Toyota Extra Care Extended Warranty - Page 2 - Toyota Yaris Forums

TroyD · 06-11-2009, 11:40 AM

$745.00 is only about $100 a year. Which is cheap peace of mind that you won't have some unexpected failure.

While Toyota's are probably the most reliable car on the road today, there are MANY very expensive parts on them that can and do fail. I've seen a Corolla with a steering column failure just a year out of the 3/36K...guess how many day's that car was in the shop for repairs! A/C failures can easily run over $1000 to fix...the multitude of computers in the vehicle rarely cost less than $1000, as I mentioned earlier an ABS actuator costs over $2000...even the factory radio (which is covered by the Platinum coverage), typically costs in the $800 range to replace. All of these things I see our shop repair/replace in Toyota's every day. Never mind the really big ticket items like an engine or transmission.

Toyota's claims typically run at somewhere around 85% of the revenue generated from the sale of their warranty plans. So while there are certainly plently of people that purchase the plan and never need to use it....that's made up for by the people that have claims costing 4-5 times the cost of the warranty. Personally, for about $100/year I'd rather play it safe.

For what it's worth, I've seen the numbers from the plans sold by our dealership, and Toyota is actually losing money on them as our claims rate is over 100% of the sales revenue. I looked into this because Toyota has a program that pays the dealership a bonus (that I wanted a commision on if we qualified

) if the claims rate runs at 85% or lower.

roxy1 · 06-11-2009, 12:45 PM

"So while there are certainly plently of people that purchase the plan and never need to use it....that's made up for by the people that have claims costing 4-5 times the cost of the warranty."

exactly. most people either wont use it, or will use it but never claim enough to make up for what they paid in the first place. its just another add on that often takes advantage of inexperienced buyers.

a good idea for anyone with a loan if you have $745 to spend. make that payment on your car (or borrow that much less in the first place). you will save a fair amount of interest and you will shorten the maturity date of your loan. it is very likely you"ll save more doing this than what you will have to spend on repairs. then, if you dont have significant repairs, its just a bunch of money saved.

satellite · 10-21-2009, 04:15 PM

Quote:

Originally Posted by roxy1

"So while there are certainly plently of people that purchase the plan and never need to use it....that's made up for by the people that have claims costing 4-5 times the cost of the warranty."

exactly. most people either wont use it, or will use it but never claim enough to make up for what they paid in the first place. its just another add on that often takes advantage of inexperienced buyers.

a good idea for anyone with a loan if you have $745 to spend. make that payment on your car (or borrow that much less in the first place). you will save a fair amount of interest and you will shorten the maturity date of your loan. it is very likely you"ll save more doing this than what you will have to spend on repairs. then, if you dont have significant repairs, its just a bunch of money saved.

What if you have 0% interest on your loan?

daf62757 · 06-11-2009, 03:39 PM

Extended warranty on a Toyota is money in the bank for Toyota! Statistically speaking, you will never get to use it!

06-11-2009, 03:39 PM	#4
daf62757 Nothing beats a Toyota! View User's Garage Drives: 2013 Yaris 5 dr liftback Join Date: Jan 2009 Location: Indianapolis, Indiana Posts: 564	Extended warranty on a Toyota is money in the bank for Toyota! Statistically speaking, you will never get to use it! __________________ Big Dave Indianapolis, IN Synthetic Oil....its in my car.....for at least 10,000 miles!

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06-11-2009, 11:40 AM	#1
TroyD Drives: 1996 Toyota Corolla (170K!) Join Date: Apr 2009 Location: Greenfield, MA Posts: 8	$745.00 is only about $100 a year. Which is cheap peace of mind that you won't have some unexpected failure. While Toyota's are probably the most reliable car on the road today, there are MANY very expensive parts on them that can and do fail. I've seen a Corolla with a steering column failure just a year out of the 3/36K...guess how many day's that car was in the shop for repairs! A/C failures can easily run over $1000 to fix...the multitude of computers in the vehicle rarely cost less than $1000, as I mentioned earlier an ABS actuator costs over $2000...even the factory radio (which is covered by the Platinum coverage), typically costs in the $800 range to replace. All of these things I see our shop repair/replace in Toyota's every day. Never mind the really big ticket items like an engine or transmission. Toyota's claims typically run at somewhere around 85% of the revenue generated from the sale of their warranty plans. So while there are certainly plently of people that purchase the plan and never need to use it....that's made up for by the people that have claims costing 4-5 times the cost of the warranty. Personally, for about $100/year I'd rather play it safe. For what it's worth, I've seen the numbers from the plans sold by our dealership, and Toyota is actually losing money on them as our claims rate is over 100% of the sales revenue. I looked into this because Toyota has a program that pays the dealership a bonus (that I wanted a commision on if we qualified ) if the claims rate runs at 85% or lower.

06-11-2009, 12:45 PM	#2
roxy1 Drives: 2014 yaris 5 speed Join Date: Aug 2006 Location: michigan Posts: 642	"So while there are certainly plently of people that purchase the plan and never need to use it....that's made up for by the people that have claims costing 4-5 times the cost of the warranty." exactly. most people either wont use it, or will use it but never claim enough to make up for what they paid in the first place. its just another add on that often takes advantage of inexperienced buyers. a good idea for anyone with a loan if you have $745 to spend. make that payment on your car (or borrow that much less in the first place). you will save a fair amount of interest and you will shorten the maturity date of your loan. it is very likely you"ll save more doing this than what you will have to spend on repairs. then, if you dont have significant repairs, its just a bunch of money saved.