Toyota RAV4 Forums banner

Status
Not open for further replies.
341 - 360 of 395 Posts

·
Premium Member
Joined
·
1,427 Posts
unless perhaps the dealerships are raising hell with corporate over losing money (half of which amount is usurious based on what I paid for third party vs. Toyota's coverage). Can anyone confirm
I'm sure that's exactly what it is.
Finance guy at my dealership pushed the hard-sell and I kept refusing.
He insisted that the warranty was ZERO profit for the dealership and all of the money went to Toyota Financial.

Now, I don't think TF underwrites the warranties... and if there is "zero" dealer profit then why do they push SOOOO hard for it and how can other dealers sell the same coverage for half?
 

·
Registered
Joined
·
933 Posts
I'm sure that's exactly what it is.
Finance guy at my dealership pushed the hard-sell and I kept refusing.
He insisted that the warranty was ZERO profit for the dealership and all of the money went to Toyota Financial.

Now, I don't think TF underwrites the warranties... and if there is "zero" dealer profit then why do they push SOOOO hard for it and how can other dealers sell the same coverage for half?
All retailers have mark-ups of between 20-70 percent. They would love for you to pay list on a car or these warranty's. At least we know the real prices and can use the net to our advantage(send out multiple emails for a quote for your business ) when purchasing them. They are also trying to stop Dealers like Fitzgerald Auto Mall - New and Used Cars, locations in FL, MD and PA from advertising there no haggle prices= regulating the internet... its coming.
 

·
Registered
Joined
·
21 Posts
Just came across this after getting the e-mail from the forum.
Just read the post from Blogson on 10/08/15. I did not know that Jerry at Mid West Toyota
no longer sells the warranty because Toyota shut him down.
What is going on with Toyota? It is doubtful that i will ever buy another Toyota because of all the
stupid things they are doing (oil burning issues with 2AZFE engines) What do they think they are
accomplishing by doing these stupid things? I have been with Toyota since the early 70's
 

·
Registered
Joined
·
376 Posts
They are protecting their dealerships.
Agree that Toyota is trying to squeeze for max profits. Noted that some internet-pricing dealers are posting fewer no-haggle prices, opting for you to sign up for an email to get the best price. Also forcing u ot your selling dealer for the VSP.
Regarding VSP's, Toby in Louisiana was able to sell internet VSP's until the middle of this month and he's been shut down until further notice. Luckily we got our VSP's already. But he made profits.
Some hints:
First, Toby's prices for VSP's made him money, so at those same numbers any dealership will make money. So use Toby's prices and deal real hard offering Toby's number plus $50 and hold to it.
Second, Use this forum and others to know when you're hearing BS. Dealers will try to wear you down with multiple people to deal with, letting u sit and think about it awhile to waste ur time and wear u out, etc. ALso confuse with a) VSP warranty, b)tire and rim protection c)paint protection d)interior fabric/carpet protection e) combination of the above at a 'deal price.' It's a bitch but have to go thru it.
Third,shop several dealers, even out of state. The advantage I've had with big no-haggle dealers is that I can get the car they have, and I need, at that price. Others will tell you they have another customer for 'your' car and panic u into a deal w/o haggling. I shopped at Fitzautomall just because they had inventory and I knew the price. When I need a car I want it 'done' and no BS. I'll do my own state registration stuff to save money if necessary.
U should be able to get close to Toby's pricing for a VSP if you're persistent. Good luck.
 

·
Premium Member
Joined
·
1,427 Posts
Agree that Toyota is trying to squeeze for max profits. Noted that some internet-pricing dealers are posting fewer no-haggle prices, opting for you to sign up for an email to get the best price. Also forcing u ot your selling dealer for the VSP.
Nothing to do with Toyota squeezing max profit.
Toyota charges a specific price for the extended warranty to the selling dealer.
Anything over that price is gravy for the dealership... and it is 100% gravy. It costs them nothing once that warranty is out the door.

Most likely, Toyota was catching a lot of flack from the lower volume dealers who could not afford to cut their warranty prices because people being people have no trouble telling the finance guy "Why should I spend $2000 when I can get it from this dealership in Louisiana for $1200?"
Being unable to sell the warranty at a discount, they were losing out on ALL of the profit, which forced them to run higher prices out the door.

Larger dealerships, such as Crown Toyota, have a "no haggle" sticker price that is about 5-7% below sticker price. Customers think they are getting a good deal, and the dealership can get away with it because a good portion of customers will buy the extended warranty at the inflated price, so that 5-7% discount ends up being a 2% discount by the time they are done.

We (the collective "we", not Rav4World members specifically) have shot ourselves in the foot by not keeping our mouths shut.
Simply decline the extended warranty and continue with the sale negotiations with the warranty off the table.
A lot of people try to use the online warranty price as a negotiating tool... and sometimes it works (worked?), but ultimately it generated pissed-off phone calls and emails to Toyota from dealer finance agents about dealerships 1000 miles away stealing their profits.

Unfortunately, I see the next step being the shutdown of online parts and accessory sales. I HOPE that never happens, but we move a step closer to it every time someone mentions to a salesman that they don't need to pay $250 for body side moldings because they can get them online for $120.
 

·
Registered
Joined
·
10 Posts
U should be able to get close to Toby's pricing for a VSP if you're persistent. Good luck.
the problem is i do not believe the local dealers in some states are even allowed to lower that $2000 warranty price. this is where the real issue is.
So there is no negotiating when it comes to the extended warranties when you are face to face with these dealers.
 

·
Registered
Joined
·
376 Posts
Nothing to do with Toyota squeezing max profit.
Toyota charges a specific price for the extended warranty to the selling dealer.
Anything over that price is gravy for the dealership... and it is 100% gravy. It costs them nothing once that warranty is out the door.

Most likely, Toyota was catching a lot of flack from the lower volume dealers who could not afford to cut their warranty prices because people being people have no trouble telling the finance guy "Why should I spend $2000 when I can get it from this dealership in Louisiana for $1200?"
Being unable to sell the warranty at a discount, they were losing out on ALL of the profit, which forced them to run higher prices out the door.

Larger dealerships, such as Crown Toyota, have a "no haggle" sticker price that is about 5-7% below sticker price. Customers think they are getting a good deal, and the dealership can get away with it because a good portion of customers will buy the extended warranty at the inflated price, so that 5-7% discount ends up being a 2% discount by the time they are done.

We (the collective "we", not Rav4World members specifically) have shot ourselves in the foot by not keeping our mouths shut.
Simply decline the extended warranty and continue with the sale negotiations with the warranty off the table.
A lot of people try to use the online warranty price as a negotiating tool... and sometimes it works (worked?), but ultimately it generated pissed-off phone calls and emails to Toyota from dealer finance agents about dealerships 1000 miles away stealing their profits.

Unfortunately, I see the next step being the shutdown of online parts and accessory sales. I HOPE that never happens, but we move a step closer to it every time someone mentions to a salesman that they don't need to pay $250 for body side moldings because they can get them online for $120.
Ok, perhaps Toyota (Big T) is not profiting, but each dealer is likely counting on mark up on sales of all extended warranty items, and at the end of the month it's a real hit if Toby take's it away. In by experience the finance guy is at the end of the chain to try to make add on $$. (The paint protection/seat protection person is separate, just before the finance guy 'cause that's non-Toyota coverage).

So the distribution of profits to the finance guy's boss and others is at stake. (Boss: wtf haven't u made me any money; your a$$ is on the line... Finance guy: 'Cause this Toby is stealin' my deals...heard it from several customers and they ain't buying $hit; gotta do something...why don't u ring up TFS?)

Best I can say is that this is an evolving situation with internet sales; dealers made their money wearing out buyers, and now it's all said and done over the Net with many sales. Some dealerships won't be able to handle it, others will.
But I stand by the negotiation potential; U offer 50-100 more than Toby's numbers and be prepared to 'think' about it if they argue...(Customer : "I'll sleep on it and be back tomorrow...) But if u don't want to haggle, pay the extra $500 or so..it's ur cash}
 

·
Registered
Joined
·
10 Posts
But I stand by the negotiation potential; U offer 50-100 more than Toby's numbers and be prepared to 'think' about it if they argue...(Customer : "I'll sleep on it and be back tomorrow...) But if u don't want to haggle, pay the extra $500 or so..it's ur cash}
As I said in my last post.. The Dealers here are not even allowed to lower or negotiate on the extended warranty price, so there is no negotiating on this.
 

·
Registered
Joined
·
7,895 Posts
Since Toyota's vaunted customer "service" is becoming even more limited, if one wants an extended warranty (even better by regulation than Toyota's VSA) then one can get a Hyundai instead. I had an Elantra which was a very good car and Hyundai stood by its warranty, at least in Southern California.. Only reason I didn't buy a Hyundai where I am now was because the nearest full service dealership was a 3 hour drive distant. That has changed now - is closer. Compare factory warranties: https://www.hyundaiusa.com/assurance/america-best-warranty.aspx
 

·
Registered
Joined
·
933 Posts
My local dealer said they cannot negotiate the warranty price even if they wanted to.. and of course I asked Toby how he could sell so much cheaper and he confirmed what my local dealer was telling me.
Dealer or Toby didn't say why? Just because someone says something doesn't make it so.

Makes no sense, however, if there is some kind of regulatory statue in your state that you could quote that prohibits negotiations of these warranty's that would be different . Can't imagine that being the case but anything is possible I guess.
 

·
Registered
Joined
·
10 Posts
Dealer or Toby didn't say why? Just because someone says something doesn't make it so.

Makes no sense, however, if there is some kind of regulatory statue in your state that you could quote that prohibits negotiations of these warranty's that would be different . Can't imagine that being the case but anything is possible I guess.
yes it could be a state regulatory thing.. but the bottom line is there is no negotiating warranty price for me at a local Toyota dealer here.. which really sucks
 

·
Registered
Joined
·
376 Posts
As I said in my last post.. The Dealers here are not even allowed to lower or negotiate on the extended warranty price, so there is no negotiating on this.
Disagree:
1...Toby is only limited to internet/phone VSP sales starting mid November. If u were at his dealership regardless of where your car was purchased he'd be able to sell u a discounted VSP.
2.. Dealers will tell u anything. Finance guy is at the end of the sales chain and unless you're willing to walk from the sale at this point (it's unlikely) customer will give in.

Or do u have any hint of Toyota Policy that sez retail price only for VSP??

Found a couple dealers with stated prices on Toyota VSP's. Don't know if current or if available over net.
http://www.toyotaofseattle.com/vehicle-service-agreement-certified

http://www.bobbyrahaltoyota.com/toyota-ceritifed-platinum-vsa.htm
 

·
Registered
Joined
·
10 Posts
i emailed Toby asking him if he had any update.. and never got a reply.. so he may be out of the "out of state" warranty business now :(
 

·
Registered
Joined
·
71 Posts
My grandfather always used to say "with warranties, you are betting it will break, they are betting it won't" I never buy warranties. I used to and It was always a waste of money.
 

·
Registered
Joined
·
376 Posts
i emailed Toby asking him if he had any update.. and never got a reply.. so he may be out of the "out of state" warranty business now :(
U may be correct; I emailed him a few times after i bought my VSP's (Taco and Rav) in 2014, and he said he was happily still selling them has he has for probably 10 years or more.. He did say he was surprised to still be allowed to continue after Toyota stopped the practice (Toby's Lexus)
My last emails went unanswered and he's probably toeing the party line.
---
But Toby's prices are still 'valid' for comparison.
Even though the VSP sale pressure is at the end, in finance process, it might pay to leverage the entire sale on this negotiation if the buyer is serious.
So if you've made ur deal for the price of the vehicle, tell the Finance Guy that 'this' is the number needed for the VSP if the sale is to be completed. (Use Toby's latest numbers plus $50.00 or $100.00 which will give them a sure profit.) Balk a bit, and don't buy the 'we're not making money' bs.
Any adventurous buyers out there?????
 

·
Registered
Joined
·
48 Posts
Anybody have luck in the Houston Area? I can't hardly get a dealer to return my call. Only Sterling McCall thus far has even responded, and they wanted $1900 for 6yr/100K on my 2013 RAV4 XLE (currently at 32K)
 
341 - 360 of 395 Posts
Status
Not open for further replies.
About this Discussion
394 Replies
149 Participants
Bestdeal1
Toyota RAV4 Forums
Rav 4 World is the internet's largest Toyota Rav4 SUV and EV online forum community. Discuss towing, modifications, and more.
Full Forum Listing
Top