Toyota Extended Warranty is it worth it for a 2010?

A bell curve is a perfect example. If your car is on the front of the bell curve you will never make out with an extended warranty. If it is near the end you probably will make out with an extended warranty. The Prius is on the front of that bell curve. If you trust statistics it would be a bad deal buying one.

It is more relative on how they are designed not the material. A larger rubber timing belt will outlast a smaller one made of metal. One made of well engineered rubber will outlast one made of an alloy metal. Again their function is the same.

What is a financial instrument? I am a BSEE and I give seminars on semiconductors. I have a strong understanding of physics and electrons. What do you do for a living?

 

No one needs to be a rocket scientist or a brain surgeon to read this and determine that the probability of having repair issues with a Prius are slim.

 

When I purchased mine used, I opted for the MPP warranty with a full coverage (called platinum or something like that) for 10 years / 125k miles for I believe it was around $1,200. I mostly did it for the electronics system since it relies heavily on it. Peace of mind for that length of period for $1,200 bucks was worth it for me. Best wishes.

 

Did the dealer tell you most of the hybrid system was covered for 100,000 miles or 10 years by the factory warranty? You did not need to spend the $1,200 dollars.

 

I really don't remember what the details were at this point, but I do remember that, as with most (if not all) extended warranties, driver fault not covered, "wear and tear" not covered, but as long as I properly maintain according to schedule and not do anything extreme (like what? I don't know!), the hybrid system including the computers, etc. will be covered for 10 years / 125k miles, it may be 7 years, I apologize if I'm incorrect, but based on my calculations, I will be long past 125k in 7 years!

I live in Phoenix, AZ and it gets freaking hot here, so as long as damage from possible hell heat is covered, I feel comfortable with the warranty. I typically do not purchase these, but I also use my vehicle for business with about 200 miles driven daily, so I wanted the peace of mind as well.

Also, I can check the warranty information for you if you will clarify your questions a bit. Thanks.

 

Just a suggestion. Take the $1200 or whatever that you would have spent in a extended warranty and invest that money in a S and P 500 index fund ETF. That money will grow. If your car breaks down use the money from the investment. If it requires no repairs you have your next car down payment. Self insure.

 

This is a perfect example of someone that would by an extended warranty. There is no logic in their response.

- First they claim the bought it because the car relies heavily on the electronic system.
- I post that the Hybrid system (electronic system) is covered by the factory warranty up to 100,000 miles.
- Then the person posts that their hybrid system is covered by a 125,000 warranty they paid $1200 for.

I guess the person is pointing out they paid $1,200 for a 25,000 mile warranty that starts at 100,000 miles and goes to 125,000 miles.

 

The person purchased piece of mind for $1200. Emotion trumps numbers in this case. While the numbers and statistics show that the person is better off taking ...

The truth is that the person may toss and turn in their sleep thinking about how the stock market may tank at the debt ceiling debacle coming up next in government. Meanwhile, the person is on edge driving the car thinking something is going to go wrong and $1200 isn't going to cover the repairs. Now the person's health starts to decline as they are having problems with sleep and eating.

Emotions aren't logical. An analytical mind may approach the problem differently than someone with a creative mind. $1200 is a waste of money to a statistics guy but it may be cheap sanity to someone who doesn't care to know everything about their car except that it works when they need it.

 

I cancelled my contract, 3 weeks later still not cancelled yet according to warranty company, called dealership btw is the only person that could cancel the contract and they are giving me the runaround saying they did cancel it.

 

Why even waste time debating whether an extended warranty is "worth" it?
It is true, that if money was lost on a majority of warranties, they wouldn't be offered.

But really? It's NOT about that.

If you're happy NOT buying a warranty, then be happy NOT buying an extended warranty.

But I don't think anyone should purchase an extended warranty with the idea that it will or MUST pay for itself, in terms of provided services or repairs. The future in unpredictable, so you can never know or guarantee one way or the other.

I think if you want an extended warranty? What you are actually purchasing is the time frame and the peace of mind for that time frame.

As long as someone knows exactly what is covered and not covered so there is no potential surprise in the future, and as long as someone thinks the investment is worth the peace of mind to them? Then it's worth it-to them.

I've NEVER bought an extended warranty but that doesn't mean I'm against them for other people. I've always just gone with dealing with any major breakdowns as/if they happen. I also keep my car well maintained in the meantime. (My personal version of an extended warranty, is probably paying closer attention to maintenance and upkeep than most people).

My logic has always kind of been, that IF my vehicle started breaking down, with multiple system or component break downs to the point where the extended warranty was paying for itself? Then I'd probably be owning a vehicle I wouldn't want anyway. Time to trade in or make a change.

But I've also bought Honda's and Toyota's for the baseline of expected reliability.

But to me? There are two camps.

Anti-Extended Warranty and Pro-Extended Warranty. Neither will convince the other. The only thing I would recommend to someone who is convinced they want an extended warranty is to be aware of exactly what you are purchasing. Be aware of exactly what your extended warranty is covering, and for how long.

But if you want one? Can afford it? Go ahead. It may or may not pay for itself, but only the individual can determine how much the peace of mind a "warranty" will provide.

 

Well said.

Just a FYI some of these contracts have more holes than swiss cheese so peace of mind may last as long as the first incident.

Not knowing the risk tolerance of the individual. The $1,200 can be invested in something more stable. My spin is a Car is an accident waiting to happen. One day something will go wrong and if your hard on your car it may come sooner than later. So it is a gamble. But these companies are not in business to lose $. They have access to all the repair analytics and write the contract covering the equipment that is least likely to fail within the mileage. 100K or 125K miles and 6 years is not that much for todays well built cars. Most will endure with routine maintenance. I recently went to a So Cal Prius get together and meet a couple who both have a 2002 Prius now 13 year old cars. Both cars were garaged. One has 60K miles the other just turned 100K. The guy is an Engineer. I asked point blank how has the car treated you with respect to repairs. He said he was very fortunate just fluids, tires and brakes. However he is religious on the schedule and garaged both cars. In his situation the contract would have been wasted money but his investment would be still counted in his net worth. However another person mentioned he had a Brake Master Cylinder go and it was after the manufacturer warranty expired and it set him back 3K. Just a matter of luck, timing and where you want to make the bet.

 

Dealers love people that buy on emotion on not numbers or facts.

They hate people that do research for the best price. They hate people that do research on one car over another. They hate when people shop for the best financing. The hate when people check the reliability of a car. The hate when people use car fax on a used car.

They hate when people do research on all the crap the finance manager sells on emotion.
- Security system to keep your family safe
- Rust proofing to protect your new baby from rust.
- Teflon coating for the interior and exterior to protect your car
- Life insurance on the loan so if you die your family will not be responsible for paying off the car.
- Roadside assistance so you never get stranded
- Pre paid maintenance for peace of mind
- An extended warranty so you do not have any surprises on the most reliable car in the world.
- The list can go on and on. People fall for these tactics all the time.

 

I agree the Finance sales is all based on fear and emotion. I always pass on the stuff they sell. I think the original post was a person who is buying a used Prius and thinking about adding a extended warranty.

 

I do not see it that way.

I doubt many people go to the dealer to pick up their new car and plan on buying a extended warranty. I believe when they sit down with the finance manager they are told there are a lot of high tech electronics in the Prius and it one item brakes it could cost thousands.

I was told by the dealer I bought my car from, that after the 3 year 3,600 factory warranty It could cost me over $3,000 for a new battery. I corrected him and he shut up. Dealers lie, the have lied to customers for years. It will never stop.

But to me? There are two camps.

- 1.) People doing research before going to the dealer and buying the car. They are looking for stories of people that bought or did not buy an extended warranty. They are looking for facts.

- 2.) People that bought an extended warranty and are defending their purchase to the end. They refuse after reading facts it probably will not work out for them.


My 2010 Prius is a little over 3 year old with zero repairs. I have over 100,000 miles with zero repairs. This is very common with this car.

 

There is a reason why Toyota is the #1 selling car in the world. Quality and Reliability.
The best cars I owned were Toyotas and Hondas. The worst was BMW.
The BMW was a nightmare. I apent thousands on tires, oil changes, repairs, brakes, tune ups etc. The car was fun to drive but man every trip to the mechanic was a living nightmare. Finally sold it and it did hold it's value well.
That car may be better to lease new while under warranty and free maintenance and hand it back in and run as fast as you can out of the dealership.

 

Logic??? Are you kidding? Peace of mind does not require any logic, it's an emotion lol...

Instead of logic, insurance would have been a better word. Let's see, does the Prius have more electronic components than a non hybrid? I can not say and neither can you unless you know of all the parts that go into hybrid and non hybrid vehicles, but my "logic" here tells me that an educated guess would lean toward "yes." So by following this formula for my decision, I would certainly have to say that I did in fact follow a form of logic, albeit it was obviously not a logic you would agree with, but logic non the less. The hybrid system components that are covered by the factory warranty? Yes, I read the coverage details and compared it with the coverage by the MPP warranty and there are differences, and those differences were part of the reason why I chose to purchase the coverage. And yes, my MPP warranty covers my system for 125k miles and it was in fact $1,200. Two separate warranties, with the extended warranty covering some hybrid system parts not covered by the factory warranty. There's my logic.

 

A few years ago, I was signing the papers for my mom's car. I declined the extended warranty. The sales guy asked me why and I said, she drives very little. That 5 year extended warranty would run out before she even gets past 25k miles. He said because she drives so little, it is even more important that she should get the warranty. Then he gave some reason, I forget what.

A few years later, I am signing the papers for my car and I declined the extended warranty. The sales guy asked me why and on a whim, I said, "I drive long distances, the warranty would run out in less than 2 years." He said because you drive so much it is even more important that I should get the warranty. Then he gave some reason, I don't bother to listen to.

When it came time to replace that car, I told the sales guy. Don't waste my time with warranties and add-ons. I don't want any of it and I don't want to waste our time. He proceeded to ask me why I don't want a warranty. So I talked to him about statistics and how insurance companies make money. He was a good sport but eventually handed me my papers to shut me up.

 

Judgeless, I put in my post that I personally have never purchased an extended warranty on a vehicle. For a variety of reasons.
But if you create two camps, and the opposing camp being "People that bought an extended warranty and are defending their purchase to the end." then I would say you are just as polarized in your surety that nobody should ever purchase an extended warranty.

People have a right to ignore statistics and facts if they wish. Many consumer purchases are made on emotion. And like I said, I think most people that purchase a extended warranty are actually purchasing that warranty time frame and a peace of mind during that time frame.

If it's worth it to them? If it does provide that peace of mind, justified or not? Who am I or anyone to deny them the right to make that purchase.

Also as I said, really nobody can predict the future. My personal experience? I've never regretted not purchasing an extended warranty. Your personal experience seems likewise. 100,00 Miles with zero repairs. Good for you.

But it all doesn't matter. If someone is nervous about potential future repairs and/or repair costs then the investment, whether it ever pays back or not, IS worth it to them.

And there are an admitted percentage of purchasers of an extended warranty that DO get tangible value for their purchase.

That's why I say to anyone convinced they want to make the investment....just be sure of what is covered and what is not...

If anyone asked my opinion as far as do I personally feel an extended automotive warranty on any Toyota or Honda is worth it, my answer would be no.

I would even go further and recommend that nobody purchase one at the time of vehicle purchase, a time when YES people can get badgered and scare tacticed into perhaps making a purchase they wouldn't normally make.

To even those that think they want one, I'd say take some time, do some research. Don't buy it at the same time your trying to get through an automotive deal.

But I just can't go so far as to say nobody should ever buy an extended warranty.

 

You are correct. There is a possibility that other things can break before you hit 125,000 miles. The best way to determine the probability of that happening is to do research on reliability of all the things the extended warranty might cover. Here is an example.



Consumer report sends this survey to all the people that subscribe. I am sure a large amount of people send it back. There are 5 levels. Bad, worse than average, average, above average and much better than average. People are reporting close to zero repairs on a new Prius.

 

The black marks for electric are the 12v (LOL) and the inverter water pump (engine water cooling) that can be fixed under warranty, or bought for DIY repair for about $90.

Since 12v batteries are not covered by extended warranties, the expected benefit from the warranty is $0.