Extnded Warranty? Is it a waste of money?

rburleson1 · Feb 3, 2009

I just bought a 2006 4Runner with a little under 39,000 miles.
I am on the fence about an extended warranty.
Part of me says it's a Toyota! and you won't have to worry about anything for a long time... but then the peace of mind is nice too.
After checking around a bit I have heard that the warranty companies try to find any loophole or technicality to get out of paying, and they require that all factory maintenance schedules are followed or they don't pay.
What is the consensus on the third party extended warranties? Are they a waste of money?

Thai · Feb 3, 2009

If it's an AFTERMARKET company, then i would definitely pass on it...they are scammers! If the ext. warranty is directly from Toyota, then i would definitely consider it.

SubSonic · Feb 3, 2009

I agree with Thai. The Toyota warranty is more than worth it if you a) can afford it and b) plan on keeping your Yota out to or past the extended mileage coverage.

Especially if you get the Platinum or whatever it is that is essentially bumper-to-bumper coverage. Major Toyota hardware parts don't often break, but electrical components can be even more expensive than hardware, and can crap out at any time.

I am on my 3rd Toyota, my 08 T4R, and ponied up for the 7/100k bumper to bumper warranty from new...it wasn't much over $1000 or maybe $1200 AFAIK. And honestly, replacing the computerized A/C could cost that much down the road, or more.

The way I do extended warranties is this, put the same amount down on the vehicle that the warranty costs (and usually no more - certainly with the 0% financing I got on my '08)...It's like a pre-paid fix it all policy, and is much cheaper up front.

The warranty I got on my 2000 Tundra paid for itself by the 4th 02 sensor I had to replace. (I am on #6 now...that thing eats them, but is the only issue I've had on it in the past 8+ years)

CannondaleMan · Feb 4, 2009

Put me in the +1 column. The only extended warranty most financial analysts and advisers that I read often say are POSSIBLY worth it are auto warranties, but I will never again buy one that is not offered directly from the manufacturer.

I purchased one with my '07 Sport, but only because it was from Toyota. It also makes it easier if you move or have to take it to a dealer when something craps out. Most of the other car warranties are regional - as I found out the hard way - and are not necessarily accepted in other parts of the country, whereas a Toyota warranty (as is my understanding) has to be accepted by the stealership.

Like Subsonic noted, even "basic" parts can easily approach the cost of the warranty.......especially since my local stealership charges something like $72 per hour labor. Plus parts. Plus "storage fees." Plus whatever else the dealer/service department can conjure up to rob you of your hard-earned money. Then again, I am just a bitter and cynical sort of guy.

ABooker · Feb 4, 2009

I bought an extended warranty when I bought my 03 4Runner used in 07. So far, I have yet to use it. It cost me about $1200 extra at the time. Covers everything for 3 years and or 30k miles.

I bought a Nissan Pathfinder years ago and got the extended warranty and DID use it to get a new transmission. So.....who knows if it's a good thing to get. Clark Howard (Consumer guy) says not to buy one.
Go figure....

blm · Feb 4, 2009

Worth it?

I'm glad somebody started this topic recently. I bought a new 2008 SR5 4WD V6 less than a month ago. At the time, the dealership told me that it would be a "pain" and "cost much more" to add the warrenty after signing. So I walked out with a 7yr/100k mile warranty for $1200. The terms read that it can be cancelled within 30 days and get money back less a $20 service charge which the dealership offered to waive if I elect to cancel.

I've already got AAA roadside service (not a warranty) and auto insurance offers similar services now. I sort of feel like I bought a Toyota for (among other reasons) dependability and quality manufacturing. There is a clause that excludes normal wear and tear, so I can see them pretty easily denying service for that reson, or worse, providing the service at dealer rates and then charging me.

What do you all think? First, have you had major failures AFTER or OUTSIDE (not covered by) the 3yr/30k mi included warranty? Second, any good/bad experiences?

I guess I need to make a decision in the next week or so. Thanks for the help. :help:

dieselwolf · Feb 4, 2009

I would not buy a third party warranty. If you can get the Toyota extracare extended warranty, you should consider it. Only, because you got a used Toyota and you don't know how it was maintained or was it abused? I got an almost new 4runner, had only 13K on it and It was in and out of the service until I got tired of the hassle and got a new 4Runner. I'm not even sure my truck had only 13K on it.. And if you consider buying Toyota extracare, shop around on the internet, I did and I got it for only $700 a 7/75K warranty. Prices are varies by dealer. You can get it from any dealer.

Thai · Feb 4, 2009

Dieselwolf is right...you do NOT have to get the Toyota ext. warranty from your local dealer. I got my ext. warranty from a guy on the east coast for $850 (7/100k Platinum) for my Sienna minivan. (BTW, i have seen cheaper prices for my Sienna on the net.)

TechWrench · Feb 4, 2009

I put my vote in the yes column. I bought the Toyota Platinum + extended warranty when I got my '03 new. Up until today, I was thinking I had wasted the $1,400.00 I has spent on it. But, the dealer just finished replacing the VSC system ECU because of a problem with my VCS turning off in very cold (below 0 F) temperatures. The initial bill came to $1,621.97, which included the part, labor, and the loaner/rental for one day while they waited for the part, and installed it.

My total out of pocket cost, the deductible, was $50.00.

I have just over 66k on it, and had it for just under 6 years.

I am now a happy camper.........

Elusive · Feb 5, 2009

I say yes it is worth it. For me the peace of mind is the best. I waited and bought the platinum 7yrs 100k from the same dealer. When i bought the truck they wanted something like 1400. When my truck hit 34k and i was close to the end of the factory warranty (36k), i called back and told them i would give them 800 for it and they said "come on in and we will have the paperwork ready".

This seems to be the best tactic as it is an easy guaranteed sale for them with little work.

Cruzrtwdgt · Feb 6, 2009

I was never a big fan of extended warranties until I bought a 99 Mercury Sable in 00 used. At 37k, the tranny crapped out, cost me 50.00 to replace the valve body. 2 weeks later, the whole tranny had to be replaced, at no cost. This was over 3k in repairs for 50.00 deductable and $800 initial cost, so I saved 2150 immediately.

I bought the t4r and got the 100k 60 month Premium EW from Toyota.

Some folks will tell you to put the money in the bank and let it draw interest to pay for the repairs, especially if you have the cash available to cover the repairs, but I disagree. One repair such as the one on my merc, and the warranty has paid for itself.

Your call, but I would do it. I have 'em on my T4R and my daughters Focus.

Extnded Warranty? Is it a waste of money?

rburleson1

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Thai

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ABooker

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blm

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