Purchase extended warranty?

We just bought a new Toyota Rav4. To keep it simple, we bought the base model which is 2WD. The car comes with 3 yr/36000 mile bumper to bumper with 5 yr / 60,000 mile drive train. We’ll put at least 15K per year on the car. Do we pay the $1350 for the extended warranty (6 year/ 100K)?

I wouldn’t.

If the extended warranty takes over after the 5 yr/60,000 manufacturers warranty, and with the number of miles you put on the vehicle, you’ll reach the mileage limit of the extended warranty in three years. And only have the extended warranty coverage for one year by time.


It would be a waste of money. Put the $1,350 in the bank instead, and earn interest on it. If you need it for an unexpected repair, use it. Otherwise it’s yours to keep. If you give it to the dealer, he will put it in HIS bank. Toyotas routinely last MUCH longer than 100K miles, so I wouldn’t worry if I were you.

Not on a Toyota. That car will far outlast any warranty; you shouldn’t have any problems with it until well after 100k miles. I say save the money for maintenance costs.

Basically the warranty company pockets most if not all of the $1350. Basically the odds are in favor of the “house”(warranty company) they won’t spend it. Bank the money and hopefully get it all/most back + interest.

Warranties are negotiable by the way as they are marked up by the dealer by a good amount too.

Agree. I bought a new Toyota this year, and told the salesman, who tried to sell me the extended warranty, that the reason I bought the car was its reputation for not needing early repairs! Extended warranties are a waste of money in general. The only case for buying one would be if your car had some experimental technology in it with unknown reliability. The RAV 4 is about as bullet-proof and proven a vehicle you can buy, so put the $1350 in the bank and let it build up interest for possible future repairs.

Personally, I don’t normally buy extended warrantees for anything, they are usually not a very good deal. If you don’t, you need to be prepared to pay potential unexpected expenses. There are exceptions, I do buy warrantees for my young daughter’s hearing aids (they cost about $4000 and are very easy to lose/damage).


Well any car can have major expensive repairs.

The profit to the salesman and company is usually over 50%. So for every $1,000 you spend the insurance company has less than $500 to pay for repairs or they will loose money, something insurance companies do not do. Some peop;le will get nothing back and some will get a lot more than they pay.  Most will get far less. In addition you need to keep in mind that the insurer has worded it to eliminate as many expensive things as they can.

Remember that the seller is out to make money and they get to write the rules and set the price.  They are not going to sell them at a loss so one way or another they are going to have you pay more than they will pay out.  

Would you gamble with a car dealer who gets to set all the rules and knows all the odds?   

Your decision has to do with the value of the piece of mind it gives you. If that is worth the $500 then buy it. Don't expect it to cover everything however, most are written to keep cost down and exempt what they know will cost them money. 

Good Luck

NO!!! I have a 2007, 2005 and had a 97 RAV and every time when purchased I’ve been asked by the salesperson about the extended warranty and I usually reply that I am buying a Toyota! Never needed to do anything with them except routine maintenance and the usual brakes and exhaust systems, and I don’t expect to. Save your money for a second set of good tires.