Input from you folks on extended warranty

The extended warranty may be a good idea if you expect to keep your Prius for seven years or 100,000 miles. This car has a number of systems that few mechanics may want to service, so maintenance after the waranty runs out could be expensive.

 

I went ahead and got the extended warranty by prices for the same product can vary. I seem to remember a dealership in Massachusetts selling them for under $1000. They go with the car and are transferable. With the changes it seemed a resonable idea but would suggest that you shop around some. Run the search function for PriusChat and maybe the sub $1000 dollar warranty dealership. Also know that you do not have to purchase it at the same time as you buy the car, as long as you get it sometime within the original warranty period.

 

I continue to be against the extended warranty. In almost all cases, the extended warranty costs you more money than you would have spent to fix any problem you would have had, hence the reason for the success of the business. Consider the Prius warranty. The hybrid parts are 8yrs/100k miles or more in CA, etc. Rust or corrosion is 6 years, unlimited. Powertrain is 6 yrs/60k miles. Everything else is 3yrs/36k miles. So only power window, radio, defogger, steering, etc. would cost you anything after 3yrs/36k miles unless it was a product defect, which would likely be covered. In 3 years you could invest $900 and generate at least $300 of income, for a sum of $1200. Now your product failure would have to cost at least $1200 to fix to break even. Otherwise it is money in your pocket.

I would wait 2 1/2 years and see how many problems this car actually has. Then, if there are many, I would consider buying the extended warranty if it would appear to save you money in the long run. However, I doubt you will have any issues out of warranty and thus you are throwing your money away on extended warranties, just like with TV's, refrigerators, etc.

 

We have no choice in Switzerland. 3/8 plus free service. Everything is included even oil (3 years or 60'000 miles).

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I'd sure like to know where I could get 11% interest without significant risk of loss of principal! Looks like 3-year CDs are offering around 3% right now. That $900 would earn you a bit over $80 in 3 years.

Of course, if you have inside information you can do all right on the stock market.

But I agree that extended warranties are a bad bet.

 

Extended warrenties are a gamble. It is nice that you have through the end of orignal 3/36 warrenty period to decide.

On my last car, a 1996 Saturn, I did end up getting the warrenty (at half price) because I had some "issues" with the car during the first 6,000 miles.

The warrenty came in handy - within two months of it ending, my engine was burning oil and the gaskets, valves, pistons and rings all needed to be redone. This is on top of the transmission, altenator and some electrical work all of which would not have been covered by the regular warrenty. We still have the car, and its been running quite well since the warrenty ended.

My Prius has been excellent though, so in this case I don't know if it will be worth the money. Luckily I have another two years to decide.

 

Extended Warranty

1. Consumer Reports advises against extended warrantys. Often the warranty is not connected with the dealer or the manufacturer and may cease to exist when you need it most.

2. An extended warranty implies the product is defective (other than the high profit) why else do electronics vendors push extended warrantys!?

3. Maintenance is the key to anything (house, bicycle, car, skis). Follow the maintenance intervals faithfully. Look around - many Toyota vehicles are still on the road after 150,000 to 200,000 mi - because their owners did regular maintenance.

4. If you decided to purchase an extended warranty, go through your credit union, not the vehicle dealer.

 

Aarons12,

The issues of new technologies (plural) is exactly why I broke my rule of never buying extended warranties. If not for that I have never bought them in the past. And by the time I take delivery on our second Prius (just ordered) would definitely wait until the last possible moment before deciding whether or not to cover the second one.

Jon

 

FYI - demand notes are over 6% as are other bonds. Regardless, you either invest your money in a warranty, or invest it in something else. My experience, and the recommendation by consumer advocates and financial advisors, is to invest in something other than a warranty that benefits less than 1 in 10 per industry data.

 

I agree and there's really no way to run the numbers on that...........depends entirely upon one's aversion to risk and "sleeping level".

 

Probably a dumb question, but:

Why would anyone buy a Toyota extended warranty before the 3 year standard Prius warranty is up? Does the extended warranty provide some coverage that the standard warranty doesn't for the first 3 years?