The Woes of Extended Auto Warranties

My last few purchases I have got a great deal using the Costco buyers program only to have finance try to get back their lost profit. We usually meet somewhere in the middle and I am satisfied with my purchase. Our latest purchase of a 2015 Crewmax SR5 TRD almost resulted in the same thing. As soon as the finance manager opened his mouth my fiance blurted out I'm not going to sit here and watch my payments go up. Please finish the contract. He did so immediately! I will definitely be bringing her on my next purchase!

 

I need the option... I purchased the extended warranty and haven't had to use it yet. I paid $2400, probably too much, but the Inferno color was blinding me. A nice piece of mind for the major items such as engine and drivetrain, but also because the vehicles today have such complex electrical systems, a back up camera, and our Entune system.

 

Here is an interesting read I found the other day on one of the other Tundra forums... It was a Google search
http://www.tundraheadquarters.com/blog/after-market-accessories-new-warranty/

 

Before I got my 07 I had a 09 Tacoma which I bought in 2010 and had 14K on it and still under warranty. Chose not to go with extended warranty since truck was basically new. I decided to get the extended warranty on my 07 which I got a year ago. Truck at that time only had 49K and was ridiculously clean. Aurora PD Gang Investigation Unit had it for a few years and only used it when they needed it. I had all the service records from day one but still got the extended warranty mainly because I wasn't the one driving it for the previous 7 yrs. Paid 2K for Zurich bumper to bumper warranty for 2 years or 100K. Covered everything but consumables. Even though tranny and engine are bullet proof other things are not. Truck is 8 yrs old. Ever notice where the alternator and power steering units are located? The starter? Not fun to replace. Stealership wants a fortune to swap those out. Nothing is easy to fix anymore. Everything is crammed together in one small space. As tat2ude39 mentioned there is the ECU and all the crap it controls. I believe in Murphys' Law. If I didn't get the warranty some weird thing would have happened to the tranny and I'd be out $2500. It's all a matter of choice and piece of mind I guess.

 

I'm of the mindset that extended warranties are best purchased near the end of the factory warranty period, if at all. Buying the extended warranty while purchasing a new truck, means you'll be using that 'extended' coverage--even while still under the factory period. If you then decide to trade it back in a couple years, you'll only get back a pro-rated portion of what you paid for the extension, even though you never actually left the factory warranty. You'll be pissed (mostly at yourself for not reading the fine print better ) and will walk away with an $800 hole in your ass with do-diddly-dick to show for it! Ask me how I know.

 

As Sean referenced above, one needs to be diligent when considering extended warranties. A legit dealer should not offer an extended warranty on a newly purchased truck that does not kick in until MFR warranty is up. Same with used trucks. If you buy a used truck where the warranty is almost up a legit extended warranty should not kick in until MFR warranty is up. Extended warranties should never be grandfathered into a current MFR warranty. You need to see what is actually covered in writing before you sign. Only buy from reputable dealers. They are out there. Also if you find out that the extended warranty is crap after you have signed on the dotted line, you usually have up to 30 days to cancel warranty with no penalty in most cases. Due diligence.

 

I got mine for the peace of mind as my payment only went up 17-20 bucks. straight from Toyota, after reading this I think I might stop by and ask more questions then decide if to cancel or not.

 

I have not bought a "new" truck for some time but I am thinking when purchasing an extended warranty from Toyota on a new truck your paying extra to actually extend warranty beyond standard warranty period. Some unscrupulous used car dealers will sell warrantys that start the date of sale even if the vehicle may still be under original warranty. That's where the rip off is. It is probably best not to buy an extended warranty that goes beyond the length of time that you will have your truck, although if truck is still under warranty you can sell your truck quicker and possibly for more money in a private sale.

 

I did not buy the extended warranty. My truck has 167,567 miles on it as of this morning. No issues whatsoever, besides regular maintenance items. As long as you take care of your truck it will take care of you. Never miss an oil change and always check all the fluids, filters and you will be ok. Getting ready for a another 3,000 mile trip to Los Angeles next month.

 

That's good to hear. Only have had my truck for a year now. It came with maintenance records. Well maintained. Recently changed out original shocks/coil-overs, new pads and rotors (original ones were warped), and lubed all the u-joints. Should be good to go. I am probably going back up to Anchorage next fall. With the weather extremes in AK, vehicle maintenance can be a life or death issue if your out in the middle of nowhere. My 09 Tacoma was a great truck. No issues. like you said, "As long as you take care of your truck it will take care of you."