Input from you folks on extended warranty

I would think component replacement for this unique vehicle would be very expensive...as the technology becomes more common place (next 5 years) then the unique component pricing may drop some ...however I don't think you could buy any of these specialized components in a NAPA parts store...

so I would think an extended warranty is a very good safeguard for those of us that plan on keeping the vehicle for 7-10 years.

I would not get an extended warranty if I only keep for 5 years or less.

 

Bonds carry risk. If the company goes belly up, or it turns out that the CEO has been cooking the books (a la Enron) then your bonds may end up paying you a fraction of their face value, or nothing at all. And in any case, 6% is a far cry from the 11% you suggest in your earlier post.

However, we are agreed that extended warranties are a bad gamble.

If I have problems with my Prius during the regular warranty period, I might decide on the extended warranty. If you figure you have a lemon, the warranty becomes a better bet. But if overall Prius reliability remains as high as Toyota cars generally maintain, and if mine has no problems, I probably won't get it.

In any case, I plan on trading in my Prius when the next major model revision comes out.

 

I really did not intend to get into a debate about what you can earn in the market on certain types of investments. As you indicated earlier, investments carry risk. Over 3 years, the odds are in my favor of returning 10% or more on average per year. With a warranty, the industry admits the odds are less than 1 in 10 that you will use enough of the warranty investment such that you break even. So, the odds are better in most other types of investments. But that is not the point. We really got off on a tangent here. My opinion remains unchanged. I will keep the $1000 and earn 3% or more versus giving it up to less than a 10% chance that I will ever have to use the benefit. This is all about investment and risk. To each his own, I simply expressed my opinion on this matter, which is what was asked. As you indicate above, ultimately we are in agreement.

 

Agreed!

 

The extended warranty dilemma

I just picked up our new Seaside Pearl #9 Prius yesterday and told the dealer we'd decide on whether to get the extended warranty when we go back next week to complete the paperwork. I am leaning towards purchasing the extended warranty, principally for the peace of mind factor, recognizing that it may not make sense from a purely rational perspective. My questions are: is there a price variation in the price that Toyota Dealers offer the TOYOTA extended warranty. In other words, should I try to get a better price? What's the best strategy? AND how long should I get the warranty for?

 

I would suspect it's probably for several reasons - the ones that I think of immediately are:

- being able to pay it w/in the loan
- being able to just get it taken care of

We haven't bought it yet, and probably won't until right before our 36K miles are up (we're right under 3K right now). Buying the extended warranty @ time zero is like giving them your money free for three years. Given that you can make interest on your money, etc... if you are just buying the extended warranty deal (and not the extra other deals) then you are better off waiting (if you can shell out the $1K when you need to)

 

I agree -
The companies (car, tv, Best Buy, etc..) are making $$ off of these extended warranties. There is a huge profit margin on these, because they are banking on the fact that you won't need to use it. It's like a term insurance policy in a way - you are giving them your money for peace of mind, and they're investing it, etc... to make even more of a profit because chances are you would not use the extended warranty. The majority who buy it, don't use it, significantly outweigh the few who need to above and beyond the cost of the warranty.

 

My 2c- I did buy the extended warranty when I bought the Prius. Paid $900 for the Toyota Platinum. First one I've ever bought on anything.

I have thrived on Toyota reliability for 19 years- a Camry for 16, Highlander for 3 before the Prius. But parts on this one are likely to be pretty pricy, and probably not available aftermarket for a long time- not that I'd use aftermarket in my Prius!

In addition, though- and this is the biggie- the extended warranty provides for towing TO A TOYOTA DEALERSHIP- not just to the nearest repair facility, which is unlikely ever to have seen or worked on a Prius.

Since the warranty also provides for roadside service, and I have the nav system, I can drop my AAA and save $75/year to offset the warranty cost.

Advantage to buying it with the car is you might be able to get a better deal, and can roll it into the financing.

 

But shop around the price of the Extended Warranty varies greatly from dealer to dealer

 

Thoughts on why I think that I will buy a warranty (for about $1000) near to 36K...
While none of us doubt the quality of our Toyotas, there are parts on this car that have not withstood the test of time. Another reason, as a proud owner of a 9, the warranty cost is the same for any option package. Not impossible to imagine a keyless entry failure, or a nav system developing problems... The only thing that I think that can happen from waiting 3 years it that the price may increase some. A good reason to wait is that I will be better able to predict how many miles I will have at seven years...
Alan

 

How long once you cancel the warranty w/ the dealer does it take to get the check (or see the credit if they send it to Toyota)?