Extended Warrenty

<_< The "Extended Warranty" is essentially INSURANCE. I plan to buy an Extended Warranty when I reach your situation, expiry of the basic bumper-to-bumper expiration due to time or mileage. When I do buy it, I will buy from PriusChat due to payment of about HALF the price dealers charge for the same warranty.

You might want to read the details of what is actually covered under the Extended Warranty to avoid any surprises.

 

<div class='quotetop'>QUOTE(blbgp @ Apr 16 2007, 12:06 PM) [snapback]424145[/snapback]</div>

This question regarding the extended warranty comes up quite frequently and is a valid one.
Purchasing any type of insurance (and extended warranty is insurance) is a matter of how much of a gambler a person is. If you can comfortably cover the cost of replacing or making serious repairs to your Prius then behave like the federal government and act as your own insurer. I've had house insurance for decades and fortunately my house hasn't been destroyed by whatever but I sleep better knowing I'm covered. Have I lost money on the deal so far? Yes, in terms of the premiums only.
Some consider buying such a warranty is a bad business decision. If that is so, why do the majority of successful businesses take out insurance policies for every possible contingency.
Only you can answer the questions you have posed.
My $0.02 worth
Gary

 

Think of it this way. It is like auto insurance, you may think you will never need it, but all it takes is that one time, and you will wish you had it. I got mine for $726, and like I said, all it takes is one $800 bill and its paid for, then again, if it never needs repair, so be it.


Peace Of Mind!

 

<div class='quotetop'>QUOTE(blbgp @ Apr 16 2007, 02:06 PM) [snapback]424145[/snapback]</div>

IMO the car should not be so poorly built that the extended warranty is a good deal for the buyer. You've got 150,000 mile coverage on the hybrid parts. Do you really feel enough "normal" stuff will fail to justify the price? In the end, it's your call to decide what makes you feel best.

 

<div class='quotetop'>QUOTE(Canuck @ Apr 16 2007, 10:06 PM) [snapback]424406[/snapback]</div>

I cant say for sure. But my assumption is that they calculate the expected value and come out ahead. For the rare chance that something does happen, they might end up paying in the hundreds of millions, much better for the insurance companies to do that ;p.

IMO, if a salesman is trying to sell you warranty, it means that they dont have much faith in the car and that they expect the car to break. As previously said, its a gamble. If you have a lot of faith in the company and the car, dont buy the insurance. If you are afraid that something will break, then maybe you should buy the insurance.

 

While I think the track record of Toyotas are very good...like any product, things can go wrong. Consider how complex the Prius is its operation between the hybrid components and the computers...if something were to go wrong, it could be a very costly repair depending on the problem. For the "peace of mind" if went with the extended warrenty.

 

Working on my second MFD. From what the dealer told me that is a $1500 dollar part installed.. Including rental for down time.. My extended warranty has saved me PLENTY of $$, and given me peace of mind for the remaining 30,000 miles left on it!!

 

<div class='quotetop'>QUOTE(Danny @ Apr 18 2007, 01:11 PM) [snapback]425448[/snapback]</div>

I bought the extended warranty (7yr 100Kmiles) thru Toyota the day we purchased the car.
Can I get a refund? I'm thinking, hey why am I paying $1800 for? it has a 3 yr Toyota warranty anyway.

 

<div class='quotetop'>QUOTE(blbgp @ Apr 16 2007, 03:06 PM) [snapback]424145[/snapback]</div>

I am going to make it more difficult for you - possibly or easier through my history with Toyota and what I am going to do with my '06 Prius:

1. my 2002 Lexus LS430UL - i did NOT buy the extended coverage - and with 89,000 miles on it, it was the correct decision. I have not had one problem with it.
2. my 2004 Toyota Sienna XLE AWD - 47,000 miles on it - i DO have extended coverage on it - and low and behold we had a repair performed on it involving the suspension or transmission about 6 months ago that would have cost $1,200.
3. my 2000 Audi A6 - i do have it (it runs out next month) and i have to date over $10,000 worth of covered repairs including three months ago replacement of the electronic dashboard - $1,600!

There is little doubt given the reduced price here on priuschat that it is worth the purchase. Toyota does not have the same quality as Lexus and all you need is ONE repair to cover the cost of the policy. I hate gambling against myself or my decision to buy a certain car - but all you need is ONE repair to justify it - and if you do NOT have it that second repair is on you and then on and on. If you amortize the cost of the policy it is just a few cents a day. If you pay the regular price then you need two repairs the cover the cost - that might not happen - one repair is almost a given over 5 or 7 years of ownership.

I am assuming you are going to own it for the given amount of time and drive it for the given amount of miles. if this is a "take me to the train station" car - than probably not worth it.

sorry for the on and on here.

 

<div class='quotetop'>QUOTE(siliconhybrid @ Apr 18 2007, 10:41 AM) [snapback]425473[/snapback]</div>

If it's within 30 days, you can cancel for a full refund. After that, it's prorated. The warranty also has different duration/mileage combinations. Since I drive a lot, I got the 6-year/100,000-mile warranty for something like $875. If you don't drive much you can get 6/75,000 or 7/75 for under the $990 that the 7/100,000 costs.

 

I have more questions for the more experienced and wise geeks (I mean it in an affectionate way) regarding this topic.

What is the mileage deadline by which you need to decide? Does it vary from warranty provider to warranty provider? How much is the 7-year plan through the priuschat website or the toyota dealer? Does each cover repairs only at specific garages or any dealer?

Thanks a lot!

 

<div class='quotetop'>QUOTE(ystasino @ Apr 18 2007, 09:20 PM) [snapback]425865[/snapback]</div>

You should ONLY get an official Toyota warranty (like the one available from this site). You must get it before the initial warranty is up--the earlier of 36 months or 36,000 miles. You can get the 7-year/100,000-mile warranty here for $990.00, and other combinations are less. A dealer will usually charge you around $1,650 (which I think is MSRP) for the 7/100,000 warranty. Some dealers have gouged unwary customers far more than that, and other dealers have given very good deals--it just depends on the dealership.

If anyone is purchasing a car, please do not mention Priuschat by name if you want to negotiate a lower price on the warranty with your dealer. Just ask what their best price is, and if they don't get it down far enough, then just decline it and get it though here.

Edited to add: The official Toyota warranty is good at any Toyota dealer in the USA. Once you get the warranty, I believe you are in a national database that any dealer's service department can access.

 

<div class='quotetop'>QUOTE(mcbrunnhilde @ Apr 19 2007, 01:25 AM) [snapback]425898[/snapback]</div>

I'm going to the dealer this afternoon to cancel my ripoff warranty, and get a refund to eventually get this $990 one. One of the things you should consider, besides all the things covered, are the things not covered. I think most of these are considered "wear items". I think this is probably a good idea considering the complexity of the vehicle. This is from the Toyota website:

List of Excluded Components
Accessory Drive Belts
Batteries
Body Panels
Brake Linings, Pads and Shoes
Bumpers
Carpet
Chrome
Clutch Friction Disk and Pressure Plate
Dash Cover and Pad
Door Trim, Handles and Fabric
Filters
Fluids
Glass (including Windshield)
Headliner
Heating Hoses, Lines and Tubes
Hinges
Hybrid System Main Relays
Hybrid Vehicle Battery
Hybrid Vehicle Battery Module/Pack
Hoses
Interior and Exterior Trim Moldings, including but not limited to, Cup Holders, Ashtrays, Covers, and Vents
Lamps
Light Bulbs
Nuts, Bolts, Clips, Retainers and Fasteners
Paint
Rotors and Drums
Rust and Corrosion Damage
Seat Covers
Service Plug
Shiny Metals
Spark Plugs
Structural Framework and Wells
Tires
Vacuum Hoses, Lines and Tubes
Weather Stripping
Wheels and Rims
Windshield Wiper Blades (Rubber Component)

 

<div class='quotetop'>QUOTE(abq sfr @ Apr 19 2007, 11:12 AM) [snapback]426114[/snapback]</div>

I went in and canceled the dealer ripoff extended contract, but since it was included in the financing, the check will go to the finance company and toward the car purchase. Oh well, now I need to start saving $990!

 

Just to clarify, essentially the extended warranty buys you an extra 4 years/ 64000 miles (whatever the price you pay may be). Is this so? And finally is the extended warranty transferable if one chooses to sell the car?

I'd buy the warranty for $990 but why not wait until the current one is about to expire?

Thanks a lot

 

I once bought an extended warranty for my Jetta and the company I bought it from went out of business! So if you buy, be careful where you buy it from.

 

<div class='quotetop'>QUOTE(clintd555 @ Apr 20 2007, 03:24 PM) [snapback]427024[/snapback]</div>

It happened to me too, with my Mercedes. That is why I bought a genuine Toyota extended warranty, at a discount from Troy, right here on PriusChat. I doubt that Toyota will be going out of business any time soon or before my 7 years / 100,000 miles warranty expires.