Lifetime Powertrain Warranty - Is it a Sales Gimmick or a Good Deal? (insurance, 2013)
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I am currently shopping for a new car specifically - 2013 Toyota Camry.
One of the dealer mentioned that the deal includes lifetime powertrain warranty that covers - Transmission, Engine and Drivetrain.
While the other mentioned that I can purchase for 6 year powertrain warranty and an another dealer mentioned that he cannot afford to provide it with the deal.
I am wondering how reliable are these powertrain warranty. Are these sales gimmicks? How seriously I should consider this in to my purchase decision
Is it a factory warranty extension or an aftermarket warranty? How long do you play to keep the car? What's the difference in price at the different dealers?
Some of these warranties are okay, some are pretty limited, and most never end up getting used anyway. Knowing the answers to the above questions would help.
It sounds a bit too good, but...
-ask if covered repairs can be made at any place in your area, or when travelling, not just that dealer, (or a couple of places he is pushing/connected with).
-ask to see the entire fine print, including 'what is not covered', and its detail
-ask who/what company is underwriting the 3rd party coverage. Check them out on the net for rep, etc.
-if the dlr gives you a copy of what is/what isn't covered and all the fine print, study the detail about a part being covered/not covered due to 'wear and tear' vs 'defect'. Some companies will disallow W & T, even though it's a mechanical part deep inside the engine.
-the auto trans section of many 3rd party policies is vague, on purpose; trans diagnosis and repair is pricey and not an exact science, even by 1st class reputable places, and most auto trans are connected/driven by very complex electronics in the EMS.
-It is a gimmick if all/most of the above is not legit, clear, concise and offers your choice of location for repair, imo.
-It is not exactly a 'warranty'; it is an insurance 'product' and if the company is legit their actuaries have done the cost accounting and arith and nailed down the loss/coverage potential, almost always in the company's favor. If it is truly 'free' to you the buyer, then it is suspect and the cost of that coverage is somewhere in the cost of the car...
My 50Cts...
GL, mD
I had a van with a extended factory warranty. They replaced the engine and later the transmission for free.
I do not know if after market warranties are worth it.
We purchased an 08 Durango at Martinsville Indiana from the dealership when it was two years old. We bought the lifetime drivetrain warranty for an extra thousand dollars. Two months ago our transmission went out and we took it up there The warranty company wanted them to replace only the parts in the transmission that were bad. After trying that and the transmission still would not work they had to order a brand-new transmission. The warranty company did not like it but yes they did pay for it and the total bill was 5000. I hope this helps----Vance
Most extended warranties do not get used. I bought a aftermarket extended warranty for my dodge and later the rear axle broke. Took it in and they denied coverage. They said I hit something. But there was no impact damage ANYWHERE on my vehicle. After going back and forth and even the dealer saying there is no way the damage was done by impact they denied warranty. I called and spoke to the most abusive person I ever talked to. I finally ended up canceling the contract. I got charged $200 penalty. I fixed it out of pocket. The repair was done AFTER the factory warranty had expired. A warranty is only as good as the company backing it.
I was told if you're gonna buy a extended warranty get a FACTORY extended warranty or don't bother. I don't bother wasting my money on them. Usually you have to follow a VERY strict maintenance schedule and the warranty company may ask for poof. If you don't have it guess what? Claim denied. Most IMO are a scam.
i've found that down here it's pretty common for new car dealers dealers to include a 'national lifetime powertrain warranty' on their new cars and perhaps low mile used. If it were me, i'd still compare the cars' bottom lines and if the same car for about the same price has any extra coverage then figure it as a no-charge bonus.
We actually ran into this when shopping for a used small suv; some dealers had the certified models and others instead their lifetime warranty. Not talking independants but actual manufacturer dealers.
For us, we took a certified at same price, the longer factory warranty meant more to me then just a long powertrain coverage.
Lifetime warranty? Is this for the life of the car, or the life of the company underwriting the warranty?
I am highly suspicious of third party, lifetime warranties which are thrown in the deal. How do they make money and stay in business when there will be claims to pay out on?
I would be very suspicious that I would ever be able to utilize the warranty, either due to them not being around or they burying enough in the fine print to defend denying a claim due to all kinds of things.
(Although, I typically would not buy an extended warranty from a reputable source anyway).
Some are good and some are not wort the paper that they're written on !!
You will need to READ this contract very closely as well as the fine print !!
What warranty coverage do I have on my new Toyota vehicle?
Basic Coverage
36 months/36,000 miles (all components other than normal wear and maintenance items).
Powertrain Coverage
60 months/60,000 miles (engine, transmission/transaxle, front-wheel-drive system and rear-wheel drive).
Rust-Through Coverage
60 months/unlimited miles (corrosion perforation of sheet metal).
Emissions Coverage
Coverages vary under Federal and California regulations. Refer to your Warranty and Maintenance Guide booklet for details.
For complete details about Toyota's warranties, please refer to your Warranty and Maintenance Guide or see your Toyota dealership.
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