is the extended warranty really necessary??

i've never bought one. i would like to hear from someone who bought one and actually used it. seems there are more stories from people who tried to use them but were denied because it didn't apply. is it 7 years or 100K or 7 years and 100K?

 

If you can do some repair work youself, then it probably is not a good idea. On the Prius, you can get very big bills, if something does go wrong. You do have time on your factory warranty. Also, there is a huge mark up on service contracts, so if you shop around, you could get a better deal. Geico used to offer it with the auto insurance. For 1700 I would take my chances. Odds are, you will come out ahead. Generally, they are a money maker for the originator. You can think of it as an insurance policy. Generally, you should only purchase insurance to cover losses you could not afford otherwise. You are paying into a pool, that needs to be profitable for the seller. Like the casino, the odds are on their side, not yours.

 

I bought the $990 extended warranty on this site (7/100) and just used it. My ABS actuator started making a loud squeak every time I pushed the brakes. If I had to pay out of pocket, it would have cost $2525 at the dealer. Every bit of that $2525 just got billed to Toyota.

FYI, I have 60K on my '05.

 

One always hears more from the few people who have made a profit on their extended warranties than from the many who have not. Put the $1000 in the bank against the possibility that you might need to pay for a big repair.

 

We have one on each of our 2 hybrids ... the Prius & on the 400h. Before that, we had one on our Range Rover too. The RR had a little yellow light come on the dash. It said, "maintenance required" ... kind of like when a car's oil needs changing. Long story short, that little light cost the manufacturer $6,000 because the tranny/transfer case had to be replaced.

All that to say, it's a crap shoot. You may never need it ... you may double your costs/savings if you need to use it a couple times. We've only gotten about $700 of use on our 400h's extended warranty, but on the Prius? . . . it's paid for itself 2 fold the cost. Your results WILL vary.

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What about a person who cannot do their own repairs and is not mechanically inclined? Wouldn't it be better to have an extended warranty--at lease a basic one?

 

The extended warranty doesn't cover oil changes, tires or brakes, which are all the things that need maintaince...
To the OP, I'd guess the dealer wants 1,700$ for the contract, I'd consider buying the one Prius-chat offers but I'd never consider buying one from the dealer.

 

My take is the Prius is a very reliable car BUT some of the components are very expensive to replace. I will _probably_ buy one closer to the 3 year mark but will not make the decision until then. I'm sure most don't get to use it for more than its value but I look at it like insurance.

BTW, I am not one who buys extended warranties on most products. As others have noted, buy it through PC if you're going to buy one.

 

The answer to your questions depends on your driving style and the maintanance history of your new Prius. I didn't purchase the extended warranty when I bought my 05 Prius as a used car with 14k miles last year. I put just under 40,000 miles in 09 and had to replace that front right strut and the right rear shock abosrder. I spent $921 dollars on the repair that would have been covered by the extended warranty. I was lucky enought to have a dealership that provided me with a loaner (2010 Gen 3 prius) while they diagnosed the problem and got the parts needed. It was a pain to diagnosed what was causing the noises. It took two weeks to get the car back (they had issues ordering one of the parts).

I like to drive my Prius hard, even off road from time to time. Will I get an extended warranty on my next Prius? The answer is YESSS!! While the Prius is very reliable, it only takes one out of warranty repair to drain your pocket big time.

 

Be careful not to confuse an "extended warranty" with a "pre-paid maintenance plan". An extended warranty is paying in advance for repairs you will probably never need; pre-paid maintenance is paying too much for scheduled maintenance items (oil, filters, inspections). Scheduled maintenance at a dealer costs me about $30 every six months . Be certain to bring the Scheduled Maintenance Guide in with you, point to the correct months or miles page, and tell them to do only those items; otherwise most dealers will charge you for unnecessary stuff.

Consider buying the cabin and/or the engine air filter from a dealer and changing them yourself when needed (consult the Scheduled Maintenance Guide). They're very easy to do (consult the owner's manual), and it saves $20 to $50 each time in dealer labor. If you do, be careful to note how the old filter is oriented and put the new one in the same way; it is possible to put it in upside down...

 

I purchased the extended warranty. I just did my 60K maintenance (the car has 59,600 miles). They called and said the water pump was leaking. I did not see any signs of a leak. He said it was covered under the 60K warranty (which I did not know it existed). When I picked up the car he told me about that warranty and if I had brought the car in after 60K he would have used the extended warranty that I had purchased.
...so bottom line is, an extended warranty might come in handy or almost

 

Why? Notice that you would have paid $1000 for the least expensive extended warranty, so you would still have been $79 under water after that repair. You are now $79 ahead of where you'd be if you had bought the warranty.

Most people get back less than half of what they pay for an extended warranty. Put that $1000 (or $2000, or even $3000) in the bank and let it earn interest for you while waiting for a big repair that you will, more likely than not, never need.

 

Any and all insureance is a "crap shoot."

That said, as a first time Prius owner,(G3, IV) I opted for the medium priced package. With 18,000 miles of experience, I am a bit more confident that the Prius is superbly engineered, and I doubt/hope no problem will emerge. I certainlywould rather that I never need to usethe warranty. But, to maintain the warranty, you must perform certain maintenance functions at specified intervals .... I assume that makes more money than does the initial cost of the insurance.

BTW, I am not good at home car repair/maintenance.