Extended warranty question

Considering that I can get a 8/125k platinum with $0 deductible for just over $1500, your price was far from stellar.

Of course, now you have just opened yourself to a big lecture from the extended warranty police.

 

Both $2245 and $1500 are a waste of money. Before you spend money on a car or a warranty I suggest you do some research. Toyota's are the most reliable cars in the world.

 

I agree that buying the warranty is a poor idea, but if OP is hell bent on spending his money this way, I suggest like this:

1.Cancel the bought warranty. The amount will be taken off the car loan, since I presume OP rolled the cost of the warranty into his car loan.

2. The car's monthly payment will drop by Y dollars a month. Put Y dollars every month into a savings account.

3. If OP still has the car as 3 years approaches and still wants the warranty, buy it with the cash saved over these 3 years.

 

Unfortunately, when I removed an extended warranty from a loan purchase, while it was removed from the loan principle, my monthly payment didn't change (and this was in 2010 through Toyota credit). YMMV.

 

Thanks for the reminder, Vinnie.
Depending on the loan terms, you (or OP) may be able to skip payments since your principal is lower than the amortization schedule demands.

Unfortunately we cannot rely on the dealer to give correct info. An email to TFS would be in order.

 

When you cancel the warranty -- they return the money to the owner of the car .... in my case TFS .... the money comes off the back end ,,,the payment does not change.

Do some research and if you feel the need to purchase the warranty -- Checkout Troy on this site or some other dealer - I have no affiliation.

While TFS does not like the fact that some dealers offer the warranty for less than list price ........ many do. Lots of profit in selling these.

I believe you can get the 7/125k for around $1400.00 -- it is the same warranty no mater who sells it -- all from Toyota.

 

If the extended warranty was removed from loan but the payment per month stayed the same, then am I correct in assuming the number of payments are reduced?

 

Search PC for the places offering the extended plans to PC members, shouldn't be a problem.
Definitely get a refund for the one you bought.
Before pulling the trigger on a new one look at the list of "parts" NOT covered, pay attention, just sayin..

Just had the finance guy at a dealership promise me that shocks are covered in the extended, they aren't, etc,etc,etc

 

That's correct, brianric.