2eZee

loving weirdos.
And you know who you are.
Toyota and Lexus warranties are premo right out of the box.

If you enjoy giving a dealer one thousand bucks on something that doesnt even kick in for years, and is VALUELESS on tradein VALUELESS, because it is.
Well, knock yourself out.

I gave my money to Toyota/Scion/Lexus cause there cars are built well, Im not giving my money to Fred in Finance cause hes so smart with garbage warranties.


And its a business FACT they plan on making money on insurance / warranties

HELLLLLLO you platinum weirdos, they dont plan on Losing the warranty game HELLLLLLLO



sooooooo frustrating.


I have mucho car experience and financial experience and know the number games.
It is insane what some of you believe, hence the rant.

3_IGs

I understand where you're coming from...

...But what about the folks who keep their cars for 7-10 years? I think these are the folks who might benefit from the platinum warranty.

Maybe?

Bakaduin

They make money on the warrenty came so you shouldn't buy it? I wouldn't buy the warrenty either but that is a horrible justification for it!
Insurance companies make money. Does that meen who should stop forking over our payments and just HOPE we dont get into an accident? The whole point of insurance and a warrenty is that you pay the cash but in the chance that something goes wrong its cheaper then paying for the new parts. Obviously if you have insurance and never get into an accident or use it then the company is making loads off you. Does this meen we should go get into accident to utilize insurancne? Toyota is built well, but like every piece of machinery ever invented it can wear, it can have its flaws, and if people think 1,000 dollars is a small price to pay to know that Scion has that taken care of then who are you to argue?

dgHotLava

all kinds of insurance (warranties) are a money making games.
they charge you a premium and hope you will never put in a claim...
what about health ins. or car ins. they are nothing more than a warranty for you or your driving habits...you gonna tell people not to have those either...

all of these things are risk management devices, you pay a fee now to offset the risk of a large claim later.
so if people feel they need this to have peace of mind, go for it...

and a basic 3yr warranty when most people are going to have payments for 5yrs. does not make most feel comfortable.

basilisk4

2ezee is right in that the extended warranty would not be sold if they did not continue to make good money from selling it. In other words, the total cost of repairs paid under those warranties must be less than what they make -- THAT is why the extended warranty is probably not worth it. If you know that, on average, you can expect to pay less than the price of the extended warranty for repairs during the warranty, not only are you probably wasting the difference, but you're also losing the interest value of the money by giving it to the warrantor up front.

There's another thing at work here. Extended warranties are NOT just like insurance. Insurance makes sense in situations where the relative risk is low but the potential payout is extremely high. Insurance works because a pool of people, each with a low risk individually, pay relatively small amounts of money (compared to what the insured eventuality would cost if it were to occur) to a single insurer. This works, because only a few of those people will actually experience the type of loss for which the insurance exists. If too many people experienced huge losses, the whole concept of insurance wouldn't work.

Extended warranties are more like pre-paid plans than they are like insurance. Explain to me, for example, what kinds of expensive repairs are likely to be necessary which wouldn't be covered by the 5-year/60,000-mile powertrain warranty. If the repairs aren't expensive, then you're better off saving the money from the extended warranty and using it to pay for those repairs.

zach

I'm gonna extend my warranty when the basic runs out, ya know, the smart way to do it?

Bakaduin

Insurance and Warranties are very alike. As Chris Rock puts it so perfectly they are a "What if" kind of think. You pay money because "What if I get into a car accident" or "What if my engine blows." I'm not saying I dont think Toyota is reliable heck as I stated I'm not gettin the warrenty. But if someone else wants it let them get it. You said what big problems can occur? My friend has a Honda Civic. Hondas is equally as well made as Toyota. 1998 Civic EX and 2 months ago a piston blew which caused a chain of reactions. Final result 4,000 dollars to fix it all. Now under our 5 year warrenty if something like this happened we'd be SoL. Now your going to say but what are the chances of something that expensive happening. Exactly slim. But if your that 1 in a million your gonna wish you bought that extended warrenty. So if it makes you feel better to have it why not buy it?

2eZee

The odds are not in your favor of buying any insurance of course.

I suppose if it makes u happy , you can insure the bicycle in a garage doesnt break down. it cost 80 bucks but if it somehow makes u happy to probably be lighting MONEY on fire then by all means do it,.

I have other things to do with my stash o ' cash you know : )

panasoanic

I have a feeling that if you take the cost of an extended warranty and instead invest it into a conservative mutual fund, you'll be better off in the end. If something happens, you cash out and pay for the repairs. If nothing happens, you are up a good amount of money.

adams_Tc

yea but if you never use the warranty (made a claim) then when your lease is up you get the money back... unless you go through cars like you do tennis shoes.

matt_a

For the most part, I don't believe in extended warranties either. I never buy them on major appliances or electronics in my house. With that being said, I did purchase the 6 year/75000 mile Platnium plan for $500 dollars with my xA. The main reason I got it, was because I tend to keep vehicles a long time. I'm going to have my xA paid off in 2 years. That extra one-time cost of $500 gives me what is just about equal to the bumper-to-bumper warranty for 4 years after my car is paid for. I like that idea. It's a "peace of mind" kinda thing. Granted, I may never need it. I hope I don't. But there are things that can go wrong on the car which aren't covered under the powertrain warranty...(power window motors...etc.). I'm glad I bought it.

itimebomb

You get roadside assistance with the platinum warranty. The basic Toyota warranty doesn't have that unless it was on the window sticker (in a pkg. form) but that's only on Toyota models.

and yeah they make money on it. most people don't keep their car for 5 years which is what they are banking on. however, warranty work if needed could be pricey. you've got so many electrical components inside the vehicle that's it not a horrible idea to purchase that piece of mind if you feel comfortable doing it. yes they are great cars built to last, but the idea of a warranty is that something MIGHT happen and IF it does you're covered. besides the 3/36 basic warranty gets extended w/ the platinum too, which is what most of those electronic components are covered under. it's not like they are selling you air, the warranty covers your stuff if it breaks, and just don't buy it if you don't want it.

a year or so ago i go cable internet installed at the house. *** tells me for 3.50 i can buy some line protection so if anything happens to themi wouldn't be responsible for the repair. at the time and now still there are much better things i'd rather spend the 3.50 on, but since i didn't wire the house myself i didn't want to take the POSSIBLE chance of being out of cable internet if the damn lines broke. again, that warranty bought me piece of mind. (i lucked out and the lines did break!) so yeah...

pdrizzle

I can see the logic in buying the extended warranty when the default warranty runs out, but I purchased my extended warranty when I bought the car for the same reason I bought a lot of my add-ons with the car - so I can finance them. I know it's more money in the long run, but I don't have to fork out all of the money at once, whether it be now or later. If I had the money, I would have paid for my car with no options up front, bought all of my add-ons, installed them myself or paid to have them installed, and then when the warranty was almost up, bought the extended warranty. But since I'm not wealthy like that, I chose to do it the way that made sense for me at the time.

mancide

Actually, I think Rock puts it as "in case ____".

In case ____ happens to my car, I paid this money. But if ____ don't happen, shouldn't I get my money back?

DelayedTurbo

The extended warranty can be transferred when sold. You can't transfer it to a dealer for money, its useless to them, however if you sold it to another person yourself you can.

Bakaduin

Your right! But lol mine had the same effect and I didnt have to use ____ =P

KingofScion

I am in the car business
I own two cars, a 350zR (made in Japan) and a Scion tC. Both vehicle are awesome. Both vehicles are quality products (more so the tC).

I bought a 6y/100k on the tC and 7/75K on the 350zR.

Why? Because both cars will last well past 100K and will have value @ 100K (mainly the 350zR).

I alos financed for 5 years, the bumper to bumper ends afer 3 years. What if I lose my Power steering after 4 years?!
Or my convertible top break on the Z? You know with Nissan quality the Z will break for so.

Plus @ 80K, 5 years, 0 balance I bet I cna cell the tC for like 5,000.

fr130

I've heard GAP insurance should be bought.
In some dealerships, like CarMax, extended warranty will add to your trade in value. Not sure how much. Depends on how many miles you currently. I had extended warranty (100K, $800) on my Gen 4.5 Camry. However 8- months before I got the xB, had it canceled and Toyota applied the amount remaining ($550) and reduced my principal. Which was good since I may have been upside down when I traded in the Camry.

mancide

They may be worth it. But I think the fact still lies, you can purchase these before the basic bumper to bumper runs out, and have the same effect. The only difference, if your car is totaled/stolen in the first 3 years when you finance this, that's money ____ed away.

ScionBandit

buddy, u gotta extend the warranty before it runs out....

u got until 3yrs/36k to do that, after that u CANNOT extend the warranty....

if u plan on havin this car or put alot of miles on in, Toyota extracare is the best bet..
all these insurance companies with their version of extracare don't cover half the crap Toyota will. I see this first hand everyday at my dealership....
it is expensive, they do have different extracare plans, some more than others, but its better than gettin the cheaper insurance version...trust me