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GPR Warranty worth it?

Discussion in 'Gen 2 Prius Main Forum' started by ddepriest, Jan 30, 2006.

  1. ddepriest

    ddepriest New Member

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    My dealer offered me a 7 yr 100,000 mile extended warranty for $1695. I told him I could get it for $990 elsewhere (thanks to this site), but he said that his version comes with GPR, Guaranteed Price Protection Rate. If I never use the warranty, after 7 years I get my money back less $50.

    Has anyone heard of such a deal? Is it worth it?
     
    #1 ddepriest, Jan 30, 2006
  2. vega

    vega New Member

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    I think this warranty essentially comes with a 1645$ deductible. The deductible applies the first time you use it.
    Also, assuming 10% interest rate, 1695$ put somewhere else would almost double in 7 years. So you are only getting half of your money back.

    In my opinion, one is better off going with the 990$ plan all other things being equal.
     
    #2 vega, Jan 30, 2006
  3. ddepriest

    ddepriest New Member

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    Good point about the opportunity cost. The other thing I considered was what if I had a $200 repair. It would be tempting to pay the bill instead of use the policy, but then that defeats the purpose of the warranty.

    Thanks for your input.
     
    #3 ddepriest, Jan 30, 2006
  4. koa

    koa Active Member

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    2006 Prius
    I got the $1700. refundable warranty since that was what my deal/distributor sells. Another thing about that warranty is if you cancel it is prorated, but from the first year onward so you will lose $700. in value before it even kicks in. Also the refund portion is not transferable.

    10% always seems easy to achieve in hindsight. If you have both available and you're sure the dealer will honor them equally the discounted one seems like a better deal.
     
    #4 koa, Jan 30, 2006
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