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

A 2024 Toyota RAV4 owner is wondering if an extended warranty that costs about $4.500 is necessary if he wants to keep his new RAV4 for 10 years.

“I got myself a 2024 Toyota RAV4 XLE. I drive about 6,000 miles per year and plan to keep it for 10 years. I am offered an extended warranty of 4 additional years for $3,300 (plus taxes and financing at 6.49%). Toyota dealer tells me that this includes maintenance for 4 years. Is it worth it? » asks Richard Morissette in a recent letter to RPMWeb.

I personally think it's not necessary. Fro example, at 6,000 miles per year, your new 2024 Toyota RAV4 will only have 60,000 miles in ten years of driving. An oil change per year coosts about $70-$100 dollars. You can keep the balance just in case. I think these sometimes-useless warranties have become the biggest profit center for car dealerships. But let's see what the RPMWeb's author says.

Luc-Olivier Chamberland explains that as you know, excluding very rare exceptions, we are not really in favor of the adoption of extended warranties. In the case of the Toyota RAV4, we could consider taking it in the case of hybrid or plug-in hybrid versions, but certainly not for models that come with the 2.5-liter 4-cylinder like your XLE model.

This engine experienced some problems during its marketing where it could crack, but Toyota quickly regained control of the situation. As a result, fewer than 8,300 vehicles were reached, and this is spread across multiple models in the Toyota and Lexus lineup. This story is technically in the past. Since then, there is nothing serious to monitor regarding the reliability of the RAV4.

When we talk about extended warranty, it is always about risk management capacity. Do you really want to have peace of mind? For some for whom the car model's reputation may be problematic, it is possible, but certainly not in the case of the RAV4 (although in 2023 the RAV4 got thumbs down from CR). But the RAV4 SUV, with its gasoline engine, has demonstrated very high reliability. In addition, the electrical components are simple, therefore not inclined to price. The fact that the RAV4 is not a very innovative product in terms of technology and innovation gives it reliability well above the average for the segment and, even, the industry.

Now regarding the maintenance costs included for a period of 4 years, it is always very important to read the fine print in the contract. Familiarize yourself with these 5 things you need to know about the 2024 Toyota RAV4.

Often, in these maintenance programs, there are exclusions on points that one might think were included. It is important to validate this aspect. It should be noted that maintenance at Toyota remains one of the most affordable among general brands. This is a fact to be taken into consideration.

The $3,300 plus taxes actually becomes $3,794.18 that you will finance over 5 years at a rate of 6.49%. So you have to add $659 in interest; the extended warranty will actually cost you almost $4,455.

Considering the fact that it is very unlikely that your 2024 RAV4 will cost you such an amount in maintenance over a period of 4 additional years, the RPMWeb's editor recommends that you avoid taking out this protection. In addition, during coverage, your vehicle will only reach about 60,000 miles as I wrote above, which is still low for a product like the RAV4. What do you think readers?

Armen Hareyan is the founder and the Editor in Chief of Torque News. He founded TorqueNews.com in 2010, which since then has been publishing expert news and analysis about the automotive industry. He can be reached at Torque News Twitter, Facebook, Linkedin, and Youtube. He has more than a decade of expertise in the automotive industry with a special interest in Tesla and electric vehicles.