extended warranty - yes or no?

Just traded my 2016 TRD-P for a 2021 Limited Nightshade with 54K miles. 1 owner before me and I'm trying to decide on the extended warranty. I've not bought them on my prior two 4runners. The offer was the Toyota warranty for about $2300. Supposedly the other company's software was down (I don't believe much from the finance guys! lol) Thanks for any of your experience with this!

 

Shop around for the Toyota extended warranty but yeah I bought it. Door lock actuators, 4wd actuators and headunits are common failures.

 

Go for only genuine Toyota warranty usually Silver, Gold or Platinum.
Your 2021 has lots more electronic gizmos. 2019 was last year before federally mandated new safety gizmos.
My 2017 SR5 got new tranny (no cost to me) after my 60 month drivetrain warranty had expired because I had purchased a Platium Service Agreement. Problem was chatter/shudder in torque converter. First Toyota gave dealer go ahead for Torque Converter ($3k) but did not fix issue which proved to be not in Torque Converter but in tranny valve body. Next approved was new Tranny ($5k). Which solved issue.
I had bought the Service Agreement thinking of the many gizmos in my 2017. Never would have thought a transmission!
Guess even Toyota Japan (where all 4runners are built) has outsourced supplier QC issues sometimes.

 

Good to know - I would have never guessed tranny issues either! Glad you had it and I guess better safe than sorry. I plan on asking what exclusions there are. etc. I think it was the Toyota platinum they were quoting.

 

A neighbor has a 2014 SR5 with 200,000 miles. It has only had scheduled maintenance and tires. She told me only dealer maintenance while under warranty, then local shop. If there was ever a most reliable vehicle, the 4Runner wins IMO. It’s silver, paint still looks good.

 

I Second on only a Toyota extended warranty. I had one aftermarket extended warranty sold to me by a dealer and it was crap. Constant fight having hassle with it on coverage, was maintenance really done even though I had receipts, wanting to use aftermarket used/rebuilt parts, etc, etc. Never again.

 

The Extended Service Agreement document (Toyota term) has red and black lettering and very detailed lists of covered components. The colored print indicates covered or non-covered items for a particular Agreement level - like Gold or Platinum. Definately read it. These Agreement have a short window for purchase after you buy the Toyota. Price is negotiable. I agree be very careful talking with the Finance Manager-they are usually very good at their job of getting YOUR money. But, it is just money!

 

No.

They sell them because they make money on them. That means they pay out less in claims, on average, than the cost of the warranty. You can save that money, literally put that money in a money market fund, and generate income. If something goes wrong with the car, you already have that in the bank. And, the extended warranty doesn't apply until the factory warranty expires. If you put $100/month in your own account, you'd have $2,400 SAVED in the first two years, with the factory warranty still providing coverage. Do that for the entire term of the loan and you're likely to have $6,000 or more.

Bottom line, the dealership/Toyota make money on these "insurance" policies, so pay yourself for the cost of repairs, not someone else.

 

What kind of maintenance history does it have? Did you get a PPI? That will tell you A LOT about the vehicle. The answer to your question would be "NO" if the first two questions pass muster.

 

they are great vehicles...this is my 5th Toyota and 3rd 4runner

 

that's my thoughts too...just wondered about all the electrical stuff now. I've not had one on my last two 4 runners

 

I'm going there today with these questions - I did look at the Carfax and it seemed good...but I was also in 'not thinking right while at a dealership' mode. I've only paid a small amount and will pay the rest today...after I negotiate further with them. I hate dealerships!!

 

The short answer is no - it's a cash grab - you bought a 4R - pretty reliable - dealer I bought mine from tried to sell me an extended warranty for $2.5K - I said

 

I like this idea - it's got 54K miles on it, so it's past that, but just getting started for a Toyota! I'm not a fan of the warranty stuff and am definitely on the not for me and I'll keep my money

 

LOL. that's pretty much what I said Saturday...but asked if I could decide today when I go back....I'll ask a bunch of questions...cuz I'm in insurance...and then say no thanks...no money for you today!

 

Definitely shop around. There is/was a thread here on dealers that had low prices on them. And price is negotiable. I got the Platinum 100K miles 10 yr for $1400 by haggling a bit with my dealer and showing them offers from other dealers. They matched the lowest offer I had. $2300 seems way out of line for whatever it is.

 

Third-party extended warranty is a scam designed to deny coverage and not pay off. Toyota extended warranty is decent, but why do you need it for 4Runner that is known for reliability?

 

Don't buy the 3rd party warranties its always a PITA to make a claim.

I usually don't get warranty but on the wifes 2021 RX350 we got it to 10 years 100,000 through Lexus. That damn thing has so much motors and sensors I was not going to pay to fix any of it if it breaks.

First Toyota/Lexus I've ever paid for extended warranty.

 

I've seen people feeling fortunate to have extended warranty.

 

Not a fan.. bank the money for any possible repair

 

Nope. You’re buying insurance for something you may never need. Take that money and put it in an account.

 

I suppose one could say the same about home, auto, personal liability, life, etc

 

I used to buy the Toyota Platinum 125,000 miles, 10 year, Zero Deductible from a Toyota Dealer Buddy in Midwest for $1,685.00 for a 2WD RAV4 XLE.

Good price for piece of mind. Never used and got most of my money back when I sold the vehicle. Also bought it for several 2WD Tacomas.

Only REAL Toyota Warranties are OK IMO.

PS ... That was 2 or 3 years ago, Prices are probably higher now and higher for a 4Runner for sure.

 

The ones you listed are required by law or your mortgage company. I actually worked for a company that offered extended warranties. Less than 30% were ever used.

 

Some folks don’t have a mortgage as in paid off and not required on personal property, life not required by law and liability only required by law on auto in some areas and then limits usually very low plus not required for potential hazards that might exist at other property. No offense, just trying to point out that one size does not fit all.

I even suspect the lack of use of insurance, as you point out, applies pretty much across the board.

 

I would echo @morfdq comments. I also worked for an extended warranty company, for one of the largest dealer networks in the country. I never buy the extended warranty, even when the finance manager discounts it 50% to get a sale.

 

Extended warranty is basically insurance - it's underwritten by Toyota's financial arm. It's protection against unplanned big-ticket expenditures (e.g. one of your XREAS shocks leaks and the repair is $4k). On average however you'd lose money - Toyota has an army of analysts to make sure of it.

 

Yep sort of like collision insurance on the vehicle.