Pulling the trigger on a 2025 Sequoia next month. Is the consensus yes or no on extended warranty? We didn't get one on her crappy Ford Expedition and I wish we had (turbo and transmission replacement).

That doesn't seem to hold true since they booted the 5.7 in their trucks and SUVs

I would be happy to quote one from ASC Warranty, they don't make them like they used to, even Toyota

aggiepaintrain@gmail.com

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They wouldn't offer extended warranties if the odds of paying out were greater than not.

Odds are you won't use it but in the end it depends on what your peace of mind is worth.

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It's like insurance. Spread out over a lot of buyers, I'm sure they come out ahead. Especially considering the number of people who get a new car every 4-5 years (or sooner), and dont end up using it.

But if you keep your car a while...when you need repairs, it doesnt take much for the warranty to pay for itself these days.

I have 650,000 miles between 3 vehicles and have never had an extended warranty or wish I had one. I sleep great at night.

If you're trying to say the dealers are not making money on extended warranties, I'm going to need to see the math.

Jack Boyett said:

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If you're trying to say the dealers are not making money on extended warranties, I'm going to need to see the math.

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Definitely not what I said.

I understand the math obviously on the whole the warranty company wins. That's how all insurance products are but we still buy life insurance, home insurance, and car insurance.

That's being said if you actually keep it until the end of warranty period they can be an ok deal. Part of the cost is offset by people who sell the car while it's still protected by factory warranty and never cancel extended warranty. Just don't take the first offer it's negotiable just like the car. It is often a high margin product for the dealer. I would even get a quote from the poster earlier in this thread and if you aren't happy with dealership offers buy it after.

How do these things work? Let's just talk about new cars for now. So, you buy new and it comes with a factory warranty for, let's say 30,000 miles. You finance the extended warranty for 30,001 to 100k? Is there some kind of deductible? How much would something like this cost? Does it cover stuff like a headlight replacement? Is there some kind of minimum you have to hit before the warranty kicks in? Is it everything on the vehicle, or just drivetrain?

Obviously I have never gotten it, but as the others have said, the cost of repairs is so dang high these days, it is worth investigating.

Not sure if Toyota does it or not but recommend shopping warranties online. There's certain Ford dealers (I.e Granger) who sell ESPs online significantly (sometimes 1/2) of what the guy in the finance shop will try and sell you.

Milwaukees Best Light said:

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How do these things work? Let's just talk about new cars for now. So, you buy new and it comes with a factory warranty for, let's say 30,000 miles. You finance the extended warranty for 30,001 to 100k? Is there some kind of deductible? How much would something like this cost? Does it cover stuff like a headlight replacement? Is there some kind of minimum you have to hit before the warranty kicks in? Is it everything on the vehicle, or just drivetrain?

Obviously I have never gotten it, but as the others have said, the cost of repairs is so dang high these days, it is worth investigating.

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It really depends. They sell it to you that it's an extended bumper to bumper, but there is a lot of **** it doesn't cover. I had one for my 2021 Ram, and when the dash failed (leather bubbled up) they said it wasn't covered since it's cosmetic. I raised hell and magically they covered 2/3 of the cost. Other things have been covered 100%

I would never buy one unless it was an absolute bumper to bumper with zero deductible

The new Sequoias are not trustworthy from a reliability standpoint. You should do a cost benefit calculation and seriously consider it if you plan on driving it a long time.

You can kind of customize the ones from the manufacturers, well I know ford for sure. Do you want bumper to bumper or just powertrain (or a few options between)? Do you want a $0 deductible or a couple hundred? 3 years or 10 years, 40k or 200k miles?

You can negotiate them. My wife wanted piece of mind and negotiated up the 4 years of extended coverage to 7 years, and knocked the price down $2k too. Dealers build in a LOT of slop to pad.

Obviously the extended warranty makes the warranty company money. But there are a few factors that may apply to your personal situation that may make it make sense.

First, most extended warranties are never claimed against. This is because the factory warranty covers the first 36k miles and many many people sell/trade their car before they ever get into the expected payout periods.

0-36k miles - factory warranty pays
36k-75ishk - few claims
75k - 100k - Claims start happening, but the car is often sold and the new owner doesn't know or can't claim on the warranty
100k+ - warranty rarely covers anymore


The second thing you have to consider is whether your personal situation means you should get a warranty. If you can afford a $600 payment, and if a 5k car repair will crush you, then you should buy a $525 payment car and put $75 a month into a warranty. If on the other hand you can afford a 5k hit, then self insure.

Another thing - MANY warranties do not cover things that go out a lot... like catalytic converters or suspension parts. They will hand you a giant list of what is covered, but they rarely give a list of what isn't covered. You have to really read the fine print.


Last thing... ALL repairs cost a ton of money now. Pretty much ALL repairs exceed the cost of a warranty. Window regulator goes out, that is $1500. Catalytic converter - $2k plus, transmission - 5kplus, A/C - 3-5 k.

Yesterday said:

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They wouldn't offer extended warranties if the odds of paying out were greater than not.

Odds are you won't use it but in the end it depends on what your peace of mind is worth.

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The same is true for insurance, but everyone buys it, even when not forced to.

You have to decide whether it is worth it for you. It has bailed me out several times, but I don't always get it. For new vehicles, there is a narrow window where it is actually useful, so consider that.

No.

Always in modern cars. One repair can often pay for the warranty. A infotainment screen, AC compressor, you name it. Modern cars are expensive to repair. Only the factory extended warranty no third party

I recently bought a 2018 CRV from a dealer but it only had 32K on it. I still bought an aftermarket warranty on it. Turns out, when the temps got warmer, an issue with the steering revealed itself. Turns out I needed a new steering rack - 4300 repair at a dealer. Warranty covered it.

When I bought my 2018 f150 I got the extended warranty. Wasn't planning on it, but for $1300 I thought even if I needed a small repair it would be worth it. Ended up having to get the cam phaser repair and one other thing I can't remember now. Total it would have been $4k that was all covered by the extended warranty. So I came out ahead. Also it covered a loaner/rental vehicle while the repair was being done which was nice.