The Toyota Extra Care Vehicle Service Agreement (extended warranty) can be very valuable to have when something unexpectedly breaks on your RAV4 past the 3 year/36,000 mile factory warranty. Some say that Toyota builds some of the most reliable vehicles on the road today, and the extended warranty is a waste of money. However, today's Toyotas are far more complex than those from just 10-12 years ago.
The additional safety systems, ECU's and electronics can be very expensive to troubleshoot and repair. For example, what if the power window goes out on the driver's door? This is a complex system of a motor, ECU, switches, and jam protection circuitry. You might be surprised to find out the parts and labor to replace just the motor could very well exceed the cost of the extended warranty. Another example would be the Limited's Auto Climate Control. This is more than just an A/C and heater--it has ambient temperature sensors, a sun sensor, servo motors to control and regulate airflow separately for both driver and passenger, all controlled by a small computer. This is not something your average mechanic can repair--many of these systems need diagnostic equipment and training that only the dealerships have.
Most of us were offered the Toyota VSA by the salesperson when we were buying our new RAV4. They usually save the pitch until the very end of the deal when you're about to sign on the dotted line. Most buyers balk at the price of the VSA, most of the time it's anywhere from 1200 to 2000 dollars! The profit margin on these warranties is HUGE. They could lower their prices by 50% and they would still be making a fair profit. The smart buyers ALWAYS turn down the extended warranty at the dealer. They know that they can always wait and buy the warranty anytime before the 3 year/36,000 mile factory warranty runs out. AND they know they can buy that same Toyota VSA from ANY Toyota dealer. So, why not shop around and buy it from a dealer that offers the best price? Here are the latest prices from Jerry Johnson of Midwest Toyota:
Toyota Extra Care Vehicle Service Agreement, Platinum
8yr / 75,000 miles - $659 - The price for this warranty on the Toyota site is $1325 for comparison.
Things included in this coverage are:
*Unlimited towing to nearest Toyota dealership
*Reimbursement up to $50/day for 5 days per occurrence for rental car
*Meal/lodging up to $100/day when over 150 miles from home
*Transferability (with fee) to others if vehicle sold
cell phone (620-664-8844)
1100 East 30th
Hutchinson, KS 67502
Midwest Superstore 866-796-3495 | Lincoln Dealers | Hutchinson, KS
Called Jerry and got the following quotes:
6yr / 75k - $479
7yr / 75k - $559
8yr / 75k - $659
7yr / 100k - $814
8yr / 100k - $944
7yr/ 125k - $1059
8yr / 125K - $1259
But what happens if you already bought the extended warranty from the dealer? Don't worry, you can cancel the warranty by calling Toyota Financial Services and get your money back. You have 60 days to cancel for a full refund, after that there may be a small fee.
There are other dealers, such as Troy Dietch from Greenfield Toyota in the Boston area that offer similar deals. The key thing to remember is this is the same warranty that your dealer sells, and will be honored at any Toyota dealer in the US and Canada. The only difference is the price.
Here are a few threads discussing this same topic: