newbie confused about extended warranty,

If I were in your situation, I would wait until 3 years/36,000 miles to make the decision. During the first 3 years/36,000 miles, the extended warranty hardly gives you much of anything that the standard warranty doesn't already give you --- just a good towing service which you may already have through an automobile club or your insurance or your credit card, and which, in any event, it is extremely unlikely that you'll ever use.

The risk you take in waiting until 3 years/36,000 miles is that the price of the warranty may go up a little, or a lot if PriusChat/Troy/WarrantyShack or anyone else no longer sell it at a steep discount off its MSRP.

Personally, I'm taking this risk (which I think is small) and am waiting 3 years/36,000 miles to make what should be then, a better informed decision.

 

I never use an extended warranty. An extended warranty is a form of insurance. You are betting against the warranty company that your car will break down more often than average, otherwise you pay the company more for the warranty than the cost of covered repairs. Obviously, the warranty company has this figured out pretty well, otherwise they don't make money, so an extended warranty is a money looser for most buyers. Insurance only makes sense when the potential loss is too large bear. It's up to you and your level of financial security, but if you bank that money instead of paying it out for an extended warranty, you will be money ahead in the long run. In the short run, if you are unlucky, you take a hit, but it's not that big of a hit, especially considering that the standard warranty is pretty good.

Tom

 

<div class='quotetop'>QUOTE(pola @ Sep 26 2007, 01:20 PM) [snapback]517963[/snapback]</div>

No, I'm not planning on trading my Prius for a higher MPG Prius in 2-3 years.

My decision to wait 3yrs/36k before buying the extended warranty was based primarily on my not presently knowing how many miles I will be putting on the car (right now after 7 months, I've driven only 2,200 miles on it ... but this could change). This could mean a savings of $250+ if I ultimately decide to get the 7yr/75k warranty instead of the 7yr/100k warranty. Another reason why I'm waiting is that I'd like to use the 3yrs/36k window to see how good or bad the car holds up.

 

<div class='quotetop'>QUOTE(Boo @ Sep 26 2007, 04:59 PM) [snapback]518123[/snapback]</div>

I wish I only drove 2200 miles in 7 months. In 7 months I have racked up almost 32000 miles :blink:

 

<div class='quotetop'>QUOTE(techman @ Sep 26 2007, 09:00 PM) [snapback]518245[/snapback]</div>

Wow that's a lot of miles --- like doing a round-trip commute of the entire length of Long Island 5 days a week. Curious, with so many miles in such a short time, did you or will you opt for the extended warranty?

 

I tend to drive cars for a very long time, so I presently have no plans on trading for a new model. That said, if significant improvements are made, I may be temped.

Tom

 

<div class='quotetop'>QUOTE(qbee42 @ Sep 26 2007, 09:13 AM) [snapback]517820[/snapback]</div>

I agree with you from a strictly financial standpoint, and it's for this reason I rarely buy them. Taking the argument to the extreme, we would never buy insurance.

I am considering it for the Prius, with the car at its 33K mile mark. Obviously the value of peace of mind that insurance buys is among the considerations of the owner, and is part of my decision-making process.

 

<div class='quotetop'>QUOTE(JimboK @ Sep 27 2007, 10:05 AM) [snapback]518433[/snapback]</div>

From a financial standpoint, it only makes sense to buy insurance when the financial impact of a loss is catastrophic, or at least more than one wants to comfortably bear. For most of us this includes items such as our homes, or a new car, but not the old beater car. In these cases you are spreading the risk among the other policy holders, knowing that you pay something extra for the reduction of risk.

The other place where insurance becomes important is when the insurance companies get a better deal than an uninsured individual. This is presently the case with medical insurance. The insurance companies tell the doctors what they will pay for a procedure, and the doctors are stuck with it, unless they want a cash-only practice. As an uninsured individual, you have the great fortune of paying full rates for everything. Gotta love our current medical system.

Tom

 

<div class='quotetop'>QUOTE(qbee42 @ Sep 27 2007, 04:34 PM) [snapback]518669[/snapback]</div>

Agreed. Which, though I didn't say it, is what I had in mind when I said insurance buys peace of mind.

 

<div class='quotetop'>QUOTE(JimboK @ Sep 27 2007, 04:01 PM) [snapback]518676[/snapback]</div>

I paid $1,650 for AUL Administrators Consumer Protection Service Contract when I bought my used 2004 at the Toyota dealership last night. The car had 119,024 miles so she told me I was lucky I could even buy such extended coverage.

But then I Googled AUL and found a number of complaints about their customer service, not returning calls, not paying when they said they would, not granting legit claims for "wear" reasons (isn't everything on a 119k mile car worn?) etc.

CONFUSED - HELP! And the discounted Prius Discounted Extended Warranty link (Prius Accessories link top right) has a broken link withing for *Bought your car used? You are eligible for other service contracts

So I'm about to call the dealer and say no thanks take me out of this and save the $1,650.

ADVICE PLEASE??? Thank you!

 

<div class='quotetop'>QUOTE(07+04 Prius Owner @ Sep 30 2007, 03:56 PM) [snapback]519541[/snapback]</div>

wow, $1650 is a lot, unless that is a 200K warranty with zero deductible you got taken. Then again 120K miles is a LOT on a prius, you may even have to think about battery replacement if you keep it a while.

 

<div class='quotetop'>QUOTE(luckyboy @ Sep 30 2007, 04:03 PM) [snapback]519544[/snapback]</div>

Nope. It's only 24,000 miles, it's $200 deductible, and I'll burn through the miles in 14 months so the TWO YEARS is a moot point. I guess that translates into about $117.80 per month for 14 months. Or worse yet over the 72 months financed, it came out to $29.00 more in the monthly payment or $2,088 or $149.14 for each of the 14 months covered.

Pretty sure I've made a poor choice in accepting it. But I can call today and cancel so thank you for any and all replies to help me make that decision.

 

<div class='quotetop'>QUOTE(07+04 Prius Owner @ Sep 30 2007, 02:50 PM) [snapback]519562[/snapback]</div>

It is a rip off. Cancel it.

 

<div class='quotetop'>QUOTE(IsrAmeriPrius @ Sep 30 2007, 05:24 PM) [snapback]519581[/snapback]</div>

Agreed. Called, Faxed, Emailed request to cancel.

Followed instructions to provide copy of contract, affidavit of mileage, and written request to cancel. That should do it.

Thanks for the replies folks!

 

<div class='quotetop'>QUOTE(qbee42 @ Sep 26 2007, 09:13 AM) [snapback]517820[/snapback]</div>

I may be the exception that proves the rule, (whatever that means.) 55k miles on my 2005 and the air conditioning compressor went out. $1,300 for a new compressor and $990 for the warranty. 'nuff said?

 

I'll throw my two cents in here:

Whenever I buy almost anything - appliance, home electronics, etc. - I skip the warranty sales pitch as it's usually a waste of money. However, I've done it for both our Prii. Here's why. The Prius is a very complex car with a lot of bells and whistles. I know from experience that the Toyota approach to fixing defects is to remove the problem part and replace it with a whole new part. This gets expensive quickly if it's not covered by warranty.

Additionally, as with all car manufacturers there is a lot of wiggle room in the standard limited warranties. For example, the hybrid power system is warrantied for 10 years or some such. However, the sensor to monitor the state of one of the electric motors might not be considered part of the "hybrid power system" and could be expensive to replace if it goes.


Taking all that into account, my wife and I decided that an additional $1060 for the 7 year/100,000 mile/$0 deductable platinum warranty at time of purchase was a worthy thing to roll into the car loan.

Besides, if we ever need to we can always cancel it for a pro-rated refund....