NEW 8 Yr / 125,000 Mile Warranty?

There is a link to that information, but I can't post it until I have posted at least five times.

 

And now I have.

Toyota Financial Services

 

The Platium coverage seems to cover just about anything that could break (not normal wear items though). Additionally it comes with extra coverage for rentals and hotel costs for breakdowns while travelling or extended work.

 

My dealer does not even offer the gold... since costs are not that far off.

 

My dealers doesn't even offer the Toyota Plan. I'll be getting mine from Troy here on PC.

 

Without a doubt. E.g., I don't understand people who paint lipstick on pigs.

If you accept the premise that Toyota is not losing money on their warranty program, then your purchase is gambling against the house. Feel free to do so, just don't try to hide the irrationality.

As for buying the warranty as a used car sales pitch, read my earlier post.

 

Of course I accept the fact that they make money. I never said they didn't make money. They would be foolish to offer any product where they lose money. The point is they accumulate all the losses and all the premiums and set a rate for the policies like any insurance company. In that scenario, some people that never need the warranty may appear to have wasted their money. While some who have thousands in refunded expenses were covered from large losses for a small monthly payment. It's all a wash for the company (+ a return) but they spread the losses out among all policy holders.

I'm not the one that doesn't see both sides here. I've never bought an extended warranty and I understand the argument. I don't fault anyone that doesn't buy extended warranties. However I see a real benefit for many especially now that it goes to 125K miles. I can afford to build this car back bolt by bolt if I need to or simply scrap it. But even for me $1K for 8 years of trouble (actually expense) free driving does offer many "peace of mind".

(In agreement with you on the earlier post) To me, the actual value of the new longer warranty will come at resale time. I believe the market for a used hybrid car with a factory warranty will be much better than for a car with lots of miles and no warranty. If you use it for repairs along the way, then perhaps it will even pay for itself. I've never kept a car more than 67,000 miles (my TCH) so I don't expect to ever use the warranty.

I pay $X000/yr for insurance on a vacation house in the Keys. That's a ton of money but it does give me peace of mind. I have MAX coverage for liability and collision on my three vehicles. I guess I could cut back coverage since I could afford to pay some more out of pocket if I had an accident. But I don't. I have $XMM in life insurance. If I die my wife will be well taken care of. That is probably a real waste of money to you since I'll never see a dime of it.

I absolutely understand why some think the warranty is a waste of monety and I'm OK with that, don't buy it. It just irritates me though when those that don't want it call people idiots (not you) for buying an extended warranty.

 

Why is it just an appearance ? It's not. They spent more money than they gained, and have nothing material to show for it.

Now, if you had said: I'll pay to avoid the small risk of a large cost, even though over time I understand the probability of large costs being cheaper than the accumulated premiums heads towards zero, we would be on the same page.

My comments were directed at people who rationalize their inability to self-insure with this inane 'peace of mind' argument. You may not like the company, but insurance preys on people who have hocked their future earnings and worry that goods replacement in the event of loss is out of their reach.

Your vacation home falls in that category. Your wife does not. I also bought life insurance until I had saved up enough money to do without.

I have no idea how much Toyota takes in premiums over collective customer payouts, but I have made crude estimates for car, life, and health insurance. It's an eye opener. The most accepted outlandish insurance I have ever been forced to buy is title insurance. There premiums are about 50x payouts.

 

Most any form of insurance is gambling against the house, unless you have better information than the insurer.

Similar to health insurance, the insurer has very good rates negotiated for parts and labor if repairs are every needed. If you pay on your own, you're likely to pay much more. Depending on what you pay in premiums for the insurance/warranty, there is a range where both the insurer and the insured can come out ahead.

 

Indeed.

I've seen the opposite in practice. The insurers seem to focus on volume and throughput, and are happy to pass on repair rates to the consumer. Certainly in car repair, my experience has been that the shop negotiates the repair cost for out of pocket payers. Health insurance is different and unusual, because of the large government involvement that leads to system gaming by the providers.

 

If you are able to bargain with a dealer for lower parts and labor costs on out-of-warranty repairs, then you can certainly minimize the difference. If you have that kind of arrangement with your Toyota dealer, that would certainly make the break even point of an extended warranty higher. I've never been able to do so with dealers for our other cars, other than to supply OEM accessories purchased elsewhere. When I've balked, they've told me I'm free to go elsewhere. I grant that other dealers may be more willing.

 

Your analogy mirrors the last presidential election because this subject seems to bring out the same irrational style of blogging, by people who don't feel the need to look at both sides, let alone enjoy a friendly debate. More like pontification - which reminds me of a certain party, but this is not a political blog so moving on.

Virtually all the members who wrote about why they purchased (and some who did not but saw both sides), approached the subject more rationally. But a few anti-EW crusaders seem to feel that anyone who does not agree is an idiot or cannot "afford" a P if they cannot self ensure (and needs to be educated).* The only education on the subject needed is to pay $1,055 or less, IF one would like it.

I don't feel the need to convince anyone why I bought one for that price or convince others that they should buy one. People can decide whether or not they want to play the odds and/or pony up later - or repair their own car if they are able and willing. I respect the right to just say NO and wish that members would return that favor.

* I have a masters degree in finance and can afford to self ensure. But I am not a gambler so prefer to spend $1,055 on the EW instead of a navigation system I would not have purchased for half the price (but have not told people who did they should not have).

 

I just bought my 2010 IV with sunroof Saturday and I believe I'll purchase the entended thru the website recommended. My dealer did quote some much better prices than the toyota website did though. He quoted 5 yr/125,000 mi for $1250 and a 8 yr/75000 mi for $1170 which is much less. I do think the 7 yr/100K plan for $1050 fits my needs better.

 

pdxrose,

self-insure.

* Your 'degree' is a vocational cert to hock loans and insurance. I looked at a 'finance' degree curriculum out of curiosity not too long ago, after an upper-level college student required my HS junior's help in math. To tell you the truth, I'm not terribly surprised at your difficulties understanding this topic. Or in spelling, for that matter.

 

The more optional technology in the vehicle (nav, ATP, etc...) the greater the likelihood in something going wrong. I believe the extended warranty is the same price for a Prius II and a loaded Prius V. So it would seem that it is a better value for the more expensive package.


I wonder if the extended warranty would cover the water resistant side windows if they lost their effectiveness?

 

Does Toyota include roadside assistance with their standard or extended warranties? If only with an extended warranty, that may be equivalent to a $50 a year AAA membership, if you would purchase that instead. That offsets some of the cost.

On the flip side, the powertrain, hybrid and emissions warranties last quite a bit longer than the 3/36 standard warranty and they cover quite a bit of stuff with no added cost.

I'm leaning against an extended warranty, but would certainly keep my mind open if a great deal came along or if widespread reports of specific problems started to become a concern. Back to the gambling or insurance analogy, sometimes you can beat the house if you do some homework, even if the vast majority of people are losing money blindly.

 

I've read a bunch, but not all of this thread, so apologies if this is redundant. Will PriusChat offer the 8 yr/125K warranty?

Edit: Must have been asleep when I wrote my post. Rewrote so it made sense.

 

I have had extended warranties on my last three vehicles: an `87 Mercedes 190E-2.3, an `01 Honda Civic and my present `06 Honda Civic, which will soon come to the end of its 6-year-120,000 mi HondaCare warranty. None had a major breakdown, but each had enough covered minor repairs and fluid leakage issues to recover the premium. The CD player in the Honda failed a few days ago, clearly taking the recovery past the premium amount.

I really welcome Toyota's responding to HondaCare's 120,000 mi product with a 125,000 mi one. To me, buying that at Troy's discount at a point when the end of the 36/36 OEM warranty is in view seems like a no-brainer. If you can't find some items to claim even on a Prius, then you must be neglecting maintenance on your car in general.

For the time being, the Honda is running so well that I deem it a good risk for one more year, before I at last buy my new Prius in MY 2011. (I'm not impressed with the Insight.) But I might have sold the `06 and been able to transfer a few thousand miles of warranty as a good inducement for the buyer.

November `09 update: Just before the 120k mi, were up, the Honda's fluid-filled right motor mount failed. The covered repairs ended up surely exceeding the premium by hundreds.

 

It's currently available. Check with Troy

 

Found it for $1630 on the net.