What would you do? Extended warranty

[saillaw]

So as I mentioned in my introduction post, I recently purchased a “new to me” Land Cruiser 100 series. It’s a 2003 with 80K miles. It had one owner before me. Has all the service paperwork, does not appear to have ever left the asphalt, and all the systems seem to be running great.

My Dilemma:

My bank has offered to sell me an extended warranty that will cover the LC for the next 24 months or 24,000 miles (so probably 18 months for me) for $2,295. I’m really torn as to whether or not I should purchase this. I’d much rather spend that money towards my build-out (plan is for front and rear slee bumpers, slee sliders, winch, 2.5 medium lift, larger tires and lockers), but I really don’t know what to expect from the LC and if the “gamble” of the extended warranty is worth it. What do you think?

To help in the decision, if you feel like reading a ton of legalese, here is what the policy covers and what it does not (also covers towing, rental reimbursement, hotel costs, has a zero deductible and limit per claim is the blue book value of the vehicle):

What is covered:

ENGINE ASSEMBLY: Cylinder block, cylinder head(s), rotor housings and all internally-lubricated parts, intake manifold, exhaust manifold(s), timing gears, timing chain(s) or belt(s), timing chain or belt tensioners(s) and timing chain or belt cover, valve cover(s), flywheel or flex plate, ring gear, harmonic balancer, oil pump, fuel pump, vacuum pump, water pump, oil pan, thermostat, turbocharger or supercharger housing(s) and their internal parts, waste gate, intercooler, and engine mounts.

2) TRANSMISSION ASSEMBLY: Transmission case, transaxle case, transfer case, and all internally-lubricated parts, torque converter, vacuum modulator, cooler and metal cooler lines, and transmission mounts.

3) DRIVE AXLE ASSEMBLY: Final drive and axle housing(s) and all internally-lubricated parts, flex disc, axle shafts and bearings, universal and constant velocity joints, drive shaft, center bearings, and drive shaft yokes.

4) SUSPENSION ASSEMBLY: Upper and lower control arms and their shafts and bushings, ball joints, steering knuckles and spindles, stabilizer and strut or track bars and their bushings and links, coil springs, torsion bars and their mounts, leaf springs and their shackles and bushings, hub bearings and wheel bearings and McPherson struts.

5) STEERING ASSEMBLY: Steering gear housing, rack assembly, belt-driven pump and its reservoir and all internally-lubricated parts, steering column shaft and its couplings and bearings, steering pump pulley and mounting bracket, pitman arm, idler arm, tie rods, and steering linkages.

6) BRAKING ASSEMBLY: Master cylinder, wheel cylinder, calipers and their seals, power booster, accumulator, combination valve, backing plate assembly, metal brake lines and fittings, brake pedal, and parking brake assemblies.

7) ELECTRICAL ASSEMBLY: Alternator, pulley and mounting bracket, voltage regulator, starter motor and its solenoid and drive, wiper motors, manually-operated switches, neutral safety switch, backup light switch, and brake light switch.

8) HYBRID ELECTRIC VEHICLE (HEV): Electric motor, power controller, hybrid transaxle, electronic transmission, inverter, generator(s) and electronic display monitor.

9) AIR CONDITIONING AND HEATING ASSEMBLY: Belt-driven air conditioning compressor, clutch and coil, pulley, compressor mounting bracket, idler pulley and bearing and its mounting bracket, serpentine belt tensioners and its pulley and bearing, condenser, evaporator, accumulator, dryer, expansion valve, orifice tube, heater core, heater control valve, blower motor, control cables, ducts, and plenum doors.

10) FUEL DELIVERY SYSTEM: Fuel injectors, injection pump, distribution rails, fuel pressure regulator, fuel tank and metal or plastic fuel lines and fittings, fuel level sending unit, throttle body, throttle cable, throttle linkage, and accelerator pedal.

11) ENGINE COOLING ASSEMBLY: Fan, clutch and shroud, thermostat, radiator and its brackets and recovery tank, and electric fan motor.

12) INTERIOR ELECTRONICS: Electronic climate control head, digital dash display, heads-up display projector and control unit, trip/mileage/engine function computer, cruise control UC1105-1209 assembly, factory-installed entertainment system including radio, magnetic tape player, compact disc player, and graphic equalizer.

13) POWER TRAIN ELECTRONICS: Ignition coil, distributor, timing control processor and sensors, fuel injectors, mixture control processor and sensors, IAC motor, cooling fan control processor and sensors. Electronically-controlled transmission – Transmission shift control processor and sensors.

14) A.B.S. BRAKES: A.B.S. booster/pump, master cylinder, solenoids, control processor and sensors.

15) CONVENIENCE ACCESSORIES: Power window motor, power seat motor and regulator, power lock motor and its relays and actuator, power mirror motors, power headlamp motor, power trunk or tailgate motor and solenoids, power side door motor, power top or sunroof motor, power antenna motor, horn and horn relay, rear window defogger/defroster, and side view mirror defogger.

16) VEHICLE HARDWARE PACKAGE: Bumper impact absorbers, headlamp mounting buckets, parking and side lamp bodies and sockets, hood latch and cables, hood hinges and springs, side door hinges, side door handles, glove box lock assembly, ash tray assembly, manual seat track assembly, courtesy light switches, trunk lid hinges and torsion bars, and trunk lid striker plate.

17) ADVANCED TECHNOLOGY PACKAGE:
a) Electronic Suspension – Variable suspension struts, switches, air tubes, control processor and sensors, air suspension bags, compressor, lines and fittings.
b) Four-Wheel Steering – Steering pump, gear housing or rack assembly and all internally-lubricated parts, power cylinder, center shaft, stepper motor, and control processor and sensors.
c) Traction Control – Linkage, solenoids, and control processor and sensors. d) Memory Seat and Steering Wheel – Activator switches, motors, solenoids and control processor and sensors.
18)
CONSEQUENTIAL LOSS COVERAGE: This AGREEMENT includes Consequential Loss Coverage, which is defined by the following two (2) statements (as an exception to the standard exclusion):
a) Non-Covered Part Cause of Loss: In the event a BREAKDOWN occurs on a covered part under the Service AGREEMENT due to the failure of a non-covered part, the covered part will be repaired.
b) Covered Part Cause of Loss: In the event a BREAKDOWN occurs on a non-covered part under the Service AGREEMENT due to the failure of a covered part, the non-covered part will be repaired.

19) IN ADDITION TO ITEMS 1 – 18, THE COMPREHENSIVE PROTECTION PLAN COVERS ALL PARTS AND COMPONENTS OF THE VEHICLE EXCEPT FOR THE FOLLOWING ITEMS

What is not covered:(I’ve highlighted the part that concerns me. This would probably mean I would have to delay the lift, lockers, and larger tires until the warranty expired.)

THIS AGREEMENT DOES NOT PROVIDE COVERAGE FOR
ANY OF THE FOLLOWING PARTS AND SERVICES:

A) Voice Recognition Systems; Brake pads, shoes, rotors and drums; Manual & Hydraulic clutch assembly such as, but not limited to; Manual clutch pedal, clutch disc, pressure plate and throw-out bearing; Tune up, battery cables, Air, fuel and oil filters; Coolants, fluids, alignments, if not in connection with a covered repair; Spark plugs, Plug wires, Glow plugs, Drive belts, rubber hoses, exhaust pipes, catalytic converter, resonator, EGR vale and solenoid, shock absorbers; Wheels, tires, covers, wheel balancing; Contamination of any kind, Corrosion, Rust, Hazardous waster removal, detonation, pre-ignition, carbon build up, sludge, electrolysis; Any components that its only purpose is for illumination such as, but not limited to; Sealed beams, high-intensity discharge (Xenon) headlamps, LED’S and light bulbs; Lenses, secondary or Back up batteries, battery packs for Hybrid VEHICLES; Care phones, Any body component such, but not limited to; Bright metal parts, body panels, hood, trunk, rubber moldings, weather strips, metal, all glass, defogger and plastic trim;
Upholstery, seat pads, vinyl top, wiper blades, wiper arms, carpet, cup holders, normal maintenance items or services, rattles; Water leaks, wind noises, any non-factory installed components, Convertible top and assembly (with exception to the convertible top motor) , Safety restraint systems (Air Bags or seat belts) or any part thereof; Infrared systems or any part thereof Perimeter warning systems or any part thereof; Charges for shop supplies, storage or freight charges; or

B) For repair cost or expenses:
• For any mechanical problems that existed prior to the purchase of the AGREEMENT; Or for repair costs or expenses reported or made after the expiration date or mileage as shown on the AGREEMENT Declarations, or not authorized by the ADMINISTRATOR;
• If the odometer of the VEHICLE is broken or becomes inoperable or unreliable for any reason and repairs were not made immediately at the time of the failure, or if the odometer has been tampered with, disconnected or altered in any way;
• If the VEHICLE is used for towing (unless the AGREEMENT holders VEHICLE is equipped with the manufacturers installed or manufacturer authorized
tow package and does not exceed the manufacturer recommended gross combination weight rating (GCWR)), or is used as a commercial VEHICLE used
for, but not limited to; Off-road use, or snow removal;
• If the AGREEMENT Holder cannot provide to theADMINISTRATOR accurate records proving that theVEHICLE has been maintained in accordance with the
manufacturers specifications and instructions, or if any mechanical, electrical alternations have been made to the VEHICLE, including, but not limited to, the use of oversized tires, installation of header pipes or lift kits, and removal of any emission control system components;
• If repairs are still covered by the manufacturer’s warranty or covered by a recall or special policy by the manufacturer; regardless whether or not that
entity is doing business as an ongoing enterprise.
• If repair costs acquired outside of the United States or Canada or if the VEHICLE is registered outside of the United States or Canada;
• If the VEHICLE has been abused or neglected, or any part of the VEHICLE has been subject to alteration or accident, or for any accidental loss or damage
resulting from collision or upset, falling missiles or objects, fire, lightning, earthquake, windstorm, ice, hail, water, flood, contamination, corrosion, rust,
malicious mischief, vandalism, riot or civil commotion, or if the VEHICLE is a total loss, salvaged or banded;
• Due to any BREAKDOWN, which is caused, by any repair when the purpose is to raise the VEHICLE engine’s compression or to stop excessive oil
consumption; To any part that has not suffered a BREAKDOWN, or if the wear on the part has not exceeded the published field tolerance allowed by the manufacturer; or for repair costs not necessary to correct a BREAKDOWN, or damages or any loss resulting from faulty or negligent auto repair work or from the installation of defective components;
• Due to any BREAKDOWN caused by the AGREEMENT Holders failure to protect the VEHICLE from further damage, including failure to replace leaking seals
and/or gaskets; or by the failure of the AGREEMENT Holder to maintain proper qualities or levels of coolant and lubricants;
• From any other cause whatsoever, except as outlined in this AGREEMENT.
C) For liabilities for damage to property or for injury to or death of any person arising out of the operation, repair, maintenance or use of the VEHICLE, Whether or not related to any covered components, or for consequential losses or damage (unless in connection with coverage as described in the AGREEMENT Holders plan coverage) including but not limited to, property damage, loss of use of the VEHICLE, loss of time, inconvenience, or commercial loss resulting from the operation, maintenance and/or use of the VEHICLE, unless specifically covered herein;

 

[mister bean]

I would skip it. From what I've heard about the extended warranties, they're best avoided. If you're really concerned about problems, stick that $2300 in the bank and use it to pay for repairs.

 

[Sverige]

Skip it. My truck came with a $0 deductible 7 year bumper-to-bumper direct from Toyota for less than what they are trying to charge for 24 mo.
And... its a Toyota! No worries.

 

[Sixgunz]

I'd pass.

I am a believer in extended warranties, but only through the car maker, never an aftermarket one.

Aftermarket ones are a PITA to get authorization & they fight you at every step.

In the past 2 years, I've had $17,000 (retail) worth of work done on two vehicles & it cost me $300 in deductables.

Considering it's a Cruiser, especially an '03 with only 80k on it, I'd do like the other poster said & just bank it.

I bought my '03 with 140k on it & the only money the orig owner put in it was normal maintenance. Anything defective would have broke already. Anything not defective will last far longer than 80k.

 

[patrickfinley]

Yup, a lift or tire change would void the warranty. Skip it. I highly doubt you would have $2,200 worth of failed parts in the next 2 years.

 

[LCbruiser2000]

i'd pass and bank it as well. had an extended on my 4runner and *never* had a use for it.

everyone's always trying to sell you your own shirt on your back

 

[e9999]

my wife took an extended warranty on the 03 when we got it. But it was a true Toyota warranty and it was a super good price. As things happened we actually got more than our money's worth, but admittedly we had things done at the dealer that I could have easily done myself at a fraction of the cost or that were not really critical.

 

[Topmounter]

If you don't have enough confidence in the vehicle that you're willing to pay for an aftermarket warranty, then you should not buy the vehicle.

 

[highonpottery]

i contemplated this when i bought mine and decided to buy the warranty only because the original owner traded it in to the dealership after the transmission failed on him. since i had horrible experiences in the past with rebuilt/replaced trannys on some of my past vehicles, and the vehicle had not been driven after repairs (to work out the kinks), i decided the warranty was worth it. knock on wood, there haven't been any issues in 50k - so i probably could have skipped it.

i did however, choose to buy the prepaid service/oil change plan because the breakdown per service was actually cheaper than me buying just the oil and filter on my own, before my labor.

 

[pfran42]

Ix-nay on the warran-tay

 

[paflytyer]

I would skip it. I had a Toyota Certified bumper to bumper on my last 4Runner but never used it. I had the option to add the warranty to my 04 100 series (90k) but decided against it. I'd save that money and pay for your 90,000 miles service instead.
You just bought a beast, just take care of it and it'll take care of you!

 

[saillaw]

Thanks for the feedback all. I really was leaning towards not getting it unless there was an overwhelming response of "hell yes, get it, that's a great deal compared to the repairs you're going to experience over the next two years!". Since the response has been exactly the opposite, I'll save the cash and spend it on fun stuff

 

[OregonLC]

Extended warranties are huge profit centers for dealers. Don't think they're offering it because they're being nice. Also keep in mind that the $2,300 warranty doesn't start paying for itself until after you've had $2,300 in covered repairs. So often I hear people talk about how happy they are that their extended warranty covered something trivial like a leaking gasket. Cool. You just spent $2,300 on $900 worth of repairs. That's assuming that the warranty company is legitimate, didn't go out of business, and will actually pay the claim. If it's from a Toyota dealer your pretty safe as their reputation is at stake if the warranty goes south.

As a side note, on CPO's you can negotiate the CPO warranty out of the deal if you want to save extra on a used vehicle that's otherwise overpriced as a CPO.

 

[paflytyer]

As a side note, on CPO's you can negotiate the CPO warranty out of the deal if you want to save extra on a used vehicle that's otherwise overpriced as a CPO.

True. I actually negotiated mine at cost. $880 for 4 years/100,000 miles. Never used it. That 4Runner just ran too good!

 

[TheFuzz]

I spent about $2200 on a 3 year/36000mi extended warranty on my Yukon when I bought it. Between leaky diff seals, driveshaft stuff, fuel pump, water pump, etc getting replaced, I broke even on it. But just barely. Glad I bought it in retrospect, but Yukon vs LC is completely apples to oranges. There just isnt that much stuff that goes wrong with these things if you keep up on the PMs. There is no reason for you to get the warranty that they are offering you, especially since you know that you're going to go out and void it the first chance you get.

 

[ENGINE er]

I spent 1800 on a 3/36 on my 2006 touareg because I know I would be running it hard, and they are problematic cars. In the 8mo I owned it it had $8k of repairs. Well worth it.

I just purchased a 98 that I plan to wheel that has 200k miles and I have no reason to get an extended warranty.

 

[patrickfinley]

I just purchased a 98 that I plan to wheel that has 200k miles and I have no reason to get an extended warranty.

Is it possible to even get a warranty that would actually pay out for a vehicle with 200k miles? I thought most warranties didn't really do much for you after 100k.

 

[ENGINE er]

Is it possible to even get a warranty that would actually pay out for a vehicle with 200k miles? I thought most warranties didn't really do much for you after 100k.

200k may be tough but my touareg was covered to 120k

 

[SUMMIT CRUISERS]

If it was a Land Rover... buy the warranty

but with a Land Cruiser...skip the warranty and save for upgrades.