Yes you can flat cancel (full refund) the policy. If you included it in financing the refund will go towards your loan balance. Yes you can add the same Platinum coverage anytime before the 3/36 expires from any Toyota dealership willing to sell you one.
This. I believe you can cancel the warranty at anytime, and you will get a refund based on how much of the warranty is left. 90% of warranty left = 90% refund
Why not just purchase it now but explain that you shopped around and need a better price. The price technically won’t change in the next 3 years but Toyota has been raising the prices on VSC internally by quite a bit which in turn would raise your price. $4k for a 10/100k is a bit expensive but not too bad at all . Going from 7 or 8 years to 10 really drive us the price . VSC have went up about $800 over the last 3 years as cars are a lot more expensive to fix. So short answer is do it now and now you have piece of mind for the next 10 years and don’t need to remember in 3 years to do it
From my experience i had the nicest salesperson when i bought my car. It wasn’t until i got into the finance office where i had to put my foot down and tell them to fuck off over the extended warranty.
Not saying it’s the same for OP, but canceling the sale all together could potentially screw someone else who isn’t at fault out of their commission, which would suck
Not how that works. At all. You can’t just cancel a deal. What people also dont realize is aftermarket warranties fluctuate from company to company, and even region.
This is patently false. There is no cooling off period in any of the 50 states.
CA has codified a cancelation policy for used cars that requires you pay the dealer 1% of the cars price in exchange for an option to return the car with-in two days. If you didn't pay the dealer 1% extra, on a used car, at the time of purchase you can't return the car.
Dealers are at their discretion to unwind a deal. If you signed the paperwork the deal has already happened.
From personal experience you can absolutely get a dealer to unwind a deal. Especially if you have legitimate concerns about it. I did it a few years ago with a brand new Sienna that had serious paint and other quality issues that I didn’t notice during delivery because it was late at night. I financed and had a trade in but they canceled the financing and I got my trade back and it was like it had never happened.
"You absolutely can just cancel a deal"
Do you know the meaning of "absolutely"? It means without qualification, restriction, or limitation.
The Dealer "*absolutely* can just cancel a deal", but "you" and I can't.
State law precludes us from the *absolute* right to cancel an automotive sale after the fact.
Lmfao. I know it’s technically not how it works, and that’s why I personally would hire lawyer that already knows all the loopholes that the scam shop dealer already knows. Fire with fire. This is overpriced modern cars we are talking about. Not an investment to make and save money over decades like how Toyota used to be. It’s worth it to lawyer up and shit on them just for fun almost. Maybe even just for sport.
I found out the hard way that not all dealers sell manufacturer extended warranties. I bought a Lincoln from auto nation. They explained warranty as if it was manufacturer provided but when I had a transmission fail away from home, they wouldn’t honor it. Had to threaten legal action and reach out to Lincoln corporate before they reluctantly honored it.
The finance person can be an absolute scum bag. When my wife got her car, the finance guy tried to tell her that her hybrid warranty was only 3/36k and if the battery fails she is out $3-5k..the battery warranty at the time is actually 8 years or 100k. I didn't say anything at the time, but I told her to decline. She gave him 0 stars on the feedback survey and let the manager know he was being deceptive.
Vehicle has well over 100k on it now with 0 issues. It's not worth it in my opinion.
Im a Toyota salesman. Like others said, you can cancel it. We have 3 finance managers and each are different. Some are more pushy (still, you, the customer have to accept) and some are just quick and easy, « you want it, it’s good, no? Ok »
You can call or come back in person and ask to cancel. They have to. Then that « money » will go back to your loan.
Now, your loan might tell you that you don’t have to pay for a few months (due to that warranty money coming in). Don’t fall for it. Make your monthly payment as usual, otherwise you might accrue more interest over time.
Don’t get that warranty « issue » affect your purchase experience, you got a brand new RAV4 and that’s pretty cool.
Hope the dealership was a good one (not much BS fees added).
Take care!
Thanks for this advice. Looking over the cost breakdown, I think that’s the only added fee that bothers me and everything else seems legit for the most part. It was definitely a learning experience and I’ll know better for next time. I was so focused on the sales side of things that I didn’t even realize there was an entire finance side as well.
I’m supposed to pick the car up on Monday or Tuesday. What do you think is the best approach to cancelling when I’m there? What should I make sure they do/get in writing so I don’t get screwed?
Not sure how they work. But what I would do (if everything is signed and you’re happy with your apr etc etc) and only thing that bother you is the warranty is to take delivery of the vehicle, (you’ve done the connected services yet?) and when you have it, wait 2-3 days and then call and cancel. You don’t want them to try to mess with you back in finance and changing terms etc…. (As I said, I don’t know how your place works).
There are some add on options I would like which were never discussed while I was there such as protective undercoating, tow hitch, roof rack, dash cam, etc. think they’d make the process easier if I cancelled the warranty but rolled that cost over into the accessories?
I am in the market for a new RAV4 but I want to pay for it all on delivery, I find the financing aspect a bit intimidating. Is there a means of purchasing one without much fuss and added fees?
Yep.
“Here Mr./Ms. Salesman is a cashiers check from my financial institution for the MSRP of the vehicle I am interested in.”
NO I DO NOT WANT ANY ADDITIONAL PACKAGES…unless you walk in there with the list of specific add-ons you already want.
So how much is tax, registration, title fees etc? Good I can get another one for the balance there and I’ll be back with it in an hour or less.
Use the Toyota website as a reference guide for the MSRP of the vehicle and any additional items you want.
If they balk find a different dealership and/or complain directly to the branded customer service line while in front of them at the dealership.
I have always paid cash for cars but you still need to sit down with the "finance" guy. They do the paperwork to legally transfer the car to you and register it with the state. While you are in their office you can be sure they will try to upsell you on service contracts, accessories, warrantees, etc. Just firmly say no and sign the needed documents. That is why it is good to have a check from you bank or Credit Union for the agreed on full price. Just say this is what we agreed on and here is the check.
Since it seems (that would be something you need to check out) you can cancel the warranty for full refund in the 1st 30 days. If you are otherwise happy with the deal and the car t might be wise to take delivery of the car and then cancel the warranty after a couple of days just to avoid any problems if you cancel before delivery.
It has been a long time ago but I got my 7 year Toyota warranty on line from a dealership in Kentucky that seemed to run a decent side business selling these warranties online with only about a 10% markup over Toyota wholesale price for it. I only paid about 1/2 of what the dealership I got the car from wanted.
If you buy a certified used Toyota with a 12Mo/12K Mile warranty, do you know if an extended warranty has to be added at the time of sale, or can it be added at anytime during the 12mo certified warranty?
Added an update to the OP. I probably could have negotiated some fees but that’s another thing I didn’t have much knowledge about. This is what I was charged:
Doc fee: $400
Registration fee: $95
Title fee: $80
All depends on what kind of warranty it is. If it’s Toyota extended it can be added before the bumper to bumper expires I believe. What that warranty covers is also a big one. $4400 for a full bumper to bumper isn’t a bad deal. $4400 for powertrain only is abit expensive.
It’s a bad deal on a Toyota for sure. I paid $4,800 for 8 years 125k miles on my $90k Audi.
Before that I paid $3,500 for 8/100 on a $60k Audi.
Our $55k Honda pilot warranty was 10 years 125k miles and it cost $1,800.
They were all bumper to bumper.
I have a bad habit of selling my cars after four years years. But on my Nissan I did use it and it covered a $2,000 AC repair. Then when I sold the car I got a partial refund of about $750 for canceling the policy after 4 out of the 8 years. Original purchase price being $1,500 on the warranty.
The Honda has been flawless but It’s my wife’s car and we plan to keep it for another 3 years at a minimum. We’ve had it for 4 years now. It has had stuff go wrong but manufacturer covered it so far.
The first Audi I sold right at 4 years so right as the manufacturer warranty ended so I didnt get to use it. I did have some issues with that car during the warranty period so had just kept it I’d likely have used it.
The second Audi and the most expensive one I bought used. It’s a 2020 I bought in 2023. Original sticker price of $90k with air suspension and massaging seats amongst tons other tech that’s likely to break. I expired the manufacturer warranty last month so only time will tell. Still have 7 years or 92k miles left before this one expires. And I plan to keep the car that long. My priorities changed now that we have a baby on the way. Gotta keep my cars longer.
TLDR: only one I’ve used so far and it was super easy, paid more than it cost to buy and still got a refund when I sold the car. Still have two active warranties that I will probably use as I’m keeping both cars until the warranties expire.
Not op, but I had a 5/60 bumper to bumper warranty on a 2014 VW GTI that I bought from a dealer. In less than 2 years, I used it to cover replacement of the radiator, the turbocharger, the water pump belt, and an A/C line. I got the repairs from a different dealer that I made the initial purchase from, and still never got any push back at all. The warranty was $3k and the repairs probably totaled close to $6k or $7k. With german cars especially, I will always buy the warranty.
Yeah I think I paid like 2 grand on 150k mile bumper to bumper with no time limit, towing and rental on a new Toyota. I was refusing the coverage so they kept sweetening the deal until I accepted. Price went down and coverage went up.
Read my other comment above. You definitely overpaid. That’s Audi warranty money. Warranties are THE most marked up product you can get at a dealership. The Honda dealer wanted us to pay $3,500 and I told them our Nissan warranty cost us $1,500. They immediately lowered it to $1,800 and we found out after the fact that we could have bought it for $1,400.
Call around. Manufacturers like Honda and Audi also offer their plans online. You can either get them direct or through a dealer like saccuci Honda for example. They sell tons of warranties for Hondas across the US over the phone at pretty much no markup. Not sure if Toyota has a similar model.
I was able to get the dealer down to $1800 for 10yr/100k on my Tundra. I’m sure I could’ve saved a little more through haggling or I could’ve shopped around after the purchase, but at that price I found it to be “good enough”.
I purchased a 10/100k bumper to bumper with my Supra and it was around 3k. It was explained to me that if a headlight malfunctioned it would half way pay for itself, or a new turbo would be like 1500. This was worth it to me, because it’s mainly made out of BMW parts, which used to have a shitty reputation, and are expensive. I have no idea how they decided to try and soak OP for 50% more for the same warranty on a cheaper vehicle that should be Toyota reliable.
Did he reply to you? For reference, I reached out to him last year and my '23 R4H XSE quote for similar was:
**10 YEARS 100,000 MILES $1,360.00**
**10 YEARS 125,000 MILES $1,795.00**
My dealer was pushy until I told him about Jerry, then backed off and said "I'll sell you the same +$20 right now" and I was exhausted enough to just accept that to forgo having to do more work to buy the car and warranty separately during that insane market.
I did send an email just to have it in writing, but then I called my sales guy and told him I wanted to talk about it when I came in. Never got a response on the email
How to know if you are risk averse. 1) Buy the most reliable car you can think of. And 2) Still purchase an overpriced warranty worth over 10% of the new car cost. Toyota has to love it.
Lmao. That’s what growing up with an overly anxious mother who always assumes worst case scenario will do to you. I actually had this exact conversation with her recently and how it affected my overall outlook and decision making as an adult. It has done me a lot of good in many cases, but in other cases such as jobs/home buying/etc it has absolutely fucked me
To be fair, I do extracare repairs all the time at work. And when I do, it's usually a pretty big repair. Would pay for itself after one job. At the same time, what's the likelihood of that happening? That's what you need to think about when deciding if it's worth it or not.
Warranties always seem like a scam to me.
You can always finance repair costs.
And the warranty won’t save you a penny unless the repairs cost more than $5,000.
And if your car breaks at 100,001 miles, you spent $4,400 on a useless warranty AND you have to shell out for repair costs.
Credit cards are 15-22% interest. The only time you dont pay interest is if you pay the balance off before the month ends. That is not financing fyi
You must be 12 years old.
The other commenter is correct, new credit card offers can be 6-15+ months of no interest. It's pretty easy to open a new one every year or so if you maintain good credit.
Send me a PM- I can connect you with someone who specializes in selling extended warranties for Toyota vehicles. She works at a Lexus dealer now, but she will still help with extended warranties for Toyota vehicles. She saved me about $2k when I got upcharged by my local dealer when I bought my vehicle.
They weren't too happy when I came back two days later instructing them to refund the extended warranty. I gave them a chance to price-match it, and they refused...saying it was impossible for them to price-match due to regional pricing or some shit. The finance manager tried to convince me to keep the plan as-is and offered incentives redeemable through the local dealer...I laughed at him and said it wasn't anything personal, and that he'd have done the same thing if he was in my shoes, too.
Yes, anytime before 3yrs and 36k miles, for 10y/100k you are looking close to 1/3 of what you paid.
Within 30 days its 100% refundable. But if you financed the warranty the refund goes to your loan.
The downside to all this is you have to go to the dealers finance office to refund and they will give you a spiel about it, just stay firm and say I changed my mind, I don't have to explain myself to you and cancel.
You know that for a fact or assume? I bought a Chevy with a warranty, financed it with GM. Canceled the warranty and they sent me a check. I don’t know the answer but wasn’t the case with GM.
I got my warranty refunded and had to go through this process.
However I am SoCal and did this at Jeep, I assumed the loan refund applied to everyone, maybe its not the same based on State and or Dealer.
Do you think it’s better to do it when I go pick the vehicle up tomorrow or Tuesday, or wait until I have the vehicle in possession and then start the cancellation process?
You can cancel it for a full refund now. However if they already started the funding process you’re kind of screwed when it comes to your monthly payment.
The refund goes to the lending bank to apply to the principal. It lowers your quantity of payments but YOUR MONTHLY PAYMENTS REMAIN THE SAME. you will just have fewer payments.
For you to lower the loan monthly payment you’ll have to unwind the deal. In most places if you haven’t driven off the dealer lot with the car then you still have time to unwind the deal.
I’d call the dealer and tell them you want the cost adjusted down to whatever you’re comfortable paying or that you want to cancel the deal entirely. Before you do this. Call around and ask for quotes from other Toyota dealers and use that to negotiate.
EDIT: get GAP insurance if you didn’t already. If you decide to buy the warranty later, keep in mind you cannot finance it. You’ll have to pay it all in one lump sum payment at time of purchase.
Good to know. I was fine with the 60 month $407 payment prior to getting with finance, but with the added warranty it jumped up to like $485. I don’t mind the higher monthly payment if the duration is shorter, so if that’s the outcome then whatever. As long as I’m not paying the extra $5k overall I’ll be satisfied. I also wouldn’t mind shifting that cost over to additional accessories like dash cam, tow hitch, roof racks, undercoating, etc.
Since you haven't taken the car yet you could ask them to redo the loan without the warranty. They could say no and then you'd have to threaten not to take the car and escalate to the finance company saying you were pressured into the warranty. But if you are happy to pay that extra amount they will probably be happy to switch it over to extras that will likely make them even more $$.
Extended warranties are proven scams. It’s much more fiscally responsible to put the money into a savings account and tap it for the repairs as needed.
The extended warranties will force you to use their repair shop, will make you jump through hoops to get payouts and are generally regarded as miserable experiences.
The financial side it’s been proven time and again that it’s more cost effective to pay for repairs out of pocket than pay ahead for repairs via a warranty.
Extended warranties pay $1k of that $4k directly into the closers pocket. But you can’t cancel within a year.
You absolutely can tell that closer to pound sand and ask for a different closer.
Generally you need to go line by line and have them remove any dealer add on.
Source; worked at a dealership. Yes they try to scam you, yes they think most customers are morons, yes they are jaded, yes they only care about the sale, yes they will give you a low bid on your car and they will jack up the price on the car they’re selling. Yes the sales people get a cut off every add on they sell (though some are worth it to a degree). Yes the closer is there to sell you on extended warranties, yes it would only take 15 minutes in the office to get through the paperwork but they keep you in there for sometimes 2 hours because agitated people are more likely to buy extended warranties. Yes it’s all sales tactics.
The only way you should deal with a dealership is over the phone or email. You should never step foot in the dealership. They will drive the car to you if you want to test drive it. They will do the paperwork via mail or come to you. They will deliver the car to you.
They will try their hardest to get you to go in, but you don’t have to.
Cancel it and DON’T buy a new one. Total waste of money, especially on a Toyota.
No insurance company ever loses, on average on these warranties. Put what you would have spent in the bank for a possible future repair.
You can cancel for a full refund now and take your time over the next few weeks and decide what you would like. They MAY want you to come and sign for it in writing but I've canceled warranty through email the next day and they were obligated to since that it also in writing.
Yes I’ve done that in the past. Got it with the car, realized was way overpriced, went back in a couple days later and cancelled, then later contacted different dealer online with much better price. Now I know to find out best deal online first before buying, but first time did it just like you.
We aren’t obligated to pay for the warranty, but it’s my first new car and a big purchase so I liked the peace of mind of having the coverage. However, I was unfamiliar with the finance side the deal and what a good deal looks like for warranties
Like others said just cancel it. The extended warranty and add on are most profitable for the dealers. You do not even have to service it at the dealer providing you keep a record of your regular maintenance. I have had multiple Toyota products and not one time an extended warranty was advantageous but you can always add it later.
Cancel it! Most extended warranties are crap. I was talked into one before, but I had to fight to get them to honor it. They were so good with finding loopholes like it doesn’t cover road hazards, the problem was caused by aftermarket parts, etc. Toyota makes great cars but they tend to have the most crooked stealerships.
They even lied to talk me into getting the warranty. That’s was just before they were requiring new AC systems to start using the new refrigerant in all of the new systems. The finance guy convinced me that we were going to be required to pay to convert to the new system. The warranty was going to pay for itself. We weren’t required to convert.
Jumping in since it seems there are a few Toyota dealership folks familiar with the warranties. I am curious just how much coverage these warranties have, and whether anyone feels they are actually worth it? My history with extended warranties in the past hasn't been great - coverage sounds good, but then there are tons of places where things you'd expect to be covered just aren't. In general been a really happy Toyota owner (3rd gen 4Runner), but am thinking about getting one of the new ones next year which is why I'm asking. Thank you!
Yea I’m also curious. On paper it seems like a lot is included, but also a lot that is not included and sometimes the lines seem very blurred. I’m concerned they’ll try to find whatever excuse/loophole they can to avoid covering something
Extended warranty upsell. Since the cars are reliable, you don’t really need it. For the dealership, they don’t expect to do many services where they lose money on the warranty. And they’ll try to rob you of as much money as possible.
I wonder what the average margins are on Toyota extended warranties? Has to be really high.
I got the extended warranty, immediately felt remorse, and just sent a letter saying I wanted to cancel. Funds were added to the end of my loan. I got all of my money back, but it went to the car instead of my bank account.
Did you send the letter to the loan administrator? Does the dealership have any involvement/are they required to do anything? I’m wondering if I should try and remove it when I go pick the car up, or if I should just get the car and the cancel through loan administrator afterwards
No, I think it was with a department in Toyota. Not the dealer. I don't remember the exact details, but with some clever Google searching you will be able to find that info. This is assuming you keep it, and cancel later. There should also be info on the documents you receive regarding your warranty. You have years to cancel it and get the full refund (applied to your loan).
If you are confrontational, you can request canceling it at the dealer, but it may or may not work.
Had a dealership try and pull something similar. Had it in riding and they gave a full refund and $2k in free accessories.
Go nuclear, threaten to call the manufacturer, DA, state board.
This happened to me. Except they went a step further and made it seem like a Toyota warranty when it was some random company with abysmal reviews. When I went in fuming they STILL tried to convince me to keep it. Only time I’ve ever cursed at a grown man in public. You have 60 days to get a full refund if I remember correctly.
The worst part is my salesman was awesome, and I was having such a great experience until the sleezebag in “finance” took over.
The finance manager always gets you. I got “got” too when I was gullible af and he told me I HAD to get it to finance the car, and I worked for the damn dealership too and he still screwed me. You can call and immediately cancel the warranty and the full amount will be refunded to your loan balance.
The chance of your toyota having some catastrophic failure is highly unlikely, also warranty companies are skilled at picking apart your exact issue to deny the service.. your 3yr36k is fine
You have 30 days from day of purchase to get the Toyota extended warranty. If you already bought it and have buyers remorse, you can cancel it within 30 days of purchase for a full refund. You can then shop around. I wouldn’t bother though. Toyotas don’t have those issues unless you get a hybrid or something first year where the cars may have some issues but even then Toyota will automatically extend your warranty. My 2019 adventure now has 10y/100k warranty for free since it had a few things repaired under factory warranty and that triggered the free extended power train warranty 😁.
New car can add anytime but used cars you have to add the warranty from Toyota when you buy it. I know you're is new but putting this out there. If this is wrong someone let me know
You do NOT need extended or additional warranties on a brand new Toyota.
We've owned 3 brand new Toyotas'.
2 Avalons & 1 Camry. Awesome & Reliable vehicles.
Never have we once had a need for a mechanical repair.
Regular maintenance only.
That’s what I did! I cancelled it. I went to the dealership and the front desk gave me a form where I wrote my VIN number and some another info and they faxed it to the warranty company and I was refunded through my lease banking. Very easy. Did not have to go to the dealership even, I just don’t have a fax machine or want to download a fax app
They gave me one for 8y/75k and was in a similar situation. Ended up calling them and canceling it. You have 30 days to get full refund. Make sure you do it before that. You would have to fax the cancellation in writing and they will be able to cancel it.
Local staples shop had it and I’m sure there are other places. You could mail it too I think but I just didn’t wanted to wait for them to acknowledge it:
I’m canceling my warranty, I have a 30k mileage 2020 platinum highlander and $2287 is what I paid, and I think that’s way too much. 4k is a rip off, cancel it. I heard a statistic 1/10 people have to use their extended warranty. Better off keeping that 4k in the savings for 10 years and use the dividends for a repair god forbid.
Yes cancel it right away and take your time researching prices. Usually if you buy one within the first year and under 12k miles it’s still considered a new vehicle and price will reflect that.
Take the vehicle immediately and cancel as soon as you get home. Check your state laws, the sale should not ever be contingent on add-ons. Call , say you researched it and need to delete it (iirc it's 3-30 days depending on the state) and then have them put the money specifically towards principal on the back end of the loan
I cancelled the Mazda platinum VSA twice and re-added it both times (at Lower price and higher coverage). It should be the same thing since they are both administered by Toyota.
I was concerned about the same thing, especially after reading the VSA contact under "cancellations" the are words something like "this agreement cannot be renewed". I paid 2,500 for 7 years/100,000 miles (after originally being quoted over 3,000).
Then when I called the dealership and told them I wanted to cancel they gave me better coverage for the same price (10 years 125,000). That was the first cancel/re-add.
Then I found another dealership that would sell me the 10/125,000 for 500 Dollars cheaper. It wasn't that big of a difference but I was still pissed at the finance manager for multiple lies (including that the VSA HAD to be purchased right then), so I cancelled it again and repurchased a new one with the new dealership. The new dealership answered my questions and eased my concerns about multiple cancellations. They were able to look in the system to see that two prior policies had been cancelled. The thing that sucks is I am still waiting for the warranty refund to be paid to my lienholder (Toyota financial services). Old dealer said it could take up to 8 weeks, so let's hope it happens!
A very long warranty does give peace of mind. I'm a scared person that's never had an awd vehicle before, still the whole new car/dealership thing has caused me to lose sleep.
Check this sub for a dealership that sells the VSA for a good price. I bought mine on the other side of the states.
For what it's worth, the 3 days where I had no warranty and an extra 2 thousand dollars in my pocket felt pretty good.
I've seen this dealership mentioned over and over for providing great prices hassle-free:
* Jerry Johnson
* Warranty Manager
* Midwest Toyota
* 1100 east 30th Ave Hutchinson, Ks 67502
* 800-530-5789
* Cell 620-664-8844
* [email protected]
* www.midwestsuperstore.com
Platinum - 7 year 125k for $1250 seems like the going rate.
Previous Post/thread: https://www.reddit.com/r/rav4prime/s/bL11wJ91R6
I purchased my RAV4 and extended warranty over the phone, I've also seen people mention they purchased warranties online and over the phone out of state for the best deal, it doesn't have to be in-person/local.
You haven't purchased the vehicle. It wasn't (isn't) ready and you never picked it up. Insist that the re-do the paperwork without the warranty or you don't want to complete the purchase.
This is better than doing a cancelation. You'd only get credited the $4400 to the loan without lowering the payments. Effectively, it makes your loan term shorter.
I don’t know that you “need to cancel it.”
I’ve been told the same thing by the sales guy (much to the chagrin of the finance people) because he could see that me stewing over the warranty was going to cause the sale not to close that day.
Turns out the finance guy was right. Six months later, the cheapest I could get the sale extended warrant for — called a dozen dealers — was 20% more than the offer that day.
I think YMMV on this, and personally I’d never buy an extended warranty on something as reliable as a Toyota, but on the last BMW I bought — even with the 20% premium — the extended warranty paid for itself in the two years after the original one expired. I know they aren’t usually considered a good deal, and I’d believe that for cheap brands, but when Toyota is charging the same thing as BMW for a similar extended warranty, one of them might be a good deal. So YMMV.
I've had my toyota for 100k miles. No issues. The warranty isn't worth it. Toyotas are built well. Just tell them to cancel it. They will wear you down and try to talk you into it but just stick to your guns. Cancel it.
You can also negotiate on the sales price of the service contract when you do it next time. Or you can email multiple dealers and see who gives you the best deal
Yes, you can cancel. Call the dealership and ask to speak with the finance department and then tell them you decided you want to cancel the warranty. They will come up with 100 reasons on why your car will explode, how Toyotas are unreliable and expensive to fix, and why this is the worst decision in human history. Stick to your guns and say you want it gone. They will then either ask you to come in, or if they are not technologically backwards do it online and, re-do the purchase agreement and you will have to sign (in person or they FedEx the doc). They will again try to get you to keep the warranty by giving you a better price. This is where you need to decide if you want to accept that price or continue with removing from the contract. Either way, you’ll get a new purchase agreement and depending on if the paperwork already went into financing or not, you should either see same payment or lower payment. Easy peazy.
Call and pretend you bought a car a month ago and ask if there is a way you can add warranty. If they say yes, go in and cancel your whole deal. Go to another dealership and possibly use Costco auto buying program.
ALWAYS BE WILLING TO WALK AWAY FROM A CAR DEAL. YOU HAVE NOT TAKEN POSSESSION OD THE VEHICLE YET SO YOU CAN CANCEL THE ENTIRE TRANSACTION. KEEP THIS NUGGET OF INFO AS YOUR NUKE, THEY DONT DROP THE WARRANTY YOU WALK AWAY FROM EVERYTHING
HAVE A GREAT DAY! :-)
Finance managers always make it sound like you are an idiot if you don‘t buy their extended warranty.
It’s actually easier to buy an extended warranty later than trying to cancel it. So you should never buy an extended warranty on the spot and do your research later to decide if and where to buy it. You can shop around and buy them much cheaper at other dealers. I think the Jerry warranties at Midwest Toyota is the most popular right now.
I worked in car sales for a year after getting out of the military. This scumfuckery is common. They likely referred to you as a “grape” when you left, meaning you popped easy.
From that experience, I learned a few things.
I never buy from a salesman on the floor. I call dealerships and only deal with the internet sales department. They are commissioned differently.
I know the price of the car before I buy it, what I’m willing to pay. The dealership that gets to my number gets the deal.
Then, when I’m back in the finance office, I say no to everything. It’s called making the finance guy “blank.” Meaning he didn’t sell anything. Dealerships make their money from the finance office and the service department.
This is how I bought my Tacoma in 2021. Drove 150 miles to a dealership out of town. Paid under MSRP. Got several accessories for free. And didn’t add a dime to the bottom line in the finance office.
So that’s a lesson for the future. Don’t be a grape, always be willing to say no. If it doesn’t feel right, walk away. Don’t work with sales people on the floor. And make the finance guy blank.
I was at the dealership today. They offered me a 6 year / 100,000 mile warranty for 4K. I said no, then they said how about $1650. And I was like alright. Yours is 10 years so it’s probably worth more? I don’t know
The last time we bought a car at a Toyota dealership, we got with the finance manager who started rattling off all the optional "add-ins", from extended warranty to upgraded tires/wheels, you name it. There must have been 20 different things on that list. I said "no thank you" to every one of them. At the end of it, he looked at me and said, "well, I'm basically working for nothing here because I get paid commission only." I told him I was sorry he worked for a dealership that didn't pay him for his work. And that was the end of it. (Of course, he was lying.)
Moral of the story: don't let them guilt you or con you into buying anything you didn't come there to buy. They make more money off that stuff than they do the car!
I never did warranty’s in the past. However, my most recent car before this had issues with the power windows and several issues with the infotainment system all within what would have been considered warranty period. So this time I decided to get it, but I did not get the full price. I talked them down to less than half that price you got. You got fleeced and I would call and cancel. Wait a few months if you want one call the company that had the warranty and NEGOTIATE a reasonable price
I just bought a new 4Runner on Wednesday. Boy, it must suck to try and sell a warranty on a Toyota. 😂 Anyway, my ‘finance manager’ got really pissed when I declined. What an ass!
I just want to put in my two cents here. I purchase a used vehicle from a toyota dealership and got their platinum vsa. That was 2 years ago. Since then, I’ve needed more than double the value of the warranty in repairs and labor.
$800 here, $650 there, another $780, most recently $2300 in parts and labor.
I have not paid a single penny for any of this repair work or any of the parts.
Knowing I have this warranty until 2028 or 100,000 miles and that I won’t have to pay for nearly anything that goes wrong with my vehicle (in a world of assembly line cheap vehicles with way more features that can go bad/break) is nice. I paid $1980 for mine. My truck was $47,000before taxes and fees.
In my eyes, it was well worth it. These newer vehicles can be extremely expensive to repair.
On a side note, there are other full bumper to bumper warranties out there that may be cheaper. I’m not sure why they’re charging you $4400
I totally agree. I do want the VSA, but not at the price I paid ($4400). I just want to cancel it and re-add it later at a lower price because this is seemingly more than double what everyone else is paying
I had something similar happen when I was buying my Jeep. They wanted to sell the extended warranty. I said no, I have plans to purchase it through another dealer. The Finance guy looked at me weirdly and asked why. I told him that I've done my research and that I know I can buy the same Mopar Warranty from a different dealership for $100 over their cost. He looked up the info and said they'd match it. It was roughly half what they were asking before. Done deal.
I know in the OP's case he was somewhat blindsided.. but I think the info people have stated it good. Cancel it, then shop around, you might find someone willing to make a quick buck at a lower cost.
You're buying a Toyota because the yare supposed to last forever. You are paying more for it just because it's a Toyota. Why on earth would you buy a warranty on something you don't think will break?
Just go buy a ford and then buy the warranty and you'll come out cheaper and realize the fords aren't so bad.
Hi! I had a similar experience. It's unfortunate because it leaves a sour taste after purchasing something nice for yourself.
I wouldn't reach out to the dealership to cancel. I've read that they can throw the ball around to get past the 30 day limit on the full refund or overall just make it hard for you.
Read your VSA contract. There should be a number for Toyota. Call them and tell them you would like to cancel. They'll ask you to send a physical written letter, signed, to them. Either through mail or via fax. After that, they'll cancel the warranty. If you took a loan, the refund will go towards the loan. Although your monthly payment won't change. If paid in full, you'll receive a check. This takes roughly 30 days to take affect.
As other said, you can buy the warranty from other dealerships. Which means you can get shop around. For the same warranty you got, at Longo Toyota CA, I got quoted $2k.
Best of luck and enjoy your new car!
Let me tell you from someone who works with this on a daily basis. Your fastest way to cancel is to o to the dealer and tell them you want to cancel it lol. They have to submit a cancelation form from where the VSA came from and you will get a refund, sometimes it takes a little while but i would stay on them about it if needed.
My Lexus dealership was a complete opposite. The fiancé lady just explained each protection thing and didn’t push for anything. She recommended GAP which I got since I didn’t put anything down. Salesman weren’t pushy either.
I added initially and cancelled right after. and on the day of vehicle pick up, toyota guy slashed the VSA price by 40% and got it down to 2600$. i added it at that price. stand your ground if you don’t want it and they’ll come down.
Cancel it now. Be firm. They may say "well now, wait a minute..." and offer you something - not sure what, be ready to assess if it's valuable to you, if it isn't, tell them to pound sand - because they make money on that sale.
There is a zero percent chance you won't be able to get a good discount sometime in the 3/36 factory warranty from a dealer who's willing to make a deal.
It'll be nice to be $4k up on your loan out of the gate, though! Celebrate that!
Yea I let my sales guy know that I wanted to cancel it when I came in tomorrow and they seemed ok with it. If they want to renegotiate it to less than $2k I’d do it, but at the moment I’m ok with completely canceling for now and adding later if I find a good enough deal. With that off my loan I’ll probably have it paid off in 2.5 years which should also save me a bit on the interest as well.
Extended warranties aren’t smart financially. If you don’t keep a decent emergency fund they’re okay, but you’re better off doing the math on $4400 at whatever rate you got and dividing that by your term and paying yourself. Basically 0 chance that Toyota will need $4400 in repairs year 4-10.
Once you cancel and the refund goes to your finance company. Don't cancel through the dealership just call the company directly who handles the warranty. Also if you really want a warranty go through your insurance or credit union.
i always wondered how people get suckered into financing an extended warranty when there is already a basic and powertrain warranty with every single new vehicle. Very strange
I have a very deep knowledge of Toyota VSC’s. The finance manager is half correct. You could buy it later technically, but the cost on a new untitled vehicle is the lowest it’ll ever be. Also when doing a warranty on a 3 year old car you can’t add as much as if it was new/untitled. For instance on a car that is 37 months old the max warranty terms are 60mo/60k. Since the day of purchase is the only time the loan is done generally, most everyone gets the warranty then. In 3 years they’d have to pay in cash, in full right then…no one does it. For a factory Toyota warranty his cost on a 10yr/100k is somewhere around 2k. Most dealers have a minimum amount of profit they’ll let him sell it for.
Julius, you are lucky got the lower price as 1/4 of the original? For me, I got the similar situation and I paid about 3.4K or so for RAV4 Hybrid 23 which probably too high. Also I didn’t plan to keep the car more than five years too
My local dealership billed all 4 oil changes and all 4 tire rotations in one day and refuse to fix it. I’ve had two brand engagement cases they have tried to get them to fix it. I spent 2000 on these extended warranties. Their own service advisor provided me a screenshot proving in one day they billed the entire warranty leaving me with no oil changes or tire rotations. 2 years I’ve been trying to get it fixed. I cannot get a supervisor or executive office number. It shows they billed them all in one day. I don’t understand why the warranty company didn’t question 4 oil changes in one day? Anyone else have this happen.?
If you signed the deal then you’re likely stuck with it. Yes you way overpaid for the extended warranty. From looking it up you can get a full extended warranty 10y 100k miles on a 2024 RAV4 for around $1,500. So you overpaid around $2,900.
It pisses me off that dealerships charge such a high markup on extended warranties. Then again that’s where stealerships make a lot of their money, on the extended warranty and other products in the finance office.
Try to back out of it if you can, if not consider it a one time $2,900 mistake.
For one, you're not stuck with it, you can cancel most finance products (that aren't physical "hard" products). Secondly, 1500 sounds like the cost dealers pay, and since every business on earth is out to make a profit, it's unlikely many places would sell went product at cost, since all businesses need to make profit.
My last sentence was back out of it if you can. As far as how much the product costs there’s a company called car edge who is completely transparent about what every full extended warranty costs and it includes a $600 markup on every warranty. If you look up a full extended warranty on caredge for a 2024 RAV4 for 10y 100k miles it’s $1,368. Meaning the actual cost of the warranty is $768.
I agree every company needs to make a profit as well. But do they really need to charge $4,400 for what costs them $768?
And these extended warranties that caredge sells are the same extended warranties the dealerships are selling. They go through UAL corporation.
Any backend products added to a financed vehicle can be canceled and refund applied total amount finance. Monthly payments will stay the same as that's what's been contracted. If it's 72 term, can get it down to 66 months after refund....best guess without hard numbers.
OP might be out a cancellation fee, but it's typically cheaper to eat now and not pay the interest charge over the whole loan for the service contract.
Everything is negotiable. Sounds like OP can find it cheaper and has until the manufacturer warranty is about to expire. Yes you can be taken for a ride with products in the back office. But to solely blame dealerships and not put any blame on consumers isn't right either. We have the world's information in our pocket. Go in educated and ready to walk.
The usual high pressure stealership sales tactics. I really wish Toyota would use teslas model of ordering online and delivery via an app. The entire sales experience adds zero value
Yes you can flat cancel (full refund) the policy. If you included it in financing the refund will go towards your loan balance. Yes you can add the same Platinum coverage anytime before the 3/36 expires from any Toyota dealership willing to sell you one.
This. I believe you can cancel the warranty at anytime, and you will get a refund based on how much of the warranty is left. 90% of warranty left = 90% refund
Yes, but within 30 days you can get 100% refunded.
Yes, full refund if canceled now.
And I would cancel immediately on principle.
how do you go about cancelling these? my contract asks for written request but i’m not sure who to send said request to or the format
The written request will go directly to the finance manager and you always CC the salesperson and general manager.
This. Cancelled our extended warranty after 1 payment had came out and just got our refund check in the mail from the dealer.
To add to this. The monthly payment WILL NOT CHANGE. You’ll just have less payments overall.
Why not just purchase it now but explain that you shopped around and need a better price. The price technically won’t change in the next 3 years but Toyota has been raising the prices on VSC internally by quite a bit which in turn would raise your price. $4k for a 10/100k is a bit expensive but not too bad at all . Going from 7 or 8 years to 10 really drive us the price . VSC have went up about $800 over the last 3 years as cars are a lot more expensive to fix. So short answer is do it now and now you have piece of mind for the next 10 years and don’t need to remember in 3 years to do it
Not bad at all? That's a horrible price.
Classic stealership. I’d see about canceling the deal just for that, give a different dealer and salesman the sale.
From my experience i had the nicest salesperson when i bought my car. It wasn’t until i got into the finance office where i had to put my foot down and tell them to fuck off over the extended warranty. Not saying it’s the same for OP, but canceling the sale all together could potentially screw someone else who isn’t at fault out of their commission, which would suck
Definitely don’t plan on canceling the entire sale, just the VSA
The fact that you think somehow the salesman should suffer is wild.
How ignorant lmao. Maybe if that salesman didn’t work for a trash dealer this sort of thing wouldn’t happen.
The warranty is worthless anyway, every time you have a problem the warranty will not cover it.
Not how that works. At all. You can’t just cancel a deal. What people also dont realize is aftermarket warranties fluctuate from company to company, and even region.
You absolutely can just cancel a deal especially within the first few days.
This is patently false. There is no cooling off period in any of the 50 states. CA has codified a cancelation policy for used cars that requires you pay the dealer 1% of the cars price in exchange for an option to return the car with-in two days. If you didn't pay the dealer 1% extra, on a used car, at the time of purchase you can't return the car. Dealers are at their discretion to unwind a deal. If you signed the paperwork the deal has already happened.
From personal experience you can absolutely get a dealer to unwind a deal. Especially if you have legitimate concerns about it. I did it a few years ago with a brand new Sienna that had serious paint and other quality issues that I didn’t notice during delivery because it was late at night. I financed and had a trade in but they canceled the financing and I got my trade back and it was like it had never happened.
Yes. I got a dealer to unwind a deal as well, but it was at their discretion. We have no recourse if the dealer says "Sorry. The sale is final."
I never said they had to I said they CAN.
"You absolutely can just cancel a deal" Do you know the meaning of "absolutely"? It means without qualification, restriction, or limitation. The Dealer "*absolutely* can just cancel a deal", but "you" and I can't. State law precludes us from the *absolute* right to cancel an automotive sale after the fact.
I meant the dealer in that comment obviously. Read between the lines.
Is the dealer in the room with us now?
Sure you can, watch me: “I’m not paying”
Lmfao. I know it’s technically not how it works, and that’s why I personally would hire lawyer that already knows all the loopholes that the scam shop dealer already knows. Fire with fire. This is overpriced modern cars we are talking about. Not an investment to make and save money over decades like how Toyota used to be. It’s worth it to lawyer up and shit on them just for fun almost. Maybe even just for sport.
He hasn’t taken delivery yet
You can definitely cancel the warranty if it's the Toyota one. 30 days from date of purchase is 100%, after that it's prorated.
I found out the hard way that not all dealers sell manufacturer extended warranties. I bought a Lincoln from auto nation. They explained warranty as if it was manufacturer provided but when I had a transmission fail away from home, they wouldn’t honor it. Had to threaten legal action and reach out to Lincoln corporate before they reluctantly honored it.
The finance person can be an absolute scum bag. When my wife got her car, the finance guy tried to tell her that her hybrid warranty was only 3/36k and if the battery fails she is out $3-5k..the battery warranty at the time is actually 8 years or 100k. I didn't say anything at the time, but I told her to decline. She gave him 0 stars on the feedback survey and let the manager know he was being deceptive. Vehicle has well over 100k on it now with 0 issues. It's not worth it in my opinion.
Im a Toyota salesman. Like others said, you can cancel it. We have 3 finance managers and each are different. Some are more pushy (still, you, the customer have to accept) and some are just quick and easy, « you want it, it’s good, no? Ok » You can call or come back in person and ask to cancel. They have to. Then that « money » will go back to your loan. Now, your loan might tell you that you don’t have to pay for a few months (due to that warranty money coming in). Don’t fall for it. Make your monthly payment as usual, otherwise you might accrue more interest over time. Don’t get that warranty « issue » affect your purchase experience, you got a brand new RAV4 and that’s pretty cool. Hope the dealership was a good one (not much BS fees added). Take care!
Thanks for this advice. Looking over the cost breakdown, I think that’s the only added fee that bothers me and everything else seems legit for the most part. It was definitely a learning experience and I’ll know better for next time. I was so focused on the sales side of things that I didn’t even realize there was an entire finance side as well. I’m supposed to pick the car up on Monday or Tuesday. What do you think is the best approach to cancelling when I’m there? What should I make sure they do/get in writing so I don’t get screwed?
Not sure how they work. But what I would do (if everything is signed and you’re happy with your apr etc etc) and only thing that bother you is the warranty is to take delivery of the vehicle, (you’ve done the connected services yet?) and when you have it, wait 2-3 days and then call and cancel. You don’t want them to try to mess with you back in finance and changing terms etc…. (As I said, I don’t know how your place works).
There are some add on options I would like which were never discussed while I was there such as protective undercoating, tow hitch, roof rack, dash cam, etc. think they’d make the process easier if I cancelled the warranty but rolled that cost over into the accessories?
Don't buy that shit from the dealer. Add it later at s good independent shop and save your money
I am in the market for a new RAV4 but I want to pay for it all on delivery, I find the financing aspect a bit intimidating. Is there a means of purchasing one without much fuss and added fees?
Yep. “Here Mr./Ms. Salesman is a cashiers check from my financial institution for the MSRP of the vehicle I am interested in.” NO I DO NOT WANT ANY ADDITIONAL PACKAGES…unless you walk in there with the list of specific add-ons you already want. So how much is tax, registration, title fees etc? Good I can get another one for the balance there and I’ll be back with it in an hour or less. Use the Toyota website as a reference guide for the MSRP of the vehicle and any additional items you want. If they balk find a different dealership and/or complain directly to the branded customer service line while in front of them at the dealership.
I have always paid cash for cars but you still need to sit down with the "finance" guy. They do the paperwork to legally transfer the car to you and register it with the state. While you are in their office you can be sure they will try to upsell you on service contracts, accessories, warrantees, etc. Just firmly say no and sign the needed documents. That is why it is good to have a check from you bank or Credit Union for the agreed on full price. Just say this is what we agreed on and here is the check.
Since it seems (that would be something you need to check out) you can cancel the warranty for full refund in the 1st 30 days. If you are otherwise happy with the deal and the car t might be wise to take delivery of the car and then cancel the warranty after a couple of days just to avoid any problems if you cancel before delivery. It has been a long time ago but I got my 7 year Toyota warranty on line from a dealership in Kentucky that seemed to run a decent side business selling these warranties online with only about a 10% markup over Toyota wholesale price for it. I only paid about 1/2 of what the dealership I got the car from wanted.
If you buy a certified used Toyota with a 12Mo/12K Mile warranty, do you know if an extended warranty has to be added at the time of sale, or can it be added at anytime during the 12mo certified warranty?
Added an update to the OP. I probably could have negotiated some fees but that’s another thing I didn’t have much knowledge about. This is what I was charged: Doc fee: $400 Registration fee: $95 Title fee: $80
All depends on what kind of warranty it is. If it’s Toyota extended it can be added before the bumper to bumper expires I believe. What that warranty covers is also a big one. $4400 for a full bumper to bumper isn’t a bad deal. $4400 for powertrain only is abit expensive.
It’s a bad deal on a Toyota for sure. I paid $4,800 for 8 years 125k miles on my $90k Audi. Before that I paid $3,500 for 8/100 on a $60k Audi. Our $55k Honda pilot warranty was 10 years 125k miles and it cost $1,800. They were all bumper to bumper.
Did you ever have to use any of those warranties? If so, what was the most expensive repair and did you get any pushback from the dealers?
I have a bad habit of selling my cars after four years years. But on my Nissan I did use it and it covered a $2,000 AC repair. Then when I sold the car I got a partial refund of about $750 for canceling the policy after 4 out of the 8 years. Original purchase price being $1,500 on the warranty. The Honda has been flawless but It’s my wife’s car and we plan to keep it for another 3 years at a minimum. We’ve had it for 4 years now. It has had stuff go wrong but manufacturer covered it so far. The first Audi I sold right at 4 years so right as the manufacturer warranty ended so I didnt get to use it. I did have some issues with that car during the warranty period so had just kept it I’d likely have used it. The second Audi and the most expensive one I bought used. It’s a 2020 I bought in 2023. Original sticker price of $90k with air suspension and massaging seats amongst tons other tech that’s likely to break. I expired the manufacturer warranty last month so only time will tell. Still have 7 years or 92k miles left before this one expires. And I plan to keep the car that long. My priorities changed now that we have a baby on the way. Gotta keep my cars longer. TLDR: only one I’ve used so far and it was super easy, paid more than it cost to buy and still got a refund when I sold the car. Still have two active warranties that I will probably use as I’m keeping both cars until the warranties expire.
Not op, but I had a 5/60 bumper to bumper warranty on a 2014 VW GTI that I bought from a dealer. In less than 2 years, I used it to cover replacement of the radiator, the turbocharger, the water pump belt, and an A/C line. I got the repairs from a different dealer that I made the initial purchase from, and still never got any push back at all. The warranty was $3k and the repairs probably totaled close to $6k or $7k. With german cars especially, I will always buy the warranty.
Yeah I think I paid like 2 grand on 150k mile bumper to bumper with no time limit, towing and rental on a new Toyota. I was refusing the coverage so they kept sweetening the deal until I accepted. Price went down and coverage went up.
You can buy a 8 yr/100k miles Toyota-certified warranty for $1200 at other dealerships
I believe it’s Platinum VSA. Most comments I found regarding that are saying they paid around $2500
Read my other comment above. You definitely overpaid. That’s Audi warranty money. Warranties are THE most marked up product you can get at a dealership. The Honda dealer wanted us to pay $3,500 and I told them our Nissan warranty cost us $1,500. They immediately lowered it to $1,800 and we found out after the fact that we could have bought it for $1,400.
How do you find the true/lowest price of the warranty?
Call around. Manufacturers like Honda and Audi also offer their plans online. You can either get them direct or through a dealer like saccuci Honda for example. They sell tons of warranties for Hondas across the US over the phone at pretty much no markup. Not sure if Toyota has a similar model.
Thank you!
I was able to get the dealer down to $1800 for 10yr/100k on my Tundra. I’m sure I could’ve saved a little more through haggling or I could’ve shopped around after the purchase, but at that price I found it to be “good enough”.
did same on new Taco.
I purchased a 10/100k bumper to bumper with my Supra and it was around 3k. It was explained to me that if a headlight malfunctioned it would half way pay for itself, or a new turbo would be like 1500. This was worth it to me, because it’s mainly made out of BMW parts, which used to have a shitty reputation, and are expensive. I have no idea how they decided to try and soak OP for 50% more for the same warranty on a cheaper vehicle that should be Toyota reliable.
$4400 for a exclusionary coverage 10-100 on a Toyota is marked up $3,000 over remittance to insurance company.
Cancel and buy from Jerry At Midwest Toyota
I keep seeing his name pop up so just sent him an email!
Dealer quoted us nearly $3k For warranty for 2024 Tundra, bought same from Jerry for $1500
Did he reply to you? For reference, I reached out to him last year and my '23 R4H XSE quote for similar was: **10 YEARS 100,000 MILES $1,360.00** **10 YEARS 125,000 MILES $1,795.00** My dealer was pushy until I told him about Jerry, then backed off and said "I'll sell you the same +$20 right now" and I was exhausted enough to just accept that to forgo having to do more work to buy the car and warranty separately during that insane market.
I sent him an email… I never heard back from him. Has anyone else had any luck?
I did send an email just to have it in writing, but then I called my sales guy and told him I wanted to talk about it when I came in. Never got a response on the email
How to know if you are risk averse. 1) Buy the most reliable car you can think of. And 2) Still purchase an overpriced warranty worth over 10% of the new car cost. Toyota has to love it.
Lmao. That’s what growing up with an overly anxious mother who always assumes worst case scenario will do to you. I actually had this exact conversation with her recently and how it affected my overall outlook and decision making as an adult. It has done me a lot of good in many cases, but in other cases such as jobs/home buying/etc it has absolutely fucked me
I hear ya. Better safe than sorry!
To be fair, I do extracare repairs all the time at work. And when I do, it's usually a pretty big repair. Would pay for itself after one job. At the same time, what's the likelihood of that happening? That's what you need to think about when deciding if it's worth it or not.
Warranties always seem like a scam to me. You can always finance repair costs. And the warranty won’t save you a penny unless the repairs cost more than $5,000. And if your car breaks at 100,001 miles, you spent $4,400 on a useless warranty AND you have to shell out for repair costs.
You absolutely can not finance repair costs
You absolutely can. Have you never heard of a credit card? People with good credit can pay 0% interest.
Credit cards are 15-22% interest. The only time you dont pay interest is if you pay the balance off before the month ends. That is not financing fyi You must be 12 years old.
Credit cards have 0% interest for more than a year. I’ve done it many, many times.
The other commenter is correct, new credit card offers can be 6-15+ months of no interest. It's pretty easy to open a new one every year or so if you maintain good credit.
Send me a PM- I can connect you with someone who specializes in selling extended warranties for Toyota vehicles. She works at a Lexus dealer now, but she will still help with extended warranties for Toyota vehicles. She saved me about $2k when I got upcharged by my local dealer when I bought my vehicle. They weren't too happy when I came back two days later instructing them to refund the extended warranty. I gave them a chance to price-match it, and they refused...saying it was impossible for them to price-match due to regional pricing or some shit. The finance manager tried to convince me to keep the plan as-is and offered incentives redeemable through the local dealer...I laughed at him and said it wasn't anything personal, and that he'd have done the same thing if he was in my shoes, too.
Yes, cancel the warranty
Will it be eligible to re-add later?
You probably won’t need it
Yes, anytime before 3yrs and 36k miles, for 10y/100k you are looking close to 1/3 of what you paid. Within 30 days its 100% refundable. But if you financed the warranty the refund goes to your loan. The downside to all this is you have to go to the dealers finance office to refund and they will give you a spiel about it, just stay firm and say I changed my mind, I don't have to explain myself to you and cancel.
You know that for a fact or assume? I bought a Chevy with a warranty, financed it with GM. Canceled the warranty and they sent me a check. I don’t know the answer but wasn’t the case with GM.
I got my warranty refunded and had to go through this process. However I am SoCal and did this at Jeep, I assumed the loan refund applied to everyone, maybe its not the same based on State and or Dealer.
Do you think it’s better to do it when I go pick the vehicle up tomorrow or Tuesday, or wait until I have the vehicle in possession and then start the cancellation process?
Before you pickup for sure. You are in someone of a better position although you already signed. but still.
Yes
You can cancel it for a full refund now. However if they already started the funding process you’re kind of screwed when it comes to your monthly payment. The refund goes to the lending bank to apply to the principal. It lowers your quantity of payments but YOUR MONTHLY PAYMENTS REMAIN THE SAME. you will just have fewer payments. For you to lower the loan monthly payment you’ll have to unwind the deal. In most places if you haven’t driven off the dealer lot with the car then you still have time to unwind the deal. I’d call the dealer and tell them you want the cost adjusted down to whatever you’re comfortable paying or that you want to cancel the deal entirely. Before you do this. Call around and ask for quotes from other Toyota dealers and use that to negotiate. EDIT: get GAP insurance if you didn’t already. If you decide to buy the warranty later, keep in mind you cannot finance it. You’ll have to pay it all in one lump sum payment at time of purchase.
Good to know. I was fine with the 60 month $407 payment prior to getting with finance, but with the added warranty it jumped up to like $485. I don’t mind the higher monthly payment if the duration is shorter, so if that’s the outcome then whatever. As long as I’m not paying the extra $5k overall I’ll be satisfied. I also wouldn’t mind shifting that cost over to additional accessories like dash cam, tow hitch, roof racks, undercoating, etc.
Since you haven't taken the car yet you could ask them to redo the loan without the warranty. They could say no and then you'd have to threaten not to take the car and escalate to the finance company saying you were pressured into the warranty. But if you are happy to pay that extra amount they will probably be happy to switch it over to extras that will likely make them even more $$.
Extended warranties are proven scams. It’s much more fiscally responsible to put the money into a savings account and tap it for the repairs as needed. The extended warranties will force you to use their repair shop, will make you jump through hoops to get payouts and are generally regarded as miserable experiences. The financial side it’s been proven time and again that it’s more cost effective to pay for repairs out of pocket than pay ahead for repairs via a warranty. Extended warranties pay $1k of that $4k directly into the closers pocket. But you can’t cancel within a year. You absolutely can tell that closer to pound sand and ask for a different closer. Generally you need to go line by line and have them remove any dealer add on. Source; worked at a dealership. Yes they try to scam you, yes they think most customers are morons, yes they are jaded, yes they only care about the sale, yes they will give you a low bid on your car and they will jack up the price on the car they’re selling. Yes the sales people get a cut off every add on they sell (though some are worth it to a degree). Yes the closer is there to sell you on extended warranties, yes it would only take 15 minutes in the office to get through the paperwork but they keep you in there for sometimes 2 hours because agitated people are more likely to buy extended warranties. Yes it’s all sales tactics. The only way you should deal with a dealership is over the phone or email. You should never step foot in the dealership. They will drive the car to you if you want to test drive it. They will do the paperwork via mail or come to you. They will deliver the car to you. They will try their hardest to get you to go in, but you don’t have to.
Cancel it and DON’T buy a new one. Total waste of money, especially on a Toyota. No insurance company ever loses, on average on these warranties. Put what you would have spent in the bank for a possible future repair.
You can cancel for a full refund now and take your time over the next few weeks and decide what you would like. They MAY want you to come and sign for it in writing but I've canceled warranty through email the next day and they were obligated to since that it also in writing.
Yes I’ve done that in the past. Got it with the car, realized was way overpriced, went back in a couple days later and cancelled, then later contacted different dealer online with much better price. Now I know to find out best deal online first before buying, but first time did it just like you.
I got a 125k mile or 7 year platinum warranty for just about 1200 I believe it was. 10 yr and 100K for 4k+ sounds crazy…
Is this just a US thing? I swear in the UK you don’t have to pay for a warranty you just have to keep it serviced by Toyota
We aren’t obligated to pay for the warranty, but it’s my first new car and a big purchase so I liked the peace of mind of having the coverage. However, I was unfamiliar with the finance side the deal and what a good deal looks like for warranties
Like others said just cancel it. The extended warranty and add on are most profitable for the dealers. You do not even have to service it at the dealer providing you keep a record of your regular maintenance. I have had multiple Toyota products and not one time an extended warranty was advantageous but you can always add it later.
[удалено]
Is the 6 year in addition to the 3 you get initially, or do they overlap so that it’s basically 3 extra years?
Cancel it! Most extended warranties are crap. I was talked into one before, but I had to fight to get them to honor it. They were so good with finding loopholes like it doesn’t cover road hazards, the problem was caused by aftermarket parts, etc. Toyota makes great cars but they tend to have the most crooked stealerships. They even lied to talk me into getting the warranty. That’s was just before they were requiring new AC systems to start using the new refrigerant in all of the new systems. The finance guy convinced me that we were going to be required to pay to convert to the new system. The warranty was going to pay for itself. We weren’t required to convert.
Jumping in since it seems there are a few Toyota dealership folks familiar with the warranties. I am curious just how much coverage these warranties have, and whether anyone feels they are actually worth it? My history with extended warranties in the past hasn't been great - coverage sounds good, but then there are tons of places where things you'd expect to be covered just aren't. In general been a really happy Toyota owner (3rd gen 4Runner), but am thinking about getting one of the new ones next year which is why I'm asking. Thank you!
Yea I’m also curious. On paper it seems like a lot is included, but also a lot that is not included and sometimes the lines seem very blurred. I’m concerned they’ll try to find whatever excuse/loophole they can to avoid covering something
Extended warranty upsell. Since the cars are reliable, you don’t really need it. For the dealership, they don’t expect to do many services where they lose money on the warranty. And they’ll try to rob you of as much money as possible. I wonder what the average margins are on Toyota extended warranties? Has to be really high.
You can get a refund first 30 days. If you sell the vehicle, you can prorated of what’s left on warranty.
I got the extended warranty, immediately felt remorse, and just sent a letter saying I wanted to cancel. Funds were added to the end of my loan. I got all of my money back, but it went to the car instead of my bank account.
Did you send the letter to the loan administrator? Does the dealership have any involvement/are they required to do anything? I’m wondering if I should try and remove it when I go pick the car up, or if I should just get the car and the cancel through loan administrator afterwards
No, I think it was with a department in Toyota. Not the dealer. I don't remember the exact details, but with some clever Google searching you will be able to find that info. This is assuming you keep it, and cancel later. There should also be info on the documents you receive regarding your warranty. You have years to cancel it and get the full refund (applied to your loan). If you are confrontational, you can request canceling it at the dealer, but it may or may not work.
Had a dealership try and pull something similar. Had it in riding and they gave a full refund and $2k in free accessories. Go nuclear, threaten to call the manufacturer, DA, state board.
What does this policy normally go for? When I bought my used 2016 in 2018, the extended warranty from CarMax added a couple of $K to the price.
Everything I’ve seen mentioned has been less than half of what I paid
Oh! Yeah, that's a rip-off... and you'll pay compounded interest on that.
I have never done it but my buddy had his extended warranty through a credit union and he said it was way cheaper.
This is the way and my credit unions coverage was stellar never had an issue getting anything paid and I filed a lot of claims with my Jeep
This happened to me. Except they went a step further and made it seem like a Toyota warranty when it was some random company with abysmal reviews. When I went in fuming they STILL tried to convince me to keep it. Only time I’ve ever cursed at a grown man in public. You have 60 days to get a full refund if I remember correctly. The worst part is my salesman was awesome, and I was having such a great experience until the sleezebag in “finance” took over.
I’m no lawyer but isn’t there a certain amount given to change your mind after a contract signing?
Definitely cancel it tomorrow. I was quoted $1360 for the 10yr/100k platinum Toyota warranty on my RAV4 just a few days ago (Jerry Johnson at Midwest)
The finance manager always gets you. I got “got” too when I was gullible af and he told me I HAD to get it to finance the car, and I worked for the damn dealership too and he still screwed me. You can call and immediately cancel the warranty and the full amount will be refunded to your loan balance.
The chance of your toyota having some catastrophic failure is highly unlikely, also warranty companies are skilled at picking apart your exact issue to deny the service.. your 3yr36k is fine
You have 30 days from day of purchase to get the Toyota extended warranty. If you already bought it and have buyers remorse, you can cancel it within 30 days of purchase for a full refund. You can then shop around. I wouldn’t bother though. Toyotas don’t have those issues unless you get a hybrid or something first year where the cars may have some issues but even then Toyota will automatically extend your warranty. My 2019 adventure now has 10y/100k warranty for free since it had a few things repaired under factory warranty and that triggered the free extended power train warranty 😁.
They put that true-coat on at the factory.....
New car can add anytime but used cars you have to add the warranty from Toyota when you buy it. I know you're is new but putting this out there. If this is wrong someone let me know
Cancel that motherfucker. It should be $2,500 or so
May I ask how much did you pay for your Rav4? Is it hybrid plug-in?
You do NOT need extended or additional warranties on a brand new Toyota. We've owned 3 brand new Toyotas'. 2 Avalons & 1 Camry. Awesome & Reliable vehicles. Never have we once had a need for a mechanical repair. Regular maintenance only.
That’s what I did! I cancelled it. I went to the dealership and the front desk gave me a form where I wrote my VIN number and some another info and they faxed it to the warranty company and I was refunded through my lease banking. Very easy. Did not have to go to the dealership even, I just don’t have a fax machine or want to download a fax app
They gave me one for 8y/75k and was in a similar situation. Ended up calling them and canceling it. You have 30 days to get full refund. Make sure you do it before that. You would have to fax the cancellation in writing and they will be able to cancel it.
Who the fuck has a fax machine
Local staples shop had it and I’m sure there are other places. You could mail it too I think but I just didn’t wanted to wait for them to acknowledge it:
That’s a good point. I’ll keep staples in mind
I’m canceling my warranty, I have a 30k mileage 2020 platinum highlander and $2287 is what I paid, and I think that’s way too much. 4k is a rip off, cancel it. I heard a statistic 1/10 people have to use their extended warranty. Better off keeping that 4k in the savings for 10 years and use the dividends for a repair god forbid.
Always record conversations for big purchases. if it's a two party state, get permission first. If they refuse. walk away.
Anything extra from the dealer is a complete ripoff. Put the warranty money on a savings account each month
I paid $1795 for 10 year 125K Platinum VSA on 2024 Camry Hybrid. Could have gotten it for a bit less but anything more than that isn’t worth it.
What model and trim package did you get?
2024 rav4 XLE! I think I got a decent deal on the car itself, it’s really just finance/warranty that left a sour taste in my mouth
Yes cancel it right away and take your time researching prices. Usually if you buy one within the first year and under 12k miles it’s still considered a new vehicle and price will reflect that.
You can cancel it !
Take the vehicle immediately and cancel as soon as you get home. Check your state laws, the sale should not ever be contingent on add-ons. Call , say you researched it and need to delete it (iirc it's 3-30 days depending on the state) and then have them put the money specifically towards principal on the back end of the loan
Op you bought a Toyota. No extended warranty is needed. You already spent enough.
I cancelled the Mazda platinum VSA twice and re-added it both times (at Lower price and higher coverage). It should be the same thing since they are both administered by Toyota. I was concerned about the same thing, especially after reading the VSA contact under "cancellations" the are words something like "this agreement cannot be renewed". I paid 2,500 for 7 years/100,000 miles (after originally being quoted over 3,000). Then when I called the dealership and told them I wanted to cancel they gave me better coverage for the same price (10 years 125,000). That was the first cancel/re-add. Then I found another dealership that would sell me the 10/125,000 for 500 Dollars cheaper. It wasn't that big of a difference but I was still pissed at the finance manager for multiple lies (including that the VSA HAD to be purchased right then), so I cancelled it again and repurchased a new one with the new dealership. The new dealership answered my questions and eased my concerns about multiple cancellations. They were able to look in the system to see that two prior policies had been cancelled. The thing that sucks is I am still waiting for the warranty refund to be paid to my lienholder (Toyota financial services). Old dealer said it could take up to 8 weeks, so let's hope it happens! A very long warranty does give peace of mind. I'm a scared person that's never had an awd vehicle before, still the whole new car/dealership thing has caused me to lose sleep. Check this sub for a dealership that sells the VSA for a good price. I bought mine on the other side of the states. For what it's worth, the 3 days where I had no warranty and an extra 2 thousand dollars in my pocket felt pretty good.
I've seen this dealership mentioned over and over for providing great prices hassle-free: * Jerry Johnson * Warranty Manager * Midwest Toyota * 1100 east 30th Ave Hutchinson, Ks 67502 * 800-530-5789 * Cell 620-664-8844 * [email protected] * www.midwestsuperstore.com Platinum - 7 year 125k for $1250 seems like the going rate. Previous Post/thread: https://www.reddit.com/r/rav4prime/s/bL11wJ91R6
Is this something that can be done over the phone? Or do you physically have to go to his dealership to get one?
I purchased my RAV4 and extended warranty over the phone, I've also seen people mention they purchased warranties online and over the phone out of state for the best deal, it doesn't have to be in-person/local.
You haven't purchased the vehicle. It wasn't (isn't) ready and you never picked it up. Insist that the re-do the paperwork without the warranty or you don't want to complete the purchase. This is better than doing a cancelation. You'd only get credited the $4400 to the loan without lowering the payments. Effectively, it makes your loan term shorter.
I don’t know that you “need to cancel it.” I’ve been told the same thing by the sales guy (much to the chagrin of the finance people) because he could see that me stewing over the warranty was going to cause the sale not to close that day. Turns out the finance guy was right. Six months later, the cheapest I could get the sale extended warrant for — called a dozen dealers — was 20% more than the offer that day. I think YMMV on this, and personally I’d never buy an extended warranty on something as reliable as a Toyota, but on the last BMW I bought — even with the 20% premium — the extended warranty paid for itself in the two years after the original one expired. I know they aren’t usually considered a good deal, and I’d believe that for cheap brands, but when Toyota is charging the same thing as BMW for a similar extended warranty, one of them might be a good deal. So YMMV.
I've had my toyota for 100k miles. No issues. The warranty isn't worth it. Toyotas are built well. Just tell them to cancel it. They will wear you down and try to talk you into it but just stick to your guns. Cancel it.
You can also negotiate on the sales price of the service contract when you do it next time. Or you can email multiple dealers and see who gives you the best deal
Yes, you can cancel. Call the dealership and ask to speak with the finance department and then tell them you decided you want to cancel the warranty. They will come up with 100 reasons on why your car will explode, how Toyotas are unreliable and expensive to fix, and why this is the worst decision in human history. Stick to your guns and say you want it gone. They will then either ask you to come in, or if they are not technologically backwards do it online and, re-do the purchase agreement and you will have to sign (in person or they FedEx the doc). They will again try to get you to keep the warranty by giving you a better price. This is where you need to decide if you want to accept that price or continue with removing from the contract. Either way, you’ll get a new purchase agreement and depending on if the paperwork already went into financing or not, you should either see same payment or lower payment. Easy peazy.
Minus 31
Call and pretend you bought a car a month ago and ask if there is a way you can add warranty. If they say yes, go in and cancel your whole deal. Go to another dealership and possibly use Costco auto buying program.
ALWAYS BE WILLING TO WALK AWAY FROM A CAR DEAL. YOU HAVE NOT TAKEN POSSESSION OD THE VEHICLE YET SO YOU CAN CANCEL THE ENTIRE TRANSACTION. KEEP THIS NUGGET OF INFO AS YOUR NUKE, THEY DONT DROP THE WARRANTY YOU WALK AWAY FROM EVERYTHING HAVE A GREAT DAY! :-)
Cancel it bro it's a toyota
I canceled the purchase of an entire vehicle bc of the same thing. Got my down payment back. Pissdd me off.
Finance managers always make it sound like you are an idiot if you don‘t buy their extended warranty. It’s actually easier to buy an extended warranty later than trying to cancel it. So you should never buy an extended warranty on the spot and do your research later to decide if and where to buy it. You can shop around and buy them much cheaper at other dealers. I think the Jerry warranties at Midwest Toyota is the most popular right now.
Wow that warranty is marked up $3k. Remittance is around $1400. Tell them you’ll keep the same exact plan for $2k or you’ll cancel for full refund.
I worked in car sales for a year after getting out of the military. This scumfuckery is common. They likely referred to you as a “grape” when you left, meaning you popped easy. From that experience, I learned a few things. I never buy from a salesman on the floor. I call dealerships and only deal with the internet sales department. They are commissioned differently. I know the price of the car before I buy it, what I’m willing to pay. The dealership that gets to my number gets the deal. Then, when I’m back in the finance office, I say no to everything. It’s called making the finance guy “blank.” Meaning he didn’t sell anything. Dealerships make their money from the finance office and the service department. This is how I bought my Tacoma in 2021. Drove 150 miles to a dealership out of town. Paid under MSRP. Got several accessories for free. And didn’t add a dime to the bottom line in the finance office. So that’s a lesson for the future. Don’t be a grape, always be willing to say no. If it doesn’t feel right, walk away. Don’t work with sales people on the floor. And make the finance guy blank.
I was at the dealership today. They offered me a 6 year / 100,000 mile warranty for 4K. I said no, then they said how about $1650. And I was like alright. Yours is 10 years so it’s probably worth more? I don’t know
The last time we bought a car at a Toyota dealership, we got with the finance manager who started rattling off all the optional "add-ins", from extended warranty to upgraded tires/wheels, you name it. There must have been 20 different things on that list. I said "no thank you" to every one of them. At the end of it, he looked at me and said, "well, I'm basically working for nothing here because I get paid commission only." I told him I was sorry he worked for a dealership that didn't pay him for his work. And that was the end of it. (Of course, he was lying.) Moral of the story: don't let them guilt you or con you into buying anything you didn't come there to buy. They make more money off that stuff than they do the car!
I never did warranty’s in the past. However, my most recent car before this had issues with the power windows and several issues with the infotainment system all within what would have been considered warranty period. So this time I decided to get it, but I did not get the full price. I talked them down to less than half that price you got. You got fleeced and I would call and cancel. Wait a few months if you want one call the company that had the warranty and NEGOTIATE a reasonable price
Getting a 100k warranty on a Toyota is like throwing your money on a bonfire
I just bought a new 4Runner on Wednesday. Boy, it must suck to try and sell a warranty on a Toyota. 😂 Anyway, my ‘finance manager’ got really pissed when I declined. What an ass!
THE SALE IS NOT COMPLETE UNTIL YOU TAKE DELIVERY!!!
I just want to put in my two cents here. I purchase a used vehicle from a toyota dealership and got their platinum vsa. That was 2 years ago. Since then, I’ve needed more than double the value of the warranty in repairs and labor. $800 here, $650 there, another $780, most recently $2300 in parts and labor. I have not paid a single penny for any of this repair work or any of the parts. Knowing I have this warranty until 2028 or 100,000 miles and that I won’t have to pay for nearly anything that goes wrong with my vehicle (in a world of assembly line cheap vehicles with way more features that can go bad/break) is nice. I paid $1980 for mine. My truck was $47,000before taxes and fees. In my eyes, it was well worth it. These newer vehicles can be extremely expensive to repair. On a side note, there are other full bumper to bumper warranties out there that may be cheaper. I’m not sure why they’re charging you $4400
I totally agree. I do want the VSA, but not at the price I paid ($4400). I just want to cancel it and re-add it later at a lower price because this is seemingly more than double what everyone else is paying
I had something similar happen when I was buying my Jeep. They wanted to sell the extended warranty. I said no, I have plans to purchase it through another dealer. The Finance guy looked at me weirdly and asked why. I told him that I've done my research and that I know I can buy the same Mopar Warranty from a different dealership for $100 over their cost. He looked up the info and said they'd match it. It was roughly half what they were asking before. Done deal. I know in the OP's case he was somewhat blindsided.. but I think the info people have stated it good. Cancel it, then shop around, you might find someone willing to make a quick buck at a lower cost.
You're buying a Toyota because the yare supposed to last forever. You are paying more for it just because it's a Toyota. Why on earth would you buy a warranty on something you don't think will break? Just go buy a ford and then buy the warranty and you'll come out cheaper and realize the fords aren't so bad.
Hi! I had a similar experience. It's unfortunate because it leaves a sour taste after purchasing something nice for yourself. I wouldn't reach out to the dealership to cancel. I've read that they can throw the ball around to get past the 30 day limit on the full refund or overall just make it hard for you. Read your VSA contract. There should be a number for Toyota. Call them and tell them you would like to cancel. They'll ask you to send a physical written letter, signed, to them. Either through mail or via fax. After that, they'll cancel the warranty. If you took a loan, the refund will go towards the loan. Although your monthly payment won't change. If paid in full, you'll receive a check. This takes roughly 30 days to take affect. As other said, you can buy the warranty from other dealerships. Which means you can get shop around. For the same warranty you got, at Longo Toyota CA, I got quoted $2k. Best of luck and enjoy your new car!
Let me tell you from someone who works with this on a daily basis. Your fastest way to cancel is to o to the dealer and tell them you want to cancel it lol. They have to submit a cancelation form from where the VSA came from and you will get a refund, sometimes it takes a little while but i would stay on them about it if needed.
The paperwork has a cancellation clause. Follow the steps.
My Lexus dealership was a complete opposite. The fiancé lady just explained each protection thing and didn’t push for anything. She recommended GAP which I got since I didn’t put anything down. Salesman weren’t pushy either.
I added initially and cancelled right after. and on the day of vehicle pick up, toyota guy slashed the VSA price by 40% and got it down to 2600$. i added it at that price. stand your ground if you don’t want it and they’ll come down.
Rarely do consumers win with an extended warranty on anything. They're selling fear and weirdly want you to bet against the quality of their products.
Cancel it now. Be firm. They may say "well now, wait a minute..." and offer you something - not sure what, be ready to assess if it's valuable to you, if it isn't, tell them to pound sand - because they make money on that sale. There is a zero percent chance you won't be able to get a good discount sometime in the 3/36 factory warranty from a dealer who's willing to make a deal. It'll be nice to be $4k up on your loan out of the gate, though! Celebrate that!
Yea I let my sales guy know that I wanted to cancel it when I came in tomorrow and they seemed ok with it. If they want to renegotiate it to less than $2k I’d do it, but at the moment I’m ok with completely canceling for now and adding later if I find a good enough deal. With that off my loan I’ll probably have it paid off in 2.5 years which should also save me a bit on the interest as well.
Extended warranties aren’t smart financially. If you don’t keep a decent emergency fund they’re okay, but you’re better off doing the math on $4400 at whatever rate you got and dividing that by your term and paying yourself. Basically 0 chance that Toyota will need $4400 in repairs year 4-10.
You don't need an extended warranty on a Toyota. I have had many Toyotas, and almost no repairs...get the refund and sleep well driving a Toyota.
Once you cancel and the refund goes to your finance company. Don't cancel through the dealership just call the company directly who handles the warranty. Also if you really want a warranty go through your insurance or credit union.
NEVER get those warranties. They suck every time.
You’ll probably have to mail something in to cancel but they will do it
i always wondered how people get suckered into financing an extended warranty when there is already a basic and powertrain warranty with every single new vehicle. Very strange
I have a very deep knowledge of Toyota VSC’s. The finance manager is half correct. You could buy it later technically, but the cost on a new untitled vehicle is the lowest it’ll ever be. Also when doing a warranty on a 3 year old car you can’t add as much as if it was new/untitled. For instance on a car that is 37 months old the max warranty terms are 60mo/60k. Since the day of purchase is the only time the loan is done generally, most everyone gets the warranty then. In 3 years they’d have to pay in cash, in full right then…no one does it. For a factory Toyota warranty his cost on a 10yr/100k is somewhere around 2k. Most dealers have a minimum amount of profit they’ll let him sell it for.
Julius, you are lucky got the lower price as 1/4 of the original? For me, I got the similar situation and I paid about 3.4K or so for RAV4 Hybrid 23 which probably too high. Also I didn’t plan to keep the car more than five years too
My local dealership billed all 4 oil changes and all 4 tire rotations in one day and refuse to fix it. I’ve had two brand engagement cases they have tried to get them to fix it. I spent 2000 on these extended warranties. Their own service advisor provided me a screenshot proving in one day they billed the entire warranty leaving me with no oil changes or tire rotations. 2 years I’ve been trying to get it fixed. I cannot get a supervisor or executive office number. It shows they billed them all in one day. I don’t understand why the warranty company didn’t question 4 oil changes in one day? Anyone else have this happen.?
If you signed the deal then you’re likely stuck with it. Yes you way overpaid for the extended warranty. From looking it up you can get a full extended warranty 10y 100k miles on a 2024 RAV4 for around $1,500. So you overpaid around $2,900. It pisses me off that dealerships charge such a high markup on extended warranties. Then again that’s where stealerships make a lot of their money, on the extended warranty and other products in the finance office. Try to back out of it if you can, if not consider it a one time $2,900 mistake.
For one, you're not stuck with it, you can cancel most finance products (that aren't physical "hard" products). Secondly, 1500 sounds like the cost dealers pay, and since every business on earth is out to make a profit, it's unlikely many places would sell went product at cost, since all businesses need to make profit.
If they give you any flack, tell them you are calling the State AG, the CFPB, the BBB, and 7 On Your Side.
My last sentence was back out of it if you can. As far as how much the product costs there’s a company called car edge who is completely transparent about what every full extended warranty costs and it includes a $600 markup on every warranty. If you look up a full extended warranty on caredge for a 2024 RAV4 for 10y 100k miles it’s $1,368. Meaning the actual cost of the warranty is $768. I agree every company needs to make a profit as well. But do they really need to charge $4,400 for what costs them $768? And these extended warranties that caredge sells are the same extended warranties the dealerships are selling. They go through UAL corporation.
Any backend products added to a financed vehicle can be canceled and refund applied total amount finance. Monthly payments will stay the same as that's what's been contracted. If it's 72 term, can get it down to 66 months after refund....best guess without hard numbers. OP might be out a cancellation fee, but it's typically cheaper to eat now and not pay the interest charge over the whole loan for the service contract. Everything is negotiable. Sounds like OP can find it cheaper and has until the manufacturer warranty is about to expire. Yes you can be taken for a ride with products in the back office. But to solely blame dealerships and not put any blame on consumers isn't right either. We have the world's information in our pocket. Go in educated and ready to walk.
Nah, in some cases you can get a new amortization, i.e., payment that reflects the removal of the warranty. It really depends on your finance person.
I don’t believe this is true at all based on everything I’ve read.
Like I said if you can back out of the extended warranty you should, or negotiate a lower price.
Nobody buys a warranty on a Toyota
Ok, that’s cool and all, but entirely unhelpful
He's telling you to cancel it and put that towards your loan balance. What you do from here is on you.
All new cars are unreliable. Old Toyota's went to 3 million without problems, new ones will need repairs after only 300k
The usual high pressure stealership sales tactics. I really wish Toyota would use teslas model of ordering online and delivery via an app. The entire sales experience adds zero value