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Bad Prius Warranty

Discussion in 'Generation 1 Prius Discussion' started by shermanlj, Feb 27, 2009.

  1. shermanlj

    shermanlj New Member

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    I purchased a 2001 Toyota Prius in January of 2001. I was told that
    the battery was warrantied for 8 years And that I was "going out the
    door with a new car warranty." The car was first licensed in July 2000
    and was used by the dealer as a demonstrator from that time until it was replaced in January 2001 by a new demonstrator. The dealer made a big deal about "going out the door with a new car warranty" and gave me paperwork indicating the "day of first use was the day I bought the car. It was like a party, coffee and sweet rolls or something.

    You guessed it, the battery failed, in September 2008. Toyota said "if
    you have paperwork showing the day of first use in 2001 you should send a copy of that to me." I sent Toyota a copy of that paperwork . Then they said that Toyota based the guaranty on the date of tag issue by California and that any extension of warranty by the dealer was up to the dealer. The selling dealer says the warranty is a Toyota guaranty and they have no obligation. My local dealer doesn't want to get involved in a dispute between Toyota and another dealer.

    The irony is: I was on the verge of buying a new Prius when the battery
    failed as I really did like the Prius. Even though during the last two
    years there were some problems with losing power and battery warning
    lights coming on. Each time the nearest dealer found some problem
    other than the battery. And I did pay out $2,000 or more for this and that.

    Another interesting point is, that a second dealer offered to sell me a
    Prius demonstrator and volunteered the same offer; "going out the door
    with a new car warranty." That same offer from two dealers sounded odd and seemed to indicate a Toyota wide plan to sell their demo cars. I have been without a car now since September 2008 and my wife is tired of me borrowing her Toyota pickup.

    Any suggestions?
     
  2. richard schumacher

    richard schumacher shortbus driver

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    Advice on what?
    - Suing the original dealer: You could try, but without anything clearly in writing to back up what they said it seems pretty iffy.
    - Buying a new car: By all reports a new 2009 Prius should be highly reliable. I would get one from a different dealer.
    - Buying a car: A recent used Civic should be an excellent value.
    - Minimizing expenses: Yeah, it would suck to have to buy a new battery for the 2001, but that could well be the least expensive option.
     
  3. a priori

    a priori Canonus Curiosus

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    It sounds as though the problem began while the car was still under warranty. Have you pointed out this issue to Toyota? Do you have records of those visits, including your request that they look at the battery because of the warning light?

    I wouldn't give up yet.

    How many miles on the car?
     
  4. bwilson4web

    bwilson4web BMW i3 and Model 3

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    This is February 27, 2009 and the failure was September 2008. Off hand a couple of questions:

    1. do you have any dealer diagnostic codes - get the most detailed listing possible since that can also identify at least one failed module. But it would be nice to see the module-pair voltages.
    2. has car been sitting for 6 months - does it even run or was it used during this 6 month interval
    3. how much is your time worth? - you need to make some hard choices
      • new battery - about $4-4,500 but gives you another 7 years of service. Not bad for a car that can deliver 50 MPG
      • salvage battery - about $500-2,000 depending upon luck and how much you put into the battery swap but again gives you a car that can deliver 50 MPG for an unknown period of time
    Sorry but there are no easy answers and you're window probably closed in September depending upon miles driven.

    GOOD LUCK!
    Bob Wilson
     
  5. bedrock8x

    bedrock8x Senior Member

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    A demonstrator should not be registered at all, it should have a dealer only license plate.
    When a car is registered, it becomes a used car even with 0 miles on it.
    Your car was registered on July 2000, so the warranty started on this date. The dealer only transfered the new car warranty to you.
    The warranty expired on July 2008. Sorry, you are out of luck.
     
  6. shermanlj

    shermanlj New Member

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    Bedrock8x,
    Are you telling me that the little "going out the door with a new car warranty" party at Dublin Toyota was just so much auto dealer BS? And that getting a very similar offer from another Toyota dealer was just standard dealer chatter? They even pointed out the day of first use was 01/30/2001; also on the signed document. So you suggest that the crew members at Dublin Toyota were all having a big laugh at my expense or was it also a training session? I think this exercise and the signed paperwork constitute fraud. Should two or three other people come forward with similar experience and documents; I expect a good lawyer could change the tune of Toyota and the Dublin California dealership.

    bwilson4web,
    1. I do have paperwork from service calls but did not ask for specific codes etc. just described the warning lights and symptoms of the car.

    2. Car has been non functional after September.

    3. Mileage is below the 80k


    a priori,
    Now has 76K miles. Yes, I do have records of Toyota shop visits during time battery warning lights were coming on. I do not recall them showing any diagnostic results such as voltages.
     
  7. bedrock8x

    bedrock8x Senior Member

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    When you first test drive the demonstrator, does it has a regular CA license plate or a dealer only plate in Jan 01 before you bought it? You mentioned in your first post that it is licensed in July 2000. How many miles when you bought it?

    The best thing to do is to check Carfax, it will tell you how many time the car has been register and to whom.

     
  8. shermanlj

    shermanlj New Member

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    Bedrock8x,
    Yes, the car had a California plate and tag from July. I was told that it was their demonstrator and I could have it as soon as their new demonstrator came in. I checked the vin on Carfax and it shows that there are 5 records? Would a new record be generated when a Toyota dealer does work on the car? The Vin number is (JT2BK12UX10002549). Does anyone have a CarFax account and would check it for me?

    There were 7,000 + miles when I got the car. Dublin Toyota continued using it as a demonstrator until the new one arrived; but reassured me that I was getting a new car warranty "time and miles" even though the Prius had to be sold as a "used car due to mileage."

    Shermanlj
     
  9. Patrick Wong

    Patrick Wong DIY Enthusiast

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    Hi Sherman,

    Usually an auto purchase agreement contains a clause to the effect that oral promises are not binding. If that is the case in the agreement executed by you and Dublin Toyota then you have no recourse, unless the agreement specifically indicates that the new car warranty clock started upon the date that you purchased the car, vs. the date the car was first placed into service.

    Since the vehicle warranty is provided by the manufacturer and not the dealer, I'd be suspicious of any dealer sales person's claim that the warranty can be modified to your benefit. The sales person has no power to make commitments on behalf of the manufacturer.

    You've probably heard the joke about how you can tell when a salesman is lying - his lips are moving - unfortunately there's some truth behind that.
     
  10. shermanlj

    shermanlj New Member

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    Hi Patrick,
    Yes, the big contract was part of the Party Charade. The pertinent clause is the following. "How this contract can be changed. This contract contains the entire agreement between you and us relating to this contract. Any change to the contract must be in writing and both you and we must sign it. No oral changes are binding." Also part of the Charade was the little contract indicating DOFU ("Date Of First Use") "Today, January 30". And it was also signed by the Manager and I.

    How would this kind of gimmick make you feel? I think that were I still living close to 6450 Dublin Court, Dublin, CA I would be planning regular visits with a big picket sign.

    Would it be amazing if one car company demanded that their dealers were ALL honest, straight shooting, four square and true? Would they sell a lot more cars? Or would they have to sell their used demonstrators at deep discounts?
     
  11. a priori

    a priori Canonus Curiosus

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    Patrick,

    You are THE MAN when it comes to electronics, but you are not licensed to practice law. I don't mean to come on too strong here, but our OP is not shut out just because of the standard form contract language. Given the circumstances, I do not think the OP should give up on anything without having first talked with a CA lawyer who has experience with car dealerships and warranties.

    I don't think this is a standard deal. Either the OP did not understand that he was getting the new car warranty as if he was the first purchaser (standard), or the dealer lied so as to induce him to make the purchase (fraud, and tough to show), or the dealer extended the contract. If it is the latter, then the question is whether the dealer was able to bind Toyota to this longer warranty or was extending it on and under his/her own obligation. In the first case he's in a bad way. In the second, he has a tough evidentiary battle. In the third, he is going to get everything covered.

    Shermanlj: Hang in there and hire a lawyer.
     
  12. a priori

    a priori Canonus Curiosus

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    You may be on to something here. If the contract was modified on its face and both parties initialed the changes, you have something you should take to a lawyer.

    Good information to give to your lawyer.

    Still worth taking to your lawyer

    In and of itself, this doesn't do much. I think it would be expected that you would have the full rights of the new car buyer for the remainder of the natural warranty -- unless you and the dealer (or Toyota) agreed to something different.

    This is the information on which your case turns. Please take this to a CA lawyer with the right experience. If you need any help getting recommendations, please send a PM.
     
  13. Patrick Wong

    Patrick Wong DIY Enthusiast

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    Hi Sherman,

    Here's a recap of the timeline as I understand it:

    July 2000: Car entered service as demo
    January 2001: Car purchased by you
    July 2008: End of eight year warranty period (counting from demo service start date); car had 76K miles
    September 2008: Traction battery failed

    The $ amount at issue is ~$3,500, the cost of having a new traction battery installed by your dealer.

    In retrospect, I think your effort to assert a warranty start date of Jan. 2001 clouded the issue from Toyota's perspective. If instead you had contacted the Customer Experience Center and said, "Gee, my traction battery failed only two months after the 8 year warranty expired, I've already spent $2K on repairs that may have been related to this, and my car only has 76K miles, can you please give me a break?" - then it is likely that the response would be, "We'll take care of it at no charge." or else "OK, we'll cut the battery price 50% or 75%."

    a priori suggests you contact a CA attorney for assistance. Keep in mind the dollar value of the dispute is $3.5K - so how much attorney billable time are you willing to incur on this issue?
     
  14. a priori

    a priori Canonus Curiosus

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    Two good things to think about, though you may not have many options left on the first suggestion. Still, if you haven't contacted management level customer service at the corporate level, you should do that first.

    Remember that when you contact an attorney, you need to find one with experience in this field. A good attorney will take 30 minutes to talk with you (without a charge) and should only take the case if the attorney feels there is something worth either further investigation or pursuit. Make certain you have such an understanding at the outset.

    No doubt you could spend $500 on an attorney and come away with nothing. Of course, you also could spend that and get $3,500 worth of service and materials at no additional charge.
     
  15. shermanlj

    shermanlj New Member

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    I talked to Customer service and my assigned customer care person. How do you get up to customer service management at the corporate level?

    I have hopes of finding others that experienced the "going out the door offer" or the signing party which would give an attorney something solid to work with.