Extended Warranty and Service Plan?

I just bought Toyota Extended Warranty for my new 2020 Prius Prime Limited. The Prius is a very reliable car. But I wanted peace of mind that I wouldn't have to worry about any big expenses down the road.

I purchased the Platinum for 10 years for 125,000 miles. Yes I plan to keep my Prius Prime for that long. I bought it from Troy for $2,070. My dealership tried to sell it for $3,600 then dropped the price to $3,000. The dealership was never even close to Troy's price. I also decided to purchase the Auto Care Plus from Troy. The dealership wanted $1,430 for the Platinum 5 years and 75,000 miles plan. Troy sold the same Care Plus plan for $980. No sales tax if you don't live in MA. Plus I don't need to worry about price inflation of these service costs.

Troy is great and easy to work with. Absolutely no pressure. He just wants to help you save some money. This is my second extended warranty that I have purchased through Troy. Highly recommended.

Toyota of Greenfield
12 Olive Street
Greenfield, MA 01301

Attn: Troy Dietrich
WarrantyShack.com

 

Thanks for this info! I'm in the process of buying a 2020 Prime LE and wasn't looking forward to meeting with the dealer's Financial Manager next week. BTW Troy has his own place with quote request form - fd-warranty not quoteshack - I'm too new to be able to post a URL yet, but google his name and greenfield

 

"I also decided to purchase the Auto Care Plus from Troy. The dealership wanted $1,430 for the Platinum 5 years and 75,000 miles plan."
You know that you've already prepaid the service for the first 2 years or 25k? Every new Toyota has that baked into the price. So...$980 for maintenance for the following 3 years or 50k. 5 oil changes. The other maintenance shown in the manual. I'd rather get the work done for less at any licensed auto repair shop.

 

True - but this month (at least) Toyota is reserving for dealers (Troy can't sell it) to sell 4 yr/45k maintenance for $329. Given that will cover the 30k major service (that falls outside of the free 2yr/25k) which in my area is pricing at ~$250, plus a couple more synth oil changes and 5k minors, $329 is good - otherwise I wouldn't bother with it.

 

Was your first warranty worth it? As in did you claim more repair costs than what it cost you?

With the battery warrantied for 10yr/150k miles, and the emissions equipment also for a long time (especially in CA emissions states), a warranty on a Prius is very unlikely to pay out.

Also, I can't imagine spending $1000 for maintenance items just to get from 25k to 75k miles. Filters and oil? No coolant change. No spark plugs. No CVT fluid. Where's the actual costs? "check this, check that" = inflated service costs.

If you're within a certain amount of days, you might be able to get a full refund. Take the cash, put it in an investment account. Cash it out if you need to pay for repairs in the future. The most likely outcome is that the money will grow and help pay for your next vehicle.

 

Well, an extended warranty is, essentially, an insurance product. And no one is going to intentionally sell unprofitable insurance, so of course on average, most people "lose" money by buying them. That much is undeniable. But after that there is opinion, risk tolerance, peace of mind factors that everyone values differently. And given how much Troy and a few others discount them compared to most dealerships -- sometimes almost half off compared to some places -- that tells you what a huge profit center it can be, and why they are pushed so hard at many dealerships. (I was actually lucky where I bought my Prime, there was no hard sell on warranties or extended service plans. They offered, I declined, that was it.)

If you have solid enough finances that you would have no problem eating many thousands on repairs, accepting that the odds are in your favor, you aren't the market for an extended warranty. (Again, that is true with ANY insurance product -- if you can afford to self-insure and you are comfortable self-insuring, then don't buy the insurance.) But some people would rather have the peace of mind over a few years, and to them, even if it's not a "good" decision in the average case, their desire to avoid the worst case might make them want one. And this thread is a reminder to those who do, that you can shop around. For a while, Toyota was not allowing interstate sales of extended warranties, but now I think they do again (last time I checked with Troy, he was able to do it again whereas the first time he said I'd need someone local to them to buy it in person on my behalf -- I like to check in to keep options open).

The most important things to remember if you are considering one is: (1) You do NOT have to buy it from the dealer who sold you the car. You can buy it from *any* Toyota dealer that offers genuine Toyota warranties. (Do not even consider third party extended warranties that are not honored by all Toyota dealers nationwide.) Also, (2) You don't have to buy it immediately or very soon after. Generally you can buy it any time within the warranty window (less than 3 years and 36,000 miles). So you can wait 2.5 years, and if you are having issues with the vehicle, buying it might not be a terrible idea. If you have been trouble-free, maybe not. And (3), there are HUGE price differences from dealer to dealer; this is not a fixed price product. You may even be able to negotiate with your own local dealer based on showing them (for example) Troy's prices (though I doubt many would match or even come close).

In summary.... yes, on average it is a money-loser for those who buy them. But at the very least, you will lose far less money if you shop around for the best price (they are the same no matter which dealer you go to, as long as it is a genuine Toyota Extra Care warranty) if having one helps you sleep better at night.

The other thing, of course, is that you need to be meticulous about regular maintenance and record-keeping. If you have a claim, you might need an "audit trail" showing you performed all the recommended maintenance within the recommended intervals. If someone is not inclined to do that, then don't bother considering an extended warranty.

 

thanks to all for their info and insights and questions.

i'm getting a 2018 prius 2 to replace my 2007 prius (145K miles but upper-30s/lower-40s MPG, bad driver door lock/unlock actuator, front-end suspension problems, and moderate front/back bumper damage).

i contacted Troy Dietrich via his new website ( Factory Discount Warranty @ fd-warranty - add the suffix to the end ) and received quotes back pretty quick.
current Premium Plan w/ $0 deductible quotes range from 6 yr / 75K - $610.00 to 10 yr / 125K - $1615.00.

Carvana (whom i'm buying from) offered 5 yr / 90K miles for $1450.
compare that to a 7 yr / 100K for $950.00 plan from Troy.
i know who i will be talking to soon!

thanks Troy!
and thank Prius Chat members!!!

(a comment from the reply i got from FD-Warranty
"Most of the details on the Extra Care plans can be found directly at Toyota's website at the following link, including all the various terms and options available, just let me know if you would like a quote on a different plan.
((cant post link due to my insufficient # of priusChat posts. but if you send FDWarranty an inquiry, they'll send it to you.)) )

 

Be sure the extended service contract is from the auto maker, not a 3rd party underwriter. If the 3rd party goes bust, you've got nothing.

 

I have bought warranties from Troy on 2 occasions and was very satisfied.