Extended warranty thoughts (1 Viewer)

[kcjaz]

I'm soon to join the 4th Gen Taco club with a 2025 TRD Offroad that is currently getting some Trail Hunter upgrades at Ed Martin Toyota (Eric Sargent, who is great to work with BTW).

I generally never buy extended warranties and choose to "self insure" that risk, especially with Toyotas. But, with a new model, that has had some hiccups when first rolled out, it makes me think a bit on buying an extended warranty for peace of mind. I intend to keep this truck forever. Ultimately, it will come down to cost which I don't know yet. I think I can also shop the extended warranty to other dealers too.

What have you guys done wrt extended warranty? Just looking for real people perspectives.

 

[Romer]

I bought a 10 year 100K mile warranty from Toyota for $1360. They are called service contracts. I first questioned if my modifications woul negate the warranty, but found the Magnuson-Moss Act

The Magnuson-Moss Warranty Act protects consumers from having their vehicle warranty voided solely due to the use of aftermarket parts or modifications, including lift kits, unless the manufacturer can prove the aftermarket item directly caused the failure.

• What the Act Does:
  The Magnuson-Moss Warranty Act, a federal law, prevents manufacturers from voiding a vehicle's warranty simply because a customer uses aftermarket parts or services, or makes modifications like installing a lift kit.
• Burden of Proof:
  The burden of proof lies with the manufacturer to demonstrate that the aftermarket part or modification caused or contributed to the failure of the vehicle component in question.
• Examples:
  • If a vehicle with a lift kit experiences a CV joint failure, the manufacturer would need to prove that the lift kit, and not a manufacturing defect, caused the CV joint to fail such as the increased angle on the joint. This case would likely be reasonable to assume a lift caused a problem with a CV depending on the failure. It could be disputed in court though
  • If a vehicle with a lift kit has a problem with the engine, the manufacturer would need to prove that the lift kit caused the engine problem.
  • If a vehicle with a lift kit has a problem with the power door lock, the manufacturer would need to prove that the lift kit caused the door lock problem.

With Traiffs I am even happier with the decision I made. I had to replace an Amplifier in my 200 and that cost alone for a new part was over the warranty cost and these vehicles have more electronics

Here is who I bought from and what their prices were. May have changed since Tariffs

Troy Dietrich tdietrich@toyotaofgreenfield.com
Factory Discount Warranty
Toyota & Ford of Greenfield
Phone. 413-775-6519
Fax. 413-203-6681
Web. http://www.FD-Warranty.com

Toyota Extra Care, Platinum coverage with $0 deductible:
4 yr / 125K - $790.00
5 yr / 100K - $765.00
5 yr / 125K - $915.00
6 yr / 75K - $645.00
6 yr / 100K - $895.00
6 yr / 125K - $1140.00
7 yr / 75K - $715.00
7 yr / 100K - $1025.00
7 yr / 125K - $1250.00
8 yr / 75K - $835.00
8 yr / 100K - $1145.00
8 yr / 125K - $1505.00
9 yr / 100K - $1265.00
9 yr / 125K - $1665.00
10 yr / 100K - $1360.00
10 yr / 125K - $1795.00

 

[rexington14]

I wouldn't pay extra for one.

A number of Toyota dealers already offer lifetime powertrain warranties for any new Toyota purchase - at no additional charge. Of course read and understand the warranty terms to see if you will be able to maintain eligibility. From what I've seen you need to maintain the vehicle according to the maintenance guide and all maintenance & repair needs to be done at a licensed shop, so you need to save all receipts / invoices. If you DIY work on your car you will not qualify.

 

[Romer]

I wouldn't pay extra for one.

A number of Toyota dealers already offer lifetime powertrain warranties for any new Toyota purchase - at no additional charge. Of course read and understand the warranty terms to see if you will be able to maintain eligibility. From what I've seen you need to maintain the vehicle according to the maintenance guide and all maintenance & repair needs to be done at a licensed shop, so you need to save all receipts / invoices. If you DIY work on your car you will not qualify.

I don't know of any local dealers that offer a lifetime power train warranty. Maybe it is different in your area. That wouldnt cover electronics though which is my big concern.

I was with you on these things not being worth it. I was offered thios warranty at time of purchase for $3500. I passed. I then found out there are a few discount brokers who sell Toyota factory warranties through their Toyota dealership. The price to me for a 10 year warranty is the cost of an everage repair at a reputible shop on my Land Cruiser. I am talking repair and not maintenance.

If you read the details of the Magnuson- Moss act you will see that maintenance does not have to be performed by licensed shop. It can even be done at home

Do I have to use the dealer for repairs and maintenance to keep my warranty in effect?​

No. An independent mechanic, a retail chain shop, or even you yourself can do routine maintenance and repairs on your vehicle. In fact, the Magnuson-Moss Warranty Act, which is enforced by the FTC, makes it illegal for manufacturers or dealers to claim that your warranty is void or to deny coverage under your warranty simply because someone other than the dealer did the work. The manufacturer or dealer can, however, require consumers to use select repair facilities if the repair services are provided to consumers free of charge under the warranty.

I go onto my profile on Toyotas owner site and load my own maintence by vehicle when I do it to document being done per factory schedule. The below was an early oil change as I only have 3500 milees. I did it after I felt the engine break in period was over

https://www.ftc.gov/system/files/documents/federal_register_notices/2015/05/150522mag-mossfrn.pdf page 12 item C is where this is stated
"No warrantor may condition the continued validity of a warranty on the use ofonly authorized repair service and/or authorized replacement parts for non-warrantyservice and maintenance"

 

[kcjaz]

I bought a 10 year 100K mile warranty from Toyota for $1360. They are called service contracts. I first questioned if my modifications woul negate the warranty, but found the Magnuson-Moss Act

The Magnuson-Moss Warranty Act protects consumers from having their vehicle warranty voided solely due to the use of aftermarket parts or modifications, including lift kits, unless the manufacturer can prove the aftermarket item directly caused the failure.

• What the Act Does:
  The Magnuson-Moss Warranty Act, a federal law, prevents manufacturers from voiding a vehicle's warranty simply because a customer uses aftermarket parts or services, or makes modifications like installing a lift kit.
• Burden of Proof:
  The burden of proof lies with the manufacturer to demonstrate that the aftermarket part or modification caused or contributed to the failure of the vehicle component in question.
• Examples:
  • If a vehicle with a lift kit experiences a CV joint failure, the manufacturer would need to prove that the lift kit, and not a manufacturing defect, caused the CV joint to fail such as the increased angle on the joint. This case would likely be reasonable to assume a lift caused a problem with a CV depending on the failure. It could be disputed in court though
  • If a vehicle with a lift kit has a problem with the engine, the manufacturer would need to prove that the lift kit caused the engine problem.
  • If a vehicle with a lift kit has a problem with the power door lock, the manufacturer would need to prove that the lift kit caused the door lock problem.

With Traiffs I am even happier with the decision I made. I had to replace an Amplifier in my 200 and that cost alone for a new part was over the warranty cost and these vehicles have more electronics

Here is who I bought from and what their prices were. May have changed since Tariffs

Troy Dietrich tdietrich@toyotaofgreenfield.com
Factory Discount Warranty
Toyota & Ford of Greenfield
Phone. 413-775-6519
Fax. 413-203-6681
Web. http://www.FD-Warranty.com

Toyota Extra Care, Platinum coverage with $0 deductible:
4 yr / 125K - $790.00
5 yr / 100K - $765.00
5 yr / 125K - $915.00
6 yr / 75K - $645.00
6 yr / 100K - $895.00
6 yr / 125K - $1140.00
7 yr / 75K - $715.00
7 yr / 100K - $1025.00
7 yr / 125K - $1250.00
8 yr / 75K - $835.00
8 yr / 100K - $1145.00
8 yr / 125K - $1505.00
9 yr / 100K - $1265.00
9 yr / 125K - $1665.00
10 yr / 100K - $1360.00
10 yr / 125K - $1795.00

Thanks Ken, the cost info is super helpful. I was offered a 10yr/150K for $4100 and when I coughed and sputtered he dropped the price to $3100. Still high to me and when someone drops their initial offer by 25% within 2 minutes and without me countering, it raises a red flag and I generally end the game there, which I did.

For $1300, on a car I intend to drive for 20 years and 300K or so, the 10 year/100K starts making sense to me just because of the massive amount of electronics on a new car. The 14” multimedia display alone is $7000. Plug, the tariff thing is not going to make Toyota parts cheaper. Maybe I’m kidding myself thinking I’m gonna drive a 2025 vehicle for 20 years. Who knows, that’s just my current plan.

@Romer, do you know if your warranty is transferable to a new owner, should you sell it? Also, can you cancel it and get whatever times left for back to you? I never thought that was the case with these warranties, but the one that was offered to me at a very high price had those features. I’m not willing to pay more for that even though I don’t intend to ever sell it but stuff happens, so a nice feature.

 

[rexington14]

I don't know of any local dealers that offer a lifetime power train warranty. Maybe it is different in your area. That wouldnt cover electronics though which is my big concern.

The lifetime powertrain warranties are pretty common at Toyota dealerships here in the Carolina's.

Here's one for reference:

https://www.hendricktoyotanorthcharleston.com/lifetime-warranty

 

[Romer]

The lifetime powertrain warranties are pretty common at Toyota dealerships here in the Carolina's.

Here's one for reference:

View attachment 3877130

https://www.hendricktoyotanorthcharleston.com/lifetime-warranty

Thats pretty good. I have never seen that in Colorado on Toyota's

 

[Romer]

@Romer, do you know if your warranty is transferable to a new owner, should you sell it? Also, can you cancel it and get whatever times left for back to you? I never thought that was the case with these warranties, but the one that was offered to me at a very high price had those features. I’m not willing to pay more for that even though I don’t intend to ever sell it but stuff happens, so a nice feature.

Attached is the pamphlet explaining the "service agreement". You can transfer once at no cost to you

This is what my signed contract says about cancel/refunds

BTW- here my contract specifies what records need to be kept for maintenance even if you do it by yourself. I have started keeping receipts for everything digitally

 

[kcjaz]

Thats pretty good. I have never seen that in Colorado on Toyota's

Yeah, Olathe Toyota (5 miles from my house) does a lifetime power train warranty too if you buy from them. They also won’t sell me new Tacoma for $4K under MSRP.

 

[coldtaco]

Romer found a good price for the extended warranties, I paid I think $1600 for the same 10yr/100k. I bought a 7yr something miles one for the 2017 Rav4 hybrid and had the rear hatch mechanized lift struts replaced just before the extended warranty expired, cost around $3000 for the replaced Struts, can't remember what I paid for the extended warranty but it was less than the lift struts.

 

[kcjaz]

I was able to get the same quote from the same dealer @Romer used by just following his link. Ed Martin uses Zurich for the extended warranties and while they did come down in price significantly, they are still a bit more than the pricing Romer found. The coverage seems to be the same, though Zurich offers a 10yr/150 option. You really never know how good your insurance is until you use it as some companies claims folks can be hard to work with. Here though, I have no basis for a customer service opinion but I'm not sure I see any compelling reason to pay more for the Zurich warranty.

I find it interesting that different Toyota dealers sell different extended warranty products and many do not offer the Toyota warranties. I would guess this might have something to do with the dealership being in a multi OEM group or not.

 

[Romer]

Is Zurich a 3rd party? I feel better having a Toyota one myself. Glad you were able to do the same.

 

[smritte]

I'll throw my three cents in.
I worked as tech for 30 years and for the last 20 I've been in corporate.

An extended warranty is an insurance policy. If your going to buy one, you buy the factory offered only. The "others" can be very shady and you really need to read the fine print. I cant tell you how many customers I've seen lack coverage due to something stupid that was in their contract. I've never seen issues with any factory contract.
The "non" factory warranties would sent out an inspector. Lets say your vehicle needs a water pump and that's covered. You didn't service the rear diff or you cant prove you did it with a receipt. You now violated the part of the warranty that you agreed to saying you will follow the manufactures maintenance schedule.
The aftermarket warranties only make money if you cant claim anything. The dealer makes way more profit on them and very little on the factory warranty. That's why they either push the aftermarket or raise the price on the factory one.

Regarding the "Lifetime" driveline offered by dealerships. One needs to define "lifetime" I can tell you two of the American manufactures consider the life of the vehicle to be over at the five year mark.
Toyota will step up to 100k easily and I've seen them go to 150k if they believe its their fault.

As for voiding warranties due to mod's, that's another grey area. They cant void your factory warranty but be careful about aftermarket warranties. Also, as a tech, If the vehicle is moded, you always look there first. Odds are the mod caused the issue. If the mod caused the issue, your paying for it.
Think, Tacoma, 37's and 15k miles with a broken upper arm and bent steering. He screamed warranty and we had the throw him out. Yeah, I know, stupid example but that's what we see.

 

[kcjaz]

I'll throw my three cents in.
I worked as tech for 30 years and for the last 20 I've been in corporate.

An extended warranty is an insurance policy. If your going to buy one, you buy the factory offered only. The "others" can be very shady and you really need to read the fine print. I cant tell you how many customers I've seen lack coverage due to something stupid that was in their contract. I've never seen issues with any factory contract.
The "non" factory warranties would sent out an inspector. Lets say your vehicle needs a water pump and that's covered. You didn't service the rear diff or you cant prove you did it with a receipt. You now violated the part of the warranty that you agreed to saying you will follow the manufactures maintenance schedule.
The aftermarket warranties only make money if you cant claim anything. The dealer makes way more profit on them and very little on the factory warranty. That's why they either push the aftermarket or raise the price on the factory one.

Regarding the "Lifetime" driveline offered by dealerships. One needs to define "lifetime" I can tell you two of the American manufactures consider the life of the vehicle to be over at the five year mark.
Toyota will step up to 100k easily and I've seen them go to 150k if they believe its their fault.

As for voiding warranties due to mod's, that's another grey area. They cant void your factory warranty but be careful about aftermarket warranties. Also, as a tech, If the vehicle is moded, you always look there first. Odds are the mod caused the issue. If the mod caused the issue, your paying for it.
Think, Tacoma, 37's and 15k miles with a broken upper arm and bent steering. He screamed warranty and we had the throw him out. Yeah, I know, stupid example but that's what we see.

Helpful. Thanks. My intuition said, don't go third party on this. I'll go with Toyota Platinum through Toyota.

On a side note, I had an 87 FJ60 that I bought used in 1990 with the factory warranty expired and only a 30 day dealer warranty. Blew a head gasket 32 days after purchase and scored a cylinder requiring engine rebuild. Toyota "good willed" that at no cost to me (though it did take month or more to get it done). New engine came with 1yr/12,000 mile warranty and 13 months later, I notice an oil leak on the front crankshaft pully. I do to replace the seal and see that the shaft key was messed up and the keyway was all waddled out. Take it to a dealer and they say I'm SOL, need new short block as bearing web is messed up. I call the original dealer I bought it from and who did the engine rebuild the year prior with the expectation that all I'd get was letting them know what I thought about them. Instead the guy called his Toyota rep and once again, Toyota "good willed" the new engine. I payed like $10K for that truck and had one engine rebuild and one whole engine replacement done which would have cost something like $15K back then.

 

[kcjaz]

I got the actual coverage description for the Toyota Platinum EW. They basically do it by saying everything is covered unless specifically excluded. Here is what's excluded:

Exclusions include accessory drive belts, batteries, body panels, brake linings, pads and shoes, rotors and drums, bumpers, carpet, chrome, clutch friction disc and pressure plate, dash cover and pad, door fabric, door trim, filters, fluids, fuel cell components, glass, headliner, heating hoses, lines and tubes, hoses, hybrid vehicle battery pack, interior and exterior trim and moldings, lamps, light assemblies/housings, light bulbs including LEDs, nuts, bolts, clips, retainers, fasteners, paint, rust and corrosion damage, seat covers, sheet metals, shiny metals, spark plugs, structural framework and welds, tires, vacuum hoses, lines and tubes, weather stripping, wheels and rims, windshield wiper blades (rubber component), and all interior and exterior cloth, leather, and stitching.

I get a chuckle from a "bumper to bumper" warranty that specifically excludes bumpers. There are also a few exclusions that seem odd to me. Like structural framework and welds. Paint is another one. Both are things Toyota has messed up on Tacomas and Tundras. While I didn't get a hybrid, the specific exclusion of all the hybrid stuff is disappointing (though not surprising.

I need to dig into the standard warranty terms. I think that many of these exclusions are covered in the base warranty, though only 1 yr/12K.

 

[lowenbrau]

Just a thought. One of our club members bought a new Taco with the very large infotainment screen and after a few weeks he noticed a few misbehaving pixels so he asked the dealer to look at it at his first old change. The dealer service advisor said "Yep warranty" but the parts guys kinda coughed when he looked it up. $17,000 CDN! My buddy walked back to his sales guy and said. " You know, I think I'll go with the extended warranty after all"

 

[MountaineerLC]

Just a thought. One of our club members bought a new Taco with the very large infotainment screen and after a few weeks he noticed a few misbehaving pixels so he asked the dealer to look at it at his first old change. The dealer service advisor said "Yep warranty" but the parts guys kinda coughed when he looked it up. $17,000 CDN! My buddy walked back to his sales guy and said. " You know, I think I'll go with the extended warranty after all"

$17000 for a screen is insane!

Vehicles have become so complicated and parts/repairs so expensive I’m not sure one should keep a vehicle long beyond warranty these days.

I don’t think we’ll see many of this latest generation of Toyotas still on the road in 20 years with 250k + miles. It sadly just doesn’t appear viable for the enthusiast to keep these running and repair them at home like so many of us on Mud do.

 

[stiffarm]

The lifetime powertrain warranties are pretty common at Toyota dealerships here in the Carolina's.

Here's one for reference:

View attachment 3877130

https://www.hendricktoyotanorthcharleston.com/lifetime-warranty

Thanks for the information. Turbos and electronics are not covered and they are very expensive.