Car buying advice - Platinum Warranty or not?

[4funner]

Hello,

I'm looking to buy a used, 2007 SE 4 runner with 20k miles on it. It's in great shape, and I can tell the previous owner took care of it well.

However, when we were going over pricing, the salesperson suggested that I purchase a Platinum Warranty. His price was $2000, but I've seen lower on the Toyota website.

Usually I would so no to this. However, he mentioned that Toyota has a "Dont use it, Dont loose it" program --where, if after the duration of your warranty you haven't had to get any repairs done (that are covered in the platinum warranty), that Toyota will send you a refund check for the $2000.


Has anyone had any experiences with these platinum warranties? I usually never buy extended warranties, but if you get your money back...


Thanks,

 

[CJ3Flyr]

Hello,

I'm looking to buy a used, 2007 SE 4 runner with 20k miles on it. It's in great shape, and I can tell the previous owner took care of it well.

However, when we were going over pricing, the salesperson suggested that I purchase a Platinum Warranty. His price was $2000, but I've seen lower on the Toyota website.

Usually I would so no to this. However, he mentioned that Toyota has a "Dont use it, Dont loose it" program --where, if after the duration of your warranty you haven't had to get any repairs done (that are covered in the platinum warranty), that Toyota will send you a refund check for the $2000.


Has anyone had any experiences with these platinum warranties? I usually never buy extended warranties, but if you get your money back...


Thanks,

We did a group buy not that long ago. I got one, $835 IIRC. I say it can't hurt to have it. $2k is way out of line. I have not heard of the 'refund' program but at 2k it's still not attractive. One leaky cv boot at 75k miles and if you have fixed under warranty it cost you 2k.
http://www.toyota-4runner.org/showthread.php?t=49253&highlight=extended+warranty
:cheers:

 

[GMZ]

Same line of tripe he gave me. No way. You can get it much cheaper from Toyota or from a vendor on one of the Yota forums IIRC. The dealers have some profit margin built in so youll almost always pay more. You have about 16,000 miles to think about it so take your time and see how she does in the interim.

 

[toto]

Like GMZ said, you have until the end of the bumper-to-bumper warranty to make a decision. You don't have to get it from the dealer the moment you buy the vehicle. You also don't have to get it from the same dealer - you can shop around.

You can terminate the warranty any time for a pro-rated refund, not a full refund.

 

[Annoyed]

I don't have time right now to search for the relevant thread on this subject, and I forget how it resolved. If it was resolved so that the independent purchases are allowed, disregard my babbling.

I bought the Ext. Warr. from the dealer when I purchased mine for about the same $ you are talking about.

The Toyota backed extended warranty can only be sold by the selling dealer at the time of the sale.

From: http://www.toyotafinancial.com/cons...=true&_pageLabel=pg_UsedVehicleProtectionPlan

"Toyota Extra Care used vehicle protection plans are available through your Toyota dealer only at the time you purchase your used vehicle. Please see your dealer for pricing information."

Let the buyer beware.

As far as the money back part goes, at least with the dealer I bought at, that is through some poutfit in California, that tried to weasel out of it.. sent me a letter saying that for some odd reason, my purchase didn't qualify. I talked to the dealer, however, and they state they resolved that issue.

Ironically, about 2 weeks after that, I had to make a claim (seat noise problem) and rendered that whole issue a moot point.

Myself, I'm glad I purchased the warranty. I'm getting too old to climb around underneath these things anymore.

 

[GMZ]

I don't have time right now to search for the relevant thread on this subject, and I forget how it resolved. If it was resolved so that the independent purchases are allowed, disregard my babbling.

I bought the Ext. Warr. from the dealer when I purchased mine for about the same $ you are talking about.

The Toyota backed extended warranty can only be sold by the selling dealer at the time of the sale.

From: http://www.toyotafinancial.com/cons...=true&_pageLabel=pg_UsedVehicleProtectionPlan

"Toyota Extra Care used vehicle protection plans are available through your Toyota dealer only at the time you purchase your used vehicle. Please see your dealer for pricing information."

Let the buyer beware.

As far as the money back part goes, at least with the dealer I bought at, that is through some poutfit in California, that tried to weasel out of it.. sent me a letter saying that for some odd reason, my purchase didn't qualify. I talked to the dealer, however, and they state they resolved that issue.

Ironically, about 2 weeks after that, I had to make a claim (seat noise problem) and rendered that whole issue a moot point.

Myself, I'm glad I purchased the warranty. I'm getting too old to climb around underneath these things anymore.

That is for the used vehicle warranty, on the new vehicle warranty page it says the only pre-conditions are less than 3 yrs in service and under 36K miles.

Toyota Extra Care new vehicle protection plans can be purchased at any time while your vehicle:

Is less than three years old and
Has fewer than 36,000 total miles, whichever occurs first

Link

 

[nated05]

I got a similar warranty when I bought my truck new. The dealer sold it, but it was through an outside company. I didnt use it, so after 72,000 miles I got $1,250 back ($1,300orig price-$50 service fee). Now I have a new plasma tv! I would say the $2000 is very high, but I guess that is how they can afford to refund the money if you dont use it. I would say it isnt worth it, but my wife got a warranty with her used '05 rav4, and so did my parents on there new '10 camry.

 

[<<<<]

"Consumer Reports" does not recomend any extended warrranties...

 

[Martinjmpr]

Just my $0.02 worth, but IMO extended warranties are a waste of money and on Toyotas they are an extreme waste of money.

I just bought my '99 4runner with 117k on it even though I could easily have afforded a 2006 - 2008 4th gen that was still under the factory 5/60 powertrain warranty. I bought a 99 because I prefer the 3rd gen body style and because I figured the difference in price between a late model 4th gen and my 3rd gen (around $12,000) was enough that even if it did need a major repair, I'd still be ahead by going with the older vehicle, and given the legendary reliability of the 4runner line, it was very likely that I'd only have a few minor issues, not any major ones.

 

[4funner]

Usually I would agree - but what about the refund?

Thanks everyone for the feedback. Usually I would agree that extra warranties are a waste of money. But in this case, they guarantee the money back if you don't use it. Would that change your opinion?

 

[GMZ]

Thanks everyone for the feedback. Usually I would agree that extra warranties are a waste of money. But in this case, they guarantee the money back if you don't use it. Would that change your opinion?

It did not change mine, I would use that $2K or whatever price you would get the warranty for to start a savings acct only for unexpected repairs. Im using that money to hasten payoff of mine.

 

[Annoyed]

The OP is considering a used vehicle.

Hello,

I'm looking to buy a used, 2007 SE 4 runner with 20k miles on it. It's in great shape, and I can tell the previous owner took care of it well.

That is for the used vehicle warranty, on the new vehicle warranty page it says the only pre-conditions are less than 3 yrs in service and under 36K miles.



Link

 

[GMZ]

The OP is considering a used vehicle.

Hello,

I'm looking to buy a used, 2007 SE 4 runner with 20k miles on it. It's in great shape, and I can tell the previous owner took care of it well.

While technically "used" in the normal sense of the word, going by Toyota's requirements as long as you are under 3/36 youre gtg for the "new" car warranty, and since it still meets those criteria. The only stipulation is:

Time and mileage coverage periods are measured from the date the vehicle was first delivered into service as a new vehicle and zero miles. It expires upon reaching your selected time or mileage of the coverage period, whichever occurs first.

 

[Martinjmpr]

Thanks everyone for the feedback. Usually I would agree that extra warranties are a waste of money. But in this case, they guarantee the money back if you don't use it. Would that change your opinion?

No. Because all the "money back" option does is give you, effectively, a $2000 deductible on the plan.

Think about it. Say your car has a problem that will cost $750 to fix out of warranty. If you allow the warranty to pay for it, then you will lose the $2000, so why would you? Instead, you pony up the $750. You have now paid $2,750 to fix a $750 problem. Sure, you'll get the $2,000 back, but then it means you paid $2000 out of pocket and then still had to pay $750 later on.

With an extended warranty, you are making a bet with the seller. The seller is betting the vehicle will not have any serious problems. You are betting that it will.

Given the increasing quality of all vehicles, the chances that a vehicle with 20k on the odometer will have a serious problem within the next 80k miles is so small as to be insignificant.

Think about this, too: At 20k, the vehicle will still have 16k of factory warranty left (assuming the 3 years hasn't run out.) Even with that, you will still have a 5/60k power train warranty.

IOW, the kinds of things that would cause you to file a major repair claim - engine, transmission, t-case, etc - are already covered under warranty.

Another thing to consider: How long do you really keep your vehicles? Sure, everybody says "I'm going to buy this and keep it for 20 years" or "I'm going to drive this until the wheels fall off!" but the reality is that most of us trade vehicles every 3-5 years and rarely put more than 50k miles on a vehicle.

So instead of focusing on the "money back" provision, ask yourself this: What are the chances that you will have a catastrophic repair bill outside of the factory warranty, but within the mileage that you are likely to drive it? Unless you are the kind of person that puts 25,000 miles a year on your vehicle, the chances are slim to none.

Companies are eager to sell you extended warranties (especially on newer vehicles) because it's like free money to them. The number of serious, expensive warranty claims on these vehicles is extremely low, and the costs are high.

If you are really concerned about a possible repair, take half of the money you would spend on a warranty, and put it in a high-yield CD that rolls over automatically. At the end of the 3 or 5 years that the warranty would run, you'll have a lot more than your original $1,000 and the money is available if you really do have a catastrophic repair bill.

 

[4funner]

Matinjmpr, your answer was perfect. Thank you. And, much thanks to everyone else who contributed.

No. Because all the "money back" option does is give you, effectively, a $2000 deductible on the plan.

Think about it. Say your car has a problem that will cost $750 to fix out of warranty. If you allow the warranty to pay for it, then you will lose the $2000, so why would you? Instead, you pony up the $750. You have now paid $2,750 to fix a $750 problem. Sure, you'll get the $2,000 back, but then it means you paid $2000 out of pocket and then still had to pay $750 later on.

With an extended warranty, you are making a bet with the seller. The seller is betting the vehicle will not have any serious problems. You are betting that it will.

Given the increasing quality of all vehicles, the chances that a vehicle with 20k on the odometer will have a serious problem within the next 80k miles is so small as to be insignificant.

Think about this, too: At 20k, the vehicle will still have 16k of factory warranty left (assuming the 3 years hasn't run out.) Even with that, you will still have a 5/60k power train warranty.

IOW, the kinds of things that would cause you to file a major repair claim - engine, transmission, t-case, etc - are already covered under warranty.

Another thing to consider: How long do you really keep your vehicles? Sure, everybody says "I'm going to buy this and keep it for 20 years" or "I'm going to drive this until the wheels fall off!" but the reality is that most of us trade vehicles every 3-5 years and rarely put more than 50k miles on a vehicle.

So instead of focusing on the "money back" provision, ask yourself this: What are the chances that you will have a catastrophic repair bill outside of the factory warranty, but within the mileage that you are likely to drive it? Unless you are the kind of person that puts 25,000 miles a year on your vehicle, the chances are slim to none.

Companies are eager to sell you extended warranties (especially on newer vehicles) because it's like free money to them. The number of serious, expensive warranty claims on these vehicles is extremely low, and the costs are high.

If you are really concerned about a possible repair, take half of the money you would spend on a warranty, and put it in a high-yield CD that rolls over automatically. At the end of the 3 or 5 years that the warranty would run, you'll have a lot more than your original $1,000 and the money is available if you really do have a catastrophic repair bill.

 

[Uneek]

My dealer offered the money back guarantee for the warranty when I purchased it through them in Feb '06. The money back guarantee wasn't offered when I bought my Tacoma in Aug '05. The money back guarantee is underwritten by another company. It's not transferrable if the vehicle's is sold. I have a little more three years to go, if I don't make a claim against the Platinum Warranty.

The way I see it is it's an extra piece of mine. It's like insurance you want to have coverage when you need it, but you're not planning on making a claim. The 4Runner has a notorious moonroof. The warranty will pay for itself should it needs servicing. Mine has developed a grinding noise already on tilt.