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Does anyone know the price for a lifetime powertrain warranty when purchasing a new car? I know the dealership includes it "free", but it isn't free. The price of the warranty is included in the price of the car. I was told by a dealership "insider" that it's between $1200 and $1500 and it's added into the price of the car without being shown and is non-negotiable. I'm not concerned about the pros and cons of it, but just the price.
 

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My dealership used to but no longer includes lifetime powertrain warranty as part of the deal, it can be purchased but not included as a freebie. I caution anyone interested in one of these warranties to make sure who the writer is and fully understand what you as owner are obligated to do to keep it in force.

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Toyota does not offer such a warranty, so your dealer is doing that on their own. However, most likely it costs them nothing because if you read the fine print, the following rules apply.

1. Any claims under the warranty must be presented at that dealer only.

2. There may some exclusions in the fine print. Usually, only things inside the engine or transmission are included, and not anything attached to it (like an O2 sensor).

3. The vehicle must be serviced at the dealership following the dealers recommended service schedule and fees, which will always far exceed the maintenance required by Toyota in their warranty and maintenance guide. By the time you ending paying the unnecessary and inflated maintenance fees charged by the dealer, the dealer will come out way ahead in the end, even if you make a warranty claim.

4. The warranty may not be transferable.

So for the above reasons, the dealer cannot "remove" the fee for the warranty from the sales price, because it costs them nothing, and is in fact a big money maker for them. Plus it helps them sell new cars, because you can fool some of the people most of the time.
 
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