Extended Warranty Ques.

Well of course I'm not going to pay out of pocket for covered repairs. That's the whole reason I purchased the contract in the first place, not so I could get my money back. Look, it's an insurance policy. Some are willing to take their chances, some are not. I feel better having the protection if something big does go wrong. You are obviously in more of a position to take the chance. It's a personal decision. Sometimes they pay off, and sometimes they don't. I have always had one, and they have always paid off for me so far. But I have never owned a Toyota so we shall see. At least I know that if I never have a claim, and under ordinary plans I might feel as if I had "wasted" my money, I will get my money back in the end.

 

lindajm22,

Do you have a link to the contract ?

 

Is it my imagination, or do people who buy EWs tend to view a $1,000 - $1,500 repair as huge, but take paying that amount for an EW in stride ?

If so, I presume the attraction is rolling the EW cost into the loan, but why not put the monthly payment difference into an interest bearing account ? You keep the principal not used for repairs, and do not *pay* interest on the extra loan amount.

 

As long as they keep asking we'll keep hacking. Everyone needs a hobby, right? :_>

 

So if a door handle spring breaks that cost $50 to repair you will not pay out of pocket? Would you rather give up the chance of getting your $1250 back over a $50 repair?

You cannot compare an extended warranty with an insurance policy. An insurance policy is to cover catastrophic damage that an individual cannot afford out of pocket. Example your house gets hit by a tornado or you are in a car accident that creates $175,000 in medical bills.

An extended warranty is a precalculated policy that has a guarantee payout to the dealer and the car manufacture based on statistics. The end customer never benefits.

 

Wow. Well, I guess I'll just have to sit and cry from indecision with how to handle a broken door handle spring then. You know what? Coming up with one argumentative scenario after another with strangers on the internets is not my style. Enjoy your car. I sure do love mine.

 

There is no scenario were and extended warranty makes sense on a Toyota car (Scion/Lexus/Toyota). It might make sense on the Land Rover on this chart.

 

haha, I was "asking" for that response.

 

There is always a chance that the warranty might be worth it and something that costs more than $1295 would be covered during the 6 year period, but most likely not. There is a much better chance the car might need $200-$500 worth of repairs sometime between the end of the factory warranty ends and the extended protection plan ends and you end up paying $1295 for that coverage. The bigger money repairs are most likely when the car is past the limits of even the longest extended service plan.

Aren't some places selling the Toyota Platinum 8 year 120K mile $0 deductible plan for less than $1295 paid for that 6 year 100K plan?
I might "think about" getting Platinum plan when the car gets close to running out of factory warranty, but I would shop for the lowest possible price rather than pay a premium to get the plan that is supposed to refund your money if you completely avoid using it and remember to follow all the steps at the right time plus rely on a dealer to follow their steps correctly and on time 6 years from now when it reaches the end of he contract.

 

Extended Warranties are like "long shot" bets: odds are you will lose, your car will be trouble free, you won't collect. And if you do have a major repair, the amount will not be catostrophic (like your house floating away): just a few $1000's.

The companies offering the warranties have determined probable payouts, and set premiums accordingly: to make a profit. If you are a typical customer, you will lose money on the deal.

 

It is just like gambling. In Ohio we have Keno and they put the odds on the back of each sheet. They range from 4:1 to 32:1 odds based on the amount of numbers you choose.

Even though the stats show that for every 4 times you play you win 1 time (over time). People still play. There is a chance if you play for a short time you will beat the odds. The longer you play the closer to those odds you will get. It is a huge profit center for the state.

Even though people are told the stats are against them they still buy extended warranties and play Keno. They do not believe in math. I do not get it.

 

Just about to buy 8years Platinum warranty for less than $1000 but no statement in writing stated that you can get your money back if you do not use it. Please send me link or in writing where you found this or just verbal from dealer trying to sell you the warranty. If I were you, I will call Toyota Warranty company to find out for sure?

 

Everything you need to know about the Toyota new vehicle warranty plans can be found here:

http://www.toyotafinancial.com/cons...fs/en_US/document/vsa/Toyota_VSA_QRG_2011.pdf

 

Just what I thought. Nothing on toyota warranty documents stated that full refund if not use at all during the coverage period..
Thanks!

 

Does your documentation show that Toyota is offering this or is it really the dealer? (My dealer did not offer this to me last month when I purchased my Prius as I would have purchased it on the spot with a WRITTEN guarantee from Toyota.)

 

Word of warning about these "money back" warranties, some don't care if the repair was done under the original warranty... It is a claim so no money back. had this happen on a Ford Ranger extended warranty.

 

Extended warranties are riddled with exclusions and clauses. Their goal is to make money for the dealer and Toyota. And they do. The only person that loses in the consumer.