Is Prius extended warranty ever worth it?

I just wish the studies would stop relegating the Prius to the 'hybrid class,' and let it compete in the compact/family where it belongs.

 

I can't speak for studies, their motivations and backing, but personally I could care less how a vehicle is classified if it fits my bill.

 

You are not my concern.

Here is Vincentric for the US:


2015 Consumer Winner Compact Hybrid


Prius kicks butt once again, including in the other non-hybrid classes.

 

Yes, I've told you the story before via PM and yes, the EW would have covered it. As I said both times, that is not an endorsement or advocacy for someone to buy an EW. I generally don't believe in EWs, even for cars with relatively poor reputations, but we never traveled as much as we do now or to the out of the way places we do now, so I felt the EW was worth the price I paid. I hope to never have to use it, but I won't regret buying it for the peace of mind it gives us. My wife still can't get used to driving with the blinking fuel light and 0 MTE, so she sure as heck can't bear the thought of being stranded in NW Minnesota, Wyoming, Montana, etc. Even I panicked a bit the other day while driving though a severe T-storm on I-285 in Atlanta when I hit a big puddle and one of the idiot warning lights came on for a moment.

My main point though is that people can say how reliable the Prius is, and I believe it, and how EWs are pure money-makers, but just like any kind of insurance, etc., it's still an individual decision that takes a lot of factors into account, not just money. Money is a consideration, but a happy wife is a priority and that's worth a lot more than $200/yr.

So is mine and they added 2 extra years of scheduled service. And you are so right about peace of mind when traveling. I have no doubt I could deal with a failure even without the EW, but it'd be a lot more hassle and anxiety.

 

Is Prius extended warranty ever worth it?
Never.

It's a 'stupid tax' for people who buy cars.

Yes...
People win lotteries, and leave the casino with more more money then they came in with, but that still doesn't mean that you should use lottery tickets in lieu of a real retirement plan, or a $1500 payment made to a dealer in lieu of a repair fund.

 

But you're only looking at base repair costs. What about being stuck in the middle of nowhere 200 miles from the nearest Toyota Service Center? One phone call gets the vehicle towed to the nearest service center, not the nearest AAA garage mechanic. In my book, things like that are worth something too. I get that for many people the overriding factor is simply the cost and there are no benefits that will persuade them otherwise. Nothing wrong with that, but there is also nothing wrong with anyone who knows what they are paying for and believes the cost is worth it. Might be foolish to you, but it's their money and their decision.

No one said anything remotely like that and I don't see anyone advocating the purchase of an EW. All I see are some who see value in them for some people and those who don't like people who make a decision to buy one being called fools. Arrogance and condescension does little to support a position. We get that you and others don't like EWs. But I don't like people thinking they got a great deal because they're paying 0 interest. If you paid more than the guy who paid cash, then you paid interest, you just don't see it on the monthly statement. However, I'd never call them fools. They got a deal they were happy with and that's all that matters.

 

The extended warranties are NEVER worth it in my opinion. Never had any major issues with the imports; the Honda Civic and other imports and now the Prius. I DID have lots of problems with a Chevy Silverado truck. A money pit; transmission and lots of other repairs. The extended warranties are just a another way for the dealerships to make extra revenue. They rely on the fact that lots of people are still a bit overwhelmed by the technology of newer cars; in particular the Prius and other hybrids; and think that they need all this additional warranty coverage. When it seems like the factory warranty is fine and covers the major components that might go bad. Again, just my opinion. I've never bought an extended warranty for any vehicle and don't regret it......well except for the POS Chevy pickup!

 

well for those of you that have extended warranties, you can always complain your ride is getting really rough and bouncy. You'll probably get new shocks on all 4 corners before your warranty expires. That's $1000 already.

 

I get half the cost of mine back if I don't need to use it and I only paid $1,100 bumper-to-bumper (with the added 2 years of scheduled maintenance). I understand that most of it is probably money down the drain, but that's the whole point of the discussion, knowing what you're getting and making your own decision. For 100 bucks a year, my wife gets peace of mind and I get some free oil changes, seems like a bargain to me. No need for someone to call people fools just because they do something someone else wouldn't do.

 

And I thought I was blunt.

 

Just opinions, nothing more, nothing less, all taken with a grain of salt. This thread is virtually identical to the last time someone asked about EWs and I'm sure the next one will be just another repeat performance.

 

Is the amount of money left in your pocket an opinion ?
Or perhaps some prefer just prefer to pay more. Far be it from me to sway their opinions if that is the case.

 

I don't think people calculate everything down to every dollar and cents. Businesses have all different ideas and techniques to remove money from your pockets, in one way or another. It's whatever makes you happy that really counts. Money is made to be spent, you can't take it with you to the grave.

If one can afford an EW for $2000, why not. It's the same thing as spending $6000 for Superbowl tickets. It may not make sense to everybody, but it makes sense to them. It brings them happiness and that seems to be all that matters.

 

The discussion is never about 'happiness' so far as I am concerned. My only point is that it is a stupid money move if you value having more money to your name rather than less.

This is why the 'peace of mind' arguments are so lame. If it gives you peace of mind to eat a $100 bill every day instead of an apple go right ahead. My only advice would be to take a piece of paper that has $100 written on it and eat that instead of legal tender.

 

This would apply to health insurance. Do you really need it? It would be a wise money move to not buy it and put your money in some dividend stocks. But it does give you happiness to know if you are down, you can get up without losing your a$$

Extended warranties makes a lot of sense financially when you are on a fixed income. You have 20% of your earning going towards your car and nothing more. So you calculate the $2000 EW into your loan payment of 60 months. That would give you an additional $35 every month, but it would still fit into your budget of 20% of your total earnings.

Whereas if you didn't buy this warranty and down the road get a $4000 failure. You would be totally screwed financially because you don't have the budget to cover this $4000 repair.....or any other repair

 

BAD analogy.

Don't confuse risk diffusion with horribly lopsided premium:return numbers

Wrong. You put $35 into a rainy day account -- the money you saved on the EW -- and keep adding until you hit $4000. Then you enjoy another $35 a month until a repair comes along and you have to replenish the rainy day account.

 

What happens when you need the $4000 and your rainy day account is only at $1500?

 

You pay some interest on a loan. Or, as I described earlier, you are in the over-extended, credit crippled class that has no business buying the car in the first place.

 

Well there you have it......adding debt to an already unfavorable position. I think "peace of mind" is to have the EW in this scenario.

 

You are math challenged.