While I bought my new car, dealer financial people tried very hard to sell extended warranty. I usually don't buy those. However, they claimed that it was a purchase price refund meaning if I don't use it in 7 years (7-year/100,000 miles IIRC) I can get a full refund on the warranty price ($1,300). This is too good to be true, but I decided to research it. Have anyone heard about it? It was a Toyota dealership.
purchase price refund extended warranty?
- Thread starter friendly_jacek
- Start date
- Status
My sister had one of those deals with her 2003 Ford Taurus with Ford.
About 4 months before the end of the extended warranty she had a rear wheel bearing start to make noise. Cost to fix incl labor was around $230 and if she used her warranty they would cover it with a $50 deductible. She paid for it out of pocket and cashed out her warranty.
The odds are that you will use it but it will be less than the $1,300 you paid. Just keep that in mind if you get close to the end.
IIRC, her warranty was around $900 for a 5 yr/100,000 mile term.
Bill
About 4 months before the end of the extended warranty she had a rear wheel bearing start to make noise. Cost to fix incl labor was around $230 and if she used her warranty they would cover it with a $50 deductible. She paid for it out of pocket and cashed out her warranty.
The odds are that you will use it but it will be less than the $1,300 you paid. Just keep that in mind if you get close to the end.
IIRC, her warranty was around $900 for a 5 yr/100,000 mile term.
Bill
The Genuine Toyota Extra Care warranties do not allow for a full refund at any point after the initial 30 or 60 day period. They do, however, allow for a pro-rated refund at any point.
The dealer's method of a full refund on the extended warranty is for a third party policy, which is a policy I'd avoid to begin with. I have been told before that when the full refund promise is made, it is the dealer who is "insuring" the policy, so to speak. I am not sure how it exactly works, but it is not a risk I'd want to take in case the dealer goes bust.
Besides, genuine Toyota policies are the only way to go as they give the dealer more control when it comes to approving warranty claims. You can buy them for about 1/2 price from sellers such as warrantyshack.
On my Nissan, I bought my 8/120k Nissan Security Plus Gold Preferred policy for about $1145 from an online Nissan warranty seller-- $850 less than what the local dealer wanted.
The dealer's method of a full refund on the extended warranty is for a third party policy, which is a policy I'd avoid to begin with. I have been told before that when the full refund promise is made, it is the dealer who is "insuring" the policy, so to speak. I am not sure how it exactly works, but it is not a risk I'd want to take in case the dealer goes bust.
Besides, genuine Toyota policies are the only way to go as they give the dealer more control when it comes to approving warranty claims. You can buy them for about 1/2 price from sellers such as warrantyshack.
On my Nissan, I bought my 8/120k Nissan Security Plus Gold Preferred policy for about $1145 from an online Nissan warranty seller-- $850 less than what the local dealer wanted.
Dont buy any warranty unless its from the Manufacturer, most of the indies have folded, and trying to get pro-rata cash back from the dealer is blood from a stone. The dealer/financial officer starts with a near 100% markup so the price is negotiable. You can say. "money is tight, I can afford MAYBE, 800 bucks - then he says $1,400, then you say, "I guess not", then he says $950- is the best I can do .. only since I like you, Kiddo
http://priuschat.com/forums/sponsored-co...-contracts.html
7/100,000 miles Toyota Extra Care Platinum for $1055, $0 deductible. They recently introduced a 8/125k option as well, but I think the prices goes up by a few hundred bucks for that extra year and 25k as the risk increases significantly during that eighth year.
On the last gen Prius, the inverter coolant pump and the multi-function display were common issues, especially on the first and second year models. For those with an extended warranty, it was a wash. So it may be worth considering for your Prius, but I wouldn't expect to come out significantly ahead-- you'll probably just breakeven or come close to it.
7/100,000 miles Toyota Extra Care Platinum for $1055, $0 deductible. They recently introduced a 8/125k option as well, but I think the prices goes up by a few hundred bucks for that extra year and 25k as the risk increases significantly during that eighth year.
On the last gen Prius, the inverter coolant pump and the multi-function display were common issues, especially on the first and second year models. For those with an extended warranty, it was a wash. So it may be worth considering for your Prius, but I wouldn't expect to come out significantly ahead-- you'll probably just breakeven or come close to it.
It's like playing blackjack at the casino. The house may lose, the house may win hand to hand, but overall, they win. I'll just say this, in most cases the F&I guy is the highest paid suit in the store...and there is a good reason for it.
I say your better off putting the $1.000-$1,400 if you have it into an interest bearing account or into a CD or a stock...anything but the dealers/manufacturers pocket.
If you insist on buying a plan, then I agree with others. Shop online from other dealers...and remember you can usually add one of these plans with the manufacturer anytime before your standard warranty expires.
I say your better off putting the $1.000-$1,400 if you have it into an interest bearing account or into a CD or a stock...anything but the dealers/manufacturers pocket.
If you insist on buying a plan, then I agree with others. Shop online from other dealers...and remember you can usually add one of these plans with the manufacturer anytime before your standard warranty expires.
Originally Posted By: LS2JSTS
and remember you can usually add one of these plans with the manufacturer anytime before your standard warranty expires.
With Toyota you can add it any point during the 3/36 period with no penalty. However, this is usually not the case with most manufacturers. Most manufacturers have penalties now if you do not add it early on. Nissan, Honda, GM...to name a few.
and remember you can usually add one of these plans with the manufacturer anytime before your standard warranty expires.
With Toyota you can add it any point during the 3/36 period with no penalty. However, this is usually not the case with most manufacturers. Most manufacturers have penalties now if you do not add it early on. Nissan, Honda, GM...to name a few.
Looks like GM is within the first 12/12,000 with no upcharge. What is the policy at Nissan and Honda?
Originally Posted By: LS2JSTS
Looks like GM is within the first 12/12,000 with no upcharge. What is the policy at Nissan and Honda?
Not sure on Honda anymore, I stopped keeping track once they stopped selling the policies online.
Nissan's policy which when into effect on 4/1/10 is that if the vehicle is past the 1/12k, there is a $75 upcharge. Additionally, a vehicle inspection must be completed by a dealer. Most dealers charge 1 hour labor, which is $115/hr where I live.
Looks like GM is within the first 12/12,000 with no upcharge. What is the policy at Nissan and Honda?
Not sure on Honda anymore, I stopped keeping track once they stopped selling the policies online.
Nissan's policy which when into effect on 4/1/10 is that if the vehicle is past the 1/12k, there is a $75 upcharge. Additionally, a vehicle inspection must be completed by a dealer. Most dealers charge 1 hour labor, which is $115/hr where I live.
- Status
Similar threads
