Service Plans and Warranties...pushed onto us at time of sale.

[steve44]

I started out about to discuss the first warranty pushed upon me but now I don't remember all the details. Something about all labor and parts covered for the first $75,000 miles for $1,650. Unsure if this is just a powertrain warranty though. So let me move on to the 2nd:

Should I buy a service program from the finance guy for $1,400 which covers all the routine maintenance for 5,000 miles, 10K, 15K, through 55K at every 5,000 mile intervals. He stated it would be about a $1,200 savings but he also said an oil change, tire rotation, and filters would cost $100-$120. The sales guy said the oil change is less than $35 but unsure about the cost of other maintenance. Because of the...what seems to be...large discrepancy in prices that the finance guy gave me, I can't trust his numbers. I declined. Is this a good deal? I still have the opportunity to purchase this at the same price for the next week or so.


Thanks for your knowledge!!

[David Beale]

No and no. In the US you can get the first warranty for under $1000 from a Toyota dealer who is on this forum. The second is nonsense. Why would you pre-pay for service, especially why would you pre-pay for over two years ahead of said service?!

Both these are pure profit deals -for the dealer-.

You can get the first warranty extension any time during the standard warranty. So you have lots of time to think about it, see if the car is reliable, etc. (it's a Toyota for gods sake - of course it's reliable).

[richard schumacher]

Extended warranties and prepaid maintenance plans are a complete waste of your money. Smile at them and say "no" until they go away.

If you absolutely must have "peace of mind" the Toyota extended warranties are available on this site from a dealer (Troy) for less than $1000. You can buy the warranty any time in the first 36 months/36k miles.

[a priori]

Originally Posted by richard schumacher

Extended warranties and prepaid maintenance plans are a complete waste of your money.

I don't know that I'll agree with Richard's opinion on this. If you sit down and look at the numbers (after finding out the REAL cost of maintenance and regular service and knowing what is necessary to maintain the factory warranty), and you find there is value, then go for it. For some people, there is value if the dollars are the same because they assure themselves the work will be done.

In the interest of disclosure: I had one extended warranty pay of big (on a VW) and one that I cashed in one week after purchase (a Toyota). I had a third (Nissan) that ended early when I sold the car and I received a pro rata return (that was an unnecessary purchase from the get-go, even though it was on a used car).

I've had one pre-paid service plan, and it turned out to be pretty good. The only reason it turned out to be pretty good is that the dealer's rep finally came down to a price I was willing to pay. That only happened because I had been prepped, and I didn't make the decision in the finance guy's office.

Full disclosure: Now that I have the first of the new breed (2010) I may consider purchasing an extended warranty. This is only a "May" for now.

Originally Posted by richard schumacher

Smile at them and say "no" until they go away.

HERE is the sparkling piece of advice! This is absolutely the right course, in my book. You can always go back and purchase one of these plans. If they tell you that it is available only at the moment of purchase or you'll lose some valuable extra or service if you buy it later, then please understand the goal of that policy is not to benefit you, but to benefit the provider and the agent (the finance guy/dealership). If it is something of value to both sides, then you should be able to strike a bargain at any time. Just be certain you know what you're dealing with before you decide. AND, as Richard has so eloquently stated it: Smile and say "No." You may have to apply and repeat as necessary.

Originally Posted by richard schumacher

If you absolutely must have "peace of mind" the Toyota extended warranties are available on this site from a dealer (Troy) for less than $1000. You can buy the warranty any time in the first 36 months/36k miles.

Also, very true. There are plenty of threads on the subject, so please run a search and read to your heart's content.

[steve44]

THANKS for confirming our decision to and walk away. We'll think about it some more. If we want it, we'll be sure to ask for the same price (or 10% less) with the same covereage. If they say no to that then as you stated, APRIORI, it's something that only benefits the dealership and not me. GREAT advice!

[stream]

I'm not a believer in extended warranties or pre-paid maintenance. They are essentially insurance policies (which the issuing company makes a profit on), and I prefer to self-insure and keep the profit myself.

[msirach]

Absolutely! Do some DD and you will see it is a winning deal for the dealer.

Originally Posted by stream

I'm not a believer in extended warranties or pre-paid maintenance. They are essentially insurance policies (which the issuing company makes a profit on), and I prefer to self-insure and keep the profit myself.

[Boo]

IMO

(1) Never buy the prepaid maintenance, and

(2) Wait until 35 months/35,000 miles to decide whether to buy the Toyota extended warranty.

[Martin37]

Regarding the Toyota Auto Care Premium package thru PC ($875 - 4 yrs./55,000mi), it would really help to know what dealers are charging for the routine 5,000 service and the 15,000 'special' service. I was recently charged around $60 for a routine lube/oil/tire rotation for my '06 HiHy.

[brad_rules_man]

I sprang for the extended warranty. I gave my dealer finance guy an opportunity to match the price seen on here. He did, so I told him it was a go. I did however let him talk me into one extra, that I am actually quite glad I did. He talked me into a simoniz protection system. It seems to work GREAT. I drove it home, and the front was covered with bugs. We had storms that night, and in the morning the bugs were gone. They had literally fallen off and been washed off by the storm. That hardly ever happens.

I also tested the carpets and leather with some water, and it beaded up and would not penetrate. So, I am quite happy with the initial results. I have done some research into what consumers are saying about the products and it seems to be pretty good.

I talked to Troy on here via email and he quoted me an excellent price for their maintenance plan. However, even with the best price I could find, I averaged it out to $70 per maintenance visit, and if I were to calculate the lost interest and investment opportunity of the 2 years I could have invested the money... Let's just say my local dealers charge between $25-30. If I have to I can rotate the darned tires, and the filters they change can be found dirt cheap on amazon. I did another analysis and found that even taking it in to the dealer and just paying is cheaper, even if the price goes up a little bit over the next few years. If I do just filters at home, I can save about half. (Anyone can change these filters, they are so easy.)