Extended Warranty and Service Plan?

Just purchased a 2018 Prime Advanced and we are picking it up today. I was asked if we wanted the extended warranty and declined. We have had two Toyatas in the past and both were extremely reliable. Only minor issues. With Toyotas reputation for reliability, I'm going take my chances.

 

The so-called finance manager is paid solely on commission. If he doesn't sell extras, he doesn't get a paycheck. That's not your responsibility. Just say NO! You do need the person to do your sales and licensing paperwork, so you gott'a sit through the high pressure sales pitch. I say, "nothing extra." And I say it again and again and again. Overpriced wax job. Tire & wheel insurance. Spritz of some stain preventive inside.

The so-called extended warranties are actually prepaid repair contracts. They are legally not a warranty. They do not extend the factory warranty. They cover what the fine print in the contract says they cover. The Toyota Financial Vehicle Service Agreements (VSA) are not called warranties in any Toyota literature. Vehicle Service Agreements | Toyota Financial
Look at how many versions of VSAs there are. You don't know which ones the guy was offering you, nor how he went down the coverage ladder as he was lowering the price. Never buy a third party plan. If the underwriter goes bust, you're stuck with nothing. If you buy one, get only one of the manufacturer's plans.

These truly are peace of mind insurance policies. They're money losers for almost everyone. The price you pay has a profit margin for the dealership, a commission payment for the "finance" guy, profit for the underwriter, and some money left over to pay for repairs. If you'll sleep better, buy it. Or if you get a known unreliable brand of car, buy it (even better lease the unreliable brand). Otherwise put a little money aside to cover the cost of repairs that you might or might not need in the future.

The prepaid maintenance contracts are not worth the money. The Prime needs an oil change every year or 10,000 miles. At 5,000 miles just check fluid levels and rotate the tires. That's all. The maintenance is already prepaid for the first two years or 25k at the dealership, called ToyotaCare. After that you can get the work done at any licensed auto repair shop or do it yourself. Of course the dealer wants you back in their service shop. That's the dealership owner's gold mine.

 

it's like any insurance. sure there is a remote possibility that something will break out of warranty. and we have had members here collect on the extended warranty.

but overall, like any insurance, far more people will never collect. that leaves plenty of money for the people who do, and still a ton of profit for the insurance provider.

prius is more reliable within the terms of the warranty than just about any other car.
and we have had members who were told, sorry, the extended warranty doesn't cover that.

 

Maintenance plan (Toyota Care Plus) is likely to be way over priced for what is required for maintenance. Extended warranty is just like bisco said, an insurance plan. I have said this in similar thread, and everyone has different opinion on this subject, but if I had $2695 to pay for the plan, I would just save that amount in saving for any future rainy days. Chances are you don't have to use any of the saving before 8 years are up. But that's just me.

 

Excellent comments!

My finance guy (a young kid) also tried to hard-sell me. He said... "But it's a HYBRID! Very expensive parts! Anything can go wrong...." So I said, "I don't want it then", and started to leave. That shut him up.

 

8 ye

8 year with any mileage restrictions? Does it cover electronics? 3rd party insurance or Toyota VSA?

 

Delete

 

I intentionally purchased one specifically to cover the expensive electronics.
The 11” touchscreen is $4000 or is it $7000 just for the part. Either is a ton of money
and way more than any extended service plan from Toyota.
I keep my cars a long time but put on low miles.
In my case I purchased a Toyota Platinum 120 month 100,000 mile $0 deductible for $1945.
That equates to $0.50/day. I can afford that. I hope I never use it. And yes, I sleep better at night knowing I have it. If that $0.50 ever becomes an issue I’ll give up a cup of morning Joe.
J

 

Yeah, if you are worried about those stuff, try negotiating to lower the price where you are comfortable paying for the insurance plan. Just make sure it is genuine Toyota product not the third party ones. As far as anything going wrong with car's electronic, no one knows longevity of PRIME at this point being only 1 year old car. IMHO, as most other consumer electronics, if there is something that goes wrong, it is likely to happen very early with manufacturing defect within normal warranty period (3/36), or happens very late near the end of product life, most likely out of extended warranty period after 8-10 years.

 

Use the attached as a negotiation tool.
Genuine Toyota, Platinum, $0 Deductible

 

There are so many Toyota VSA plans that it is hard to choose even after one decides to buy it. You need to look at (a) what it covers, (b) how long the coverage lasts (and doesn't start until the factory warranty expires), (c) finally the cost. Do not look at cost first. Decide the coverage you want, then negotiate hard on the cost.

 

Long time lurker first time poster.

I'm on the fence about getting an extended warranty for my wife's 2017 Prius Prime Advanced. The only reason I want the warranty is for the huge touch screen, expensive sensors & electronics, prohibitively expensive headlights and tail lights and the hybrid battery.

Unfortunately,the service agreement specifically excludes the hybrid battery and the headlights and tail lights. I know they are LED but i have seen plenty of cars that are less than 10 years old with failed LED's. I highlighted some of the things i find disappointing that they would exclude. I guess I still have time. Buying a 10 year 125k mile warranty does give me piece of mind but I'll feel like a chump if some of these items go bad and are not covered.

"THESE ARE THE ITEMS NOT COVERED: Accessory Drive Belts; Batteries; Body Panels; Brake Linings, Pads and Shoes, Rotors and Drums; Bumpers; Carpet; Chrome; Clutch Friction Disc and Pressure Plate; Dash Cover and Pad; Door Fabric; Door Trim; Filters; Fluids; Fuel Cell Air Compressor; Fuel Cell Boost Converter; Fuel Cell Electronic Control Unit; Fuel Cell Hydrogen Tanks; Fuel Cell Power Control Unit; Fuel Cell Stack; Fuel Cell Vehicle Battery Pack; Glass (including Windshields); Headliner; Heating Hoses, Lines and Tubes; Hoses; Hybrid Vehicle Battery Pack; Hybrid Vehicle Battery Plug Assembly; Hybrid Vehicle Relay Assembly; Hybrid Vehicle Supply Battery Assembly; Hydrogen Fueling Electronic Control Unit; Interior and Exterior Trim and Moldings (including but not limited to: Ashtrays, Covers, Cup Holders, and Vents); Lamps, Light Assemblies/Housings, and Light Bulbs; Nuts, Bolts, Clips, Retainers, and Fasteners; Paint; Rust and Corrosion Damage; Seat Covers; Sheet Metals; Shiny Metals; Spark Plugs; Structural Framework and Welds; Tires; Vacuum Hoses, Lines and Tubes; Weather Stripping; Wheels and Rims; Windshield Wiper Blades (Rubber component); All interior and exterior cloth, leather, and stitching including convertible tops and/or vinyl tops including but not limited to: any vibration, deterioration, discoloration, disfigurement, warping, fading"

 

Wow, that is a long list of items not covered and particularly the Battery Pack. I remember hearing that battery packs are next costliest item after the Engine in a hybrid car. Are these standard list of exclusions for all the the Toyota VSA's? Are there reliable 3rd party contracts that cover Battery packs?

 

The hybrid battery system (see below) is covered by regular warranty 8 years/100kmiles. If you live in CARB states, the hybrid battery pack is covered 10 years/150kmiles. That cost nothing.

 

Thanks. I see a * so looks like some strings attached.

 

You can read the whole thing in this document.
https://www.toyota.com/t3Portal/document/omms-s/T-MMS-18PriusPrime/pdf/T-MMS-18PriusPrime.pdf
Those with asterisks are the components covered by hybrid system warranty. I found have following footnote.

* Covered under the Hybrid System Warranty for eight years or 100,000 miles, whichever occurs first.

So, I guess other parts of hybrid system are covered only by regular 3yrs/36kmils warranty?