Toyota Camry Hybrid and Extended Warranty

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sforce.anilg
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Toyota Camry Hybrid and Extended Warranty

Post by sforce.anilg » Mon Dec 03, 2018 12:41 am

Hi,

I am negotiating with dealer on price of the car and extended warranty on 2018 Camry Hybrid XLE ($30,592). I have following questions -
  • What is price actually paid for extended warranty? In my opinion - $800 would be reasonable? dealer's cost is insane!

Housedoc
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Re: Toyota Camry Hybrid and Extended Warranty

Post by Housedoc » Mon Dec 03, 2018 7:20 am

Google search for Toyota Camry forums. Many discussions on this with online dealers offering lower price. I am not a fan of xtended warranty. Dealer wanted $1600 for my 17 Highlander, no way. I have cash on hand to cover myself. Self insured mentality.

bob60014
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Re: Toyota Camry Hybrid and Extended Warranty

Post by bob60014 » Mon Dec 03, 2018 7:42 am

I never buy extended warranties and I dont understand why one would buy one on highly reliable cars.

carolinaman
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Re: Toyota Camry Hybrid and Extended Warranty

Post by carolinaman » Mon Dec 03, 2018 7:50 am

bob60014 wrote:
Mon Dec 03, 2018 7:42 am
I never buy extended warranties and I dont understand why one would buy one on highly reliable cars.
+1. I totally agree. A bought a Toyota Avalon 2007 model in 2010. I seriously considered doing an extended warranty for the first time ever. I asked my BIL who sold cars for more than 20 years. He said never buy an extended warranty. They are big moneymakers for dealers. Google Toyota extended warranties and see what others experience with this is. One of the big issues is that their definition of "wear and tear" items is much broader than what you would think.

I have a 2014 Hybrid Camry with 60k+ miles. I have and will self insure for repairs.

RickBoglehead
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Re: Toyota Camry Hybrid and Extended Warranty

Post by RickBoglehead » Mon Dec 03, 2018 7:51 am

Extended warranties are very expensive.

If you buy an extended warranty, only buy the one from the manufacturer, not from a 3rd party.

Extended warranties kick in at the point you bought the car, retroactively. So if you buy a 5 year extended warranty, and your vehicle has a 3 year warranty, the extended warranty is only for 2 additional years. Some benefits, like a loaner car, will kick in right away.

Like a casino, the house wins with extended warranties. Rarely do they pay off for the consumer.

Sometimes, dealers offer manufacturer extended warranties over the internet for much less than your local dealer may charge, and Toyota seems to have that option also, per Housedoc.

Your Camry Hybrid already has a long warranty on the hybrid-related parts. I owned a Ford Fusion Hybrid for 9 years and close to 80,000 miles. Besides oil changes, tire rotation (and replacement of all four one time), and rear brakes (rusted), there was no other maintenance needed. Just bought a Ford Fusion Energi (PHEV), and wouldn't consider an extended warranty.

stan1
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Re: Toyota Camry Hybrid and Extended Warranty

Post by stan1 » Mon Dec 03, 2018 8:05 am

Also have to read the fine print on what is covered. Is the navigation head covered? The sensors for lane keeping assist or the backup camera? Most of these extended warranties only cover what is listed. The electronic convenience and safety gizmos that may be most likely to fail these days may not be covered.

I'm not as anti-extended warranty as some who say the consumer always loses on these. I negotiated a 50% discount on a BMW extended warranty and broke even, but part of that was because the service advisor told me something would be covered that eventually wasn't but the dealership honored what he said. If you can get the manufacturer extended warranty, verify it covers electronics, cameras and sensors, and negotiate it for more than 50% off you stand a better chance of coming out ahead.

runner3081
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Re: Toyota Camry Hybrid and Extended Warranty

Post by runner3081 » Mon Dec 03, 2018 10:06 am

carolinaman wrote:
Mon Dec 03, 2018 7:50 am
bob60014 wrote:
Mon Dec 03, 2018 7:42 am
I never buy extended warranties and I dont understand why one would buy one on highly reliable cars.
+1. I totally agree. A bought a Toyota Avalon 2007 model in 2010. I seriously considered doing an extended warranty for the first time ever. I asked my BIL who sold cars for more than 20 years. He said never buy an extended warranty. They are big moneymakers for dealers. Google Toyota extended warranties and see what others experience with this is. One of the big issues is that their definition of "wear and tear" items is much broader than what you would think.

I have a 2014 Hybrid Camry with 60k+ miles. I have and will self insure for repairs.
+2 makes no sense.

MikeZ
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Re: Toyota Camry Hybrid and Extended Warranty

Post by MikeZ » Wed Dec 05, 2018 11:02 am

I didn't do this intentionally, but lets pretend I did to make me look smart :D

When I was negotiating for a car, I spent a lot of time looking at the extended warranties and thought a lot about getting one.

Then I negotiated the price of the car and got a good deal. Once I was signing my paperwork I said I decided against a warranty.

I think dangling the carrot of selling a high margin add on really helped me get the price down.

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dm200
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Re: Toyota Camry Hybrid and Extended Warranty

Post by dm200 » Wed Dec 05, 2018 11:05 am

One measure of the "value" of extended warranties is the price charged the customer vs what is costs the seller (as well as the commission paid for the sale). My understanding is that the sale of extended warranties is very profitable to the selling institution and the commissions are generous.

One approach would be to deposit the amount the warranty would cost into a savings account that earns interest - then use that money first for any expenses that would have been paid by the warranty - sort of "self insurance".

Some credit unions offer extended warranties at a much lower price as well.
Last edited by dm200 on Wed Dec 05, 2018 11:20 am, edited 1 time in total.

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SquawkIdent
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Re: Toyota Camry Hybrid and Extended Warranty

Post by SquawkIdent » Wed Dec 05, 2018 11:19 am

bob60014 wrote:
Mon Dec 03, 2018 7:42 am
I never buy extended warranties and I dont understand why one would buy one on highly reliable cars.
+1

That is always my question to the dealership after they go on and on about how great the car is.

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dm200
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Re: Toyota Camry Hybrid and Extended Warranty

Post by dm200 » Wed Dec 05, 2018 11:32 am

SquawkIdent wrote:
Wed Dec 05, 2018 11:19 am
bob60014 wrote:
Mon Dec 03, 2018 7:42 am
I never buy extended warranties and I dont understand why one would buy one on highly reliable cars.
+1
That is always my question to the dealership after they go on and on about how great the car is.
Yes - when "selling" the car, the sales guy/gal tells you how reliable and wonderful that car is and will be. Then the F&I (Finance and Insurance) guy/gal then tell you how important it is to buy the expensive extended warranty. One time when we bought a new car, I thought the F&I guy would cry when I turned it down. The commissions on such added stuff are very high.

Dottie57
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Re: Toyota Camry Hybrid and Extended Warranty

Post by Dottie57 » Wed Dec 05, 2018 11:41 am

I bought the first generation Camry Hybrid(2007). I paid for a warranty because of the hybrid battery. Never needed it. If you can afford the battery replacement, forget the extended warranty.

megabad
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Re: Toyota Camry Hybrid and Extended Warranty

Post by megabad » Wed Dec 05, 2018 1:41 pm

I do not buy extended warranties (for anything), but my suggested way of negotiating with dealer to determine a good price for one is to balk at the high price since it implies that the dealer thinks the vehicle will be very expensive to maintain. Why would you want to own an expensive to maintain vehicle? The warranty should be very cheap because the dealer (and salesperson) should be confident that few repairs will be needed because the vehicle is so reliable. Basically an expensive warranty is like admitting that you are selling a piece of junk product.

RickBoglehead
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Re: Toyota Camry Hybrid and Extended Warranty

Post by RickBoglehead » Wed Dec 05, 2018 1:52 pm

Dottie57 wrote:
Wed Dec 05, 2018 11:41 am
I bought the first generation Camry Hybrid(2007). I paid for a warranty because of the hybrid battery. Never needed it. If you can afford the battery replacement, forget the extended warranty.
Logical, but...

We sold a 2009 Fusion Hybrid in May after just under 9 years of usage and about 80,000 miles. The year prior, as my hybrid-components warranty was expiring, I inquired into the cost of a replacement battery. The Service Manager at my dealership said that they've never seen a hybrid battery need replacement, going back to when Ford starting offering them. NEVER.

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dm200
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Re: Toyota Camry Hybrid and Extended Warranty

Post by dm200 » Wed Dec 05, 2018 1:57 pm

My son was a car salesman for a period of time. During this period, he bought a car from that dealership and he showed me his purchase paperwork. One listed item was an "extended warranty" and the price he paid. While I cannot now recall all the details, the amount he paid seemed quite low - since I was aware of what folks commonly paid. When I asked him about it, he said he got this at "dealer cost" because he was an employee.

I then asked, "Is this the same warranty that regular folks pay several times that amount for?" He responded, somewhat sheepishly, "Yes, Dad."

megabad
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Re: Toyota Camry Hybrid and Extended Warranty

Post by megabad » Wed Dec 05, 2018 9:42 pm

RickBoglehead wrote:
Wed Dec 05, 2018 1:52 pm
Dottie57 wrote:
Wed Dec 05, 2018 11:41 am
I bought the first generation Camry Hybrid(2007). I paid for a warranty because of the hybrid battery. Never needed it. If you can afford the battery replacement, forget the extended warranty.
Logical, but...

We sold a 2009 Fusion Hybrid in May after just under 9 years of usage and about 80,000 miles. The year prior, as my hybrid-components warranty was expiring, I inquired into the cost of a replacement battery. The Service Manager at my dealership said that they've never seen a hybrid battery need replacement, going back to when Ford starting offering them. NEVER.
While I think that hybrid battery technology is pretty good and has advanced a lot, a cynical person might draw the conclusion that Ford should have been replacing batteries but didn't. I wouldn't think there is any symptom of the most common hybrid battery problem (limited charge) other than lower gas mileage. If the car is older and has had 3 or 4 owners, who would know if the mileage was a few mpg lower than it should be? Does dealer regularly test the battery? Does warranty specify a certain minimum charge capacity? Needless to say, as I stated above, I don't buy warranties.

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