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Toyota Denies Warranty for track day blown engine.... again

19472 Views 402 Replies 69 Participants Last post by  Blighty
Hoping the guy was tuned or something which caused the denial

EDIT: NOT ME IN THE VIDEO, JUST POSTING LINK TO THE VIDEO

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On the comment about the phone, that’s a bad analogy.

A better analogy would be if Samsung offered me a “Scuba diving with your phone!” trip including all expenses paid training on underwater phone cinematography.

No surprise that nobody does this, because it would be an endorsement of the phone as an underwater camera and they’d be replacing a lot of phones. Phone manufacturers are quite clear that the water resistance is intended only to prevent incidental contact. It’s quite the opposite situation to this, where Toyota issuing statements explicitly stating that the car is intended for track use.
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I got angry reading that response from the dealership. "Racing"...complete ignorance

Owner should have posted a picture of the Toyota NASA folder with the free track day offer that came in the mail as a response to the dealer.

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On the comment about the phone, that’s a bad analogy.

A better analogy would be if Samsung offered me a “Scuba diving with your phone!” trip including all expenses paid training on underwater phone cinematography.

No surprise that nobody does this, because it would be an endorsement of the phone as an underwater camera and they’d be replacing a lot of phones. Phone manufacturers are quite clear that the water resistance is intended only to prevent incidental contact. It’s quite the opposite situation to this, where Toyota issuing statements explicitly stating that the car is intended for track use.
Yep basically this. I’d argue it’d be one step further, Samsung saying “Our cameras are designed to deliver incredible experiences wherever you might take it, including underwater. Your new phone comes with a free scuba diving excursion and a 1 year membership to a scuba club.”

And then voiding the warranties of every phone taken into the ocean lol.
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The average person may not know the difference, but Toyota certainly does and they issued the warranty. Offering a free track day absolutely is an endorsement of operating the car on track.

To quote Toyota, “Toyota Gazoo Racing brand is driven by enthusiasts and focused on delivering incredible experiences wherever the driver may take their vehicles, including the closed-course settings for which their vehicles are designed”

They specifically state the car is designed to operate on track. That preamble is followed by a comment clarifying the impact with regards to NASA HDPE days but there is no ambiguity here.

The warranty doesn’t cover usage outside of the intended operating conditions but track days are quite explicitly included in the range of intended operating conditions.
You are intentionally leaving out the part where it says "so long as they are driven in a manner that falls within the terms of the warranty." This is an issue of breach of implied warranty, which I completely agree with. Giving a free track day implies that track operation is okay, but the written warranty in our handbooks could be interpreted to state otherwise. Again, I don't disagree with the fact that our blown up motors should be covered. I'm just saying Toyota can decline warranties all they want because of track use. It'll come down to the consumer to get legal help and be made whole.

On the comment about the phone, that’s a bad analogy.

A better analogy would be if Samsung offered me a “Scuba diving with your phone!” trip including all expenses paid training on underwater phone cinematography.

No surprise that nobody does this, because it would be an endorsement of the phone as an underwater camera and they’d be replacing a lot of phones. Phone manufacturers are quite clear that the water resistance is intended only to prevent incidental contact. It’s quite the opposite situation to this, where Toyota issuing statements explicitly stating that the car is intended for track use.
There have been at least 2 advertisements I can remember both Apple and Samsung that ended with a lot of controversy for this exact reason. Apple showed use of their iPhone 12 I believe in a torrential downpour and Samsung showed use of their Galaxy Buds swimming. Both of their warranties stated water damage would not be covered if found to be used in "flooding" events and this caused an uproar in the tech community. It takes a lot of publicity and bad PR to stop companies from implying operation and implying warranties. The warranty with our vehicles is no exception. Again, individual dealers still don't have to help you regardless of what Toyota USA says.
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You are intentionally leaving out the part where it says "so long as they are driven in a manner that falls within the terms of the warranty." This is an issue of breach of implied warranty, which I completely agree with. Giving a free track day implies that track operation is okay, but the written warranty in our handbooks could be interpreted to state otherwise. Again, I don't disagree with the fact that our blown up motors should be covered. I'm just saying Toyota can decline warranties all they want because of track use. It'll come down to the consumer to get legal help and be made whole.


There have been at least 2 advertisements I can remember both Apple and Samsung that ended with a lot of controversy for this exact reason. Apple showed use of their iPhone 12 I believe in a torrential downpour and Samsung showed use of their Galaxy Buds swimming. Both of their warranties stated water damage would not be covered if found to be used in "flooding" events and this caused an uproar in the tech community. It takes a lot of publicity and bad PR to stop companies from implying operation and implying warranties. The warranty with our vehicles is no exception. Again, individual dealers still don't have to help you regardless of what Toyota USA says.
Yes and driving at a track event isn’t racing so driving at the track is not outside of the terms of the warranty.

The statement would make no linguistic sense whatsoever if track=racing. It only makes sense if they don’t consider track use to be racing.

Let’s look at the second paragraph:

While the vehicle’s warranty excludes damage that results from activities such as misuse and racing, simply participating in National Auto Sport Association (NASA) High Performance Driving Events (HPDE) or similar NASA instructional events provided complimentary to GR owners would not, in and of itself, void the warranty.

How could this be true if HDPE=racing?

Lets look at the facts:
  • Toyota states in the manual that the warranty doesn’t cover damage from operating outside the intended use and list racing as an example
  • Guy blows up car and dealership denies warranty due to “racing” clause because, as you said, dealerships are dumb and don’t understand the distinction
  • Toyota issues a statement explicitly stating that use on track is part of the intended use and therefore covered under warranty
  • Toyota clarifies that racing is not covered but HDPE is, drawing a line in the sand that shows the distinction between track days and racing from a warranty perspective

I’m not sure where the confusion is here. Track days are covered under warranty.
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That's not how it happened at all. They didn't start giving out a free track day and NASA membership to prove going to said events wouldn't necessarily void your warranty. Those freebies were given to owners the second the cars hit the lots in the US. They made an official statement about HDPE and NASA events AFTER a lot of bad publicity from declining warranty repairs on multiple vehicles. And that is only Toyota USA themselves. Individual dealers as private businesses can decline your warranty claim all day long regardless of what Toyota USA says.

There is nothing confusing. Tracking can be considered racing, racing is prohibited by the warranty, dealer declines warranty work, done deal. Until you take it to court or Toyota USA puts pressure on the dealers to do the warranty work anyways, warranty claims can be declined if you admit you took it to a driving event.
How does it work with warranty work? Does the manufacturer reimburse the dealership? If Toyota pays the cost, I would imagine the dealer would love the free money.
How does it work with warranty work? Does the manufacturer reimburse the dealership? If Toyota pays the cost, I would imagine the dealer would love the free money.
Toyota reimburses the shop but I have been told they often make less money on big warranty services at book rates than they would doing many small service jobs for customers. So, many dealerships don’t like replacing engines and such under warranty if they can help it.
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Yes and driving at a track event isn’t racing so driving at the track is not outside of the terms of the warranty.

The statement would make no linguistic sense whatsoever if track=racing. It only makes sense if they don’t consider track use to be racing.

Let’s look at the second paragraph:

While the vehicle’s warranty excludes damage that results from activities such as misuse and racing, simply participating in National Auto Sport Association (NASA) High Performance Driving Events (HPDE) or similar NASA instructional events provided complimentary to GR owners would not, in and of itself, void the warranty.

How could this be true if HDPE=racing?

Lets look at the facts:
  • Toyota states in the manual that the warranty doesn’t cover damage from operating outside the intended use and list racing as an example
  • Guy blows up car and dealership denies warranty due to “racing” clause because, as you said, dealerships are dumb and don’t understand the distinction
  • Toyota issues a statement explicitly stating that use on track is part of the intended use and therefore covered under warranty
  • Toyota clarifies that racing is not covered but HDPE is, drawing a line in the sand that shows the distinction between track days and racing from a warranty perspective

I’m not sure where the confusion is here. Track days are covered under warranty.
The confusion is with the dealerships, not with anyone here. No one here would decline this warranty claim after watching the video. The issue is the dealer will not honor the warranty because they consider it racing. Whether Toyota USA will put pressure on this specific dealer by pulling allocations or declining manufacturer support on future issues is up to Toyota USA and only them. Nothing can force this specific dealer to accept the warranty claim regardless of what Toyota USA says is or isn't racing or misuse. I don't know if you've ever been part of a warranty dispute before, but it is not pretty and the dealers will not help you nor repair your vehicle even if their corporate entity says your warranty claim is valid.
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How does it work with warranty work? Does the manufacturer reimburse the dealership? If Toyota pays the cost, I would imagine the dealer would love the free money.
If the dealer decides to accept the warranty claim and perform the work, the manufacturer pays the dealer. Usually about 65 cents on the dollar for labor of what customer pay on the same job would be. At least that's what warranty pay for a tech would be. What the dealership gets on the back end, I'm not sure.
The confusion is with the dealerships, not with anyone here. No one here would decline this warranty claim after watching the video. The issue is the dealer will not honor the warranty because they consider it racing. Whether Toyota USA will put pressure on this specific dealer by pulling allocations or declining manufacturer support on future issues is up to Toyota USA and only them. Nothing can force this specific dealer to accept the warranty claim regardless of what Toyota USA says is or isn't racing or misuse. I don't know if you've ever been part of a warranty dispute before, but it is not pretty and the dealers will not help you nor repair your vehicle even if their corporate entity says your warranty claim is valid.
I can’t comment on this particular dealer or anything.

My commentary was only about whether or not track use is explicitly covered under warranty from the perspective of Toyota. It’s clear to me it is. If so, we can track our cars secure in the knowledge that eventually Toyota will pony up even if we have to take it to another dealer to get the work done.
I didn’t read through the whole thread but from my experience: when the engine fails, they look at the whole history of the car and the computer tracks everything. Speeds, what gear in, turn angle, break percentage, etc. There is no hiding anything.

If the owner didn’t follow break in properly - they can deny coverage.

If the owner had any prior mis-shifts or over revs - they can deny coverage.

Point being, we are only seeing a 5 minute window of this cars life. There could be a whole slew of things that caused for warranty denial within the other 19,000 miles of use.
I didn’t read through the whole thread but from my experience: when the engine fails, they look at the whole history of the car and the computer tracks everything. Speeds, what gear in, turn angle, break percentage, etc. There is no hiding anything.

If the owner didn’t follow break in properly - they can deny coverage.

If the owner had any prior mis-shifts or over revs - they can deny coverage.

Point being, we are only seeing a 5 minute window of this cars life. There could be a whole slew of things that caused for warranty denial within the other 19,000 miles of use.
The damning part on their end is the public reply to the owner's google review of the dealership pointing to the video as the reason for denial. 🤷‍♂️
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I didn’t read through the whole thread but from my experience: when the engine fails, they look at the whole history of the car and the computer tracks everything. Speeds, what gear in, turn angle, break percentage, etc. There is no hiding anything.

If the owner didn’t follow break in properly - they can deny coverage.

If the owner had any prior mis-shifts or over revs - they can deny coverage.

Point being, we are only seeing a 5 minute window of this cars life. There could be a whole slew of things that caused for warranty denial within the other 19,000 miles of use.
You can see the reason for warranty denial in the dealer’s own words here.

Latest response out of that specific dealership.

God forbids you are going 100 mph on a highway, instant warranty denied 😂 sarcasm

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I can’t comment on this particular dealer or anything.

My commentary was only about whether or not track use is explicitly covered under warranty from the perspective of Toyota. It’s clear to me it is. If so, we can track our cars secure in the knowledge that eventually Toyota will pony up even if we have to take it to another dealer to get the work done.
I agree. I hope the poster gets justice in the end and gets made whole, even if it's just a check. My posts were mostly to warn people about relying on the warranty process, because you can't. Time, money, and a lot of work will be required to get compensation in warranty denial cases. My lawsuit with another manufacturer ended with the car still being broken and the local dealer refused warranty work even though judgement was made against the manufacturer for breach of written warranty AND implied warranty. I was given a check and just fixed the vehicle myself before trading it in.
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While on the topic of warranty absurdities.....
Back in 2005 I bought a saleen focus N2O. The car came off the showroom floor with a 75hp nitrous setup. Everything was there and installed nicely. The catch was the bottle obviously came empty and in order for that clean OEM installed kit to work you had to purchase and install an additional relay. The moment that relay gets installed in the car your powertrain warranty was void.
I was told that by activating that circuit with the relay it left some kind of digital stamp on the ECU, so they would know if you tried deactivating it for a warranty claim.
Obviously I had the relay installed before I picked up the car..!! Used lots and lots of nitrous and never an issue. The car did have other random electrical and suspension gremlins that the dealer covered no questions asked.
I miss when Ford was cool.
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While on the topic of warranty absurdities.....
Back in 2005 I bought a saleen focus N2O. The car came off the showroom floor with a 75hp nitrous setup. Everything was there and installed nicely. The catch was the bottle obviously came empty and in order for that clean OEM installed kit to work you had to purchase and install an additional relay. The moment that relay gets installed in the car your powertrain warranty was void.
I was told that by activating that circuit with the relay it left some kind of digital stamp on the ECU, so they would know if you tried deactivating it for a warranty claim.
Obviously I had the relay installed before I picked up the car..!! Used lots and lots of nitrous and never an issue. The car did have other random electrical and suspension gremlins that the dealer covered no questions asked.
I miss when Ford was cool.

Was that based off of the SVT Focus?
Was that based off of the SVT Focus?
That would have been even cooler..!!
But no, it used the 2.3 duratec motor. Not the high compression 2.0 Zetec.
I did have one of those as well later. Picked it up used. Very fun car, but got worse MPG than the V8s I had at the time.
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