Extended Warranties...Worth It?

Howdy,

Picked up my new 2019 Tundra TRD Off Road today! Yippee!

FO gave the full press on warranty and also a 24 window to get if I chose. It's an MPP (Mechanical Protection Plan) brand. Looks like ~$1500 for 72mo/100,000 miles...

Ads ~$20/mo to payment...

In the past I always felt these a rip off but this guy was good... I almost bought it but got a day to think at least.

What say you?

Thanks,

Greg M

 

Not big on E.W.s, but seems almost reasonable, $20 extra monthly.

EW's can be negotiable too, see if he can offer it for $1000-1200. Cant hurt.

Or try to get something added from them if you get EW, like bed liner, steps, or windows tinted.

good luck!

 

I'm not a big fan of extended warranties. The odds of a powertrain component failing between 60k-100k miles are not that likely. Proper maintenance is way more useful than spending $1500 for something that you will probably not use.

 

Yes, no one would offer these warranties if they didn't make money off of them. The odds of a major powertrain malfunction occurring specifically between 60k and 100k miles is low.

 

I bought it for my wifes honda after purchase. Shopped around and found a dealer selling them just over cost. Never used it. Lost about 1000 bucks.

I bought it for cost on my tundra as well. Used it for a radiator that developed a leak. So i lost about 600 bucks on it.

I will never, ever buy another extended warranty. Waste of money.

Also dealers try and sell you on a genuine or warranty then bait and switch and change it to an aftermarket warranty service. I reported my dealer to honda corporate about this attempted fraud.

 

I didn’t buy mine for just the powertrain. I bought it for all the other BS. Its a bumper to bumper warranty.
For 1150 dollars and 100,000 miles I felt rolling the dice was worth it.

 

No, that’s not worth it when you can buy a Toyota platinum warranty for 8 years, 100,000 for 1150 bucks.

 

Never heard of MPP. In my experience, if you do decide to do the extend warranty route, go with the manufacture not a third party. If you take this advice, you have until 3 years 36,000 to decide if you want an extended warranty through Toyota. I think Toyota calls it a VSP, Vehicle Service Plan.

I did a 3rd party on my wife’s Terrain and there was so much fine print they basically had the plan set up to where they’d never have to pay a claim because so many steps and procedures had to be followed in order to get reimbursement. It put a bad paste in my mouth. We ended up selling her SUV prior to the warranty being up and we got back like $150 for the $2,000 it cost us 24 months prior.

I had a Toyota EW on a previous Camry. I get all the talk about why they aren’t worth it. But for me, it was easier to budget another $30/month in payment rather than fork over an unexpected amount should something major go wrong after I blew through the warranty. At that time, I was driving 30-35k/year for work.

 

$20 isn't much, unless it's for 60+ months. Properly designed electronic systems are actually very reliable. A diode can have a rating of over 50,000 continuous hours of operation. I would rather save my money for a warranty I am not likely to use and spend the money to fix something if I need to.

 

And if anyone doesn't trust solid state electronics to function in their truck, they should swap out their electronically controlled fuel injection for a carburetor.

 

I wonder what statistic is more likely with a brand new vehicle.

The odds of an issue costing more than the price of the warranty

Or

The vehicle being totaled in an accident before anything major breaks

 

Toyota probably knows those stats but they won’t share ‘em

 

I’m good with buying the warranty. Fortunately I paid cash for the warranty and the Tundra. Generally, I pass on warranties but decided at the price point and my plan to run this thing for a long time it would be worth it.
I’ll check back in 7 years and let everyone know if it paid off.

 

Yes and no. I think for the OP, he needs to look at how long he’s financing the vehicle, if he’s not paying cash. How many miles per year he drives and how long he normally keeps vehicles. If he ends up ditching the truck prior to the warranty not expiring, he’ll get a check from Toyota. It’ll be pro-rated for sure but nonetheless, he’ll get some sort of compensation for what’s left. I got like $100 back on my warranty that had 3,000-ish miles left when I traded my car in. From a PP sale standpoint, having a little warranty left would appease me as a buyer.

 

I’ve heard that you get money back if you don’t use the warranty but I’ve never known if it was a fact. I’ve never read anything on it. You have experience with this?

 

Yup. I got a check about two weeks later from Toyota after I traded my vehicle in. Like I said, I only had about 3,000 miles left before it would expire, so I wasn’t expecting much.

 

Evidently the guy I bought my used 2013 Tacoma from had a $160 warranty rebate left he never claimed! FO explained it to me and was ready to assign it to me till he noticed the other guys name! Hence I did not get to try it...

So yea.. part of it is refunded.

Regarding all the above... the key is the 60-100K mile window. Seems like defects of various sorts will crop up in or out of this window more than likely..

I'll sleep on it..

Thanks,

Greg!

 

Extended Service contracts aka - extended warranties are pure profit for a dealership or warranty underwriter.
They party like Kennedy’s when you sign on the dotted line for an extended warranty.
You are better off setting cash aside to pay for a repair. Dealerships just love it when a new truck or car buyer chooses an extended warranty. As they know the odds of you ever using it are sooooo remote.

https://www.consumerreports.org/car-repair/get-an-extended-warranty-for-your-car/

Dearlership after you buy an extended service contract.
“Here take my money”

 

Ive never heard this either. I doubt it is real, as the only reason warranties are sold is because most will never be used. If they gave the money back they would be bankrupt.

You can cancel them though and get a prorated amount of time remaining back

 

Agreed.

 

And yes.

 

No disrespect but Consumer Reports IMO has lost its credibility. The jokes on my dealer when I paid less than invoice for my Tundra, went in to sign papers and cut them a check and laughed when they said they couldn’t budge from the 2700 bucks. Then turned around and bought the same warranty for 1150.
I think I made out just fine.

 

Also, isn’t this what every lender does the day you finance your vehicle, or a house or etc.... you’ll get many people that will quote some Dave Ramsey and say your crazy to “finance” as your just pissing your money away.
Again, it’s up to the individual and what level of risk they are willing to accept. Most often the decision is made because they may not have the cash in the bank for a big expense. But, I agree, most of the time the dealer wins. Especially when shoppers aren’t savvy and pay full price for the warranty.

 

Exactly^^^^

 

Absolutely get the extended warranty

 

I got full bumper to bumper one when I bought my 07 in 2014. Never used it. Didn't add much more to my payment. I'm still 50/50 on whether it's worth it. Certainly can't hurt to have it plus it's hard to save $ when buying mods .. ......

 

I picked up the 10yr/125k platinum for a few thousand. I plan on keeping truck a long time and already anticipate cam tower leak as i see moisture with less than 10k miles and read it will only get worse over time. Normally i do not buy warranty but the cam tower is not really a DIY repair, neither is calibrating the tss system.

 

I bought my Toyota VSA Platinum warranty thru Jennifer Taylor at Wolverine Toyota for a very reasonable price. Give her a call if you want a warranty thru Toyota. I bought mine because of the cam shaft tower leak, and I have a family member with a RAV4 that had a problem with his power steering. The warranty saved him $3100.00+. I plan on keeping my truck for a very long time. I did the 8 yr warranty.

 

It's one of those things that you may not want to spend the money on now, but if you ever need it, you'll be happy you that you got it.

 

Another plug for Jennifer. She helped me on my 2017 Camry. Easy to deal with and competitive pricing.