Finance department at a Dealership?

[Z7buckmaster]

nobody likes to spend money on something they may or may not use. That's like saying i don't need a generator here in houston. Then, as soon as a category 3 hurricane starts rolling into the gulf, those generators become a scarce commodity.

When i purchased my 2017 tundra, i listened to all the add-ons the dealer was offering. I didn't say yes to them all. I did go ahead and get the extended warranty (100,000 mile). Sure, it was money out of my pocket, just like anything. Sure, i could have avoided it and took my chances. But that's exactly what it is. Risk. Everyone has to assess their own risk/reward. Is it cheaper to buy the warranty and not worry? Or perhaps your in a much better financial situation and can afford to decline that option knowing if something happens, you can pay the money to get it fixed without putting yourself in a bind.

There is never a right or wrong answer with this. Everyone's situation will be different and you just have to decide for yourself what's best for you.

Correct!!

[Burnadell]

I can actually answer that question. I can build the extended warranty into the financing instead of paying later. This is a personal decision which doesn’t apply to everyone. Some will choose to do just as you have suggested. I chose to purchase immediately for financial reasons.

But you are still paying for something in advance, that is already covered for at least 3 years, AND adding the financing costs to it. I'm sorry, I just don't understand, but for those that are fine with it after understanding the facts, then that is all that matters.

[Burnadell]

What does an extended warranty on a new vehicle cost?

[Z7buckmaster]

Details, Johnny. What did the extended warranty pay that the new car manufaturer's warranty not cover?

Why would you pay for an extended warranty at the time of the vehicle purchase...when the extended warranty won't even take effect until after the mfg warranty expires? Why pay in advance? You may not even own that vehicle when the extended warranty becomes effective, or you may be dead and not need it.

Why wouldn't you wait until the mfg warranty was getting ready to expire before buyng an extended warranty? Why pay for something that is already covered?

Within your “bumper to bumper” warranty not much.
Manufacturers refer to the “bumper to bumper” as any defective manufacturer parts most likely you will never have a an issue making a claim with in that

It generally Cost less since the vehicle is new.
Great thing about extended service is that the amount you pay is prorated for the length of time and miles, so in the event you trade or die lol it’s an product that can be canceled and you have the prorated amount back to you or your lien holder.

Great question... like I said generally less expensive specially with the amount of technology being added to vehicles every year, extended services plan have been going up in a very fast pace as Parts and hourly rate have been increased. Also if the manufacturer’s warranty has expired you’ll most likely have to do a Use vehicle inspection ($150-$500) and fix any existing issues. Trust me they’ll find something.
You definitely have the option of buying after it expires, I would recommend doing it before the “bumper to bumper” expires.

[Z7buckmaster]

What does an extended warranty on a new vehicle cost?

It all depends on make, model, miles and what type of plan

I’ve seen plans costs as little as $1200 up to $8000(Land Rover)

[Z7buckmaster]

I can actually answer that question. I can build the extended warranty into the financing instead of paying later. This is a personal decision which doesn’t apply to everyone. Some will choose to do just as you have suggested. I chose to purchase immediately for financial reasons.

The finance part is one of the reasons why I do it at the time of the purchase.
Example: $45 a month It’s better for me to pay that for 5 or 6 yrs and cover my vehicle mechanical parts and electronics, then to save $45(it takes 6yrs to save over 3k) and hope that 1 major repair within that time.

[Blitz]

But you are still paying for something in advance, that is already covered for at least 3 years, AND adding the financing costs to it. I'm sorry, I just don't understand, but for those that are fine with it after understanding the facts, then that is all that matters.

Your right. It does add to the financing costs. But its absorbed so you don't really notice it month to month.

Think about this. How many times do you drive out of your way to save 10 cents per gallon on gas? For a 20 gallon fillup, your only saving $2. Yet, many people do it and for less than that!

Of course we can add up the total cost of things and say this is the correct decision based on the "total" cost. 99% of the time, people don't think that way. They say they do on a forum like this when your not in the moment. But most of us look at the short side of things. I venture to say, if we had our accountants with us when we made every single purchase in life, we probably would make different choices. But, we do the best we can based on our "personal" situations.

[Mayhem]

We bought my wife a limited 4Runner recently and bought the extended warranty. We drive 25-30 thousand miles a year, so the 3-36k mile warranty won’t last very long. $1300 cash money for 5 years 100k mile bumper to bumper warranty is cheap insurance IMO.


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[Blitz]

We bought my wife a limited 4Runner recently and bought the extended warranty. We drive 25-30 thousand miles a year, so the 3-36k mile warranty won’t last very long. $1300 cash money for 5 years 100k mile bumper to bumper warranty is cheap insurance IMO.


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That was my thinking when I bought my tundra. You almost always get that extended warranty cheaper up front then later on when you need it.

[Mayhem]

That was my thinking when I bought my tundra. You almost always get that extended warranty cheaper up front then later on when you need it.

With what it cost to work on cars these days, one fuel pump replacement and you have pretty much paid for the extended warranty.

Toyota replaced the fuel pump on our tundra under warranty years ago and it was $900.


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[Z7buckmaster]

We bought my wife a limited 4Runner recently and bought the extended warranty. We drive 25-30 thousand miles a year, so the 3-36k mile warranty won’t last very long. $1300 cash money for 5 years 100k mile bumper to bumper warranty is cheap insurance IMO.


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Great point I forgot about that. It’s what ever comes first miles or time. I’m out of warranty the first year of ownership.

[Johnny Dangerr]

I buy 11 month old cars with 10K on them for 30% off what the first owner paid 11 months before. Being the second owner the manufacturer cuts their warranty in half.
I knew I wanted to keep it a year or two past the mfg's warranty. I also knew it has 21 on board computers and any other part is just stupid expensive.
In the last year the emergency brake computer and the left headlight went out.
The headlight is $3500.00 plus installation. The computer was at least $1000.00. The extended warranty coverd them. I think I paid a $50.00 deductable both times.
This has saved me on the last 2 vehicles I have owned..........

[Z7buckmaster]

I buy 11 month old cars with 10K on them for 30% off what the first owner paid 11 months before. Being the second owner the manufacturer cuts their warranty in half.
I knew I wanted to keep it a year or two past the mfg's warranty. I also knew it has 21 on board computers and any other part is just stupid expensive.
In the last year the emergency brake computer and the left headlight went out.
The headlight is $3500.00 plus installation. The computer was at least $1000.00. The extended warranty coverd them. I think I paid a $50.00 deductable both times.
This has saved me on the last 2 vehicles I have owned..........

That’s awesome! Service advisors deal with 2 types of customers.

1- customers that is stressing out not knowing what the issue is as well as what is the cost. Not counting the facts that they still have to find liable transportation.

2- customers that hand them the key and say call me when it’s ready. Drive off on loaner/rental, and come back knowing that their out of pocket is 0-200 depending on what deductible the chose.

[GA Bowhunter]

The headlight is $3500.00 plus installation.

You own a vehicle that has $3,500 headlights?

So if you need two headlights it's $7,000 plus labor?

What kind of vehicle is that?

[Z7buckmaster]

You own a vehicle that has $3,500 headlights?

So if you need two headlights it's $7,000 plus labor?

What kind of vehicle is that?

Steering responsive headlight are very expensive.