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Dealer scare tactic re: Warranty Shack - True or False?

Discussion in 'Gen 3 Prius Main Forum' started by tm2913, Aug 22, 2009.

  1. tm2913

    tm2913 New Member

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    The dealership I bought my Prius from warned me that the East coast dealer offering warranties online was being investigated for fraud and avoid buying from them. I didn't mention names and neither did the dealer. Not that the warranty wasn't from Toyota but that the dealer wasn't authorized by insurance code to sell outside of his area. So the dealer is claiming that the extended warranty is a form of insurance and that there are regulations around it. Intimated that the warranty might not be honored as the sale was not legal.

    I understand the dealers are having heartburn over lost warranty sales and there is probably some heat being applied by TFS (maybe not, it's still money in TFS's pocket). Just wondering if anyone knows whether there are any legal issues around this?:confused: Or is it just Toyota policies being circumvented (which I definitely have no problem with)?
     
    #1 tm2913, Aug 22, 2009
  2. ursle

    ursle Gas miser

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    Toyota is by far the best auto company at the present time, if there were warranter problems going on you'd see them on this forum, I'm not aware of any, walk away from the dealer as fast as you can (with the car) and don't look back
    Definitely a dealer scare tactic
    Don't know of any gen 1 problems and they would be all over the place if there were, personally I have full confidence in the car and the company, why waste money on an extended warranter unless you have money to burn :rolleyes:
     
    #2 ursle, Aug 22, 2009
  3. Priusfinder

    Priusfinder New Member

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    I have sent many customers to the dealer you are referring to who advertises on this forum, and no one has told me of any problems. To my knowledge, extended warranties are nationwide products, and you can purchase them from any dealer.
    Your dealer is trying to scare you. But if you want to be certain, look at the website from Toyota Financial Services and read the terms or send in a question.
     
    #3 Priusfinder, Aug 22, 2009
  4. LRKingII

    LRKingII New Member

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    Simple. Tell the dealer to match the price or to stuff his BS.
     
    #4 LRKingII, Aug 22, 2009
  5. SageBrush

    SageBrush Senior Member

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    Assuming, and this is a BIG assumption, that your dealer is talking about the PriusChat connected dealer, all you really know is that someone complained. Surprise, surprise.

    I'd be more interested in knowing who the whiner is, and avoid giving any business to that person.
     
    #5 SageBrush, Aug 22, 2009
  6. jbedi

    jbedi New Member

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    My dealer gave me a similar story. He told me that California laws are different and policies written by dealers in other states will not be honored by dealers in California. I told him I will get back to him within next three years or when I get to 35000 miles.
     
    #6 jbedi, Aug 22, 2009
  7. SageBrush

    SageBrush Senior Member

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    Fine reason not to buy a warranty in CA, since it suggests the other 49 states are not covered, eh ? :rolleyes:
    Do car dealers have to pass a liar test to be hired ?
     
    #7 SageBrush, Aug 22, 2009
  8. JimN

    JimN Let the games begin!

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    The policy is sold by the dealer. ASAIK Toyota underwrites the policy. If a dealer won't honor a warranty sold by another dealer then the plan is worthless. The best reason to save your money.
     
    #8 JimN, Aug 24, 2009
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