Hello,

I purchased a 2014.5 Toyota Camry LE yesterday for $21,500.10 (including taxes and fees) however when I went to the 'financing' dept they advised us to include 3 more fees.

1. GAP Insurance - $695.00 (someone please explain this to me and if it is necessary?)

2. VSA - Platinum/6yr/100K miles - $1495 (I'm seeing on other messageboards I can cancel this plan and purchase a warranty from other dealerships for 50% less. Is this actually the same warranty as the 3 year 36,000 warranty? Just paying $1495 to extend for another 3 years/64K miles?)

3. PMP - Premium/5yr/55K miles - $895

Basically I got ripped off. I'm going to cancel but I want to make sure I am allowed to cancel all three of these options.

If I get a warranty at another dealership such as the ones like Doug or Jerry (out of state) that are listed in the Toyota forums will it be valid at any and all Toyota dealerships in US?

When I cancel these warranties will I be able to receive a check or does my balance get reduced? (I financed the vehicle)

Any help is greatly appreciated!!

 

You can buy a warranty at any dealership and have it valid at all. Some dealers are much cheaper.

When a car is financed and totaled, GAP pays the difference between what insurance pays and what is owed on the car. If the car is totaled and insurance pays less then amount owed (does happen), you are still liable for the full balance due.

Not sure what PMP is? Is this personal medical protection? If so get this through whoever insures the car for liability, etc.

As to cancelling, depends. Read contract. If these insurance items were rolled into the financing may need to refinance.

Read contract.

 

I agree with Joey. Also check to see what rules apply to your particular state. The Wife bought a used car and when I saw that she got all the add-on's, I freaked and said that we needed to go back to the dealer right away to cancel some of it. The finance guy basically laughed at us as he highlighted our state's initials that it could not be cancelled.
GAP insurance is worth having and is usually a requirement made by your auto insurance company. It is only $695, so if that is the amount over the value of the car, I would go without. Did you trade a car and the trade value they gave you was less than what you owed? The balance from the trade deficit gets tacked onto your loan and can cause the gap.
I don't know about PMP either. Sounds like what rental car companies try to sell you along with damage waiver. Regular auto insurance should cover this if it is personal medical protection.

 

Hello,

PMP is prepaid maintenance plan. I have attached the cancellation information for both the VSA and PMP as well as the price sheet. It says to send a letter to both and request to cancel. Regarding the price sheet I have a question about the optional credit insurance. (2nd section B) Do we need credit insurance? Is this just to insure the loan? In case of what?

Thank you.

 

Where is attached information?

PMP is scheduled maintenance which is different from any warranty repairs. Suggest reading the owners manual for scheduled maintenance then compare to what the contract covers to note any differences.

Once you know what is covered, do the math to come up total estimated costs for the time period of the PMP coverage. Modern cars don't require much maintenance for the first 100K miles. Oil change intervals have been extended to say 10K miles, spark plugs last 100K miles, no timing belt to change. What is left is cabin and perhaps engine air filter, inspect this or that item which should be OK. And if not would be covered under either the normal or extended warranty. My own opinion is $895 is steep. Also note if PMP or any other warranty was rolled into the loan you will be paying interest on these.

Credit insurance typically pays off the loan of the payee can't such as death or disability. If your single and have no dependents or beneficiaries of your estate who need any assets you have it may not matter if you die. You will be dead after all and let the creditors fight it out over what is left of your estate.

Of course read the fine print. Some plans will pay out better then others. Some will pay out in case of job loss but all have the good and bad points.

Take note, all these insurance plans have very high dealer profit margins. They also make is easier on the lender to recoup their loan monies such as in the case of GAP and credit insurance. You as the borrower of course pay for this.

My own thoughts are as follows:

How pressed are you for cash? Do you have a good job/income that be as long as the loan period? What happens if you can't make the payments? The worst case is the dealer repo's the car then informs the credit agencies.

You can buy an extended warranty cheaper from another dealer. But can you afford to pay cash or meet the payment requirements.

Can you do your own maintenance if something breaks. If so there is less need for an extended warranty. Some cars have complex navigation/entertainment system that if broken can' be fixed and require costly replacement.

 

Thanks Toyomoho.

I can't fit the entire screen shot of agreements on photobucket for you guys. I have it available on pdf. Do you know if the warranty 3 year/36K miles that Toyota offers on the vehicle is the SAME "extended warranty" I purchased as stated previously? If it's the SAME warranty I want to cancel the "extended" and buy a cheaper warranty elsewhere later down the line. Only IF the "toyota 3 year warranty" and "extended warranty" are the SAME and cover SAME parts because the "extended warranty" was broken down to "platinum" and "gold" warranties which makes me feel like "Extended Warranty" may be different from "Toyota 3 year" warranty.

Sorry for confusion, thanks!

 

Toyota has all warranties they sell on a website which may be below:

www.toyota.com/Owners‎

If an aftermarket warranty (non-Toyota warranty) most likely would have some third party name (non-Toyota) listed. Dealers also sell third party warranties.

Send copy of PDF to email address listed in private message. Private message link is below the Welcome line in upper right corner of screen.