Extend the Warranty or Not?

berryman · 04-05-2006, 10:00 AM

I'm about to hit 36K miles on my 2004 and have had absolutely no problems with the car. Does it make sense to spring for the extended warranty offered on this forum or not? What's the general consensus out there?

jared2 · 04-05-2006, 10:14 AM

<div class='quotetop'>QUOTE(berryman @ Apr 5 2006, 10:00 AM) [snapback]235221[/snapback]</div>

Quote:

I'm about to hit 36K miles on my 2004 and have had absolutely no problems with the car. Does it make sense to spring for the extended warranty offered on this forum or not? What's the general consensus out there?
[/b]

This has already been discussed. Most seem to favor getting it due to the electronic complexity of the car. Some feel it is an unecessary money maker for the insurance underwriters. I am at 18, 000 miles so I don't have to decide yet. I have had no problems at all so far.

daniel · 04-05-2006, 10:36 AM

Toyotas are generally very reliable, but any given car can break down, and some small percentage will.

Ask youself: could you afford a major repair if you were one of the very unlucky ones? If not, you might want the insurance.

Ask yourself: are you a gambler? If not, you might lean toward the insurance.

Ask yourself: Are you a worrier? With insurance you eliminate a source of worry.

In my opinion, the car is extremely unlikely to experience a problem that would cost as much as the insurance. Plus, I can afford a repair should it come to that. Finally, the extended warranty expires before the car reaches the age where most problems begin to appear.

Conclusion: I consider the extended warranty to be very overpriced, even at the bargain rate offered here. But if you are a worrier and could not afford a major repair, the cost of the warranty might be worth the peace of mind.

hyo silver · 04-05-2006, 05:26 PM

Maybe I can ask this question again on a current warranty thread: Is the deal offered here (was it Troy?) available outside of the US?

galaxee · 04-05-2006, 06:42 PM

failure rate is low but repair expenses are high when something happens. you're taking a gamble either way. without the warranty, you're gambling that you'll have less than $1000 in repairs before the extended warranty would have worn out. with the warranty, you're gambling that you'll have $1000 or more in repairs before the extended warranty runs out.

one failure of a key component could very easily put you in that $1000 range or beyond.

but considering the reliability, you may have no failures at all, in which case you've spent $1000 basically for peace of mind.

think it over. if you can justify it, go ahead. if not, hold off.

clintd555 · 04-05-2006, 06:45 PM

How much is the extended warranty when you have 36k miles? And how long does it last?

aaf709 · 04-05-2006, 07:14 PM

<div class='quotetop'>QUOTE(clintd555 @ Apr 5 2006, 03:45 PM) [snapback]235517[/snapback]</div>

Quote:

How much is the extended warranty when you have 36k miles? And how long does it last?
[/b]

You can read about it at http://priuschat.com/index.php?showt...30&hl=warranty
Basically for $990 it's 7/100K with $0 deductable.

I'm planning to get it. I got one for my camcorder and never needed it. I got one for my refrigerator and used it. I got one for my last car and needed it, but because I had gotten it from the car broker (ie a third party policy), it was no good. Actually I can't say that for a fact. I gave the salesman $600 and got a pretty piece of paper in return. The salesman evidently "forgot" to set it up after taking my money as when I contacted the company they had no record of it.

gordonr · 04-06-2006, 01:03 AM

How long are you going to keep the car? In addition to it's primary benefits of offering protection while you own the car, it might also help optimize resale value down the road (if you plan to sell the car privately). Lets say you have a 5 year old Prius with 60,000 miles for sale. The buyer of this used car can have the option of having the remaining balance of your extended warranty (a 2 year/40,000 mile bumper to bumper warranty in this case). You can fairly pro-rate the value of the extended warranty and sell this as an add-on (plus the $50 transfer cost). I'd guess the vast majority of buyers would jump at the deal, and in fact this is better protection than dealerships would offer on a similar second hand vehicle.

tochatihu · 04-06-2006, 12:30 PM

I bought a Prius in 2001 and the extended warranty at the same time. Way back then, what we had to go on was Prius being quite new technology, and Toyota's favorable reputation for reliability. Since then I have driven 86k miles and made no claims against the EW. I have also read innumerable internet posts concerning Prius' reliability, which have been overwhelmingly favorable. A few vehicles have had expensive failures outside of warranty, and in most of those cases, Toyota has apparently paid at least part of the expense. In addition, on both Prius models, systemic problems that could potentially affect large numbers of vehicles have resulted in SSCs and TSBs that are no-cost to the vehicle owner up to some mile/time limit. From that I conclude Toyota is quite committed to the reputation for reliability of Prius in particular.

High reliability ratings for Prius by Consumer Reports, etc., indicate that survey respondents are generally satisfied. High resale values suggest that used car buyers (as a group) agree. Or perhaps that fuel cost savings will outweigh repair expenses? If that is the case, I would agree with them.

My philosophy on risk aversion has not changed since 2001, but more Prius information has becaome available since. So if I were buying a new Prius today (or approaching 36k miles), I would not purchase the EW. People who are especially risk-averse may still decide to do so, however.

It was never my intention to resell the car; this one is a keeper. However if someone is buying Prius with the plan to resell within the EW period, I consider this a strong argument in favor of EW purchase. Your potential buyer may not have access to all the Prius info that we see in the groups.

ghostofjk · 04-06-2006, 06:36 PM

I'm with daniel and gordonr. I'm a worrier, big-time.

Also, in the example given: if you sold the car as stated, you'd have used up 3/8 of the EW (or paid 38% X $1K = $380 for that much peace of mind, however you want to look at it). Seen this way, the remaining "retail value" of the EW is $620. (Actually, you could argue to a buyer, more than that, since a buyer couldn't even buy the protection at the time of sale.)

Is the presence of an EW going to get you your $620 back? I think almost unquestionably, YES. If you include the fact that there's an EW in your ad, I'd guess about, say, 3-5 times as many people as otherwise would be instantly interested and will look at it. Probably the #1 "negative" with a Prius in the minds of potential buyers will be fear of the new technology, and perhaps specifically, battery failure. You've increased your market that much---and your likelihood of getting your price.

I think it's a no-brainer---almost.

I also want to note that, big as PC is, we represent only a tiny fraction of total American Prius buyers. We really have little basis for making generalizations about warranty claims, and specifically the kinds of repairs to which the Prius is prone. What we know is the experiences WE'VE traded with each other, TSBs, plus what we've picked up on other forums, and what we hear and read about in newspapers and magazines. We really DON'T know more than Consumer Reports, given the size of their samples, though we may know more about a specific or two.

I'm not putting down PC. If anything, I'm making a case for a more systematic approach to our building a reliable database.

04-05-2006, 10:36 AM	#3
daniel Cat Lovers Against the Bomb Join Date: Feb 2004 Location: Spokane, WA Posts: 9,151 My Car: 2004 Prius Package: #6 Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	Toyotas are generally very reliable, but any given car can break down, and some small percentage will. Ask youself: could you afford a major repair if you were one of the very unlucky ones? If not, you might want the insurance. Ask yourself: are you a gambler? If not, you might lean toward the insurance. Ask yourself: Are you a worrier? With insurance you eliminate a source of worry. In my opinion, the car is extremely unlikely to experience a problem that would cost as much as the insurance. Plus, I can afford a repair should it come to that. Finally, the extended warranty expires before the car reaches the age where most problems begin to appear. Conclusion: I consider the extended warranty to be very overpriced, even at the bargain rate offered here. But if you are a worrier and could not afford a major repair, the cost of the warranty might be worth the peace of mind. __________________ Daniel ---------------------- Primary car: Zap Xebra SD: 100% electric car. 1.9 cents per mile, using electrons generated from water power. (The Prius is my gas guzzler, used when I have to travel farther than 35 miles in a day.) "If voting changed anything, they'd make it illegal." -- Emma Goldman "Anyone who has ever looked into the glazed eyes of a soldier dying on the battlefield will think long and hard before starting a war." -- Otto von Bismarck

04-05-2006, 06:42 PM	#5
galaxee running WOT until out of fuel Join Date: Mar 2005 Location: central NC/ western WI Posts: 9,081 My Car: 2005 Prius Package: #5 Nominated 5 Times in 3 Posts TOTM Awards: 0 Friends: 21	failure rate is low but repair expenses are high when something happens. you're taking a gamble either way. without the warranty, you're gambling that you'll have less than $1000 in repairs before the extended warranty would have worn out. with the warranty, you're gambling that you'll have $1000 or more in repairs before the extended warranty runs out. one failure of a key component could very easily put you in that $1000 range or beyond. but considering the reliability, you may have no failures at all, in which case you've spent $1000 basically for peace of mind. think it over. if you can justify it, go ahead. if not, hold off. __________________ black 2005 prius, tweaked just the way i like it my diagnostic guy on electronics: "lack of troubleshooting ability is due to a high common sense rejection ratio."

04-06-2006, 12:30 PM	#9
tochatihu Senior Member Join Date: Apr 2004 Location: Kunming Yunnan China Posts: 1,829 My Car: 2001 Prius Package: Pioneer #1 Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 7	I bought a Prius in 2001 and the extended warranty at the same time. Way back then, what we had to go on was Prius being quite new technology, and Toyota's favorable reputation for reliability. Since then I have driven 86k miles and made no claims against the EW. I have also read innumerable internet posts concerning Prius' reliability, which have been overwhelmingly favorable. A few vehicles have had expensive failures outside of warranty, and in most of those cases, Toyota has apparently paid at least part of the expense. In addition, on both Prius models, systemic problems that could potentially affect large numbers of vehicles have resulted in SSCs and TSBs that are no-cost to the vehicle owner up to some mile/time limit. From that I conclude Toyota is quite committed to the reputation for reliability of Prius in particular. High reliability ratings for Prius by Consumer Reports, etc., indicate that survey respondents are generally satisfied. High resale values suggest that used car buyers (as a group) agree. Or perhaps that fuel cost savings will outweigh repair expenses? If that is the case, I would agree with them. My philosophy on risk aversion has not changed since 2001, but more Prius information has becaome available since. So if I were buying a new Prius today (or approaching 36k miles), I would not purchase the EW. People who are especially risk-averse may still decide to do so, however. It was never my intention to resell the car; this one is a keeper. However if someone is buying Prius with the plan to resell within the EW period, I consider this a strong argument in favor of EW purchase. Your potential buyer may not have access to all the Prius info that we see in the groups. __________________ DAS Tochatihu, the Hopi hummingbird kachina

04-06-2006, 06:36 PM	#10
ghostofjk Unrepentant Nattering Nabob of Negativism (V.P. Spiro T. Agnew) Join Date: Mar 2006 Posts: 981 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	I'm with daniel and gordonr. I'm a worrier, big-time. Also, in the example given: if you sold the car as stated, you'd have used up 3/8 of the EW (or paid 38% X $1K = $380 for that much peace of mind, however you want to look at it). Seen this way, the remaining "retail value" of the EW is $620. (Actually, you could argue to a buyer, more than that, since a buyer couldn't even buy the protection at the time of sale.) Is the presence of an EW going to get you your $620 back? I think almost unquestionably, YES. If you include the fact that there's an EW in your ad, I'd guess about, say, 3-5 times as many people as otherwise would be instantly interested and will look at it. Probably the #1 "negative" with a Prius in the minds of potential buyers will be fear of the new technology, and perhaps specifically, battery failure. You've increased your market that much---and your likelihood of getting your price. I think it's a no-brainer---almost. I also want to note that, big as PC is, we represent only a tiny fraction of total American Prius buyers. We really have little basis for making generalizations about warranty claims, and specifically the kinds of repairs to which the Prius is prone. What we know is the experiences WE'VE traded with each other, TSBs, plus what we've picked up on other forums, and what we hear and read about in newspapers and magazines. We really DON'T know more than Consumer Reports, given the size of their samples, though we may know more about a specific or two. I'm not putting down PC. If anything, I'm making a case for a more systematic approach to our building a reliable database. __________________ Imagine the "Desiderata" here. Pointy-headed ex-hippie elitist liberal '04 silver, '06 red

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04-05-2006, 10:00 AM	#1
berryman Member Join Date: Aug 2004 Posts: 31 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	I'm about to hit 36K miles on my 2004 and have had absolutely no problems with the car. Does it make sense to spring for the extended warranty offered on this forum or not? What's the general consensus out there?

04-05-2006, 05:26 PM	#4
hyo silver awaaay Join Date: Mar 2005 Location: Vancouver, BC Posts: 7,438 My Car: 2004 Prius Package: Base Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 33	Maybe I can ask this question again on a current warranty thread: Is the deal offered here (was it Troy?) available outside of the US?

04-05-2006, 06:45 PM	#6
clintd555 Senior Member Join Date: Jan 2006 Posts: 251 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 1	How much is the extended warranty when you have 36k miles? And how long does it last?

04-06-2006, 01:03 AM	#8
gordonr Join Date: Jun 2005 Location: Massachusetts Posts: 97 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	How long are you going to keep the car? In addition to it's primary benefits of offering protection while you own the car, it might also help optimize resale value down the road (if you plan to sell the car privately). Lets say you have a 5 year old Prius with 60,000 miles for sale. The buyer of this used car can have the option of having the remaining balance of your extended warranty (a 2 year/40,000 mile bumper to bumper warranty in this case). You can fairly pro-rate the value of the extended warranty and sell this as an add-on (plus the $50 transfer cost). I'd guess the vast majority of buyers would jump at the deal, and in fact this is better protection than dealerships would offer on a similar second hand vehicle.