Any advice about the Extra Care VSA?

i would read it very carefully to see what you are actually getting.

 

My wife's solara got hit by lightning in our driveway a few years ago, fried the computers, and homeowners insurance paid for it.

That being said, I dont like extended warranties on anything.

Here's some words from Clark Howard consumer guru re Warranties:

Why you should never buy third-party extended auto warranties | Clark Howard

 

My response to the extended warranty sales pitch is generally along these lines "The salesperson has just spent a couple of hours telling me this car is the best thing since sliced white bread and that it's one of the most reliable cars ever built and now you're telling me I have to hedge my bets. Are you calling your colleague in the sales department a liar? If so, I might have to report that on the survey you tell me I have to give you all 10s on."

 

When I sold car for a living if we were able to get the buyer to get a extended warranty then I would get $100 and so would the finance guy. It was funny because it's always the finace guy that sells it not the sales person. Extended warranties are a waste of money. Most of the time the warranty costs more then the actually repair

 

I got a Platinum VSA because of how badly I was burned by my 2005 Hyundai Accent. Before 100k miles had elapsed I had to replace the bushing on the right front wheel strut twice, and have the accordion like connection between the exhaust manifold and exhaust pipe fixed twice as well. Each of these repairs cost hundreds of dollars.

Now hopefully my Toyota will not fair as poorly as my Hyundai. I certainly will not buy a Hyundai again. But a moderately priced insurance contract is worth it to me.

One should note that the contract is transferable to a new owner and can add value to the price you get for the car. The service contract can also be cashed in with a Toyota dealer when making a trade-in. The VSA I had for my Prius C was a 7 year/100k mile contract which for which I paid $1005 in May. At that time the car had 16k miles and the VSA was good through Oct. 2021. When I cashed it in around Dec. 12 the car had 30k miles on it and the cash in value was $780. So I effectively paid $225 for a contract I didn't need. Still, the cash in value, and/or the value added to a retail sale should not be forgotten.

 

Sure they did. The profit margin on these insurance contracts often is HIGHER than it is on the cars themselves.

Financial experts almost unanimously agree that you would be better off, on average, to put that money into some kind of high yield investment and keep it to pay for repairs after the warranty.

The odds of you winning big on an extended warranty are about the same as winning big at Vegas.
Who do you know personally that has ever done either ??

 

Me.

But it was a junky American car, not a Toyota.

I spent $555 for the extended warranty on my 91 Ford Explorer. Ford ended up doing $5,800 worth of work on the car under that warranty.

I won't be buying one for my Prime.

 

If that is the only one.....among ALL of the people that you know......that illustrates the point pretty good.

 

I'm with RJ. If the extended warranty is a good deal for the customer then why even think about buying that car? The extended warranty can be bought any time within the 3/36 warranty period so at least save your money until then. After 3 years or 36000 you may have a different perspective. I hope you aren't borrowing the money to pay for the warranty.

 

I have previously own cololla 91, civic95, accord 01, prius05, prius14, and now prime17. From my past experience to all my new car, extended warrantee is not really worth the spending. If there is any workmanship or any defect, you should be able to find them in 3 yrs. that's just my opinion. However, If my dad is buying a new car, I will definitely recommend him to get one because I don't have time to babysit his car.


iPhone ?

 

In most cases, the cost of the extended coverage goes UP the later in your warranty period that you buy it.
And yes, most people do finance the cost of the extended warranty too.