is it worth to get an extended warranty?

holden, don't feel bad, it took me twenty minutes to decide, and i opted for the 125,000 Platinum bumper to bumper warranty, I drive 39,000 miles a year, ill be through the standard warranty in less then a year and this is good piece of mind especially having an early model.

 

Generally, no, the warranty does *not* pay for itself, especially given Toyota's reliability record, but there's always the (albeit limited) odds you get a lemon or have a part that fails prematurely. I have no warranty on my Gen III 2010 model...and its standard warranty is almost up. There were a few manufacturing defects for which they have since issued TSBs (but not all are easy to get performed depending on your dealership). Yes, you can get your warranty refunded (if it was financed, your principle will be reduced by the cost of the warranty, which may or may not effect your payment...assuming you financed).

If you are determined to buy a warranty, you should be able to find one better priced here through the forum.

 

Think of it this way - the companies selling the extended warranties have costs - from printing up the shiny brochures, commissions to the dealers that sell them and all of the administration costs for the program. On top of that they make a profit. So if you look at the program at as a whole they are bringing out far more in premiums than they are paying out in coverage. My wife and I decline all extended warranties and we figure that over time we will come out ahead.

But a car is a big purchase and the repairs can be significant. The extended warranty can add some comfort in knowing that you will not be hit with a big repair for however long the warranty runs it might be worth the cost for the peace of mind - only you can tell.

The last thing that I would say is that Toyota makes great and dependable cars so the chances are much better that you will get though the first 80k miles without problem in a Toyota compared to something like a Chrysler.

 

No, I don't think so and neither does the warranty issuer who knows more about statistics in general than the buyer. You paid $1300 to cover 4 additional years and 50k. It's highly unlikely you'll go through $1300 in repairs during this period.

On the plus side, an individual is not a pool of a thousand warranty buyers; by this I mean, you could end up with more than $1300, and also it gives you financial predictability, which is worth something. It's nice to know you won't have to worry about repairs at all up through 80k.

All things equal you will lose money on this, but that's generally the case with extended warranties.

If you could have a 100% chance of $100k or a 50% chance of $250k, what would you pick? Statistically, the 50% chance nets you more, but in reality almost everybody would pick the 100% of $100k. And this guarantee is why extended warranties can make sense for an individual even if they are likely to lose money.

 

I did not get the warranty in 2006 but I had a litttle more data from Prius Chat.

Looks like I made out OK over 100K now but if I had warranty I could have got a new water pump for free. Meanwhile I have not replaced it yet, so I am not out the money.

 

Extended warranties are a scam. Doesn't matter whether it is a car, computer, TV, etc. The fact that they try so hard to sell you one is a good indication. I mean, if it were in YOUR best interest, then it would not be in THEIR best interest.

I have never bought an extended warranty, and never regretted it.

Also, if you DO buy one, keep in mind there is a lot of "fine print." Unfortunately, what it does is basically give the extended warranty company a way out whenever something goes wrong. Go read up on all of the tricks they do. No matter what goes wrong with your car, they will find a way to deny the claim.

I have several friends who are auto mechanics. They've told me plenty. Here's a recent example from just a few weeks ago. A person brings a Prius into the shop and it turns out the transaxle has gone out. The thing was completely locked up and wouldn't move. Well, the extended warranty company said that they require proof that the transaxle fluid has been changed at certain intervals. Of course, the Prius doesn't require transaxle fluid until like 100,000 miles. But the car didn't even have that many miles on it. Since the customer could not provide such data, they denied the claim and said it was the customer's fault. Of course, the car dealership is totally separate from the warranty company so they really have no say in the matter. Neither does Toyota.

 

Yes, a refund can be yours. I did a much dumber thing and canceled (better way to describe it) 10 months later, so I only got a prorated amount deducted from my principal.

 

I don't buy extended warranties for cars BUT I DO get them for computers and electronics...