I Have Owned a Repair Shop for 45 Years, Out of All My Customers I Can't Think of One Confirmed Example of Somebody Coming Out Ahead for Buying a Warranty

A new owner of a 2025 Rav4 XLE is offered the same warranty option that everyone who buys a new Toyota is offered, and is unsure whether to accept it or not, despite the prevailing consensus to skip it because it is considered unnecessary.

For example, in the forum discussion, a thread post by Don in Austin states:

"I have owned a repair shop for 45 years, out of all my customers I can't think of one confirmed example of somebody coming out ahead for buying a warranty. Shop policy is to not accept them -- no exceptions! Shop tech can test and replace an alternator in an hour or so. Years ago I learned that management can easily spend several hours with no pay trying to get a warranty company to pay for something. When not successful or only partially successful the customer holds it against the shop. Life is too short......"

Don makes a very good point: In most cases, you should not expect to come out ahead by recouping the costs of an extended warranty.

Another good point is his revelation that many shops will not honor an extended warranty for the same reason car owners may want to consider buying one―peace of mind.

But wherein lies the peace of mind?

As it turns out, it depends on whom you ask.

According to the OP on a recent Reddit r/Toyota forum:

"When I purchased my 2025 RAV4 XLE from the dealership, the Finance Person asked me if I wanted to purchase the Toyota 10-year Service agreement for an additional $2680 to the purchase price.

The service agreement covers the same things that are included in the 3-year 36K mile Factory warranty, which is everything except brake pads, rotors, tires, and other normal wear and tear parts. I normally don't choose to do this, but since newer vehicles are more complex than older vehicles, I thought maybe it would be a good idea. Thoughts?"

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Thread Comments Vary Widely, Confusing the Best Answer/Advice

Understandably, the question of whether to opt for the extended warranty option is contentious, as reflected in the forum thread.

Searching through earlier forums about the same topic reveals similar discord amongst thread posts.

Common sense tells you that Toyota would not be offering it unless it was more to their benefit than yours. You can be sure that Toyota sales analysts have done the math and projections.

The Best Argument Against Buying the Extended Warranty

The most substantial evidence against not buying the extended warranty was pointed out a few months ago in a separate r/rav4club forum where one new owner is considering canceling the extended warranty he bought after looking deeper into the "Toyota 2025 Rav4 Warranty and Maintenance Guide":

I reviewed the Toyota 2025 Rav4 Warranty and Maintenance Guide. I figured today, if you buy the new vehicle. You will get (straight from the factory): Limited Warranty:

1. Basic Coverage: 36 months / 36,000 miles.
2. Powertrain Coverage: 60 months / 60,000 miles.
3. Restraint Systems: 60 months / 60,000 miles.
4. Corrosion Perforation: 60 months / Unlimited miles.

I didn't review it or know about it, so I purchased Extended Warranty. So, today, I looked at the agreement.

It stated in the contract:

1. Term months: 84.
2. Term miles: 75,000.
3. Purchase date: 2025.
4. Expiration date: 2032.
5. Current mileage: 0.
6. Expiration mileage: 75,000.

Therefore, I'm not paying for 7 years of warranty. What I'm Actually Paying For:

1. Extra Coverage Period: Only 2 additional years (2030-2032).
2. Extra Mileage Coverage: Only 15,000 miles (60,000 → 75,003 miles)

So yes, I paid $1,600 for just 2 extra years OR 15,000 extra miles, which may not be worth it considering.

Please be careful. I'm planning to cancel it soon. ―Timely_Ad_697 r/rav4club (4 mo. ago) RE: "Be Careful with the Extended Warranty" forum

In other words, many car shoppers find it a rude shock that extended warranties often run concurrently with the original warranty, so if your original covers 3 years and you buy a 7-year extension, then you are only covered for 4 years or whatever the warranty terms specify.

However, let's consider this from a different perspective.

Rather than focus on the Toyota dealership making more money by selling you the option, the possibility is that it can also save you money (and more) down the road.

The Best Argument for Buying the Extended Warranty

Whether you recognize the extended Vehicle Service Agreement under names like "Toyota Care, Toyota Extra Care, Platinum VSA," the important thing to note is that Toyota actually offers multiple maintenance plans that differ in what is covered, at what cost, and whether your Toyota is new or slightly used.

If you visit Toyota's maintenance plans webpage, the warning about extended warranties running concurrently is accurate.

However, other Rav4 owners are pro over extended warranties, as evidenced in past separate threads on the topic:

If you intend to hold onto the vehicle… the extended warranty is peace of mind." — theverge.com+15reddit.com+15reddit.com+15

I got the 10 yr/125 k mile Platinum VSA… for less than $2 k, saving over 50%." — same user about Midwest Toyota pricing ―reddit.com+7reddit.com+7reddit.com+7

Platinum – 10 years 100 k for $1,400ish seems like the going rate … $140 per year and 1 ¢ per mile seems like a pretty good value." ―reddit.com+1reddit.com+1

Related article: Secret Warranties That Can Get Your Car Fixed for Free

The Short Final Answer Concerning Extended Warranties

Despite the sound reasons (and there are many) against buying an extended warranty, Rav4 owner views can be summarized thusly:

Cons

1. Most Rav4s are reliable, and few owners will recoup the full value of the warranty cost.
2. Extended warranties can be overpriced, of which dealers profit heavily.
3. Only helpful if you actually need specific repairs.
4. If you cancel beyond a specific timeline, refunds are pro-rated at best.

Pros

1. You can shop around dealers for better-extended warranty prices.
2. Fixed cost and inflation protection―an important point with rising service and car part prices.
3. Covers hybrid/electronic systems beyond the factory warranty.
4. Peace of mind for expensive major repairs

Why I Chose the Extended Warranty on Our Rav4

Like many pro-warranty thread posts, I chose the "added peace of mind" benefit of an extended warranty.

However, another issue is this: I repair cars for fun, to save money, and for my family. My skills do not include the EV electronics of a hybrid vehicle. The gas and mechanics systems I am fine with but I know my limitations.

And finally, there is the "What would my spouse do if I am not around to help her when something does go wrong?" with what she believes will be her last car?! In other words, some peace of mind beyond the grave.

When you become a retiree, your impending mortality changes your outlook on many things.

But I digress.

The Bottom Line for a 2025 RAV4 LE

1. If you plan to keep it for 8+ years, drive a lot, and can secure a $1,400–$1,800 quote, the 10-year/125,000-mile Platinum VSA is a smart hedge—especially considering rising parts and labor costs, as well as potential hybrid and electrical issues.
2. However, if you're leaning toward self-insurance (saving and paying for repairs as needed), and the dealer's quote is high ($ 3,000+), it's probably not worth it—Rav4s are very reliable.

Related article: About $4,500 Dollars for a 2024 Toyota RAV4 Extended Warranty, Yes or No?

Tell Us What You Think About Extended Warranties on Cars: Have you purchased one and found it beneficial, or did it turn out to be a waste of money and better spent elsewhere on your car?

Let us know about it in the comments section 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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