil thats only a $30 extra for synthetic so for a standard oil change, non synthetic, tire rotation they apparently charge $150-$30 or $120 my oh my!!! Most dealers charge less then $30-$35 for a std change. I think your stealer ship is ripping people off big time on service. Heck my Lexus dealer doesn't charge that much for 5000 mile and it includes tire rotation and free loaner car. They charge $79.95.
    Oh and I forgot a free car wash too.
     
  13. checker board

    checker board New Member

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    Well I just got back from talking to the service department. I asked about 0-20 and was told they only use 5-20. So I asked if this would void the warranty and they say no since they were responsible for putting it in, I have a hard time believing that. They also said that I should not got the pre-paid maintenance if I must have 0-20 and in that case I could just bring in my own oil and they would put it in and change the filter for about 22.00.

    So here's the thing, after doing some research, I am not totally convinced that 0-20 oil is the best to use. It seems that 5-20 is better for the ICE but 0-20 gives you a little better gas millage. If this is true, I would rather use 5-20. I wish there was a sure way to know. I should call Toyota and see what they say about 5-20 voiding the warranty.
     
  14. thaotonic

    thaotonic New Member

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    Okay guys (gals),

    Let me give you the skinny. If you intend on purchasing a prepaid maintenance, make sure it is the '"Toyota" Prepaid Maintenance. The Toyota Auto Care pre-paid maintenance plan is cheaper if you purchase it from Troy on this website. Yes it’s legit and well worth the price. And yes Toyota dealerships are charging on average 100-120 for the 5000mile services for the 2010 Prius.

    I got the Premium 4yr / 55,000 mile plan w/ 5000 mile service intervals and three Major tune-ups at 15, 30 and 50k. (Note: The Premium Auto Care plan would have to be purchased while your car has less than 6000miles on it) Here is the link to the plan: http://www.toyotafinancial.com/consumer/tfs.portal?_nfpb=true&_pageLabel=pg_TACPrepaidMaintenance .

    Because I work hard for every penny and was a little skeptical, I contacted the Toyota Extra Care Department and had them bust out the policy on the prepaid plans. If and ONLY if you purchased the "Toyota" plan, all Toyota dealerships nationwide will accept your Toyota Auto Care coupons with one exception: they have to be a participating dealership. You should call your local dealership to confirm but mostly all major Toyota dealers participate. This does include the 0w-20 synthetic with no additional charge. The dealerships get reimbursed by "Toyota" corp. on a monthly basis for the difference in cost. The dealerships do not lose any money, so they have no vested interest in not honoring your contract with Toyota.

    After Toyota became aware of the price conflict of their current contract, as it applies to the 2010 Prius synthetic oil requirements, they raised their plan cost by a few hundred buck to recoup the difference. The new rates went into effect on September 1, 2009, so if you were lucky enough to purchase the plan before that date, then Toyota pays for the difference every time your redeem your auto care coupons for service.

    Now I think in your case...you got completely screwed because you purchased a plan that was offered by the local dealership that was contractually written for them for on one reason: PROFIT. If they are a true Toyota dealership they would be advocating Toyota products, whether they are maintenance plans, parts or any other service.

    Please PM me if you have any other questions. Good luck….and remember if it looks like a duck and…….well you know the rest.