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).
Post Reply
1 of 1
Extended warranty or no?
2,664 Views |
25 Replies |
Last: 8 mo ago by RCR06
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.
Odds are you won't use it but in the end it depends on what your peace of mind is worth.
Part of the value proposition of paying a premium for Toyota is that you won't have out of warranty repairs. Or at least it used to be.
That doesn't seem to hold true since they booted the 5.7 in their trucks and SUVs
I know this board tends to be against extended warranties...but I've come out way ahead, with repairs, because I've had them. I like to keep my vehicles for a while, so the extended warranty gives me peace of mind as the years get up there and we're deciding to keep it or not.
I have one for my current truck (through my company)...at 38k it needed a new AC and new camera system. The total bill came to $6800. Warranty was less than half of that when I bought it, and it covered all the repairs. I was extremely glad to have had it.
I actually just bought an extended warranty for a used car we recently bought. 1 month into having the car, my son had some 'minor' issues....but the total bill came to 1800. So I've broke even on that one as well, and we haven't had it long.
I had a new engine and new transfer case put in an SUV in the past...again, under the extended warranty.
I haven't always bought an extended warranty, and there have been a few I've had that I didn't need. But repairs are so freaking expensive now, I like having them just in case.
It's honestly one of the reasons I've shopped CPO, for my personal vehicles in recent years. I like getting a CPO vehicle with 10-15k miles on it, and receiving an extended warranty with it as a bonus.
I have one for my current truck (through my company)...at 38k it needed a new AC and new camera system. The total bill came to $6800. Warranty was less than half of that when I bought it, and it covered all the repairs. I was extremely glad to have had it.
I actually just bought an extended warranty for a used car we recently bought. 1 month into having the car, my son had some 'minor' issues....but the total bill came to 1800. So I've broke even on that one as well, and we haven't had it long.
I had a new engine and new transfer case put in an SUV in the past...again, under the extended warranty.
I haven't always bought an extended warranty, and there have been a few I've had that I didn't need. But repairs are so freaking expensive now, I like having them just in case.
It's honestly one of the reasons I've shopped CPO, for my personal vehicles in recent years. I like getting a CPO vehicle with 10-15k miles on it, and receiving an extended warranty with it as a bonus.
I would be happy to quote one from ASC Warranty, they don't make them like they used to, even Toyota
aggiepaintrain@gmail.com
aggiepaintrain@gmail.com
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.Quote:
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.
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.
Nothing like one guy telling you how the car you are about to buy is flawless and runs like a champ, then they punt you to the finance guy who tries to tell you it's such a POS, that you will regret not buying the extended warranty.
If you're trying to say the dealers are not making money on extended warranties, I'm going to need to see the math.
Definitely not what I said.Jack Boyett said:
If you're trying to say the dealers are not making money on extended warranties, I'm going to need to see the math.
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.
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.
Milwaukees Best Light
Joined:
Nov 1, 2007
Posts:
18,899
How long do you want to ignore this user?
AG
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.
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:
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.
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.
coolerguy12 said:
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.
You drive a motorized cooler.
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.
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:
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.
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.
Featured Stories
See All
10:14
1d ago
7.8k
Zach Clemence leads Texas A&M's 3-point barrage vs. South Carolina
by Olin Buchanan
5 Thoughts: Texas A&M 92, South Carolina 69
by Luke Evangelist
5:03
1d ago
2.1k
Game Highlights: Texas A&M 92, South Carolina 69
by Reece Nygren
Skid reaches four as Texas A&M falls at Mizzou, 81-70
by Justin Paez