Is Prius extended warranty ever worth it?

Obviously. And if you had a whit of personal finance acumen you would realize it is so.

 

I guess the auto title loans would work really well......until you lose your car all together.

$2500 at $35/mo would be another 71 months of payments. interest free

 

A little math out of you. Good start!

But consider a realistic scenario:
By five years the car payments are completed
In that time 35*60 = $2100 + opportunity gain has been saved

99 people are each $1200 - $2000 + opportunity gain richer;
You are the unlucky one saddled with a $3000 - $4000 repair.
You pay a month or two of interest while paying back the difference.

In case you have not noticed, the people who *really* make out like bandits by ignoring the EW are those with high interest loans. The same people who buy the thing for "peace of mind."

 

so how does one get another loan for the $2500 difference while on a fixed income? and no extra money to go towards a 2nd loan?

 

Answered above. No reason to move the goal-posts.

They already have been saving $35 a month + opportunity gain for at least five years before that 1 in a hundred expensive repair comes along.

 

This failure came in 24-36 month time frame, not after the 60 months with $2100 banked

 

What failure ? Specifics please, along with frequency

 

Engine and transaxle failure after 60,000 miles, 1 time

 

If it was not owner fault, both of us know that Toyota would cover the repair if not already under a standard warranty.

Now, this one episode you speak of: is that a Prius ? Our denominator is 5 million.

 

I just don't get where ANYONE said it was a prudent financial decision, I don't think it is. It's just that some people have their reasons for buying one and much of that is based on the '"peace of mind" emotion you also don't like. The Prius itself is not the best financial decision for most people who buy one, especially those who later find the seats are too uncomfortable, the Navigation system is not what they expected, etc.

As I've said, I think 0% interest is also a gimmick, but tons of people fall for it just so they won't see an entry for interest on their monthly statement. No one loans you $20k-$25K or more just because they're nice guys. They do it because they rolled the interest into whatever you paid for the car and you don't even know how much you paid. And, yes, people could probably save enough to cover an expense, but I know a lot of people who are too immature to leave a savings account untouched for a rainy day. Mind you, I still don't think that's a valid reason for buying an EW.

How many people do you know who withhold too much in taxes so they get a refund every year? Is it prudent to let Uncle Sam use your money all year long and give it back with no interest? Of course not, but some folks wouldn't have the money if they ended up owing, so they spread the hurt out over the course of the year.

How abut this? Is it smart to enroll in budget billing for utilities? You pay a set monthly amount, like an escrow account, rather than smaller amounts in the winter and larger ones in the summer (or vice versa), but at the end of the year you paid in more than you owed. Collectively, the utility company makes a lot of money off that excess throughout the year, that's why they offer the option. You might think it's foolish to give them $200 when you only owe $80 for a particular month just to avoid paying $300 in another month. However, I can attest to how much easier it makes budgeting, not only on a fixed income, but also when trying to dig out of debt.

 

We are not talking warranty repair, and we are not talking "maybe" Toyota HQ will help you out. I'm talking a full blown $4000+ repair period that would be covered under EW.

Yes a Prius as anything can happen to the 5 million out there

 

You do realize that the math is based on probability, right ?

I was happy to use 1:100 as the likelihood of an EW turning out to be a better deal than not, but we can use 1:5,000,000 if you prefer.

 

well if you're the 1 in 5 million.....I guess it's worth it to get the EW.

 

I don't think you've shopped for "lightly" used anything in Phoenix, especially when new in town and don't know anyone. Everyone I know who has priced used parts around here has found they want almost new part prices. Even labor here from the non-dealer shops runs close to dealer prices. I did eventually find a shop that might have done the job cheaper, but they closed up last year. I think I finally found another shop that might have given me decent prices too, but then I sold the van and bought the Prius. Now I'm back in the same boat trying to find a new shop capable of working on the Prius, though with the EW, I shouldn't need one.

I paid cash, thank you very much. Seems to be some stereotyping going on here.

 

If you were not an exception to the rule, you would have a point.

Fine, then pay for shipping. Rational shoppers -- remember ?

 

I guess you got me there.

Mind you, I'm not at all convinced I should have bought the EW, but it just wasn't worth arguing about at the time and in the end I'm only talking about a $400 expense. Of course, they could always replace a $10 item just to negate my 50% refund.

 

All correct examples ... of people who paid a few percent more than an informed person.

EWs are a different animal because they are SO expensive. By expensive I mean the money value returned for the premium.

 

after this discussion I have changed my stance on EW.

I believe if you are the type to not have extra income, savings, fixed income, no easy access to money, then I would suggest you buy the EW.

If you have the luxury of paying cash for cars, have a good amount of savings, etc.....then don't get the EW

 

I have to say my luck with used parts has not been good on previous vehicles, even when I knew the people involved and could do my own work. I know I overpaid for the motor, but I did get another 125,000 worry-free cross-country miles out of it, so it wasn't that bad. Looking back, I would have done things differently, but I don't Monday morning quarterback, I just try to avoid making the same mistake.

I'd add "for a reasonable price". I don't think $2,000 is reasonable at all and would not have bought at that price no matter what my situation was.

I should mention too that I recall when I-10 between Phoenix and LA was first completed. There was a 105-mile stretch where there were no exits whatsoever. It just so happened that I was returning to Travis AFB CA with our 10-day old daughter and my 1970 GTO bent 2 pushrods 3 miles from the Pontiac dealer in San Bernardino. I was able to limp in, but still can't imagine what I would have done had it happened on that stretch of freeway.

 

Yes, definitely buy the EW at a reasonable price. It just seems unfortunate, the people that need the money savings most are the ones that should be buying this warranty........