Extended Warranty? Should I cancel?

Just purchased a 2014 4runner Trail yesterday with 74,500 miles on it. Didnt do my research on the warranties before and this was a first time, anxiety provoking purchase. I am a 28yo female so I think I got cheated. Got suckered into the extended warranty and went with $795 gap insurance, $595 Toyota autocare @ 4/55,000 miles and $2895 Platinum ExtraCare @ 3/36,000.

After doing some research, seems like I could have gone without the warranty and may have gotten ripped off with the extra care price. I am pretty sure I have 30 days to cancel. On the fence now...I have had a BMW before so the trauma of the maintenece issues lured me to get this warranty..totally different cars i know. Thoughts???

 

I'd ditch the warranty. 100,000 miles between a Tacoma and 4Runner and never once touched the warranty.

Depending on how much you paid, gap may be useless too. I bought my 4Runner new and skipped gap insurance because I put a huge deposit down. Four years later and I barely owe over 10k, and trade in is over 35k.

 

Cancel.

And FYI, the stuff like GAP, warranties - all the shit the finance guy is seeking - are damn near pure profit items for them. They are absolutely negotiable, if you want them.

Dump all that shit except possibly GAP, as noted, that's dependent on how much you owe.

 

Dump everything and keep gap. They will either send u a check for the price plus your tax. Or will issue you a credit on the price of the truck.

 

I didn’t put any money down. With everything included except the estimated interest my loan was about 31,000. All the warranties put my loan at 5,000 more. I’m a first time buyer so I didn’t know any better. He did lower the warranty prices but still seems high based on what’s I have read. Kicking myself bc my monthly payments are 80$ more now. Lesson learned. Will call today to cancel.

 

I’d definitely ditch the warranty.. that’s to much for it I’m the first place.

 

Cancel ! I got 7 yrs/125,000 mile no deductible $1400 and they started @ $3,500.00 with $100 Deductible. I also got back $1,000 from the old warranty....

 

Wow, I really got ripped off. I am canceling it, however toyota financial told me the agreements haven’t been processed yet from dealership in their system. Said it takes 3-5 days. So I’ll call back at end of the week since I’ve only had car two days. I contacted the financial manager to see if he would modify my agreement to go back to my monthly payments w/o it but no luck. Thanks for the advice. Lesson learned.

 

For the future anyone looking, don't buy anything from the finance guy. Most of the warranties and extra nonsense (tint, clear coat protection, ect.) can be had for cheaper elsewhere.

An example of this is I bought a four year warranty through my motorcycle dealership for 1000. Called Kawasaki and the exact same warranty was 700 through them. Cancelled that crap the same day.

 

Agree...the finance guy is the biggest crook in the place. Say no to everything, though I did say yes to 5 years oil changes for $250, but everything else....lol

Also bring your own financing. I had secured the best interest rate I could find.....finance guy new that and still pushed a loan of nearly twice the rate I had anyway. They have no shame.

 

Thanks. I learned a lot for my first purchasing experience. They dropped the interest rate 4% throughout the whole back and forth. I probably could have gotten 1% lower if I shopped before hand and knew what I was doing. For my first car purchase I didn’t do that bad, just got cheated out of the warranty but bc it’s only been 3 days since purchase they will credit the amount I loaned for the warranty back to the lender and it’ll go towards principle balance. Either way the add on to my monthly payment sucks :/

 

Don't beat yourself up over it. Happens to a lot of us. It's a learning experience you'll never forget and the next time you buy a vehicle you'll come out in better shape. Same thing happened to me back in 1999. Bought the extended warranty. Then they fought me the entire life of the warranty and even once charged me $80 to tell me I had a bad battery....and I still had to go buy a battery. To this day I've never stepped foot back on a Jay Wolfe dealership's lot and I never will.

FYI...you should be able to refinance that loan at the principle balance at some point to bring your payment back down. Call the lender and ask them how long you need to wait. Unless you got hosed on your loan too, generally there's no early payoff penalties on car loans. If that's the case for you they'll probably be willing to refinance it sooner than later. If not then another lender (like your local credit union) will gladly help you out.

Check out some of this guys videos on YouTube. His videos are great and very informative on the car buying process.

https://www.youtube.com/user/Lvillechevydude

 

6 Tacoma's and now a 4runner in the last 25 years and I've never paid for a repair. Just oil changes, tires, and plugs. Granted, I'd get rid of them at about 80-100k miles. But they just seem to go and go.

Over time, you're better off instead by just putting that warranty money toward any repairs that might come up. And you'll probably come out ahead.

That's just my approach. Is it gonna work out for me in the end? Probably. But it might not lol. You just never really know. Not really a one size fits all answer. Everyone's financial situation is different. But these trucks are pretty solid.

 

Congrats on the new 4Runner. Everyone has there own opinion on warranty service. I know these are Toyota’s and I have had a lot over the years. I never bought extended one until I bought my new 17 Pro. I already new I was planning on keeping this for a long time. So I took the extended 10years 100000miles. Which is the platinum. It’s also transferable. I did not have a problem worrying about if I lost the money for not using it. Now if I was buying a used one with 74000 miles on it I would have tried to get the best warranty deal on it. The only reason I say this for me because of past experience. I bought a 2003 Acura a few years back and it had owner with 67000 miles on it. Well taken care of but I took the 4years 48000 miles on it. Well at 82000 miles the transmission went out. For a new transmission thru Acura plus needing the new pcm to go with it was $7000.00. All covered under warranty. Some times you need to roll the dice and decide if you think you need it or not. I know on my Pro if that headunit with the Nav goes out on me at 80 or 90 thousand miles it will cost way more than my warranty was. Hope this helps.

 

Thank for the response. I love it, it is a beast! Well worth it whatever I decide. I am still a little indifferent, so much thinking about it makes me not want to do anything lol. I think the thing that bothers me the most is that the warranty that probably really matters (extracare), is only 3 years or 36,000 miles. Which will put me at 110,000 miles when it expires. And the kicker is I paid 2800 dollars for it which high. The toyota care is still high at 595$ for only 4/55,000 years, which will expire at 129,500. I will probably keep gap insurance. I am wondering if i cancel the warranties if I can get the same ones somewhere else for cheaper at any time. Is that an option?

 

Yes that does seem high but it seems to be depending on your location all the warranty’s seem to be very different. Not sure if you search around if you could get it cheaper.

 

I agree it's a roll of the dice. I've only purchased 1 and it was for my 2011 Wrangler. Paid $2200 for it (felt stupid at the time) but it has covered multiple rear axle seals, a PCM, burned up (locked up) Alternator, and a rear main seal. Since I'm making the dealership stand behind the work I'm about $1500 ahead at this point. I have coverage for another 7 months so I'm sure it will go back in for something before it expires...

 

One thing I would recommend is going to your local credit union to see if they can re-finance your loan with a cheaper interest rate. Many can. That's another way to bring those monthly payments down. They will buy the loan off the dealer and you'll be making cheaper payments to the credit union instead.

If you want to get another warranty for your vehicle, shop around and know that they are negotiable. Put one dealer against the other to bring the price down as low as they will go.

A word of advice.........you will want to get the warranty from the place that will be servicing your car rather than getting a warranty from some random place. Reason being is that getting the cost of repairs covered will be much easier if the warranty is from the establishment that is doing the repairs.

 

Relax if you enjoy the vehicle let it go... Chock one up for them live and learn. If your affording the payments all is good. I had XM Radio on the phone last night for a 1/2 hour only bought out six months this time for 35.00 they all suck.

 

Yes you can get them at another time but within the OEM warranty period after that you can't go through Toyota. And you can go to ANY dealership and compare shop with all of them.

 

Right, I had a BMW x3 and once it went over 90,000 so many things went wrong and services were 500+ every time. So i have some residual trauma impacting my ability to let go of the warranty even though it is high lol

 

My BIL has a 5 series and every time he takes it in its $500-$700 bucks for two yrs now he has been screaming hes going to get rid of it.....

 

Ipnpulz which warranty provider hooked it up for that low cost?

 

I got it through the dealer I bought my T4R from. I told the finance guy this killed the deal bye and I walked out of the finance office they didn't let me get too far... I told them what I would pay or I keep walking they made it happen!

It would be Toyota Platinum warranty from Toyota