A California woman has filed a lawsuit against Toyota Motor Corporation and Toyota Motor Credit Corp., alleging she was misled into purchasing a supposedly cost-saving maintenance plan for her new car. The lawsuit, filed in the Southern District of California, accuses the automaker and its financing arm of misrepresenting the value of the ToyotaCare Plus plan and potentially misleading other customers.
The plaintiff, Teresa Solis, claims she was persuaded by a salesperson at Santa Margarita Toyota in Rancho Santa Margarita to purchase the ToyotaCare Plus plan when she bought a certified pre-owned 2019 RAV4 in 2020. The lawsuit alleges the salesperson emphasized significant cost savings over the life of the plan, which covered 10 service visits for five years or up to 55,000 miles. Solis financed the $1,025 plan along with her car loan.
However, Solis contends that after taking her vehicle in for service appointments, she discovered the actual cost of the covered services was significantly lower than what she paid for the plan. The lawsuit details instances where basic maintenance like oil changes and tire rotations were considerably cheaper when paid for individually compared to the bundled plan price.
Solis is seeking unspecified damages and a court order requiring Toyota to modify its sales practices regarding the ToyotaCare Plus plan. The lawsuit also includes claims against unnamed “Doe Defendants” potentially encompassing other dealerships that might have engaged in similar sales tactics.
Toyota Faces Lawsuit Over Extended Warranty Sales Practices
Toyota has yet to formally respond to the lawsuit. However, in a statement, a company spokesperson said, “Toyota is committed to transparency and customer satisfaction in all aspects of our business, including the sales of our service plans. We will review the lawsuit and respond accordingly through the legal process.” This case raises questions about the clarity and potential for misrepresentation in the sales of extended warranty and maintenance plans offered by automakers and dealerships. Consumer advocacy groups have long expressed concerns about the complexity and potential for markups in these plans.
John Larson, an attorney specializing in consumer protection law said;
“Many car buyers feel pressured by dealerships to purchase extended warranties and maintenance plans on the spot. It’s crucial for consumers to thoroughly understand the terms and costs of these plans before committing.”
Larson advises car buyers to research the manufacturer’s recommended maintenance schedule for their specific vehicle and compare those costs with the price of the offered plan. Additionally, he recommends getting quotes from independent repair shops for the covered services to gauge potential savings.
The Solis lawsuit could spark further scrutiny of dealership sales practices regarding maintenance plans. The outcome of the case could set a precedent for how dealerships present these plans to customers and the level of transparency required in their sales pitch.
