Help! I pick up my car today.....

Extended warranties always cost more than the maintenance they provide - for the entire collection of owners in the warranty pool. It's basically a form of insurance, and the company selling it makes money, so obviously they have to change more than they pay.

Given this, the only way to make out on an extended warranty is to be unlucky, and require more repairs than the average owner. The Prius is one of the most reliable cars you can own, so it is not likely that you will come out ahead with an extended warranty.

The downside is the cost of repair. While the Prius is very reliable, it does have some very expensive components. If you are one of the unlucky ones, you can find yourself spending thousands of dollars to replace one major component. If you lack the means to pay for an unlikely but expensive major repair, an extended warranty might give you some peace of mind.

As for me, I never get them because of the cost vs benefit issues described above, but I can also afford to pay out of pocket if need be. In the long run, I save money by doing it this way.

Tom

 

I have a 2006 with 50,000 miles. Repairs to date are zero, except for a bumper cover replaced when another driver backed into us.

Maintenance costs have also been very low. I spend about $50 every 5,000 miles for an oil change, filter, and a few other minor items.

Tom

 

I bought the warranty. $1800 for me from my certified dealer. I knew I was getting scammed when I signed the form but bought my parents made me buy it. I am 99% sure I will never have to use it, but you never know! That's the whole point. The things I do for my parents...

If you do buy it, understand the facts and what you're getting into. For example, the fact that I knew that I was getting "scammed" actually makes me feel a bit better, and not as mad at myself or the dealer.

If youre tight on money or you the type that doesn't like to play the stock market (i.e., give your money away in hope of a return), don't buy it!

 

Short answer: no. If you are borrowing money use the $1000 to decrease the amount borrowed; otherwise put it in the bank and let it earn interest for you.

 

dont get the car flooded and chances are you will never need major maintenance. Do not drive on the beach thru the surf!

Flood the car and right it off ! But we dont get many floods here in Central FL so I am not too worried.

 

I just picked up a Certified '07. Paid cash and when the closer offered the Platinum extended warranty for $1007.00 at 0% over a year, I reluctantly went for it. Amortized over the remaining four years, it seemed like a reasonable expenditure just for peace of mind. With the cost of modern repairs and parts, and all the electronic/electrical doodads on these things, it would be easy to burn through a grand with just one rather minor incident.

Everyone I know with a Prius has only had to do routine maintenance and one buddy has had his for five years. These cars seem to be well engineered and built. Probably a bit over engineered, as it is a paradigm shift in auto technology and they needed to ensure as few problems as possible. Of course they can't do anything about the nut behind the wheel.

 

i've gone through this myself and i hope this is due time for you.

everyone here says.////////// DONT BUY IT.

you wont need it. now that being said and done, try to negotiate the warranty through your purchase, NOT to add an item to your loan. so let's say the car costs 15K, if you will offer 13K, say, i'll offer you 13K WITH the warranty.

that way, you get it for "free"

 

There may still be time for you to read the fine print on what is not covered and then get a refund. Most warranty buyers will never get back even half of what they paid for it. Wouldn't you get more peace from mind from having an extra grand in the bank?

Forgive me. I do go on about this.