Hello everyone!
We bought a Grand Highlander Hybrid and is arriving next week. Before going to pick it up and signing everything and getting trapped we are trying to do our research on the extended warranties Toyota offer. Do you guys think is worth it?

I bought mine a year ago and all the warranties. The only one I have had any dealings with is the Tire Warranty. My thought was, "Toyota selling the policy; it must be Toyota." After experiencing an issue with a tire and its screw collection I discovered it is from a third party and the dealer had to get authorization to replace a tire, which might not come quickly. The advice I offer is to ask the dealer which of the warranties are third-party and, having to get a third party to agree that you have a problem...

 

Thank you for your advice and message I will definitely do that!

 

I have one datapoint: I bought a Lexus extended warranty for a new ‘07 Lexus. I don’t recall the warranty’s price, but I did have to use it once for a post-warranty engine repair.

There was no problem in Lexus honoring the warranty, but, as it turned out, the repair cost would have been less than what I paid for the coverage. And, this was the only time I needed to use the extended warranty.

 

Thus... Dave Ramsey's advice about extended warranties on anything are typically a scam, in the big picture. There are those who swear by them because, they have gotten a new engine or other expensive repair covered. I don't buy them due to the actuarial algorithm.

 

Only if you use this guy -

Jerry Johnson
Warranty Manager
Midwest Toyota
Midwest Ford
Midwest Superstore
1100 east 30th Ave
Hutchinson, Ks 67502
800-530-5789
Cell 620-664-8844
jerryj@midwestsuperstore.com
www.midwestsuperstore.com

 

Is This gentleman still selling the plans? I heard from the other forums that they have not been able to get a hold of him. Just wanted to know as I am looking for another toyota

 

Hello everyone!
We bought a Grand Highlander Hybrid and is arriving next week. Before going to pick it up and signing everything and getting trapped we are trying to do our research on the extended warranties Toyota offer. Do you guys think is worth it?
I have always been a Toyota person and have never had any issues (which leads me to decline) but I have never had an hybrid and I know that if anything were to happen it would probably be more expensive (which makes me to take it)
I don’t know we are kinda in the middle and I wanted to see what y’all advice or thoughts were on this extended warranties!
Thanks for any input

A few thoughts:

Before you buy an extended warranty, it's important to know the warranties that already come with your vehicle from the factory.

For example, your Grand Highlander already comes with these warranties from the factory:
3yr/36k mile bumper-to-bumper warranty
5yr/60k mile powertrain warranty
5yr/unlimited mile corrosion perforation warranty
5yr/60k mile restraint system warranty
8yr/100k mile warranty on hybrid components
10yr/150k mile warranty on the hybrid battery

So- with all of that said- it's important to consider or think about how long you plan on owning your Grand Highland Hybrid (or how many miles). If you are mainly concerned with powertrain coverage- and only plan on owning it for five years and 60,000 miles- then an extended warranty is probably not worth it. If you are mainly concerned about the expensive hybrid battery- that battery is already covered for longer than any extended warranty that Toyota sells.

It's also important to know just how expensive some Toyota parts can be. The infotainment system, for example, costs roughly $8000 to replace if it ever breaks- and that's not including labor. Computer modules can be eye-watering in terms of cost. With that said- there's also a list of things that are not covered under any of Toyota's extended warranties. Things like seals, most trim, and a lot of the stuff in the interior. Headlights aren't covered either- and those can cost a small fortune to replace.

I do agree with the people above who recommended Jerry- he seems to be the best person to buy an extended warranty from. His costs are generally the cheapest in the country and there are dozens of people on the forum that have used him and have positive things to say. The only negative is that he's a popular person- and sometimes he's hard to get ahold of.

 

I reached him easily and spoke to him several times over the last week. If you email him with the information he'll get right back to you.

 

Just to give you a point of reference, I bought a 10 year, 100K mile Toyota Platinum warranty for my '23 Camry for $1360.

 

7 year 75,000 miles for $715 from Jerry

 

I would not do it. Warranties are not designed to save you money, they are designed to make the seller/dealer money.

 

In former times, you might be correct, but. . . with the electronics, sensors, pano roofs, ECM's, etc. of today's cars, I'm not going to take that risk. $1,360 for the warranty vs $12,000 for a pano roof repair, hmmmm - easy choice.

 

Any Toyota dealer can sell you the warranty, shop it.

 

You don't have to buy it right now. You can buy it anytime up until your 36/36 warranty is ready to expire. Drive it for two years and then decide.

 

Keep in mind the downside to that is price increases and availability since no one knows the future. If you don't use it Toyota will prorate the refund to you which is always worked well for me. If you sell the car you've got a great sales tool having a bumper to bumper warranty to go with it

 

In former times, you might be correct, but. . . with the electronics, sensors, pano roofs, ECM's, etc. of today's cars, I'm not going to take that risk. $1,360 for the warranty vs $12,000 for a pano roof repair, hmmmm - easy choice.

I completely agree. I've never really been tempted to buy an extended warranty for any Toyota before- but given the jaw-dropping prices of some of the parts on my 2023 Platinum- $1360 seems like a reasonable amount for the assurance that most stuff would be covered for quite a long time. Call it insurance- because that's really what it is. You pay for it and hope that you never use it.

Seriously- anyone that is on the fence should go and look up the price of some OEM parts- some of them can be laughably expensive.

You don't have to buy it right now. You can buy it anytime up until your 36/36 warranty is ready to expire. Drive it for two years and then decide.

While I generally agree- I really worry about the current uncertainty with tariffs and how they might impact the cost of parts in the near and not-so-distant future. Not trying to dive into politics, but if tariffs drive up the cost of these parts- you can be fairly certain that the price that dealers charge for a Toyota warranty is going to go up too to reflect the potential increased costs of paying out for repairs in the future.

 

I completely agree. I've never really been tempted to buy an extended warranty for any Toyota before- but given the jaw-dropping prices of some of the parts on my 2023 Platinum- $1360 seems like a reasonable amount for the assurance that most stuff would be covered for quite a long time. Call it insurance- because that's really what it is. You pay for it and hope that you never use it.

Seriously- anyone that is on the fence should go and look up the price of some OEM parts- some of them can be laughably expensive.



While I generally agree- I really worry about the current uncertainty with tariffs and how they might impact the cost of parts in the near and not-so-distant future. Not trying to dive into politics, but if tariffs drive up the cost of these parts- you can be fairly certain that the price that dealers charge for a Toyota warranty is going to go up too to reflect the potential increased costs of paying out for repairs in the future.

I bough mine right after I bought the car a year ago because of the possibility of price increases in the future. More technology, more adverse risk development (more parts failing and at a greater pace) and dollar fluctuations. As they say, a bird in the hand is worth two in the bush.

 

They're worth it if and when you need it. They are essentially insurance policies for mechanical and electrical repairs. With the technology in these newer vehicles, you will more than likely need it sooner or later. The cost of a single future repair can easily exceed the price of the policy, or you might never need a repair and you just paid for the peace-of-mind. I personally purchased the 10 year/100K plan and feel it is worth the coverage.

 

One additional benefit to the Platinum programs is that is also extends the Toyota Road Side Assistance coverage. Since we always carry AAA coverage under normal conditions, this is an additional savings of ~$100 a year that we save. Almost pays for the plan by itself.

 

Like all insurance companies, warranty companies have all the data. They know when things break. They're not going to sell it if it won't make money, in other words, they're betting that you won't need the warranty, so they make a profit.

 

Go to You Tube and watch Car Nut vid on this topic. He is Toyota Senior Mech.

 

I don't buy insurance for things I can pay for if they occur. Examples where I can't: my house burns down or I cause a collision that injures third parties. Examples where I can: vacations that I have to cancel, car repairs, home appliances, new electronics, etc.

If I can't afford to maintain something, I probably would avoid buying it.

 

Hello everyone!
We bought a Grand Highlander Hybrid and is arriving next week. Before going to pick it up and signing everything and getting trapped we are trying to do our research on the extended warranties Toyota offer. Do you guys think is worth it?
I have always been a Toyota person and have never had any issues (which leads me to decline) but I have never had an hybrid and I know that if anything were to happen it would probably be more expensive (which makes me to take it)
I don’t know we are kinda in the middle and I wanted to see what y’all advice or thoughts were on this extended warranties!
Thanks for any input

don't buy any extended until factory runs out... then... maybe... all the electronics on these cars today is difficult for most shops... dealer issues usually meaning BIG dollars... being Toyota the extra warranties are usually not that crazy expensive

 

One word ..... Electronics. IMHO, any electronic problem alone would be worth the warranty. That's why we bought it for our 23 highlander Hybrid.

 

We bought our Grand Hylander Hybrid last year and decided to take it. We a bought a first generation Hylander many years ago and the hybrid motor failed at just under 100,000 miles. Toyota stepped up and put in a rebuilt one at their expense. This is our 3rd hydrid in the Hylander group, but our first Grand Highlander, so we wanted piece of mind. These cars are generally very reliable, so really it’s just whether the risk coverage for a possible problem is worth it.

 

Hybrid maybe, not hybrid NO NO NO NO NO. You have already paid a price equal to the most expensive thing that can go wrong, 1. Good luck collecting. 2. If nothing breaks you never see your money again. 3. This is how salesman make their commission, it's not from the vehicle sale. 4. If you think you will need the warrantee you are buying the wrong car in the first place. A 2009 Avalon, Highlander, Sonata/Optima, Outback with 100,000 has 200,000 left in it and you bought the car for the price of the warrantee for a new car.

 

I bought my Toyota Platinum 10 year / 100,000 mile warranty for $1,360, roughly 4% of the cost of my Camry XLE-V6. Of course, I did not buy it from the dealer who sold me the car.

What kind of car can you buy for $1,360? Most advised not buying the warranty from the selling dealer, rather, do your research, use forums such as Toyotanation to find Toyota dealers who sell the genuine Toyota warranties at a fair price.

Amazingly, some great, quality automobiles do develop problems. I enjoy the security of knowing that I am not exposed to that risk.

 

I thought we were talking about the genuine Toyota extended warranty. There is no claim to file or insurance company to fight. You take your faulty vehicle to a Toyota dealer and they fix the problem under the extended warranty, same as they would under the initial 36/36 manufacturer warranty.

I had a 2008 Tundra the remote door lock stopped working. It turned out to be a single component of a larger electronics package that controlled a dozen other things (all that still worked). They had to replace the whole thing, which would have been in the neighborhood of $8-900 had it not been under warranty.

 

I hear they have more trouble than the standard gas ones, but toy has stepped up to the plate and made good on repairs.

 

Oh boy. Gullable

 

yup! As long as people adhere to the fantasy of "something for nothing", and believe in the BIG LIE called "FREE", they willingly wear blinders to the ugly truth.
Look at the BIG picture. A car, by design, is a DEPRECIATING liability with a long game result of net zero value. This means that a car will eventually be worth the same as a used, cracked flower pot.

Now, bring in Madison Avenue Ad Agencies, and Big Business financiers whose living depend on separating the consumer from their money, period.

Today, a nice car equipped with nice bells and whistles and all the appearance decals, shiny bits, and ultra-zoot wheels, cost the majority of $100K.

Ciphering abilities reveal that the the 5-10 year cycle of said ownership of aforementioned car(s) result is a MUCH MUCH larger end-game hit to the estate of the original 100 grand cost of the car, with finance charges, higher insurance coverage costs, etc.

And the car companies are laughing ALL THE WAY TO THE BANK!!!!!

So, who else to steal more of your money to offer "peace of mind" than the car companies and extended warranty companies than the very people that exploited you being mesmerized by the new car smell, the glitz and shine of that brand new car, the self talk of esteem steeped in the "I deserve it, I work hard" lie?

Jonathon Pond, Dave Ramsey, et.al. drill down on the particular details regarding these deceptions and thefts from your lifetime estate.... for what? A moment of "feel good".

These extended warranties are administered by insurance industry folks.... who are in the business of TAKING YOUR MONEY, NOT paying for your broken car(s).

Best advice: put aside some money every month to mitigate the inevitability of car repairs. DO NOT give these greedy people thousands of dollars for a promise for tomorrow. They seek ways to deny claims.

I represented a lady when she bought a new car from a local dealer when their highly skilled and trained schmoozer approached with a laundry list of "coverages" above AND beyond extended warranty.... e.g. tire and wheel coverage, glass breakage coverage, paint and upholstery coverages, and the one that really evoked FURY from me was "Key Loss" coverage of 400 dollars. Hell, that's about how much ONE key does cost these days, many are cheaper, so why not stash away 400 dollars in a cookie jar for that, instead of giving these avaricious chumps all that money up front? This particular list totaled out at 4 THOUSAND dollars.

I abhor extended warranties, but, being in my end of this business, I've witnessed MANY refusals of coverage and MANY times the warranty company want to send out a junk part from the salvage pool to cover a repair, un beknown to the customer, in spite of all these ads where high profile stars endorse extended warranties. I'd postulate that these stars command 5 to 6 figure fees for their endorsement(s).

Funny thing, these stars could afford to write out a check for a new car when the old one runs out of gas (Hank Williams, SR. would do that). Why would they EVER need extended warranty? Consider the source!

 

1) I have been buying Toyotas for decades because of their reputation for reliability.
2) Despite me thinking I will keep my cars for long time, I end up selling/upgrading every 7-9 years
3) I don't buy things I can't afford to maintain/repair and I have yet to need major repair after standard warranty expires.

So no interest in extended warranty either from Toyota or 3rd party.

 

1) I have been buying Toyotas for decades because of their reputation for reliability.
2) Despite me thinking I will keep my cars for long time, I end up selling/upgrading every 7-9 years
3) I don't buy things I can't afford to maintain/repair and I have yet to need major repair after standard warranty expires.

So no interest in extended warranty either from Toyota or 3rd party.

I don't buy insurance for things I can afford to lose. One good example is trip insurance. It costs about 8% of the cost of a trip. If I were to routinely buy the trip insurance, I would be paying for an extra trip for every 12.5 trips I take. Stated another way, I would be taking the "over" that one out of every 12.5 of my trips would be a total insurable loss.

Likewise, I pay cash for car purchases. If I can afford to do that, I can afford repairs - even costly ones.

 

There are very few that make out on warranty sales. number one is the seller, they ALWAYS make out. A very few buyers make out. However, if you can be disciplined, every time you buy something put the money the warranty would cost in a capitol one 360 savings account, earning around 3 to 4 %. Even it earned noting, you would have enough money in there to repla e anything that broke. I have had Fords and mostly Toyota's for both the wife and I for quite a few decades and have never put out anything for repairs other than normal maintenance cost, which warranties don't cover anyways. Have saved thousands. As a matter of fact, started the saving thing in 2005 and it has $27,000 in it now. If I wanted to I could replace the car if it had a flat.

 

That's what Jonathon Pond and Dave Ramsey have preached for years, and so do I. I am surprised as to all the excuses some folks have for NOT being pragmatic about it!

 

Though I am a Dave Ramsey Financial Peace believer, (my wife and I have even taught the course) but there are areas where he and I differ. Example, we just bought a Bosch refrigerator. Our credit card doubled the warranty on it. I just received an invitation from Bosch to extend the warranty to six years, at the bargain price of $1,600+. Ummm, Dave Ramsey is correct as this is warranty for 60% of the purchase price for six years. However, I have a '23 XLE V6. Car was $32K + TTL. Warranty for ten years and 100k miles was $1,360. That is just 5% of the cost. With the known trouble areas of the pano roof, the electronics and the 8 speed transmission, this is cheap peace of mind for me. If I took that $1,360 and invested it at 4%, I'd have just over $2,000 after 10 years. Pano roof is 12K, Transmission is 8K; seems prudent to 'waste' the $1,300.

 

Most likely the roof won't be covered by any extended warranty. As far as the trans goes, be prepared for a fight because they'll want to see maintenance records unless it's extra care and that's a maybe. Most of the electronics are trouble free. You might get a free starter or alternator but expect to pay a diagnostic charge to your dealer which is not covered.

 

We purchase items, one example is automobiles. We investigate, investigate some more, then work on making a decision.
I have a savings account where I have been placing money every pay period. Been retired for more than 10 years, so the amount placed in account per pay period is not as large as it used to be.
Still, I manage to get a minimum of 33% of OTD price. The sellers seem a bit upset when the larger down payment, cash is produced. They ask why I did not tell them. I mention they never asked.
Seems to get a lower OTD price, and my credit union of many decades always provides a 0% interest rate loan, loyalty is a good thing.

On to "extended warranties". If the object we purchase needs an extended warranty, we will not purchase it.
We, my wife has joined in, as she noticed I always had a good sized down payment, or the cash price for a new appliance. I explained what I did, and she jumped on board.
I was an engineer in a few fields, so I am able to troubleshoot, and place quality components in appliances if they had cheap, ready to break in 90 days factory pieces.
Most electronic items will fail within 30 days, some last out to 90 days from date of purchase, if they are going to fail. So the initial factory warranty is fine.

Extended warranties give salespeople a bonus. And the insurance companies a lot of money. Rarely do they pay out, as the items normally fail during the manufacturers initial warranty.

If the salesperson will not stop pushing that you must get the extended warranty. Please stop the deal, do not sign the contract.
Ask the salesperson which automobile you should purchase. Because this one seems to be guaranteed to fail and break shortly after purchase.

 

Almost anything that is hard sold has an excessive profit margin.