When to buy extended warranty coverage?

[mootsman]

Just for the sake of argument let's assume that an extended warranty for the Prius is a good investment....meaning I don't want to start a debate on the efficacy of extended coverage per se.

Given that, is there any particular advantage in buying it when purchasing, shortly after, or waiting until near the end of the Toyota warranty. A couple of thoughts come to mind. 1) More than likely it will be more expensive in a couple of years. 2) If you are prone to trade often, it might be better to wait the 2-3 years to make sure you plan on keeping the vehicle.

Thanks for any advice.

P.S. I've always been amused by how a 100,000 mile warranty is marketed as such when it's really a 100,000 warranty minus whatever the manufacturer offers -- go figure.

[DSB]

I think this is a good question as I will need to make the same decision. I chose not to buy it when I purchased my '06. My logic, six months ago, was that the price would probably not go up over time as Toyota would not want to protect their "quality" image. I hope I'm not proved wrong on either the actual quality or image quality. It will be interesting to hear how other owners approach this subject.

<div class='quotetop'>QUOTE(DSB @ Sep 13 2006, 09:33 AM) [snapback]318904[/snapback]</div>

I think this is a good question as I will need to make the same decision. I chose not to buy it when I purchased my '06. My logic, six months ago, was that the price would probably not go up over time as Toyota would want to protect their "quality" image. I hope I'm not proved wrong on either the actual quality or image quality. It will be interesting to hear how other owners approach this subject.
[/b]

[mcbrunnhilde]

<div class='quotetop'>QUOTE(DSB @ Sep 13 2006, 07:34 AM) [snapback]318904[/snapback]</div>

I think this is a good question as I will need to make the same decision. I chose not to buy it when I purchased my '06. My logic, six months ago, was that the price would probably not go up over time as Toyota would not want to protect their "quality" image. I hope I'm not proved wrong on either the actual quality or image quality. It will be interesting to hear how other owners approach this subject.
[/b]

The amount that the warranty would go up would surely be less than the amount of interest you could earn on the money by holding off for 3 years. I think the best reason for delaying would be that after three years of driving the car you are confident enough in it that you think the warranty is unnecessary! If my MFD had gone out before 36,000 miles, I'm not so sure I would have gotten the extended warranty (at least it would have been a much harder decision than it was...).

I think the only reason for getting the warranty now would be for the tow-to-closest-dealer-if-the-problem-is-due-to-a-warranty issue and the limited lodging reimbursement if your car dies while you're out of town.

[aaf709]

I have a couple of questions. Does the Extended Warranty start the moment you buy it and does it cover the same items as the OEM 36K warranty? If "yes" to both it seems to me that you'd lose 3 years worth buying now, as the OEM 36K would be able to take care of the warranty issues.

[kDB]

either way it ends at the same time. though if you cancel they pro-rate it as the first 3 years/36,000 miles is part of it.

[mcbrunnhilde]

<div class='quotetop'>QUOTE(kDB @ Sep 13 2006, 09:20 AM) [snapback]318965[/snapback]</div>

either way it ends at the same time. though if you cancel they pro-rate it as the first 3 years/36,000 miles is part of it.
[/b]

Yet another reason to wait until the basic warranty is almost up. If the car gets in a wreck, you'd have to prorate a refund. Also, if you decide to sell the car, the new owner might not want to pay extra for a warranty. If they DO want it, you can buy it just before the sale and then transfer it.

[jamarimutt]

The problem here is that the basic assumption is wrong... that the extended warranty is a good "investment". It is a great deal for Toyota and for all other car makers, and all makers or anything nowadays. I read some tome ago that Sears makes more money out of the extended warranties than they earn from their products.

[Jeannie]

I had meant to purchase the pre-paid maintenance plan in late July but put off mailing in my documentation - and the price went up from $670 to $880 (or around that amount) on August 2. I still DID buy it, though, as well as the extended warranty.