I just contracted at a dealership for a 2018 Toyota Prius Prime Advanced, Blizzard Pearl color. I did not actually buy it yet, because they do not yet have it in stock, but my car should be there in a few days. (I just paid a deposit to hold it.) The car salesman asked me if I wanted an extended warranty, and I said no., But then he had me speak with the finance manager, although I am paying in full (taking money from mutual fund investments), not financing. That finance manager tried very hard to sell me the extended warranty and extended service plan. At first close to $4000 to extend the warranty from 3 to 6 years, and the maintenance from 2 to 5. I said No. He kept both extending the years and lowering the price, determined to sell me the plan. Finally, with the warranty extended to 8 years (maintenance I think still to 5), and a price of $2695 for both, I relented, I think partially just tired of talking to him about it. But now I think I made a mistake. Since they did not have the car in stock yet, and I did not pay for it yet, I think I can back out of that. Your thoughts? Definite NO, or hold out for a lower price for it? Of course their shtick is "buy peace of mind". Well, it doesn't give me peace of mind to think I might be wasting money, paying far more for those plans than I would likely have to pay for warranty-covered repairs and maintenance during those extra years. So that "peace of mind" sales pitch is nonsense. Most articles advise against buying such plans. They say especially if you buy a reliable car there is less chance that the extended warranty will pay off. One reason I am going for Toyota is its reputation for reliability. (For instance, as a plug-in hybrid, the Chevy Volt certainly has some advantages over the Prime. But I went with Toyota due to its reputation for reliability.) But how about., rather than the normal engine components, the electronic components of the Prime Advanced-that large screen, the advanced safety features, etc. How is the reliability of those features during the extended warranty period? How likely would it be to have problems? I just retired, so will not be commuting every day, so will not be putting a lot of miles on the car. I would guess the extended service contract is not worth it. During the first six years, not a lot of miles in my case, probably not much more service than oil changes, correct? I am inclined now to totally opt out of those extended contracts, especially after reading the articles above. Yet before I decide for sure, I would like to hear your opinions on it. (Of course, since the Prime just came out last year, we can't hear from people who have had them more than three years to see what warranty repair they might have needed past the three year period? That means all we can do is guess. Perhaps experiences with other Prius models might help, although they don't have all the same features as the Prime Advanced.) Still, I am curious to hear your opinion. Thank you very much for your input.
I intentionally purchased one specifically to cover the expensive electronics. The 11” touchscreen is $7000 just for the part. I keep my cars a long time but put on low miles. In my case I purchased a Toyota Platitum 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. J
As an individual who has spent most of his life in a dealership, I can tell you that it's a major "money maker" for the dealership. But this is common knowledge. Do you need it? Absolutely not. You will be paying for something which you cannot use for the first 3 years / 36k miles - so don't take the extended warranty. If so desired, an extended warranty can be purchased at a later time - say for instance when your car runs out of factory warranty. True, it's cheaper to buy it right up front, but not enough to be paying for something which you cannot use for the first 3 years you own the car. IT is also the finance managers job to do exactly what they have done, so please don't hold it against them. Just be firm in your insistence that you do not want to purchase it. If he/she continues to badger - stay firm and even be "rude" - even if that is not in your nature. If your "rude" about it, he/she will know your truly not going to be badgered into it. Even stand up and threaten to walk out. Look closely on your bill of sale - you may find they "accidentally" didn't take it off the selling price. Here, where I live, you can even "line out" with your ball point pen, something you don't agree with. They can either agree and initial it theirself, or re-do the paperwork completely. Also, don't buy the "paint seal", "theft protection" or 3M Scotch Guard. You can have all that done yourself insanely cheaper. Especially the 3M - which was a simple aerosal can sprayed onto the upholstry and floors.
I refused the extended warranty. They were hard-selling me, which is a big turn-off. I almost just walked out. You also might want to ask the service manager about any pending recalls, or technical service bulletins that pertain to your model of Prius. Maybe they can fix those issues before you take delivery. Hopefully there are none, but my 2016 Gen4 non-Prime has had 2 recalls, if I remember correctly. And a couple of TSBs
That price of the extended warranty, is negotiable they have a considerable padding for profit built into that price. And you don't have to buy that, until your factory warranty is about to expire vixen warranty doesn't cost anymore, is also still covered under factory warranty . There's no sense in buying that warranty now, you may not even have that car at 36,000 miles. Posted via the PriusChat mobile app.
There are benefits from day 1. Reimbursement for lodging and car rental if you suffer a breakdown away from your home area. Also roadside assistance for the life of the policy not just 2 years. Not sure what that all is worth but those benefits kick in immediately. If you get rid of your car I believe a pro rated refund us possible.
The refund IS possible, 99% of people never do it, because the paperwork is a nightmare Posted via the PriusChat mobile app.
Twice I got a refund when purchasing a new car and the paperwork was not a nightmare. I didn’t even need to ask for it. The business manager did it automatically as part of the purchase process.
Congrats for finding a business manager willing to do their job. Posted via the PriusChat mobile app.
Same here. I just kept saying no. The finance guy started getting pushy and I finally said that I was done talking. Either write it up or I was leaving. That ended the discussion. It is a shame that you are forced to act that way.
Well, the OP is paying cash, so of the finance guy doesn't get him on a warranty, or interior/exterior sealant etc, he will spend an hour or more of his day, doing HIS JOB, for free, earning a grand total of $0 Auto sales and finance are purely commission based, no sale, no money. I've made $10k one month, $2k the next. Both months were 28 days of 12+ hour days, standing out in the heat all day The hard sell is a tad much, reducing in this day and age, but the man is trying to eat. Posted via the PriusChat mobile app.
I think the person selling you the car should receive a commission. The person processing the paperwork should get paid for processing the paperwork. If they manage to sell something along the way they should receive a commission on that. They are performing a necessary service and should be compensated for it. IMHO
Back to the OPs question, you have a short period of time to cancel the extended warranty contract if you change your mind and don't want it. Look carefully at your paperwork (fine print) and tell your dealership you want to cancel. If they won't help, call Toyota directly.
The extended warranty has NOTHING to do with Toyota, what are they going to do? It's called buyers remorse...you met a salesman! The warranty can easily be cancelled, but the sooner, the better/easier. Posted via the PriusChat mobile app.
I'm confused here - why are you saying the warranty has nothing to do with Toyota when it's clear that Toyota offers a extended warranty? https://www.sc.toyotafinancial.com/web/tfs/pub/contents/vsa/TFS_VSA_Platinum_VSA_eBrochure.pdf We purchased one for our Prius many years ago.
A little late to the party here... Bought a prime plus almost a month ago now and got the extended warranty. After receiving the official rules and regs package and reading through it I decided it wasn't worth the extra cost. The exclusions put you in a tough spot to make a successful claim: parts that are worn out and recommended for replacement are not eligible, parts that fail due to wear are not eligible, and you have to show that you followed the every 5k service plan (which means you will catch a lot of parts that are worn). Only failure from original mechanical defects is covered. I've had a lot of parts fail on previous vehicles but nearly all have been due to wear from driving and New England weather. Also the various other warranties cover a lot of components for a significant length of time, so you need to think of the value added from the end of those warranties not just from the end of the 3/36k. I cancelled and got a full refund by mailing a written request to the Agreement Administator as detailed in the warranty booklet. Fast and easy. I got the check within 2 weeks of mailing them the request. Worst part was that the USPS tracking failed and said it was never delivered. Spoke to a nice gentleman with toyota financial who said they had recieved it and had already cut the check and mailed it out. All this is to say: think it through and do what is best for your situation. Read what isand is not covered and ask yourself if you can afford a major repair that would have been covered. You can cancel easily at any time (full refund for 30 days then prorated based on mileage after that).
