I just purchased a previously-owned (2005) Prius from a local Toyota dealer. As is the case with most new (used) car purchases, the dealer is pushing me to purchase the extended warranty. I recognize that, generally, dealers make great margins on extended warranties, however, with all of the electronics on the Prius, I may be interested in increasing my coverage. So, my questions are: Based on the experience of the group, do you suggest that I purchase the extended warranty? Have those of you who have purchsed the extended warranty been satisfied with your experience? In your opinion, does the extended warranty provide good value for the dollar? Some additional facts: Model Year: 2005 Current Miles on Car: 7,500 Current Warranty: 3 year/ 36,000 miles Cost of 8 year/100,000 "bumper to bumper" warranty plan (about $2700) State of Operation: California Options on Car: Nav System, Bluetooth, Bose Premium (6 CD), Smart Key/Ignition, Traction Control, etc. I am a Prius Newbie, but believe that this is a "Package 3". Thanks in advance for any thoughts that you have.
I've seen conflicting reports about the big-ticket electronics being covered past the basic 36,000 miles, so if you get it in writing that it's bumper-to-bumper for the duration of the extension, it's probably worth it. If you don't get it in writing, at least ask what the most expensive parts are, and then if they are covered past 36,000...
At $2700, I'd pass. I bought mine when new for a hair under $1K, not because of the hybrid system, but because of all the other gadgets that could break. I felt it was worth it, even though I have not had any claims yet. But at almost three times that, I'd pass. People here were buying the new car warrantee at a discount. Can it also be done here on a used car? I thought you could buy it any time during the regular warrantee period.
Same can be said for homewonwer's and car insurance, right? But you do buy those? Here's the link for sales here: http://priuschat.com/index.php?showtopic=3130
KTPhil is right, $2700 is really pricey. The dealer's just going to make a lot of money on it by gouging you and that's all that they care about. I wouldn't even get my oil changed there. You're better off getting the extended warranty from Troy for just under $1000.
<div class='quotetop'>QUOTE(LittleAl @ Feb 5 2007, 12:31 PM) [snapback]385601[/snapback]</div> Here's a little story for you! I generally feel that any extended warranty on ANYTHING is just a scam to get more of your money. I usually never get it. That being said.... When it was offered to me on my new Prius, I firmly declined. I forget the price but it was think it was somewhere around $2k. The salesperson was amazed that I declined it. He said that since he already knew I was a mechanic and was aware about breakdowns, he expected me to get it. I offered that I thought Toyota made dependable automobiles and that I expected that I wouldn't experience any problems! He hem'ed and haw'ed for a few more minutes and tried to change my mind. I kept politely refusing to bite. He related a story about how he just had a customer bring in a fairly new Prius with a LCD display problem and how it would have cost the customer around $3,000 to have it replaced if it hadn't been under warranty. Again, I said thanks for the advice but no thanks. He finally said..."look, I'm 'gonna do you a REAL favor!" He reached behind him and grabbed a book labeled "Employee discount price list". He says "How about I give you the Extended Warranty Contract at the employee price? Id hate to see you get this vehicle and then have no recourse to any problems you might have. After all, this is no Corolla with roll down windows....this car is a pretty complicated peice of equipment. How about the EWC for $1,100?" I made sure that EVERYTHING (bumper to bumper) was covered up to 100,000 miles. Then I said OK. It's still more than some pay but it's far less than the average buyer pays who gets sucked in by the salesman. I know that Toyota probably still makes a good buck on it. But it didn't cost me that much more per month to amortise the Extended Warranty Contract over the length of my loan. In this case (with all the crap that can go wrong with this car) I think that it's a good decision to get it. Everyone has to make their own justification though. Good luck with your Prius!
If you get the extended warranty, you are betting that the cost of covered repairs will exceed the cost of the extended warranty plus the interest you could have received on it. And remember, the warranty is not going to cover things that are expected to wear out during normal usage, such as the brakes. For $2700, that's a big gamble. If you were to need a $3000 repair, then you would have saved $300 dollars by buying the warranty. However, if you never have any problems beyond brakes and tune-ups, then you wasted $2700. How about some self insurance. What if you had refused every extended warranty offered to you in the past 10 years for your TV, DVD player, camcorder, digital camera, iPod, car, etc., and had instead invested that money into mutual funds? You'd probably have many thousands of dollars sitting in the mutual funds by now. More than enough to pay to replace any one of those items that never broke during their extended warranties anyhow. You obviously can afford $2700, since you are considering the extended warranty. So if you think you could afford the cost of a major repair to the Prius if it needed one, then keep your money and invest it instead. And then when you buy that HDTV and they offer you an extended warranty for $250, turn that down too and invest the $250 instead. Do that for all your stuff and then in the unlikely occurrance that one of your things needs to be replaced before you are ready to kick it to the curb anyway, then you will have plenty of money to buy the replacement. With the $1000 extended warranty offered here on PriusChat, the gamble is a lot smaller. However, I would still just keep the money and invest it instead.
It's a crap shoot. I got an extended warranty on a camcorder which wasn't needed. I got an extended warranty on a refrigerator which I needed and got a new refrigerator out of it. I got an extended warranty on my last car, which was needed, but useless as it was a third-party that was never created (but money taken). I have about 5,000 miles left to decide. I'll probably get it from Troy.
<div class='quotetop'>QUOTE(KTPhil @ Feb 5 2007, 03:34 PM) [snapback]385649[/snapback]</div> Of course. Most of us can't write a check to replace our house if it burns down, and the state requires car insurance. But if one can afford to self insure, that is, to pay for a non-accident car repair, then on average it will cost less to do that than to buy an extended warranty. Take the $2700, buy a 1 year CD at 5.2% and pocket the profit.
<div class='quotetop'>QUOTE(richard schumacher @ Feb 6 2007, 12:01 PM) [snapback]386093[/snapback]</div> That is fine if whatever goes wrong with the car isn't expensive....or if only one thing fails. I was told that the cost of the main display screen is $3,000 alone! So if just that goes over the course of 100,000 miles, you wouldn't be too bad without the warranty. If more than that goes wrong with the car.....you might pay ALOT more than what an extended warranty would cost....especially if you bargained a little with the dealer. 100,000 miles for me is just about four years of driving. Even in just 4 years, a lot can go wrong with the car. Still....Toyota does build a fairly reliable automobile. It could be NOTHING will go wrong with it! It's a crap shoot for sure. Roll the dice!
An extended warranty is an insurance policy. All insurance policies are priced to make a profit for the seller, not the buyer. If you can afford the potential outlay then self-insurance is cheaper. If you can't afford the potential outlay, or if you want to buy peace-of-mind, then buy insurance/an extended warranty. You can get an extended warranty for a lot less than $2700. Also, a re-manufactured MFD from Toyota is less than $1K.
