Opinions on Toyota Extended Warranty
 

My car is just about at 36K, my dealer is offering a 7year/100,000 extended warranty for $1,275. Since I still have the 60K drivetrain warranty, the extended warranty (which is pretty comprehensive) would cover non-drivetrain issues from 36K to 60K and both non-drivetrain and drivetrain issues for 60K to 100K. Is it worth it?

A couple of points to note. My car is one of the first produced. It has not had many problems. Loose carriage bolts on the steering column, the tailight issue and the driver-side seal replacement (twice). The other point is that I don't like going to dealerships, I prefer my own experienced mechanic who deals mainly with sports cars.

You should provide some information about what you do with the car, as well as future plans for it.

If it's a DD that you absolutely will not mod outside of warranty, go for it! That's a fair price for a comp drivetrain warranty.

If you are itching to mod, don't even bother. Typically, within 60k you'll know whether or not you got a bad engine or transmission.

I'm against it, the big ticket costs that occur in the first 100k miles are regular replacement items not warranty items: tires, brakes, fluids, lights, clutch, bearings, etc. It's rare for cars to start seeing expensive things fail before their design lives in this day and age and anything truly defective from the manufacturer would have broken in the first 30k.

Anything widespread that has a chance to affect you (i.e. Porsche IMS Failure) that the factory should honorably covered will likely have the OEM stepping up to replace it, this $1.2 thousand dollars is for the odd fluke that there's a lurking failure waiting to happen, on a product Toyota has placed their name on. And despite the shit Subaru gets, they aren't exactly a disaster manufacturer.

If you decide to buy, read the fine print, it may cover less than you think and written word takes precedence over what the salesman bullshits, something like the door seal may be excluded as a wear item.

I've seen both pros and cons of the extended warranty.

My wife used hers twice, well past the warranty period for things like power window and electrical issues (Mazda).

I never used mine on both a Nissan and Lexus.

I drive quite a bit (100 miles a day) so I feel in my case it might be worth it as I will blast through the base warranty period fairly quickly. I purchased the 125,000 mile plan, but am still on the fence as whether or not to cancel it.

I like the way you think.

BTW, my car is a daily driver and I am not modifying it.

In that case it's worth it. Depending on the price. See if you can negotiate the pricing at all. I got the same 7year/100k miles for only $750.

It comes with a few benefits that will probably be rarely used but helpful. Like 24/7 roadside assistance. Free gas delivery if you run out of gas (I can't believe this actually happens to people, but hey you never know).

Even if you mod it, that doesn't void the warranty. Check with your dealer to see how well they respond to modded cars. My dealer is very mod friendly, so they will probably honor the warranty even if I mod. Unless, my mod is the cause of the damage, obviously.

I said that when I got my car too.....and yes I do have the extended warranty, and I don't care that I have mods. They don't just void your entire warranty over it. They have to prove that any mods you did caused the part to fail. So worth it to me.

Read Consumer Reports occasionally.

They recommend never buy an extended warranty on anything.

I'll stick with that very good advise for sure.

See Consumer Reports April 2014, pg. 21...Extended Warranties: An expensive gamble

from that article: Average amt. paid for extended warranty $1214. % of consumers who would definitely buy it again 26%. % of owners who purchased a policy yet never used it 55%.

Policies can also be bought from auto clubs and insurance companies.


Also from Consumers Reports: Nov 2014, pg. 57...Warranty Extensions "secret". Lists a few cars which had 'service campaigns'....FRS and BRZ not on there though.

I got it because my last Scion started to nickel and dime me as soon as the warranty expired. (Things that would have been covered by an extended warranty)

Do you mind going into further detail? I'm genuinely curious.

A customer of mine works for a insurance company and told me only 1% of those policies pay out... = never ever do it

Doesn't take much in car repairs to add up to $1200 these days. However, I'd read the fine print, definitely. I've never bought an extended warranty but always hear horror stories of the reasons they come up with to not cover something.

It's hard to say what's good for you (the OP), but for me, I never go for it, on anything I buy. The best reasons are already listed above.

Also, as one poster mentioned, there are other ways to get coverage besides dealership extended warranties. For instance, I am shopping for insurance right now (my new FRS bumped up my premium!) and GEICO offers bumper-to-bumper for 7years/100K miles with a $250 deductible included in my quote. I've read the fine print. They cover everything except normal wear items such as tires and brakes and a few other things - it's a very short list. Plus, policy owners say really good things about their extended coverage on the 'net.

One other thing, my dealer offered me the same extended coverage 2 weeks ago when I purchased my FRS and the price was $2100. Still, for me, I wouldn't touch it.

People buy these things for the same reason you buy life insurance, health insurance, auto insurance and any other kind of insurance. The $1200 cost ensures they don't get bit with a $5k plus repair on an engine that could blow. Do they pay off...nope not normally.

Piece of mind has a lot of value to many people.

It depends on the car. On an FR-S, no. It is easy to work on, relatively simple, and relatively cheap. I just don't see a lot of things that could fail that I wouldn't tackle myself or take to a local mechanic. Something like a head unit would be high dollar to replace, but it would just give me an excuse to upgrade to a pioneer unit with Carplay.


Sent from Tandy 400

This guy is right. Ask yourself if you're going to mod and how far your willing to mod it. I don't think you need to go any further than that. Unless you just don't trust the car you bought which would make no sense because you bought it.

Sure. I had a 2006 xB automatic that was running on its second transmission when the warranty (60k/5year) ran out. As soon as I rolled over 60k the front bearings went bad. I had those replaced and then a few months later the passenger CV axle died. Then a few thousand miles later the drivers side rear wheel bearing went bad but I replaced those myself. I don't remember exactly when but the alternator and rear window wiper motor also broke. The head unit was also being sketchy this whole time and often the smell of something electric filled the car. I started hearing crackling somewhere under the dash so I traded it in.

It was a fantastic car otherwise and I miss it every day :'(

Have a 04 xB, Only thing that happen over the last 145k+ miles is the water pump and one ignition coil going bad. It's my daily so I baby it. I do about 2000 miles a month on her now with my new job. Not bad looking for a 04...
http://i599.photobucket.com/albums/t...pscacd1558.jpg

240,000+
 

We have an 04 Mazda3 manuel with 240,000+ miles that is still going strong and never had a single issue out side of normal use (tires, brakes, filters...)

Every 5K was followed by a full synthetic oil and filter change. The tranny fluid flushed, coolant flushed, brakes bled.... all on regular bases.

I will have to replace wheel bearings and rubber bushings soon.

I'd like to think I would have performed these duties even if we had purchased the extended warranty.

This was exactly what I was thinking. Good answer!

I HIGHLY recommend them to my customers that buy a high end vehicle. Ex: Limited Avalon with the driver technology package, 4Runner trail editions with the Kinetic Dynamic Suspension System, Limited Platinum Highlander, etc. Not only are part costs high for these type vehicles, but you have to include labor as well.

Let's say the part that failed is $100, which is being very generous considering how expensive parts are these days, and it requires 4 hours to fix it. Our labor rate (and I'm sure most other dealerships rates are similar), is $90/hr. That's $460 out of pocket.

Hypothetically speaking, if that was the only thing to ever go wrong in 100k miles and you paid $1275, it's still worth $815, or $11 a month to me to have that piece of mind. You can't touch full coverage on your vehicle every month for that price!

However, I didn't buy one for my FR-S just because as other people have stated, it's a fairly easy vehicle to work on without a lot of technology thrown at it, but I'm also mechanically inclined. I can fix (most) anything that would break on that car. It's also fair to say I have plans to heavily mod mine as well. (;

I'm just giving you a few examples. An ESC is not for everyone. If you have experience working on vehicles and you bought a basic FR-S that you just plan to DD, I would say no. If you bought a Monogram/10 series (one with heated seats, navigation, self leveling headlights, LED DRL's etc) and you've never really turned a wrench in your life, I absolutely would.

If you do decide to buy it, make sure to ask if it's transferable and refundable. If you sell your car, you can hold more resale value selling it to the next guy, or you can return to the dealership and get a refund depending on how many miles you've put on the vehicle. Ours is, so I would at least ask before you sign anything.

Hope this helps! :thumbsup:

I bought my '04 BMW 325i new and didn't buy any extended warranty. I've also done 100% of the maintenance on the car from day one, no one has laid hands on it but me. I'm at 180,000 miles at the moment and I sincerely believe one of the reasons it has run so well is that I've kept it out of the dealership's hands and ignored BMWs maintenance schedule (which is virtually nothing and a joke). It has run flawlessly and I've never even seen a check engine light. It's spooky how reliable it has been.

Of the few times I've taken a car to a dealership it came back to me with more problems "discovered". "Should have gotten an extended warranty" they'd say... yeah - right.

Edit: If you're going to buy a high-end vehicle with failure prone big ticket items as Scubaru mentions above, it might make sense if you're keeping past the normal warranty period.

I have tracked this over the years with my various vehicles as I always keep them until they are basically scrap metal. I have never had repairs that exceeded the cost of an extended warranty (where the warranty would have been a benefit). This includes (only cars purchased new):

1977 Honda Civic. (went to 150K Miles, sold running)
1985 Toyota MR2. (went to 160K Miles, traded in running but no air)
1998 Chevy Lumina LTZ. (212K Miles, traded in running)
1999 Chevy Astro. (went to 250K Miles, traded in running)
2001 Chevy Astro. (went to 289K Miles, engine ate main bearings)

None of these had any repairs done to them under 100K miles, and had only minor repairs done between 100K and their demise. The one exception was the Lumina that was given to my son with 110K miles on it. it needed a transmission job after he inadvertently filled the oil by putting it in the transmission filler. (Yea, don't ask).

I also have bought a laundry list of cars that were outside of warranty and many already at 100K miles or more when purchased. I have NEVER had a repair bill on any of them that would have occurred within the extended warranty period, and would have recouped the money spent had they been covered.

So, short version, I would take the money, put it in a "warranty fund" account and self insure. Your mileage and experience may vary.

I bought the extended warranty on my last two vehicles: a used '01 Echo I bought back in '04 and when we bought my wife her new '08 Yaris at the end of '07.

I did not make back what either of the warranties cost. The Echo had the driver's side power lock break - you could still lock it manually, it just wouldn't work with electric button. That was five hundred bucks but covered and I'm sure I could have had it done for less anywhere besides the dealer.

My wife's Yaris had the rear shock blow out about two months before the end of the warranty and they covered that. It was six or seven hundred at the dealer but obviously I could have replaced that myself for MUCH less.

All that is to say, I didn't buy it on the FR-S. Modern cars will nearly always either be bad from the start or good for their lifetime. If you've made it to 36k without issues, it's far more likely you'll be good for as long as you want to drive it (certainly well past the 100k mark anyway).

ECP Extended Care Protection is best for someone on a monthly budget, who is either financing or leasing their vehicle... This is one was someone can avoid unexpected repair costs that otherwise would be a financial burden.. ECP includes Oem parts and labor in some cases rental car while your car is being fixed... You can think of this as a payment protection plan. You will be able to futher discuss the details with your business office at your local dealership.

One of the reasons Toyota Financial Services is the world's largest and most successful automotive captive finance company is the profit they make from contracts like the one you're considering that IMO is unnecessary.

If you have the discipline, take that same cash and pay down debt or invest it in something you or your financial advisor recommends like a Roth IRA or employer matched 401(k). In all likelihood you'll get a much better rate of return than paying for a covered repair that will probably never happen.

Then when you dispose of the car take the money and either reinvest it or, if outside a retirement plan, put it toward debt to increase your monthly cash flow sooner rather than later.

If you still choose to get one, shop around. Any franchised Toyota dealer nationwide can sell you identical coverage and prices vary widely. Some, like Carson Toyota (not a recommendation), advertise nationally but once your dealer understands that you're cross-shopping they'll suddenly become more flexible especially the closer we get to 12/31/2014 and you'll save hundreds compared to their first run at you.

Wait can you add the extended warranty after you leave the lot?

It might vary by State, but I believe you have thirty days.

Maybe not a manufacturer's direct warranty after 30 days or so, but there are lots of ways to purchase an extended warranty. Usually as long as your car is still under manufacturer's warranty you can find someone willing to sell you an extended warranty.

I've seen them available for any car that has less the 100,000 miles on them.

Typically you can. You can also look online and buy the coverage from the dealer with the best price.

Or you can do what I do, and never buy manufacturers extended warranties. :)

GEICO's "Mechanical Breakdown Coverage" was included in my new policy with them 2 weeks after I purchased my FRS.

Interesting...I use geico for my motorcycle but mercury for my cars. Ill have to look what that is.

i got the extended warranty.
single issue and you get your moneys back.
i can sleep better at night

not expressly true, has the potential to get your money back, but market research has pinned down that extended warranties typically don't pay out to the solid majority of the people who purchase them. That is to say their net intial outlay by purchasing the warranty did not equal the sum of repairs covered by the extended period.

I'll quote a Consumer Reports article that details it: "...Surveyed 8,000 owners of five- and six-year-old vehicles that had been covered by extended service plans. Sixty-five percent of those surveyed said they spent significantly more for the contract than they got back in repair-cost savings. Respondents said their extended warranty cost them $1,000 on average while providing an average benefit of $700. That means the average loss was $300. A big reason: 42 percent of extended warranties in our survey were never used, in most cases because the vehicle didn't need repairs or the standard manufacturer's warranty sufficed."

Now you do hit on one vital thing here, though. Peace of mind. That is a subjective value.. one that the OP needs to determine for himself whether or not it is worth the premium up front. Both paths are valid, at the end of the day it comes down to whether the move puts one's mind at ease most.

I bought the extended warranty after my first BRZ died on the 3rd day of ownership at 60 miles. It had the well known CEL/SL/Idle issue. It was knocking so loud and acted like the engine was gonna jump out from under the hood. I told the dealer that I wanted another car. They obliged and I made an emotional decision to get the warranty.

I usually never buy any kind of extended warranty but ultimately, I had a bit of an epiphany; this is the first generation of a car built by two different manufacturers attempting to combine features\functions of each. That's kind of a recipe for disaster and who knows what kind of issues will pop up 5 years from now and 60,000 miles later.

Way back when I had a 91' Honda Civic Hatchback I did purchase a extended warranty. It paid off because I had to have my air conditioner condenser replaced after only 2 yrs then 1 week before the extended warranty expired my air conditioner evaporator had to be replaced. Big bucks when it comes to paying for A/C repairs. My next car was a Scion XA which I didn't buy a extended warranty. I did not have issues with that car. I did buy one for my FRS because of the fuel pump issues which I don't know if they have been resolved or not. Anyway for me it's peace of mind because I tend to have shitty luck at times. Just my opinion on the extended warranty topic! :)