Extended warranty worth it on Camry Hybrid - Page 3 - GreenHybrid

raven77 · #21 (**permalink**) 03-19-2008, 05:19 PM

Quote:

Originally Posted by mikecism

$1700? Ouch....shop on the Internet, my friend.

Starting 4/1/2008, Honda is forbidding delaers from selling extended warranties over the Internet, due to price pressure (and to pad dealers' profits). Shame on Honda for being anti-competitive. Let's hope Toyota doesn't follow suit.

If you cancel within 30 days, you can get a full refund. After that you can get a prorated refund on your Extended Warranty. See the agreement for details.

WOW are you sure about that? I am at work now, I dont have the paperwork with me. I wonder if I need a good reason to cancel? I plan on just telling them I can get it $1000 Cheaper, I would be nuts NOT to cancel! Thanks for the info!

dredone · #22 (**permalink**) 03-19-2008, 05:57 PM

As a side note to the Extended Warranty, my agreement says the Service provider will "Buy Back" (i.e. pay me) the original price paid if the coverage or benefits were not used during the term (7 years).

I know the value of those $ will be a lot less in 7 years but I thought this was an interesting tidbit.?? ...or 1,000 miles which in my case may come in about 6 years.

It it common?

raven77 · #23 (**permalink**) 03-19-2008, 06:03 PM

Quote:

Originally Posted by dredone

I know the value of those $ will be a lot less in 7 years but I thought this was an interesting tidbit.?? ...or 1,000 miles which in my case may come in about 6 years

WOW you only put 1,000 miles on your car in 6 years!

I never heard of that, I need to do some "fine print" reading when I get home and see if I can sell mine back now! LOL
I got ripped off paying what I did and I will be sure to let them know.

dredone · #24 (**permalink**) 03-19-2008, 06:19 PM

Quote:

Originally Posted by raven77

WOW you only put 1,000 miles on your car in 6 years!

I never heard of that, I need to do some "fine print" reading when I get home and see if I can sell mine back now! LOL
I got ripped off paying what I did and I will be sure to let them know.

ok, ok, ok...100,000 miles.

Anyway, I did read the contract and sure enough you can cancel the agreement within 30 days. You either need to return the agreement to the dealer, or call Toyota Customer service or send signed letter to "the administrator".

I am going to do it. I paid too much and after reading the fine print of the contract it is WAY to complex.

raven77 · #25 (**permalink**) 03-19-2008, 06:28 PM

Quote:

Originally Posted by dredone

ok, ok, ok...100,000 miles.

Anyway, I did read the contract and sure enough you can cancel the agreement within 30 days. You either need to return the agreement to the dealer, or call Toyota Customer service or send signed letter to "the administrator".

I am going to do it. I paid too much and after reading the fine print of the contract it is WAY to complex.

COOL You and me both! I am calling to cancel mine tomorrow! I also bought some other kind of "warranty" for $400 they said if I wreck the car this "warranty" will pay for whatever the insurance won't. It sounded like a good idea at the time, but probably another rip off! Anyone know anything about that one??
Thanks again for all your input!

skywagon · #26 (**permalink**) 03-19-2008, 06:48 PM

Quote:

Originally Posted by raven77

COOL You and me both! I am calling to cancel mine tomorrow! I also bought some other kind of "warranty" for $400 they said if I wreck the car this "warranty" will pay for whatever the insurance won't. It sounded like a good idea at the time, but probably another rip off! Anyone know anything about that one??
Thanks again for all your input!

Yes, its called GAP insurance. you only need it if its financed, or leased, if you own it don't buy it.

raven77 · #27 (**permalink**) 03-19-2008, 06:56 PM

Quote:

Originally Posted by skywagon

Yes, its called GAP insurance. you only need it if its financed, or leased, if you own it don't buy it.

Yea thats it!!! Well I didn't have an extra $32,000 laying around, so I had to finance mine! LOL
So did I get ripped off on my GAP insurance too, or is that worth it?

mikecism · #28 (**permalink**) 03-19-2008, 09:57 PM

Quote:

Originally Posted by raven77

COOL You and me both! I am calling to cancel mine tomorrow! I also bought some other kind of "warranty" for $400 they said if I wreck the car this "warranty" will pay for whatever the insurance won't. It sounded like a good idea at the time, but probably another rip off! Anyone know anything about that one??
Thanks again for all your input!

You're welcome...if I'm saving a few folks 700-800 bones, all I ask is that you hook a brother up with a big bag of plain M&Ms

haroldo · #29 (**permalink**) 03-20-2008, 03:40 AM

Quote:

Originally Posted by raven77

Yea thats it!!! Well I didn't have an extra $32,000 laying around, so I had to finance mine! LOL
So did I get ripped off on my GAP insurance too, or is that worth it?

I don't think you are getting ripped off.
You have a $32,000 car but didn't pay $32,000 to get it.
Someone else did and they (presumably) want to make sure that they are fully protected on their investment.

Gap Insurance

Quote:

Loan/Lease Payoff
Loan/Lease Payoff coverage, also known as GAP coverage or GAP insurance,[18][19] was established in the early 1980's to provide protection to consumers based upon buying and market trends.

Due to the sharp decline in value immediately following purchase, there is generally a period in which the amount owed on the car loan exceeds the value of the vehicle, which is called "upside-down" or negative equity. Thus, if the vehicle is damaged beyond economical repair at this point, the owner will still owe potentially thousands of dollars on the loan. The escalating price of cars, longer-term auto loans, and the increasing popularity of leasing gave birth to GAP protection. GAP waivers provide protection for consumers when a "gap" exists between the actual value of their vehicle and the amount of money owed to the bank or leasing company. In many instances, this insurance will also pay the deductible on the primary insurance policy. These policies are often offered at the auto dealership as a comparatively low cost add on that can be put into the car loan which provides coverage for the duration of the loan.

Consumers should be aware that a few states, including New York, require lenders of leased cars to include GAP insurance within the cost of the lease itself. This means that the monthly price quoted by the dealer must include GAP insurance, whether it is delineated or not. Nevertheless, unscrupulous dealers sometimes prey on unsuspecting individuals by offering them GAP insurance at an additional price, on top of the monthly payment, without mentioning the State's requirements.

In addition, some vendors and insurance companies offer what is called "Total Loss Coverage." This is similar to ordinary GAP insurance but differs in that instead of paying off the negative equity on a vehicle that is a total loss, the policy provides a certain amount, usually up to $5000, toward the purchase or lease of a new vehicle. Thus, to some extent the distinction makes no difference, i.e., in either case the owner receives a certain sum of money. However, in choosing which type of policy to purchase, the owner should consider whether, in case of a total loss, it is more advantageous for him or her to have the policy pay off the negative equity or provide a down payment on a new vehicle.

For example, assuming a total loss of a vehicle valued at $15,000, but on which the owner owes $20,000, is the "gap" of $5000. If the owner has traditional GAP coverage, the "gap" will be wiped out and he or she may purchase or lease another vehicle or choose not to. If the owner has "Total Loss Coverage," he or she will have to personally cover the "gap" of $5000, and then receive $5000 toward the purchase or lease of a new vehicle, thereby either reducing monthly payments, in the case of financing or leasing, or the total purchase price in the case of outright purchasing. So the decision on which type of policy to purchase will, in most instances, be informed by whether the owner can pay off the negative equity in case of a total loss and/or whether he or she will definitively purchase a replacement vehicle.

raven77 · #30 (**permalink**) 03-20-2008, 09:37 AM

Quote:

Originally Posted by dredone

ok, ok, ok...100,000 miles.

Anyway, I did read the contract and sure enough you can cancel the agreement within 30 days. You either need to return the agreement to the dealer, or call Toyota Customer service or send signed letter to "the administrator".

I am going to do it. I paid too much and after reading the fine print of the contract it is WAY to complex.

I just called to cancel mine and they said I wont get any money back and it wont lower my monthly payment. They will just put it back on the principle and if I want to buy another warranty from another dealer cheaper...I have to pay out of pocket.