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Canadian extended warranty worth the money?

10K views 33 replies 16 participants last post by  agray56 
#1 ·
Have any canucks purchased an extended warranty for their new Rav? If so what did you pay? I haven’t taken delivery of my ride as I’m still waiting for it to be built and have until then to decide what to do..
 
#2 ·
I originally added the 84 month/120,000km ECP plan to my order of a 2020 Rav4H Limited, but had it removed a few days later. Dealership wanted $2809+tax for it. I decided that if anything significant was going to go wrong it will likely happen under the manufacturers warranty, and anything beyond that I am comfortable paying out of pocket for.
 
#3 ·
What you are proposing is essentially self insuring. I have done this on almost all of the cars I've had save the last and over a lifetime I am way ahead. My last was also a Toyota hybrid. The dealer insisted I had to have an extended warranty (lifetime powertrain). When the portion of the transmission called the pLock failed they replaced it for free after I reminded them that it was part of the transmission and thus of the drivetrain. So on that one I made out because I had insisted at the time of purchase I wouldn't buy it and they credited it to me anyway. This is dealer dependent. And of course you are talking Canada which makes it also different. In the US, you can purchase the extended warranty well after you buy the car, as long as it has been serviced correctly and is still under factory warranty. So check and see if that applies. And in the US there are dealers who sell the warranty at a discount. Again, no Canada experience. Hope someone can help.
 
#5 ·
I am in the same position. I ordered a 2019 XSE hybrid in June and I'm still waiting. At the time, they quoted me the same amount, $2809 for the 84 months/120K. I was able to negotiate the cost down to $2000.00. For that price, I told them to include it on the contract. I know I will be getting a 2020 so I hope they will still honor the same price I negotiated for the car & extended warranty.
 
#6 ·
Ordered back in July - still waiting.
Added the 72/200K - the wife and I do a lot of driving.
Salesman bumped it down to $3500 - not that great but considering it is Platinum apparently I get a bunch of free oil changes.
I might end up cancelling considering the fuss I had with my Tacoma over the extended warranty.
 
#17 ·
You should never buy the extended warranty at purchase. In Canada they throw in 3-4 free oil changes to make the sale.
You can buy the extended warranty up to the 36 Months or 60000kms
You can also buy it from any dealer in North America I got mine for my last Toyota at 35.6 months and for about half what they wanted to charge me on initial purchase date..

Just think of it this way if you total the car or sell it you wont recover that cost. And aside from the 3-4 free oil changes theirs not much benefit.
Would you purchase a second insurance policy on your home if you already had an active policy that covered everything?
 
#18 ·
You should never buy the extended warranty at purchase. In Canada they throw in 3-4 free oil changes to make the sale.
You can buy the extended warranty up to the 36 Months or 60000kms
You can also buy it from any dealer in North America I got mine for my last Toyota at 35.6 months and for about half what they wanted to charge me on initial purchase date..

Just think of it this way if you total the car or sell it you wont recover that cost. And aside from the 3-4 free oil changes theirs not much benefit.
Would you purchase a second insurance policy on your home if you already had an active policy that covered everything?
Good point. Did you buy at a dealership near you in Canada?
 
#20 ·
Years ago, I used to broker the sale of cars, and I can tell you that extended warranties are extremely high mark up items.

The regular advertised prices for extended warranties are generally 4-5 times what is expected to be the payout for those warranties. When I sold a car to someone, if the buyer wanted an extended warranty, I tried to talk him/ her out of it. In good conscience, I could not bring myself to sell them an extended warranty. If the customer insisted on buying the extended warranty, I would sell it to him/her at about 25% of my cost, and I still made a small profit on the sale.

Car dealers can sell customers a car at a price that would basically be a no-profit deal, but, if those dealers can sell the customer an extended warranty, a tire and wheel protection plan, a pre-paid maintenance plan, etc., they can turn that deal into one of their best profit-making deals.

Yes, there is a chance that you might make claims on an extended warranty that exceed the cost of the warranty, but that chance is very small. If, instead of buying an extended warranty, you put the monthly cost of the extended warranty into savings earmarked for car repairs, over the course of ownership of your next 5 cars, you are virtually guaranteed to be thousands of dollars ahead.
 
#22 ·
Suggest contacting Toyota Canada for further information. Extended warranties can be had for U.S. buyers at huge discounts, possibly the same are available in Canada, but if buying one direct from Toyota Canada they will charge MSRP, but you might be able to bargain with a Toyota dealer for a better deal.
 
#23 ·
I had contacted The US Toyota and they told me Canadians no longer can buy US warranty for Canadian cars since 2018. So I’ll contact various Toyota dealerships near me to see if any will give me a good price. I think I have 3 yrs to purchase it.
 
#25 ·
Given the cost of electronics and the amount of tech in these Rav4s, I'm thinking of buying the extended warranty. I have to check into what exactly is covered however before making the move on our 2020 XLE. Like some others here, I've never purchased an extended warranty before, but then my 1999 4Runner didn't set me back any major costs over 20 years apart from normal wear costs.
 
#27 ·
Not to thread jack but facing a similar issue myself. Are there any dealerships which are known for selling Toyota warranties at a discount? I’m coming from the Ford world and Flood Ford is known for selling extended warranties at a deep discount. And can you get the extended warranty at any point till 3yrs/36k miles like mentioned above? Also can the warranty be bought from anywhere? Would be on a ‘22 RAV4 H.
 
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