Most people don't understand insurance and buy it for the wrong reason. Insurance companies know better than you do how much it will cost them to fix all your trucks. They set their rates to collect more than that amount from you - this is how they make their money. By definition, you will pay more in insurance than you would if you "self-insured" your truck. Insurance only has value for you if you need it as a risk-spreading tool. For example, the owner of a $20 million oceanliner would meet financial disaster if she sank without insurance - he cannot bear that loss alone and must spread that risk by taking out insurance. If my Tundra were to catch fire and burn, while it would be a big hit financially, it would not drive me to bankruptcy. I would be able to adjust my finances, absorb the loss, finance another truck, and in a short period of time the firery, uninsured truck would be just another unhappy memory. Thus, for myself and many, it would be foolish to pay for insurance. I have taken that $15/month and earned a tidy return on it as investmet capital. My truck has 90,000 miles on it and has never had a problem. If it ever does, I have a tidy sum already saved to pay for it.
I bought my truck used with 13k miles, and got the warranty because I was told that it will be refunded if it's never used.
But, what does the paperwork say? What we're told at a dealership and what the paperwork says are not always the same thing
Ken
__________________
You get what you inspect
Not what you expect.
S&S Long Tube Hi-Torque Headers
TRD/Eaton Limited Slip Differential
Gibson exhaust system
Hellwig Rear Antisway Bar
Sylvania Xenarc H.I.D. X1010 Auxiliary Low Beam Driving Lights
Schaeffer Engine Oil, ATF, Differential Oil
Racor LFS22825 full-flow transmission filter
Towing a 21' Bigfoot trailer using a Hensley Arrow hitch, Jordan brake controller, McKesh mirrors
Most people don't understand insurance and buy it for the wrong reason. Insurance companies know better than you do how much it will cost them to fix all your trucks. They set their rates to collect more than that amount from you - this is how they make their money. By definition, you will pay more in insurance than you would if you "self-insured" your truck. Insurance only has value for you if you need it as a risk-spreading tool. For example, the owner of a $20 million oceanliner would meet financial disaster if she sank without insurance - he cannot bear that loss alone and must spread that risk by taking out insurance. If my Tundra were to catch fire and burn, while it would be a big hit financially, it would not drive me to bankruptcy. I would be able to adjust my finances, absorb the loss, finance another truck, and in a short period of time the firery, uninsured truck would be just another unhappy memory. Thus, for myself and many, it would be foolish to pay for insurance. I have taken that $15/month and earned a tidy return on it as investmet capital. My truck has 90,000 miles on it and has never had a problem. If it ever does, I have a tidy sum already saved to pay for it.
The so-called extended warranties are NOT warranties...they are service contracts or mechanical failure insurance policies. The dealership profit margin, including the commission to the finance guy who sold the "extended warranty" is significant, then there's enough margin in the price to give a profit to the underwriter. What's left over pays the claims.
It's a waste of money to buy insurance for anything we can afford to replace. The most expensive parts of the truck have the 5-yr/60,000 mile powertrain warranty anyway.
Ken
__________________
You get what you inspect
Not what you expect.
S&S Long Tube Hi-Torque Headers
TRD/Eaton Limited Slip Differential
Gibson exhaust system
Hellwig Rear Antisway Bar
Sylvania Xenarc H.I.D. X1010 Auxiliary Low Beam Driving Lights
Schaeffer Engine Oil, ATF, Differential Oil
Racor LFS22825 full-flow transmission filter
Towing a 21' Bigfoot trailer using a Hensley Arrow hitch, Jordan brake controller, McKesh mirrors
Absolutely. Insurance, warranties, service contracts, however it's packaged, it's all the same basic thing.
For anyone considering a service contract - watch out! Most of these companies only sell the contracts - they are not responsible for paying claims. Offshore companies are usually "responsible" for paying claims. Ever heard of "Warranty Gold"? They sold untold numbers of worhtless policies (the Grand Cayman company responsible for paying claims went bankrupt from losses on undisclosed high-risk policies it was also underwriting), and Warranty Gold is still in business selling service contracts as if nothing ever happened!!!!
Unless you need to spread the risk of loss, it's a sucker's bet to buy any of these.
Quote:
Originally Posted by KLS
The so-called extended warranties are NOT warranties...they are service contracts or mechanical failure insurance policies. The dealership profit margin, including the commission to the finance guy who sold the "extended warranty" is significant, then there's enough margin in the price to give a profit to the underwriter. What's left over pays the claims.
It's a waste of money to buy insurance for anything we can afford to replace. The most expensive parts of the truck have the 5-yr/60,000 mile powertrain warranty anyway.
I purchased my Tundra Certified Used. I guess that counts as an extended warranty.
The dealer did offer to sell me an extra warranty for about 1500.oo, I passed on the offer.
Thunder Gray Metallic
2002 REGULAR CAB - LONG BED - 4WD - V8 - SR5
TRD / Kazuma LSD made by EATON
Bilstein HD shocks
Michelin 8 ply E series radials
JBA headers
Hellwig rear bar
Line-X over the rail
2005 tail lights
OEM Door Sill protectors
TRD Off-Road front coil springs
Color matched LEER Hi-Top cap
Wet Okole Sport Seat Covers
Tinted Windows
OEM Rubber Bed Mat
OEM All-Weather mats
OEM Towing Package with Remote Transmission Cooler
Dealer has to inspect and repair vehicles to a higher standard than a private party. That's one reason you generally pay more at a dealer for a used car. It doesn't cost them much to "certify" it and offer some kind of limited warranty. I've never noticed any real difference in price on used vehicles based on whether they are certified or not, but they probably didn't give it to you for free.
Quote:
Originally Posted by 7.62mm
I purchased my Tundra Certified Used. I guess that counts as an extended warranty.
The dealer did offer to sell me an extra warranty for about 1500.oo, I passed on the offer.
Dealer has to inspect and repair vehicles to a higher standard than a private party. That's one reason you generally pay more at a dealer for a used car. It doesn't cost them much to "certify" it and offer some kind of limited warranty. I've never noticed any real difference in price on used vehicles based on whether they are certified or not, but they probably didn't give it to you for free.
Salesman said it's about $300.oo extra for the "certification". That cost is passed on to the buyer. I think it's worth it. Time will tell.
Thunder Gray Metallic
2002 REGULAR CAB - LONG BED - 4WD - V8 - SR5
TRD / Kazuma LSD made by EATON
Bilstein HD shocks
Michelin 8 ply E series radials
JBA headers
Hellwig rear bar
Line-X over the rail
2005 tail lights
OEM Door Sill protectors
TRD Off-Road front coil springs
Color matched LEER Hi-Top cap
Wet Okole Sport Seat Covers
Tinted Windows
OEM Rubber Bed Mat
OEM All-Weather mats
OEM Towing Package with Remote Transmission Cooler
Bought my tundra used with 52K on it so I wanted something. It was certified(which I think warrentied the powertrain till 6yr/100K) I bought the extended warrenty 6yr/100K for $750. Didn't think I would ever use it till my ADD Actuator went out but $50 later(deductible ) it was replaced. I figured I got about 1/3 of what I paid for back already. Besides that everything has been great.
Bought "Extra Care Gold" for $700 when I purchased the truck. Finance person explained it and sold it as 100k miles bumper-to-bumper... just went over 60k miles and had need to use it... the heater control valve froze and when I turned the temperature up it snapped the gear where the cable attaches.... Called the dealership and had them verify it with the waranty company before I took it in for repair ($600)... they denyed it... I called and they denyed it... turns out there is a VERY specific list of Toyota part numbers covered by the "un-waranty" and if the broken part isn't on the list then it isn't covered. One exception is if there is "IMMEDIATE" damage caused by a covered part... the heater control valve is covered ($18 for the part).... the cable attaching is not ($88) and the control assembly is NOT ($318)... because the control valve froze and didn't break the control assembly right then it doesn't qualify as immediate damage and isn't covered.... Needless to say I talked to my service dept and decided to fix it myself... not paying $150 to install this stuff... took 45 minutes to change broken parts... the service guy did call over to the parts dept for me and arrange for a 15% discount so my total after taxes was $308... so happy with with dealership, pissed at toyota and the "finance" dept at toyota for mis-representing the "waranty"...
So, just cause you have "extended waranty" doesn't actually mean they pay.
I didnt buy any extended warranty or service plan. My truck doesnt have many expensive options to cover. It would cover the plastic window crank handle if I broke it? hehe Factory warranty gets me to 5 years/60K and if anything besides engine or tranny goes after that, Id probably get it fixed. As soon as the engine or tranny is shot, junkyard. I have a feeling that wont be for a while though.
Nope...NO WAY! If I added up all the money I've saved from NOT buying ext (so called) warrantees....I could buy a new I-Force V8 and then some.
Think about just this one thing guys. Why do they badger and try to scare you...working so hard to SELL this to you? Because it's a good deal for the consumer?? NOT!
Simply because insurance companies are amongst the wealthiest companies around!!
They are alot like dealers at the casino...or the house. The odds are with them. Plain and simple. Save your money.
I think the extended warranty they offered me was $1200. The finance man (a great guy I knew) didn't strongly encourage it, but just said he had to offer it. Of course, he also suggested I lease too. There's another discussion thread: owning vs. leasing..........................
__________________ 2004 SR5 Tundra Double Cab Desert Sand, 2WD
In addition to:
1966 Beautiful Wife
1994 Son
1997 Son
1997 Dodge Grand Caravan
I have Toyota's Extra Care Plan (of course this is not a warrantry), but it covers many things that the warrantry itself won't pay for. Kinda like covering my own arse for repair costs and regular maintaince items. It also covers my oil/filter changes on top of the inspection/maintainence. Kinda like having a pre-paid rainy day fund which automatically covers the items set out in the Extra Care Plan.
Cost was around $1100 Canadian when I had this purchased in conjunction with my truck purchase.
Sanosuke!
Return to Japan - Spring 2004 (Bonus: Singapore)
I got extend wrnty for 6yr/100,000 I think of it more as insurance for $15 month for time frame that I'm making payment on my Tundra. I plan on hopefully never using it. But its safely in the glove box if I get stuck in BFE or just down the street.
I agree totally. I will be buying a 7 year/100,000 Platinum extended service covage with a $0 deductible for $1,185, which doing the math, is $14.10 a month for 7 years.
but $50 later(deductible 
) it was replaced. I figured I got about 1/3 of what I paid for back already. Besides that everything has been great.
"Extra Care Gold" waranty _NOT_
There's another discussion thread: owning vs. leasing..........................
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