Extended Warranty or Self Insure?
#1
03-07-2022, 09:46 AM
Extended Warranty or Self Insure?
Greetings: I have a 2019 Camry LE with 19,000 miles. I purchased it from a Toyta dealership a year ago and am quickly approaching the 12,000 miles of warranty they provided. Given the excellent reliability reputation of the Camry, I am considering self insuring for any ongoing repairs. I am retired and have a steady monthly pension income over $10k, much of which is saved or invested. Any comments or suggestion would be appreciated.
#2
03-07-2022, 12:44 PM
Congrats on retiring and with a sizable income!I assume this is a certified Toyota car with a 12mth/12K certified car warranty. This certified car warranty has a list of items the car is covered.
The car also came with a FACTORY warranty which is different from the certified warranty. Toyota lists the basic warranty at 3 yr/36K mile and power train warranty at 5yr/60K miles Some emissions items are warranted for 8 yr/80K miles by federal EPA mandate. Unless something has changed, these warranties should go with the car not who owns it.
I STRONGLY suggest you check the official Toyota and EPA websites to determine exactly what warranty is and if this car has it. You can call Toyota customer service and provide your cars VIN to obtain the info.
Find out what the factory warranties cover which should be at the Toyota website..
Once again, find out what the factory and emission warranties are on this car!
The link below has some good info on the above.
https://www.motor1.com/reviews/38261...warranty-cost/
My two cents is if you are considering an extended warranty you have more time to decide, this being before the factory 3yt/36k warranty expires.
Any extended warranty starts when the factory and government mandated warranties end. Meaning if the warranty is 3 yr/36K and 5yr/60K power train, the repairs covered under these warranties within this period will be on the original warranties not the extended.
Thus if you buy a 8 yr/96K warranty your may only be getting the difference between the end of the factory warranty and end of extended warranty.
Toyota will have a cut off mileage and years for being eligible for the extended warranty. For most car makers this is typically before the FACTOR warranty has expired. Toyota customers service can help you with the information.
If getting an extended warranty, get an official Toyota warranty and not a third party. In most states Toyota backs their Toyota branded extended warranties as sold by their dealers. You want a Toyota factory backed warranty!
Check the specifics of the warranty as it may not cover normal wear and tear items. The point is to find out exactly what the warranty covers and doesn’t cover.
It used to be one could buy a Toyota warranty from any dealer in the country but this changed to the state the car is in. As such there was very competitive on pricing. These warranties are great profit makers for the dealer. It may be possible to negotiate for a lower price as it used to be individual dealer pricing not Toyota factory pricing.
Once could call many dealers to find a lower price on the Toyota warranty which made buying it less of a calculation as the price could be very reasonable. Not sure what the price is today so find out but assume something between $1K and $1.5K.
As to the economics of buying an extended warranty there has been LOTS of internet discussion on this. With proper maintenance Toyota's should be able to make it beyond 125K miles with no major repairs and just routine maintenance. Routine maintenance may not be covered under warranty.
Here you could be paying $1K-1.5K for an additional 3-4 years of warranty.
Toyota also has several levels of warranty coverage. Investigate each one.
There may be a deductible for repairs even if having the extended warranty.
If you want the car to last a long time do the preventative maintenance including changing the transmission fluid. Toyota used to state the trans fluid was lifetime but it appears only the life of the trans. If using synthetic transmission fluid, changing the trans fluid every 60K miles will go a LONG way to prolonging the life. Use synthetic engine oil.
As what can go wrong on the car. My opinion is the navigation/center console LCD display is weak and can fail. You might do a search on the year of car and find out what owner complaints are. This is readily available on the internet..
Bottom line, get the info on YOUR cars factory warranty and the time limit to buy an extended warranty. You may not need to decide now but years from now. Read up what these warranties and extended warranties cover and post back with what you found.
The car also came with a FACTORY warranty which is different from the certified warranty. Toyota lists the basic warranty at 3 yr/36K mile and power train warranty at 5yr/60K miles Some emissions items are warranted for 8 yr/80K miles by federal EPA mandate. Unless something has changed, these warranties should go with the car not who owns it.
I STRONGLY suggest you check the official Toyota and EPA websites to determine exactly what warranty is and if this car has it. You can call Toyota customer service and provide your cars VIN to obtain the info.
Find out what the factory warranties cover which should be at the Toyota website..
Once again, find out what the factory and emission warranties are on this car!
The link below has some good info on the above.
https://www.motor1.com/reviews/38261...warranty-cost/
My two cents is if you are considering an extended warranty you have more time to decide, this being before the factory 3yt/36k warranty expires.
Any extended warranty starts when the factory and government mandated warranties end. Meaning if the warranty is 3 yr/36K and 5yr/60K power train, the repairs covered under these warranties within this period will be on the original warranties not the extended.
Thus if you buy a 8 yr/96K warranty your may only be getting the difference between the end of the factory warranty and end of extended warranty.
Toyota will have a cut off mileage and years for being eligible for the extended warranty. For most car makers this is typically before the FACTOR warranty has expired. Toyota customers service can help you with the information.
If getting an extended warranty, get an official Toyota warranty and not a third party. In most states Toyota backs their Toyota branded extended warranties as sold by their dealers. You want a Toyota factory backed warranty!
Check the specifics of the warranty as it may not cover normal wear and tear items. The point is to find out exactly what the warranty covers and doesn’t cover.
It used to be one could buy a Toyota warranty from any dealer in the country but this changed to the state the car is in. As such there was very competitive on pricing. These warranties are great profit makers for the dealer. It may be possible to negotiate for a lower price as it used to be individual dealer pricing not Toyota factory pricing.
Once could call many dealers to find a lower price on the Toyota warranty which made buying it less of a calculation as the price could be very reasonable. Not sure what the price is today so find out but assume something between $1K and $1.5K.
As to the economics of buying an extended warranty there has been LOTS of internet discussion on this. With proper maintenance Toyota's should be able to make it beyond 125K miles with no major repairs and just routine maintenance. Routine maintenance may not be covered under warranty.
Here you could be paying $1K-1.5K for an additional 3-4 years of warranty.
Toyota also has several levels of warranty coverage. Investigate each one.
There may be a deductible for repairs even if having the extended warranty.
If you want the car to last a long time do the preventative maintenance including changing the transmission fluid. Toyota used to state the trans fluid was lifetime but it appears only the life of the trans. If using synthetic transmission fluid, changing the trans fluid every 60K miles will go a LONG way to prolonging the life. Use synthetic engine oil.
As what can go wrong on the car. My opinion is the navigation/center console LCD display is weak and can fail. You might do a search on the year of car and find out what owner complaints are. This is readily available on the internet..
Bottom line, get the info on YOUR cars factory warranty and the time limit to buy an extended warranty. You may not need to decide now but years from now. Read up what these warranties and extended warranties cover and post back with what you found.
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