[simpy34]

Alright here is the deal. Just bought a 2006 Ody Touring with 65,000 miles for $20,000 before T/T/R (Denver area). Pretty pleaseed with it so far. We are members with USAA and went in preapproved but decided to finace through the dealer and am starting to regreat it. Couple of questions:

1. We did buy an extended warranty for ~$2495 (Toyota Gold Package since it was from a Toyota dealership which is not total comprehensive but is close). Feeling that it is high but it was for 36 months/36,000 miles. So is the price high compared to other companies? Can I cancel the warranty coverage and get 100% back?

2. Is the above price for the car fair?

3. Should I get extended warranty at all with the above specs on the car? It is in great condition from what I see and the dealer already has included 3 month/3000 mile comprehensive on it.

4. USAA has an extended warranty plan for $1200 which pretty much covers the same thing. Anyone worked with them on that before?

Thanks for any help that can be given.

 

[homer's van]

You already paid and all, now you ask here if the deal is good and if you can cancel the contract? Did you read that contract before or after signing? We likely have not. Seriously, it's all there in the contract. I think that you answered your own question on the USAA equivalent policy pricing. $1200 is good pricing for coverage, but only if it's exclusionary with a low deductible. You have to read these things to know. Whether you need it or not is personal, how much financial risk you'll tolerate later for components likely to fail against the outlay today for piece of mind - consider, do you already have life insurance, disability insurance, credit card or mortgage insurance, an umbrella policy?
Finally, no one should be so rude so as to actually state that a car deal someone already struck sucked, so I say it must have been fine or you would not have bit (plus, I actually don't know).

 

[nicomtl]

I tend to see extended warranties as a mix of casinos and insurance: The company selling it is trying to make money, so they will sell it to you for more* than what they expect it to cost them (duh! ).

So, if you can pay for a statistically unlikely but still possible big repair, say a transmission replacement, you are more likely to pay less overall by not buying it.

If you can't pay a big sum, then you are trading a higher cost for one known payment, or low monthly payments if you finance it.

As stated by the previous poster, it's like life or health insurance and whether you get it depends on how comfortable you are with a bit of risk.

Finally, as to the policies, read them thoroughly. The deductible and how it is applied is very important. Would you bring a car in to replace a 95$ switch with a 100$ deductible? And if the deductible is for each repair, not each time you bring the car in, some repairs may never make sense.

Nicolas

* And sometimes a lot more, as your two prices show. I have heard of commissions in the 30-50% range for salespeople.

 

[skinny2]

Unless you can't sleep at night worrying about a potential repair.....never buy an extended warranty.

As to getting out of the current warranty....we can't help you at all without reading the contract.

Price doesn't seem too far out of whack for a retail deal.

Next time...ask these questions before signing...

 

[mattd]

I agree you need to read your warranty contract. I can only speak generally, as I have never had your specific warranty, but I have Honda Care and I have also had GMPP (general motors protection plan).

The ways that those read, is you have 30 days to cancel without penalty. Thereafter, there is a $50 cancel fee, and then prorated refund based on time/miles.

The warranty price seems a little high, but not out of the ballpark. I just bought an 09 Impala certified. So it has a warranty to 48k miles bumper, 100k powertrain. I asked about extending the warranty, and they said if it is done by the 48k, a 3year 36k mile ( or 4/48 I can't remember specifically) warranty would be $1995.

The purchase price seems ok, does not seem like the deal of the year, but ok.

 

[VanMan09]

1. Personally it seems like toyota ripped you off, and you will probably play hell getting warranty work done at complete cost since it's not hondacare warranty. If you can get your money back I would as soon as you can.
2. Price seems ok, there is always somebody that gets it cheaper or spends more but 20K is about average i'm guessing.
3. Three month coverage from a dealer really isn't much, but it's better than nothing.
4. I am also a USAA member, i've never bought their warranty but they are top notch at anything i've ever done with them. If their warranty was 1/2 price of toyota why didn't you get it instead, and you could have financed with them as well since their rates are very good.

 

[Dirkdaddy]

Congrats on the van. Others covered prices paid. I have '06 as well. Have Honda figure out if the rear motor mount was changed, they can tell if it was done under powertrain warranty. If not, that will likely fail, mine did at 58k and others have had them go before that. New mount has new part no, may have solved problem. Also the rear shocks tend to leak and fail, but Monroe's are pretty reasonable and a bolt in replacement with lifetime warranty. Just did mine today (GRIN). Its a nice van good on road trips and stuff.

Did you notice if the van has the Pax tires or has it been de-paxed? They are run flat tires that only fit those PAX wheels, FYI.

Welcome and don't stress. You may have a state imposed period on sales where they have to unwind it, we do on some things in Texas.

My kids love ours, which is really the whole point isn't it?

 

[simpy34]

Thanks for all the heads up. The next day after writing that post, I did go back and took out the extended warranty. You could tell they werent happy about it, but it took maybe 10 minutes without any kind of charge so I was cool with it. The thing that pushed me over the edge was we had a mechanic we know and trust look over the car. He said it is in great shape and could not find any problems with it. We would have done this before we bough the car, but we live an hour away from the dealership we purchased from. Yea, we could have done a little bit better on the price but I am overall very happy with the outcome.