I am a new Rav4 Hybrid owner, and after the negotiations, I agreed to an extended warranty, which is something I never do. Ever. Until now. Even 9,642 miles later, I still question why I did it. Fortunately, there is some comfort in knowing that I am not alone, as recently revealed in a Reddit r/Rav4 forum thread following the question, "So I'm Getting A Brand New RAV4 Hybrid Soon, And I'm Wondering If The Extended Warranty Is Worth It?"
The Extended Warranty Kneejerk Response
Ruminating over my extended warranty misgivings, I finally concluded that I am guilty of wholesale extended warranty rejection decision making. A combination of too much reliance on internet anti-extended warranty views and the semi-justified paranoia that if any business offers something on top of a sale―it is more for them than it is for you.
To be fair, however, I also have a tendency to repair (or at least try to repair) anything that breaks in our home. I also have the tendency to be the person who did the breaking.
My point is that sometimes, we are too quick to reject extended warranties without accurate justification.
Justified Extended Warranty Considerations
This, "too quick to reject," came to my attention after reading a social media post asking for advice on whether it is worth paying more for the extended warranty offered after the selling price negotiations are finalized.
If you follow the thread, it is nearly a split decision amongst the respondents.
However, one post response offered a particularly intelligent view of their answer to the question:
There are 3 points worth considering:
Worth considering, in my opinion, because…well…buying a Rav4 Hybrid was our situation as well:
Firstly, my spouse and I hang onto our vehicles on average for at least 8 years, well past their warranty protection. After that, we generally pass the vehicle onto our children if the time and economics are right where a used (well cared for and maintained) family car is a better deal for them, and it encourages us to move on and buy a new vehicle.
Secondly, historically, I have done all the maintenance and repairs on the family car. I do this to save on labor and parts costs and because I enjoy it. However, when it comes to the electronic side of car repairs, the move to hybrid is beyond my skill set and experience, and I realize I will have to bow out and let someone else have the repair pleasure.
Thirdly, when we decided on and completed the sales negotiation for our Rav4 Hybrid last year, we were approached near the goal post with the extended warranty option. D'Oh!
In short, despite my aversion to any extended warranty offers, a quick "yes" to the extended warranty option was reached because I knew that if we do not keep this Rav4 forever and will likely pass it on to a family member, we will want it to be in the best running condition possible for them. Frankly, I am unsure if I am young enough to upgrade my skill set to include the complexity of today's electronic vehicles.
You Should Beat The Toyota Dealership Salesman To Bringing Up The Extended Warranty
The lesson I learned from this thread was that I should have brought up the extended warranty as part of the sales negotiation. As pointed out in other thread responses, doing so is a missed opportunity to get an even better deal. When it comes to cars, everything is negotiable, but you have to do it before the deal is done. That is why the salesman always brings it up AFTER an agreement is reached.
In Conclusion: While for the most part if you are buying a Toyota Rav4 model and have no expectations of hanging onto it beyond its warranty or giving it away to a family member, then you are likely better off not spending more for an extended warranty.
However, if your situation is more like the recommendation of what one comment showed, then it is not such a bad deal for that added insurance and peace of mind.
What are your thoughts and experiences concerning extended warranties on cars? Was I mistaken about my misgivings and resolution toward having paid extra for an extended warranty? Feel free to share your stories in the comments below.
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Timothy Boyer is an automotive reporter based in Cincinnati who currently researches and works on restoring older vehicles with engine modifications for improved performance. He also reports on modern cars (including EVs) with a focus on DIY mechanics, buying and using tools, and other related topical automotive repair news. Follow Tim on Twitter at @TimBoyerWrites as well as on Facebook and his automotive blog "Zen and the Art of DIY Car Repair" for useful daily news and topics related to new and used cars and trucks.
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