Extended Warranty for 2003 Limited Sequoia?

[G3Steve]

Hey all, new member here.

I just got a 2003 Sequoia Limited with 127k miles. Blue book was about $14.5k and I my purchase price was $13.5k.

I asked about a warranty and the finance manager said that he could give me a good deal on all maintenance and parts for the next 6 years/72k miles. After all the paperwork was signed I asked again about the warranty details and he just said it was all in the folder he just handed me and sent me on my way. This was my first time buying a car from the dealer by the way.

Anyhow, after looking at the warranty I'm pretty angry/disappointed.

The maintenance was for 72 months/72k miles, where I could only get serviced every 7500 miles. Since this is my backup ride, I'll probably put less than 5k miles per year. And I am paying $1300 for it. That means I get 6 or so service appts for 1300? I don't think so.

I was also talked into GAP insurance, which my wife liked, but I'm wondering if it's worth it? I was charged $800 for it, but since I bought the truck below blue book and put down $2k, I don't know if it will save me much, if at all.

Lastly, he signed us up for an extended warranty through EFG. It's the cheapest/lowest amount of coverage, for $2600, 24 mos/30k miles. Doesn't cover brakes, electrical, suspension, A/C... Covers engine, transmission, but not as comprehensive as the more expensive plans.

All that said, I'm paying $4700 for the maintenance, warranty and GAP. Should I cancel all of this? Is any of this worth it, taking into consideration the age, mileage, and purchase price?

I'm supposed to meet up with the finance manager early next week, and want to get my ducks in a row before the meeting.

Thanks.

[turboDan]

I can give you a few "tips" and take it for what it's worth. 1st,seeing the age of the vehicle and the fact that it will probably last another 10 years pretty much trouble free I would not get the extended warranty or the maintenance/parts either. I was personally friends with a few F&I managers and short of leasing of vehicles(where they make the absolute most profit)they make most of their money by pushing/bullying you into extended warranty's,G.A.P. and maintenance contracts that amount to crap. Read the fine print carefully on the extended warranty because most,if not all require that you keep all maintenance records and will still try to weasel out of any payment for claims while you are out of a car waiting on them to decide how to NOT honor their warranty. Their is also almost always a "deductable" on each warranty claim,paid by you if they decide to cover said claim and then most if not all major parts (ie"motor transmission,differentials,transfercase) are then replaced with used parts,never new. That is why the finance manager will just hand you the folder and tell you to read it over so that they are not "lying" to you about what it covers(or in most cases what it doesn't). Lastly, dont bother with the GAP insurance as if you are paying more than what "book value" is on a gas hog that they are lucky enough to be able to sell in this economic climate and $4.00 @ gallon gas then you are not a very strong negotiator. Sorry if that comes across as harsh but I would be glad if I could even sell my 65k mile 2003 4x4 sequoia for even book value,never mind more than book value. I will be getting my frame replaced shortly and then it will be like new again and will most likely try to sell it after that and like i just stated,I will be happy if I can get anywhere near book value for it. Hope my post helps you decide not to waste all the extra $$$ on something other than the selling price of vehicle. That being said, I have owned my sequoia since new and would not have traded it for any other SUV of comparable value but now since my children have grown up and have their own Toyotas I no longer have a need for such a large vehicle. Seeing that the frame has holes in it and should not be driven in its current condition I cannot sell it but once the frame has been replaced I will also do the timing belt and water pump so the new owner will get something that they can drive virtually trouble free for years to come.
Good luck in your purchase and dealings with the F&I manager. Remember,the above is just my personal opinion and take it for what it is worth but working in a Toyota dealership for almost 10 years and dealing with extended warranty claims adjusters makes my opinions more like true life experiences not just exaggerated hear say.

[Daniel Day]

I have been burned by a "full coverage bumper to bumper" warranty in the past and will never purchase one again. Like turbodan stated, they almost always have some sort of significant deductible and they almost never cover the arts that are most likely to break. And since you bought your Sequoia for below blue book AND put money down you do NOT need GAP coverage. The only time you need GAP coverage is if you are rolling over negative equity from a trade and/or not putting any money down. I would cancel both ASAP if I were you. Good luck and enjoy your "new" Toyota, they really are great trucks.

[LN217]

They saw you coming. I have same vehicle with 147k miles. Bought it in 2004 with 29k miles and I wish I did some research. I've had about 10k in repairs all covered under Toyota warranty. Take it back and look for a 2006 or newer for what you paid.


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[G3Steve]

Thanks for all the help.

Since this is just my "play" truck I wasn't looking to spend a lot of money on monthly payments, so a newer truck is out of the question. All I need is something to tow a boat, and the occasional errand here and there. Probably put less than 5k/year on it.

I just checked under the hood today, and the timing belt was changed at 102k, which was my major concern with the truck. Now that I know it was done I think I just have to bring it in for the 120k service and be done with it.

Now that I know I could do without the warranty, maint plan and GAP, I'll be saving $170/mo.

One more question...

The contracts state that I can cancel the maint plan, warranty and GAP within 30-60 days. Do I have to go back to the dealer to rewrite the contract (GAP and the maint plan were added to the loan), or can I just call to cancel?

[turboDan]

Good luck trying to cancel as they will also try to bully you into keeping them and will tell you that you will be out X amount of money if you do so you might as well keep them.... If you already signed the paperwork I would go back to the selling dealer and demand that they cancel them for you and make sure you get it in writing from them that they have canceled them for you.

[sseaman]

I agree with the others about cancelling the additional coverage. For $4700 that will cover a lot of preventative maintenance which should help it last a lot longer than the plan will cover. knowing that the timing belt was already done is a good inidication that the previous owner was keeping up on scheduled maintenance. Enjoy the purchase, we bought our 04, 5 years ago with 70k and now have 150k and it is my daily driver and road trip vehicle.

[SteveInCal]

I doubt that any of the extra coverages you bought are worth the money. I would cancel ALL the extra charges as quickly as possible. If you financed any of these extra charges, it sounds to me like you need to go back to the dealer and re-do all of your loan paperwork. Like others have said, the dealer isn't going to cancel these extras without a fight, so you need to be ready for that.

You can sign up for an account on Toyota Owners Official Website: Service Coupons, Owners Manuals, Service Scheduling and More and hopefully see what dealer performed maintenance and repair has been completed on the vehicle. The skid control ECU would be your biggest worry and if that's been replaced, and you said the timing belt was done, then you should be good to go for a while. FWIW, I doubt the skid control would be covered by your extended warranty anyway...

Good luck.