Extended Warranty?

[junebug1701]

I have no idea how it works in the States, it most certainly does NOT work that way in Europe. I find it very strange that a warranty policy costing very little in comparison to the cost of a car, potentially has more profit in it!!!

Why does the Mid West dealer only sell his product to make $100? There is more to this than meets the eye, perhaps he subsidises the product to "buy" your data and future business

As I said before, Ive worked in this job all my life and have never seen that level of profit in a manufacturers product.

I have to admit when I first heard about this, I thought it too good to be true. But after verifying with other Toyota owners, it is legit. There are other dealers who sell the warranties at a discount, such as the one in the Boston area.

As for why they do it, think about it. If my local dealer is selling the warranty for full price, he may only be selling 5 or 6 a month to people in this area. But Midwest could be selling hundreds a month to people all over the country. Who's making more profit? They have one guy and that's all he does is sell warranties, and his job is easy. I got a quote from him via email, then we talked on the phone where I gave him my VIN, current mileage, and credit card number. He transmits a form to Toyota, and I get the warranty in the mail. Simple and easy. As for buying my data and future business, well my data is accessible to any Toyota dealer on their computer system. As for future business, I'm not going to buy a car from a dealer 1300 miles away, but I will buy any future warranties from him, and recommend him to all my friends who buy Toyota/Lexus/Scion and Fords--yes, they are a Ford dealer also.

[thedeanobeano]

Update for you on this.

The car turned 60k last week and I called a couple of other main dealers

I just asked if they could do anything with the quoted price.

Toyota World (Bham) came straight back and said if I paid the full amount up front and didn't use the direct debit facility, they could reduce the price from £780 down to £625.80. This is for the two years unlimited mileage cover.

I took them up on their offer and the paperwork has all come through OK

Happy with £625.80 for approx 80,000 miles of cover!

[valmiki]

That's a brilliant price, well done! I wonder how early I could buy the extended warranty (mine runs out January 2013).