Extended warranty prices…what’s up ?

Man that is tough, but you got a great suv now and that great army green.

 

Check with your insurance company. I got Mechanical Breakdown coverage added to my policy for a fraction of the cost of a Extended Warrantee.

 

Hey everyone....admittedly first post, but I'm feeling pretty screwed. I picked up an 18 ORP w/ KDSS over the weekend, definitely over-paid on it, but I really wanted it. The shittiest part is, they suckered me into a VSC...5/84K mile platinum or whatever it's called (1/12K of that are the CPO warranty) for a negotiated price of....3 grand. Initially it was 4795, so I thought I got a good deal...but reading through here, I think I screwed up. I know I can cancel it and get my money back, but part of me does worry about that KDSS. Vehicle seems to be well-maintained, though it definitely needs a wheel balance and alignment. Any one know if you can cancel and hit up another dealership for a better price? Anyhow, any feedback or merciless ridicule on paying this dealership 3K for an additional 4 years/72,000 miles worth of "bumper to bumper" warranty is welcomed.

 

I’d contact the contacts listed in this thread, and other dealerships and get quotes. Then make a choice, but don’t delay as your loosing money daily.

 

Cancel it.

 

Seemingly simple answer but actually very complicated. You can get a Toyota VSA (extended warranty) if your 4Runner is still under the factory warranty. Your '18 was likely out of the factory warranty in '21, which means you're unlikely to qualify for any of the VSA extended warranties discussed on this thread.

If by some miracle you're still within the factory warranty and your extended warranty provisions allow it, you can cancel with them for a pro-rated refund and re-establish the VSA with one of the other dealers for a discounted price.

Good luck!

 

Apparently there are multiple Toyota VSA terms available for CPO vehicles, similar to new purchase extended warranties, as long as the vehicles are still with the 1 year/12k CPO warranty period. I spoke with one of the contacts listed in the thread, they advised the deal I got was reasonable considering the vehicles age and mileage (2018, 60k miles). I’m still within the 30-day window to cancel it for a full refund, minus a 50 dollar admin fee, so I’ve got some thinking to do, I suppose. 3k could go a long way towards planned modifications, but being covered bumper to bumper for 5 years and 84k miles sure would be nice, especially reading the rare KDSS horror stories on here. Anywho, thanks for the response!

 

$2K invested today in a simple government bond for 8 years will be worth $4,300 if you take it out then (you don't have to) or it can keep earning 9.62% for 22 more years and net you a $33,482 gain in value - should you buy a warranty or "self insure" like I do? Easy one for me.
Sources:
https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds.htm#irate
https://www.omnicalculator.com/finance/compound-interest

 

I'm a big fan of compounding and in full disclosure I don't have any I Bonds, but as I understand it the rates are re-evaluated semi-annually and adjusted accordingly. Bonds purchased today are absolutely going to earn 9.62% for the next six months but there's no guarantee the earnings rate will stay that high for the 8 or 30 year totals you've quoted (at least I hope not, that would mean we're being hammered by inflation for years). Earnings rates on bonds purchased 5 years ago only climbed past 3% in late 2020/early 2021:

The current rates are outstanding and if you've got money sitting idle and looking for good returns on cash investments, I Bonds are worth a look. Just don't expect to see 9%+ returns unless inflation continues to run unchecked.

 

Wouldn't any major engine/drivetrain replacement work jack up your yearly auto insurance renewal fees?
Unlike a standalone mechanical insurance

 

Excellent point, thanks for adding this info. I don't personally use bonds but can't come here recommending the thing i do to people because it's got a higher risk profile, I like to own stocks with dividends and sell covered calls against the positions (no one try this on my recommendation please!!) -

 

Same here .. covered calls against my owned stocks