is it worth buying extended warranty?

I just bought my first Prius 2 weeks ago and I did get the extended warranty. I should have done my research first and I could have saved considerable $ by purchasing it at other places (like here) but all in all, I am glad I got it. Hopefully never use it!

 

No, it isn't. The current model has been out for three years. There's probably no car less in need of an extended warranty. Do you really want to give a car dealer or insurance salesman a $1000 gift?

 

I bought one. I think it was likely a mistake based on the data I have seen after I bought it. I think the decision largely rests on your appetite for risk. There is piece of mind knowing that essentially everything is covered for 100K.

 

Isn't our factory warranty 2 yrs/25K miles? Or is that just for oil changes/fluids, etc and the 3 yrs includes other maintenance issues?

 

Don't feel too bad about giving up your money for nothing ( I say that because even if you DO decide to get the warranty ... you can buy it up until the regular warranty expires-at the end of 36,000 miles(. The good news is that many states require dealership to give the money back within so many days, once the customers realize the dealer has hood winked them, so to speak.

 

Sort of the way I feel about prepaid maintance contracts. $875 for 4 years or 55k? The first 30k or two years is free.

 

If you call Toyota Financial you might still have time to have the warranty cancelled. Then you could get one from Troy at Warranty Shack for a lower price. I had mine cancelled this way.

 

i think it would be worth it, a friend of mine has a iv and his nav conked out @45k miles i bet his repair bill wasn't a pretty sight. i bought mine for $1k, 7 years/100k (platinum) on top of the certified warranty.

 

And people regularly win at slot machines. That does not make playing them worthwhile.

 

I bought the Platinum Warranty on my '06 Prius, and used it only once, to replace the rear hatch struts just before selling the car a couple of weeks ago. The buyer can transfer it for $50 if he feels it is worth it for three months, but I don't think that was much of a selling point. I didn't buy an extended warranty for my new plug-in.

 

I think it comes down to your own personal finances. If you got hit with a 2000 bill at one time could you handle it with no problem? If the answer is yes then I would have no problem rolling the dice and self-insuring my vehicle. If the answer is no then I would buy it when I purchased the vehicle because at these low interest rates the carrying cost is a heck of a lot cheaper than buying the protection at a later time via credit card.




iPad ?

 

riiightt, your opinion with all the electronics going on, 7 years peace of mind for 1k is worthwhile for me.

 

I bought an extended warranty when I bought my 07 Prius. I never used any of it and when I traded the car in on a new Prius a couple of weeks ago, I got something over $300 back. I applied that money on the new car and did not buy an extended warranty for the new one.

 

Toyota Prius Warranty and Coverage

More details in your warranty booklet. Those in CA and other CARB states have longer warranties on the HV battery, certain hybrid components and the emissions.

2 uears/25K miles is for the "free maintenance" (Complimentary Maintenance Plan - Toyota Care) that began after the SUA debacle.

Most here on Priuschat would say an extended warranty isn't worth it.

 

We bought the extended warranty, not believing our Prius will break, but just in case. Everything is electronic, and my thought is what if in 6 years the dash goes out for some reason... We will be very happy we purchased the extended warranty.

 

Ok,, so I just bought my 2010 lvl 3 2days ago,,it was a used certified with 28k on it in Ca. It has Nav.,,, hemhawed around about wether to get the extended warranty, ended up paying an additional 2K for 0 deductible for 125k ,,, did I overpay??? They told me I could cancel at anytime and get prorated return. My reasoning was this : at 2.9% finance charge , only raised my payments by about $40/month, and I got a pretty decent deal on car to begin with at 21K. I could barely afford a 2k repair bill if I had too,,, so I was torn. On my other gen2 08 Prius I did purchase as well, it has 60K on it now,,, and so far not a lick of problems ( no big surprise there huh?? ). When I was looking for this car I saw another 2010 that was having problems with it's Nav unit at 30K. Can I get my same warranty cheaper somewhere else??? Or should I just keep the one I have???

 

An extended warranty is a form of insurance, and like all insurance and gambling, the house has the odds stacked in their favor. Over the long run you will lose money on extended warranties, so the question comes down to two questions: Can you afford to self-insure, and how much is it worth to you to have peace of mind?

There isn't one right answer. For me, I never buy extended warranties. I can afford to self-insure, and as a result, I have saved a considerable amount of money over my period of being an auto owner.

Others may arrive at a different conclusion, but it's important to realize that you aren't saving money. Buy an extended warranty if you feel it's right for you, but do it for the right reasons, not false economy.

Tom

 

+1
What a well thought out excellent response!!!