Should you buy an Extended Warranty for your Toyota?

A Toyota master diagnostic technician tells you if you should you buy an extended warranty for your Toyota.

So many people wonder if Toyotas are so reliable why should you buy an extended warranty ? Is it a total waste of money? is it a dealership scam to make more money on the car purchase?

Well in this video I will go over the commonly or frequently asked questions about extended warranties or service plans for Toyota cars.

I will give you reasons you should buy one and reasons you shouldn't. I will also make you aware of the common schemes when it comes to extended warranties. Including Life time powertrain power train song and the cheap and easy online extended warranty contracts for your car.

This information really applies to all makes of cars but since I work with Toyota I focused it on Toyota specically but you can apply the same information to other makes as well.

Always negotiate the price on extended warranties and ask for what's covered but most importantly what's not covered by the warranty.

Questions? Comment or email please note that it takes me sometime to get back to you via email but I always will in the end.

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#thecarcarenut #toyota #extendedwarranty

0:00 Intro
0:54 Should you buy one?
4:45 Is it a waste of money?
5:48 The most important information
15:58 Reasons not to buy one
19:15 Things to be aware of
22:50 Conclusion

[davel]

I was a proud mechanic and did great work for over 35 yrs. Decided to stop working so hard before I wore out my body. Took a job for an extended warranty company. Talking to service advisors, customers, field inspectors. Looking up levels of coverage for all. It made me sick seeing how people thought they were covered “bumper to bumper”. Company manager approached me at 90 day probation period saying, congratulations! You’re doing great and past the probation period. I said thanks but you didn’t pass mine. And I walked off the job. Their jaws dropped. 😁

[Gforce]

I bought a 2023 RAV4 Hybrid Limited. When I got in the finance office he started telling me horror stories about expensive electronics failing and how much repair cost. He talked me into a 10Year warranty. When I got home I did a search on the company and only found two negative comments on the BBB website. There was nothing else about the company on the internet. It was like they scraped the internet getting rid of any reviews or information. I was afraid the company might not even be around in 10 years. I went in the next day and canceled it. The main reason I bought a Toyota was for it's reliability. I may reconsider before the factory warranty runs out because of all the fancy features of the limited. Why the industry makes the buying process so unpleasant and there is no honesty or integrity. I dislike going to dealerships for that reason.

[tombiondi]

My simple warranty philosophy - If the odds weren’t in their favor, they wouldn’t offer it.

[FindingIsaac]

Bought a 2017 Tacoma. Refused the extended warranty. At 38k my power steering rack had a bad leak. Was quoted $3, 700 for the repair. My dealer went to bat for me with Toyota to try to get the repair covered, since it was a premature wear. Toyota didn’t cover it, but my dealer actually paid for it. But I wish I would have gotten the extended warranty. But thankful for a good dealership though!

[mhlittleton]

Obviously from watching your channel, AMD, you're a great mechanic - but you're an even better person for sharing the info in this video. Very honest and helpful! Wish you worked at my local Toyota dealership! 👍

[CeasarBergonia]

I bought an extended because I was afraid that the convertible top might break on my IS350C. However, the deal maker for me was that it was 100% refundable, if the extended warranty is never used. The catch was the customer had to request in writing the refund within 60 days prior to the end of the warranty. The company that provided the warranty most likely believe people will forget about the refund or assume the refund is automatic. There was only one problem during the extended period, the side view mirror. However it was a easy DIY fix so I never used the warranty. In the end I got my refund. Reading is fundamental.

[desertfox]

best warranty . Put $500 a year on the side and don’t touch it. By the time something break use that money. Now you are the warranty company

[charlesrose]

Bought a new 2018 Sienna and got the 8 year 125K extended warranty for around $2300. Glad I did. It has paid for itself, and I still have 2 years left on it. Love the car, and love the Car Care Nut! 😀

[teddypark]

I said no and just fixed it myself with everything I learned from AMD!

[tigerman]

Finally! Someone in the auto industry who tells the truth, has [un] common sense and logical...refreshing!

[cpscps]

I have an '06 Sequoia 4x4 with almost 208k miles. Runs like new. I am my warranty !!

[jeffer]

I've typically done well with extended warranties. My last car had a 10 year warranty on it (5 extra years) and in the last 2 years, I had almost $6000 worth of repairs covered on it. That warranty cost about $2300. I keep my cars a long time, so I like the peace of mind. The way I look at it is, I'm prepaying for a few smaller repairs to have the cost included in my payment. Then if/when something goes wrong down the road, the cost is already covered. When I purchased my new Venza recently, I purchased a full 10 year warranty for about $2500. I know the Toyota Hybrid system is very reliable, but these cars are also VERY complex, so if anything does go wrong, it can get very expensive very quickly. I also have yet to have a AC system last longer than 8 years in any car I've had over the years so I figured at the very least, I'll get a replacement AC system out of it (which is typically $2-$3k). From my experience, things start to go on cars after about 7-8 years. I purchased a 3rd party warranty from the dealership as Toyota's ECP plan doesn't go any longer than 7 years (or 8?). I wanted something to cover me the full 10 years. The top level warranty I chose covers all the same things the factory warranty does, but doesn't come with the 3 years of free maintenance the Toyota ECP does. To me, having the few extra years of warranty is worth a lot more than a few extra oil changes (especially since my dealer gives the first couple of oil changes for free already). If you change your cars every 4-5 years, it's likely not worth it to buy an extended warranty since most things are covered during that time already. However, if you keep your cars long term (like I do), it can be a good idea.

[moose]

AMD, this is the single most important video that you have done! Kudos to you for taking this to the task. The truth is that there are warranties (factory and Toyota Extra Care) and there are vehicle service contracts (VSCs). The factory warranty will cover parts and labor at 100% with NO deductible and use factory parts. VSCs have a long list of exclusions, can require the customer to pay a deductible and use aftermarket, rebuilt or even used parts. Furthermore, the VSC administrator will decide whether they will cover the cost of the repair or not. They could refuse to pay your mechanics' labor rate because they think it is too high. Here is the kicker, that VSC that is advertised on TV all the time has another gotcha - the removal, the tear-down, inspection and reporting fee. Yes, they could require this to decide if they will pay for the repair. In this removal, tear-down and inspection procedure, the owner is on the hook for this. Read the fine print! Check the BBB and other sources for VSC complaints before buying. VSCs may delay the start of your repairs while they think about whether they will be for the repair or not. VSCs are like insurance companies, you are dealing with an "adjuster" (administrator) that will decide your fate when you need a repair.

If you buy a new car and the finance guy sells you a VSC, it is likely that the VSC coverage will start when you drive off the lot meaning you are paying for duplicate coverage with the factory warranty which will supersede the VSC coverage. You need to have the finance guy put in writing when that VSC period begins.

Buy a Toyota or Lexus and do the required maintenance on time. My 2004 Tundra has the original brakes and clutch. The only repair that I have made was to replace the #2 O2 sensor because the heating element died. The part cost me $45.00 and 20 minutes of my time to replace it. Toyota's are bulletproof if you do the maintenance correctly and as scheduled. Save your money and take the money for the VSC and put that monthly fee in the bank for repairs. Better yet, take the money that you would sink into a VSC and use it to pay down your credit cards.

AMD, thanks for discussing this misunderstood car ownership issue.

[truckerbates]

I always buy new cars and I've never bought an extended warranty on anything in my life. Just a waste of money in my opinion. Love your channel btw. God bless you and your family. 🙏

[dupont]

When I purchased my wife’s Highlander, Finance manager asked if I wanted extended warranty. My words to him were....”No thanks, that’s why I’m buying a Toyota, plus the money I save from not buying an extended warranty I will put it aside and use it for oil changes and regular maintenance”

He looked at me and told me no one has ever put it to him that way. 9 years later car is still running great with basic maintenance.

[MrLufelcan]

I had me the warranty for my 2017 camry... I never used it. It was a mistake... Toyota is the most reliable car on the planet...

[nosliwttam]

My dealership experience as a tech was that dealers spend the bare minimum and cut every corner possible to get the used cars through service and onto the lot for sale. I was removed from one for refusing to replace unneeded parts under extended warranty to pad the dealer's pockets and boost the service manager's numbers. Buyer beware.

[WayneB]

One of the main reasons I now drive a Toyota truck was when the transmission failed on a GM truck 2 days after the factory warranty lapsed and GM told me they wouldnt cover it, despite me being a GM employee at the time . Ive always been more than happy with the way my local Toyota dealer has handled any problems my truck has had.

[kimdavis]

May the Lord bless you dear brother for sharing this gem!

[LTJohn]

With the extended warranties a lot of people don't realize that they can actually get reimbursed for their warranties and they can get a check in the mail which is what I got when I recently traded my 18 Camry for a 22 xse. 2 weeks later I received a check in the mail for my warranty which I never really had to use so people need to keep this in mind...