Did I get rip-off on extended warranty? Long Island. New York.

[Arkaramraphel]

I purchased 7 years bumper to bumper warranty. So that’s 4 extended years for everything and 2 extended years for power train I guess from the manufacturer warranty? It’s transferable.
I paid $3,500 for it and after some reading online. I see people paid a lot less? Anyone on Long Island that bought it and if so how much you paid for it? I also paid $2,500 for my wheels and tires warranty. 7 years as well.

Sponsored

 

[Grady60]

I’ve done research on extended warranties and the general consensus is that most people who purchase them never end up using them. The dealer makes a good profit on them.

 

[Davidr3]

Little too expensive IMO, plus I tend to want to modify my car by the time I’m a year or two in so a warranty is useless let alone an extended warranty

 

[Traxion]

Yes cancel it and buy from Jennifer. https://www.supramkv.com/threads/extended-warranty-did-you-get-one.2027/page-10

Also your account password is set as your location.

 

[Andrew4Supra]

I purchased 7 years bumper to bumper warranty. So that’s 4 extended years for everything and 2 extended years for power train I guess from the manufacturer warranty? It’s transferable.
I paid $3,500 for it and after some reading online. I see people paid a lot less? Anyone on Long Island that bought it and if so how much you paid for it? I also paid $2,500 for my wheels and tires warranty. 7 years as well.

~ Oh my… they loved you in up sales! ?

 

[Andrew4Supra]

I’ve done research on extended warranties and the general consensus is that most people who purchase them never end up using them. The dealer makes a good profit on them.

~ well stated.

 

[jchadwell]

Extended warranties are ALWAYS a losing proposition. That's why they can exist. The warranty companies must take in more in premiums than they pay in claims or they would not be viable. It really is as simple as that. And they must take in significantly more in premiums than they pay in claims because those premiums also have to cover overhead expenses, salaries, benefits, legal staff salaries (you know to fight the suits when they don't pay claims), commissions paid to Toyota dealers for the upsell, etc. As said above, most people never use them. Here comes the posts about "oh yeah, saved me XX thousands when my engine blew up" posts. For every one of those, statistics will tell you there were many more who come out on the losing end. Like I said above, it MUST be that way.

I have never purchased an extended warranty on anything. Not cars, not electronics, not the dumb things they ask you about at the WalMart check out lines. I won't give my age but let's just say the money I've NOT spent buying them is very likely more than I paid for my Supra... In all those decades and 14 new cars/trucks there would have been exactly one situation that would have been covered. Even there, once I contacted Ford and they offered to cover half because it was a frequent issue (PTU on a 2009 Edge, very common failure) my out of pocket was still significantly less than an extended warranty would have cost.

YMMV but think about it...

 

[Vroomin350]

Peace of mind comes at a different price for everyone and that’s a finance managers best friend.

I can’t say as to wether you paid too much or not (don’t live in NY and everything seems more expensive there)

However a 10 year warranty here in Florida on a brand new Supra will run you about $2400. I don’t know the laws up there but there is no cap on the tire and wheel protection here (there is on warranty, state regulated), meaning dealer can charge whatever they want for it.

I am sure the finance manager made sure you “understood” how valuable your car and its “expensive” wheels are, it’s their job. But that sounds excessive even for NY. $2500 is a lot of money for tire and wheel protection but then again like I said everyone is different and NY roads suck.

The good news is both are cancelable if you ever decided to.

 

[Dannyvandelft]

I purchased 7 years bumper to bumper warranty. So that’s 4 extended years for everything and 2 extended years for power train I guess from the manufacturer warranty? It’s transferable.
I paid $3,500 for it and after some reading online. I see people paid a lot less? Anyone on Long Island that bought it and if so how much you paid for it? I also paid $2,500 for my wheels and tires warranty. 7 years as well.

Yes you did get ripped off.

 

[Arkaramraphel]

Anyone from Long Island New York?

 

[VA90]

My dealer tried to pitch me on an extended warranty for maybe $3100 or so. It was a very hard no from me for the reasons jchadwell set out above. In particular, $2500 seems way, way high for tire/wheel protection that I am sure will be riddled with exceptions.

I strongly suggest you cancel both ASAP. They're a bad deal and it doesn't matter what part of the country you're in. If you're worried about something breaking, take the $6,000 they charged you for this stuff and stash it in a separate bank account. Use that as a fund to fix anything that breaks on your car (that isn't covered by the standard warranty).

 

[hotsaucewizard]

oh my i just left my finance manager position so let me tell you eeeeverything

going to need to know more - what was the mileage on the term and what was the exact terminology on the coverage?

 

[hotsaucewizard]

I’ve done research on extended warranties and the general consensus is that most people who purchase them never end up using them. The dealer makes a good profit on them.

i made $200k in finance last year if that gives you any idea

my apologies to everyone here - you can't have a conscience in that role

that was payable btw.. grossed prob somewhere between 1.5-2mil for the dealer

 

[mmspider]

Extended warranties are ALWAYS a losing proposition. That's why they can exist. The warranty companies must take in more in premiums than they pay in claims or they would not be viable. It really is as simple as that. And they must take in significantly more in premiums than they pay in claims because those premiums also have to cover overhead expenses, salaries, benefits, legal staff salaries (you know to fight the suits when they don't pay claims), commissions paid to Toyota dealers for the upsell, etc. As said above, most people never use them. Here comes the posts about "oh yeah, saved me XX thousands when my engine blew up" posts. For every one of those, statistics will tell you there were many more who come out on the losing end. Like I said above, it MUST be that way.

I have never purchased an extended warranty on anything. Not cars, not electronics, not the dumb things they ask you about at the WalMart check out lines. I won't give my age but let's just say the money I've NOT spent buying them is very likely more than I paid for my Supra... In all those decades and 14 new cars/trucks there would have been exactly one situation that would have been covered. Even there, once I contacted Ford and they offered to cover half because it was a frequent issue (PTU on a 2009 Edge, very common failure) my out of pocket was still significantly less than an extended warranty would have cost.

YMMV but think about it...

The word you are looking for is "usually" not "always".

 

[jchadwell]

The word you are looking for is "usually" not "always".

True on an individual basis and on re-read I didn't describe properly. Extended warranty programs are always a losing proposition. Whether it's Toyota, Ford, any manufacturer or any aftermarket program. They are all always losing propositions when looked at program wide. But yes, in a minority of individual situations, it's not always the case. They are simply a bad gamble...

Sponsored