Warranty Decision

[moneytrain8]

I have a "decision" that maybe some of the informed people on this board can help with...

I drive typically about 20k a year. I have a choice to make between two warranties.

One is the Toyota Platinum Care Warranty, which costs just below 1k, and is good for 7 years/100k miles with $0 deductible. Most of you are familiar with it.

The other warranty is one offered by my dealer through a company whose name I can't recall. It's a big name, I just forget the name. It is very similar to the Toyota warranty, in that it's accepted at any service shop, and is exclusionary instead of inclusionary. It, as well, is good for 7 years/100k miles, with a $0 deductible. The cost of this warranty is $1,495.

However, this second warranty also has a guaranteed price refund. If, after the warranty has been expired (7 years or 100,001 miles from now), I did not use the warranty (didn't get any warranty service done on the vehicle), I get a refund of the entire amount, minus a $50 processing fee.

So, the dilemma I am pondering is do I take $500 now with the Toyota warranty, or "roll the dice" on a possible $1400 refund with the other warranty? Both are credible and valid warranties, and exact in coverage (most importantly, the hybrid parts).

The dealer says that with Toyota quality, many people have gotten through the entire term without using the policy.

Thanks for your input. I guess I'm wondering what my chances are of getting to 100k miles (at my pace, about 4-5 years) without needing warranty service.

[paprius4030]

Even if the "other company" has a big "sounding name", it's not big enough that you can remember the name. But seriously, I rmember a year or two ago one of these"insurance companies" that's really what they are, went under leaving a lot of people holding a worthless piece of paper. The dealer would love to sell you one of these because they make a lot more on it. Forget the salesmen, walk over to the service dept. and see what they have to say about it. I bet they'll tell you to go with the Toyota warranty. 5 years from now when your far away from home and some pump picked the wrong time to conck out and your at an unfamilar Toyota dealer I fell more comfortable with a Toyota warranty then explaining to a unfamiliar service writer that my salesmen said anybody will take this brand x warranty.

[mrv]

1. Will you remember in 7 years/100,000 miles to claim your reimbursement if you do not use the warranty?

2. If you need some minor warranty work during the 7 years/100,000 miles, will you decide not to do the work under warranty (pay out of pocket or just not do the work) because you don't want to ruin the chances of getting your money back on the 3rd party warranty?

3. What is the reimbursement procedure of the 3rd party warranty? Does the dealer/service shop have to call for authorization, and they get paid directly, or do YOU have to call for authorization, pay for the repairs yourself, and then you get reimbursed for the expense?

[TidelandAZ]

Originally posted by moneytrain8@Oct 14 2005, 04:17 AM
I have a "decision" that maybe some of the informed people on this board can help with...

I drive typically about 20k a year. I have a choice to make between two warranties.

One is the Toyota Platinum Care Warranty, which costs just below 1k, and is good for 7 years/100k miles with $0 deductible.  Most of you are familiar with it.

The other warranty is one offered by my dealer through a company whose name I can't recall. It's a big name, I just forget the name. It is very similar to the Toyota warranty, in that it's accepted at any service shop, and is exclusionary instead of inclusionary. It, as well, is good for 7 years/100k miles, with a $0 deductible. The cost of this warranty is $1,495.

However, this second warranty also has a guaranteed price refund. If, after the warranty has been expired (7 years or 100,001 miles from now), I did not use the warranty (didn't get any warranty service done on the vehicle), I get a refund of the entire amount, minus a $50 processing fee.

So, the dilemma I am pondering is do I take $500 now with the Toyota warranty, or "roll the dice" on a possible $1400 refund with the other warranty? Both are credible and valid warranties, and exact in coverage (most importantly, the hybrid parts).

The dealer says that with Toyota quality, many people have gotten through the entire term without using the policy.

Thanks for your input. I guess I'm wondering what my chances are of getting to 100k miles (at my pace, about 4-5 years) without needing warranty service.

[snapback]140918[/snapback]

I haven't received my paperwork on my Toyota warranty yet, so I can't verify it, but my dealer specifically told me that if I NEVER used the warranty that I would also receive a full refund of the purchase price.

[AMARCUS]

<_< Silver 05 with Platinum Warranty.
Being 67 and having driven since I was 16, and having owned dozens of cars:
The only warranty worth buying is one sanctioned by the manufacturer.
All others are merely insurance. Insurance companies are never on your side. Insurance companies only come through if the occurance was on the fourth of July and caused by a herd of elephants but only if they are holding the tailes of the next in line by their trunks.

Seriously, a repair insurance policy is shaky. You will be travling, you will not necessarly be near a dealer that will happily honor the contract. The dealer who sold the policy and / or the insurance company may become defunct etc.

Never - Never - fall for the ravings of the finance guy at the dealership. His income depends on his ability to inflate profits by selling you crap and bad for you good for the dealer financing etc.

Take it from me - just say NO NO NO.

Look for postings on this site for good deals on warranties.