New Prius, Now What?

Welcome to Prius Chat!

I am one who says just go with the warranty that comes with the car. Extra warranty is more money you are spending up front with little chance of getting all of it back. You might get part of it, but for the most part these added on warranties are sold to make the dealers extra money on the car sale.

Just bought a new 2013 this spring, rejected all warranties and extra's that were presented to me during my time in the finance office. Did the same on the last Prius. Had very few repairs. One's that were made was because of neglect and abuse by former owner (fleet rental car). Since I bought new, I know the history on this car and I am the only driver in her.

Everyone has their own opinion on extended warranties. The above is mine.

Best of luck to you,
Ron (dorunron)

 

I basically agree especially that its a way for the dealer to make more money. However, I'm wondering about the very expensive hybrid electronic assemblies. While they are unlikely to fail, insurance might make sense. Compare that with term life insurance and long term care insurance both of which one hopes they will never have to collect on.

 

In my book, it really hinges on how long you plan on keeping the vehicle and whether or not one has a cash reserve to pay for unexpected break downs. History shows that generally the car outlasts the aftermarket and factory warranties before any major breakdowns occur. Of course, there are and have been exceptions to that. But is it not what the warranties are really for? Most folks who buy a new car won't keep it after the factory warranties have expired. The expensive hybrid stuff is good for a minimum of eight years and or 100,000 miles. Not many keep a car longer than that, but other's do. I have been known to drive 15 year old cars with over 150K on the clock. But when doing that I am doing the repairs also as needed. Different strokes for different folks. To be perfectly honest, I chose to trade in our 2009 Gen II when it had 79K on the clock due to the hybrid warranty which would expire in less than two years time due to the mileage and I was offered an excellent deal on the new 2013 I bought.

Ron

 

Don't pay for the fabric and paint protection. If you really want paint protection, pay a professional detailer to install something like Opti-coat which will provide far more protection than anything the dealer offers. Most fabric stains could be removed after the fact by the same detailer for far less money.

All of those services are just dealer padding for their profit. It's not a good deal for you.

 

I just, two days ago, bought a new 2014 Model 5. You will save a lot of money buying right now. I always buy the extended warranty. My 2010 Model 5 had a nav / audio display unit problem at like 80,000 miles. They replaced it. Without the warranty you're looking at $2500 plus.

This time I bought the 8-year, 125,000 mile extended warranty with a $50 deductible per occurrence. You can negotiate the cost down to $2,000, at least, that's where I stopped haggling. In my view, as a Prius lover who now owns two, a Prius without a warranty is an unmanageable risk.

 

You wasted your money. None of it is necessary.

 

In deciding on insurance, I ask myself the following questions:

1. Is there a legal option of not having the particular kind insurance?
2. Can I live with the possible financial consequences of not having the particular kind insurance?
3. Can I live with any other consequences?
4. Would having the insurance protect me anyway?
5. How hard might it be to collect?
6. Is it likely to be a good investment?
7. Will it bring enough peace of mind at low cost to be worth doing anyway?

I do not insure for car maintenance for the following reasons:

1. It is not legally required
2. There is no risk that I would spend enough on car maintenance to be unable to live with the financial consequences.
   1. I might not like them but they would not destroy us
3. I don't see any other consequences
4. Insurance would probably protect me but maybe not as well as I would like or expect
5. It may be hard to collect
6. The likelihood of it being a good investment seems likely to be very low
   1. The premium has to cover commissions, overheads and profits at multiple levels so much less will be paid out in claims than is taken in as premiums.
7. It would be costly and it would reduce my peace of mind because I would feel I'd not made a good decision

Following the same logic has led me to the following decisions for other insurance

1. Discontinue life insurance when I retired
2. Get health additional insurance when visiting the US
3. Take out earthquake insurance a number of years ago
4. Discontinue earthquake insurance when premiums and deductibles rose and our circumstances changed

Others may reach different conclusions based on their circumstances but I would guess that most people who follow a similar decision process would not opt for car maintenance insurance.