the wraparound

Basically, they are hoping that you prepay, and then never use their services. Given how you get one year for free, and then the fact that chances are you will not need much of anything beyond oil, you may be better off putting the money for the 'wrap' in an account that would earn you some interest, and take a withdrawal out for each service that you need. I'd bet you come out ahead of the 'high-profit' dealer add-on.

 

I hear that with the prepaid plans that you ...

1. Have to go to THAT dealer and nobody else to use the coupons or whatever you paid for.

2. You don't really save that much

3. What happens if you sell your car or crash before the prepaid maintenance is up? Even if the brochure says that you'll get a refund, good luck with the fight.

The good thing is that *IF* for some reason the price of future maintenance increases, you're locked in at the cheaper rate. But what happens if Toyota adds something else to the maintenance list but your prepaid won't cover it because you bought it before the fact? I know, extremely unlikely and what can they possibly add right? But who knows...

Also pointing the obvious that prepaid maintenance does not equal extended warranty...quite sure we're on all on the same page here.