By
enotoga, December 11, 2006
Never buy one. My 2004 Corolla has 50k miles and NO WARRANTY REPAIRS. Of course I do not have the extended warranty - I only had the 36K three year factory freebee which is now expired. The reason people pay more for a Corolla than they do for a Chevy Cavalier is because the Corolla will last.
The Extended warranty is pure profit for your dealer. You're car probably won't break and even if it does it will be cheaper to fix than you think if you use your head. Far cheaper than the warranty.
Don't forget - you still have the remainder of the 60 month/60K mile powertrain and federal emissions warranty for 8 years / 80K miles.
But I agree - some extended warranties are pure profit making machines. Some cases, like in my Dodge Truck, worth every penny.
Good to hear that your ride has 50K on the clock and no Warranty repairs to date - exactly what one should expect from a Toyota product. 
friendly_jacek
My 2004 Corolla has 50k miles and NO WARRANTY REPAIRS. Of course I do not have the extended warranty - I only had the 36K three year factory freebee which is now expired.
Watch out now, corollas have a built in chip that genrates faults after warranty expires. Otherwise, dealerships would go bankrupt. LOL.
Bikeman982
Your car knows if you get the extended warranty and won't break until after the warranty period/miles are up.
When purchasing my wife's 2006 Toyota Corolla LE, I purchased the Toyota Platinum $0 deductible warranty for like $1000. I know this may seem like a waste and I hope I never need it. But, we bought the car in March and we already have 19,000 miles on it! I bout the 6 year/100,000 mile warranty.
I realize that the powertrain is covered until 60,000 and that the likelihood of needing expensive repairs (to exceed more than I paid) is slim. However, I have a close friend who did not buy the warranty and two of her window motors went out! It cost her over $600 to have them replaced at like 39,0000. So, my main concern is the electronic components such as the window motors. I just want to be sure I do not have any out-of-pocket expenses any time soon!
I feel that the quality of Toyota is that they do not breakdown constantly, but like any other manufacturing process, you can always get a lemon. I plan to be very critical of the car's performance when I near higher milegage. If anything is not right, it's going back to the dealer and I am going to get things replaced/repaired under the warranty. The warranty covers the water pump and the timing chain. These are two things that went out on my other friend's vehicle at 80,000 miles.
My daughter has a 1999 Pontiac Sunfire and paid about $1,500 extra for some extended warranty. I wish she would have asked my advice first! Three years ago, still under warranty, her timing belt broke and it cost her a new motor. Of course it wasn't covered under the warranty.
yea, a wear item like a belt isnt covered...nor is the subsequent damage.
Bought my 06 in July, just bought the platinum warranty last week. The car has what, 4 or 5 onboard computers?? Already saw a post on here somewhere someone had their cruise control processor die out. What's that cost?? Drivers seats go bad, power window motors, computers, electronic sensors, ABS units....personally I don't trust that stuff to go 5 or 6 years with no problem.
Bikeman982
Things are meant to wear out. Is the extended warranty justifiable?
That is a personal decision and is similar to life insurance.
Do you feel lucky or not??
Things are meant to wear out. Is the extended warranty justifiable?That is a personal decision and is similar to life insurance.Good way to put it. Myself, I just don't care to do the DIY thing anymore, worked at a GM dealership a number of years back and now I'm into electronics. So if anything expensive ( and what isn't these days) goes bad, I'll be covered. Interestly enough, there's a clause in there against were and tear on the engine, i.e burned valves, worn piston rings- not covered. But you do get things like rental car reimbursement, trip protection, things like that which I feel make it worthwhile. Thousand dollars over 6 years is $167 a year- worth it in my book. But that's just my 2 cents...
Do you feel lucky or not??
Hi guys
Just got a 2007 Corolla S (5 spd manual), an interesting option (been my first car in the USA) was the option of an extended warrenty which covers bumper to bumper for 100000 miles or 6 years, whichever comes first on all parts and labour.
If you dont use the warrenty within 100000 miles or 6 years you get your dollars refunded.
Just thought that was an interesting way to do it.
Cheers
Sheldon
Instead of wasting your money on extra warranty, why not put 30 bux into a shoe box every month. In five years, your shoe box would have 1800 bux, and you can use that to cover the very slim possibility of repair work. Most likely, you won't need it, and you will be able to enjoy spending the 1800 bux on whatever you want.
I am also one who doesn't buy extended warranties. The main reason is because I used to try to sell them when I was a car salesman. Of course, I was selling Fords, Hyundai's and Mitsubishi's at the time, and at least for the Fords and Hyundai's, the extended warranties were actually a worthwhile investment for the new owners of these particularly unreliable makes. I always got a pretty big commission out of the sale of the warranty.
Part of our sales process was to make "follow-up" calls to service customers, in the hope of getting them back into the showroom to trade-in their present automobiles for a new one. Of course, I'd get a lot of complaints regarding the abusive practices of the Service Department, and a good number were coming from people getting things fixed under extended warranties. Apparently, actually getting something fixed required the customer to retain a lawyer, or so it seemed. I was amazed at how much animosity was caused by the Service Department.
If you are buying a very expensive Big Three American-brand car, then I couldn't blame you for wanting the extended warranty. Just remember that as a big profit item, you can wheel and deal on it's price -- particularly if you are a cash customer. If you're financing, you'll end up paying full price for it whether you know it or not.
Bikeman982
Hi guysI like the idea of getting the money back, and that is an incentive to DIY repairs.Just got a 2007 Corolla S (5 spd manual), an interesting option (been my first car in the USA) was the option of an extended warrenty which covers bumper to bumper for 100000 miles or 6 years, whichever comes first on all parts and labour.
If you dont use the warrenty within 100000 miles or 6 years you get your dollars refunded.
Just thought that was an interesting way to do it.
Cheers
Sheldon
We bought a brand new 2004 Sienna in 2004. The dealer offered the 7 year 100K mile $0 Ded. Toyota platinum extended warranty for $1650. Naturally we passed... I knew what cards I had in my hand.. The online Sienna message board has many posts about a dealer selling the Toyota 7 Year 100K warranty for $20 over their cost = $776! Yes there is THAT much markup in those things. Of course the price did go up a bit as each year passes however you have until the end of the 3 year warranty to pickup the warranty. I decided on the 7 year 75k 0 Ded for $520. Yes it may just be money down the drain but its insurance. The Toyota warranty also give me free towing to the dealer, free rental car, lodging other benefits…
I figure for $500 its worth the insurance. I know this dealer offers other Toyota car warranties as well… They are genuine Toyota Financial Service warranties and yes people have used them with no issues…
Here is a link to the Siennaclub forum discussion
httphttp://www.siennaclub.org/forum/index.php?showtopic=5914&st=250
Here is a link to the Toyota Financial Service Warranty offers
http://www.toyotafinancial.com/pyv/extende...ge/n_index.html
Bikeman982
The older a car gets, the more likely you would need to use a warranty.
I never keep a car long enough to justify the cost of the extended warranty.
I bought a phone jack today at the dollar store for a buck and I can't believe it....it actually says on the package that it's guaranteed for 5 years. That's a guarantee that I'd like to test out.
Bikeman982
I bought a phone jack today at the dollar store for a buck and I can't believe it....it actually says on the package that it's guaranteed for 5 years. That's a guarantee that I'd like to test out.Does that mean you will keep the receipt for 5 years (and not lose it)?
If it goes bad in 5 years (or less), will you know where the receipt is?
Will the store still be there?
Is it worth the $1 to go back to get the warranty honored (may cost you more for the gas to get there)?
my 2 cents - most foreign auto's dont need warranty extenders. most american cars do.
now, someone mentioned earlier that they are profit generators. oh, yes they are! most dealerships mark up on those is 100%, some even 150 - 200 %.
someone also mentioned it would be better to put 30 bux a monthin a shoe box. very good idea!
those of you who have bought one, especially those who financed their car, did you realize how much you will be in the hole when you go to trade it in? by the time you pay for the warranty (that most likely will not be used)how much did you actually pay? (including all the interest)
also, those of you who have had to use your extended warranty, or know someone who had to - did you at least reallize your investment?, or better yet, was the repairs even covered?
the company's who actually provide the insurance, most often find a way out of paying (ie, you didnt change the oil, maintence items are not covered, fluids will not be covered regardless of fault, i could go on and on here)
if you do want to buy one, never buy one from a aftermarket company. they are the worst for non-paying/denying coverage. always try to use the manufactures warranty program.
in ten years of doing service manager work, i have seen ONE pay off.
whenever someone comes in and says "i have an extended warranty", all i can do is groan. i feel real bad for the people who bring then in because i feel they got screwed twice. first for paying to much, and second - when i have to tell them it's not covered.
the morale of my story is - if you insist on getting one, please do your research, read the fine print, and above all, dont pay what the dealer is asking you too!!!!
aaron
Bikeman982
Sounds like extended warranties do not cover the items that need coverage.
my 2 cents - most foreign auto's dont need warranty extenders. most american cars do.
I can show you several BMW and Mercedes Benz owners who think their extended warranty is worth its weight in gold. Same goes for Jaguar (pre-Ford takeover) , and Audi owners.
When you drive 60,000+ cars and something as simple as a power window breaks, you're talking about shelling out $700 to $800 dollars. If you bought a Mercedes Benz E430 new in 1999 you'd be glad you paid the $3000 the dealer wanted for the extended bumper to bumper warranty since you probably used it to replace the front window motors at least once and the Xenon headlamp modules at least twice. You probably also replaced your power seat motor, a trip computer and a CD changer as well. I'd rather not have to shell out the $4000 to $5000 all those repairs would have cost, not including the rental car you would have needed to use while your car was in the shop. If you bought a late 1990s Audi and the coil packs on it failed every 10k like some Audi owners cars did, you would be glad to have paid for that warranty instead of $600 per year just to keep the car starting, not to mention all the other little things you'd need to get fixed over the years.
I personally think that extended warranty contracts are a waste of money for all but the most expensive cars. If you're buying a car that is so prone to be problematic that you feel it needs an extended warranty, think twice about what you're about to do. Wouldn't it be better to just buy a similar car that is more reliable? For Luxury cars that isn't really practical. There is a huge difference between a Lexus LS460 and a Jaguar XJ8 Vanden Plas, they really don't appeal to the same type of driver and so if you like the idea of a Jag, you just buy it because there isn't a more reliable substitute. In that case it makes sense to buy the extended warranty unless you aren't going to keep the Jag more than 4 years or drive it more than 50,000 miles.
On the other hand, I may just think extended warranty contracts are a waste of money because most of my family leases cars and leased cars are always under warranty if you pick the right lease term. It does not make sense to buy an extended warranty for a car that you will never drive outside its original warranty period, so no one in my family has ever talked about buying one. However, I have looked into them for friends before, so it isn't like I don't know anything about them.
Warranties are not worth the paper they are written on.
Its a cash cow for any dealership who will use every excuse under the sun to find an exit clause.
Every car Ive bought brand new from any dealership Ive taken delivery with no tinting, no paint protection or fabric protection, not even a wash, straight off the transporter ready to pickup with stickers, plastic and styrofoam still attached.
Never taken it back to the dealer either for servicing, all servicing done by me from brand new.
I agree that the "dealer warranty" is a load of crap- I just bought my '03 CE -55,000KM (private deal) that had just had the "complete vehicle inspection" from Regency Toyota a month before I bought it. I messed up in that I test drove it when it was raining, heard a "humming"noise, and dismissed it to the crappy stock tires. Before I bought it, I checked all the service records, everything seemed in order, even the "wheel bearing wear" was "satisfactory". To make a long story short, my right rear wheel bearing was shot, ToyMoCo wanted $450 for the part, and $200 for labour, I got the hub assembly for $150 through my brother's employeee discount and installed it myself...The only thing these jerkoffs at the dealer did was spray a bunch of tacky lube around the door hinges...they didn't even change the gear oil in the transaxle at the recommended 38,000KM. I drained and refilled the unit with Castrol Syntec, which took me about 20 minutes. Even the oil change interval makes me cringe-"every 8,000KM..?" My car gets done before 5,000KM rolls over, especially given the fact of the sludge build up, which apparently is inherent in Toyota motors. (though I've never had a problem with it)
The risk / reward ratio on these warranties is about the same as the local casino. Of course there are a few winners, but the house nearly always wins. I have purchased new a 1990 Corolla, 1997 Geo Prizm, 2001 Chevy Prizm and my wife purchased a 1999 Corolla (rental return) before we were married in 2002. All told, if we had purchased warranties on all vehicles, our wallets would have been robbed of approximately $5,450.
Here is my calculations:
Warranties purchased - 4
Cost - $4000
Financing Interest - $2,000 (Or opportunity cost if you pay cash)
Total Premium & Interest $6,000
Of course I would have saved $550 (Starter 97 Prizm $300 and Belt Tensioner $250)
Net LOSS $5,450
THE STEALERS ARE SCREWING YOU AND YOU DON'T EVEN REALIZE IT.
My experience is that the warranties could have been for 200,000 miles and the stealers would still be money ahead unless it included maintenance.
The 1990 Corolla went to the ex-wife and she traded it in at @ 130,000 miles. To the best of my knolwege it went to the stealer with the original battery.
The 97 Prizm has 267,000 miles on it. Looks like crap because two teenagers have learned to drive with it, the weak link was the starter (3).
The 99 Corolla has 226,000 miles and looks / runs like new.
The 01 Prizm has 150,000 miles, looks and runs like new.
BTW - I just figured out what Platinum / Gold / Silver refers to regarding extended warranties. The really have turned this around you think you are receiving the precious metals, that is funny!
But keep buying those extended warranties - it keeps the MSRP's down. If buyers get wise to the EW's the stealers and mfgr's will need to raise prices to preserve profit margins.
