When you go buy your Toyota from a dealership, you are inevitably going to be offered the chance to buy an extended care plan. The plan varies by model, but the pitch is quite often similar: you are making an XX thousand dollar investment and what's an extra thousand dollars to protect that investment. In fact, some of the salespeople will attempt to crunch some numbers in front of you to convince you that you will save money when buying the plan on regular checks. If you are smart, you will have declined the plan. If you already bought it, you can always request a refund. Here is why you should do so.
Most of the money you pay for the plan goes to the salespeople and the dealership. It costs the dealership between a fourth and a third of the price of the plan to acquire it from Toyota, then they triple or quadruple that price and sell it back to you. The services you get are likely very minimal over the years.
For tips on saving on auto insurance and much more, check out our home page!
Comments