Extend the Warranty or Not?

<div class='quotetop'>QUOTE(daniel @ Apr 7 2006, 10:43 AM) [snapback]236307[/snapback]</div>

The art of selling is matching right right seller with the right buyer. If you are trying to unload the car as quickly as possible, this EW hook probably won't fly with every buyer. If it doesn't fly, move onto the next buyer. It's hard to image that overcoming the main obstacle of buying a second hand car won't play with enough prospective buyers to make it a bad idea. With regard to the suggestion that blue book (or Edumunds) doesn't change with warranty is not how I remember the data. Since private sellers don't normally offer warranties, you are correct that they don't report it, but on the dealer side, a car classified as a "certified pre-owned" commands a much higher price. What is this other than a warranty of lesser value than what we are talking about here. I don't think it's a giant leap for a private seller to promote the EW to it's advantage.

 

I know that extended warranties sold by credit unions through their auto sales entites are big money makers for the credit unions. This suggests to me that the odds are that you will not get your monies' worth out of an extended warranty. When I bought my Prius ten days ago, the salesman kept bidding against himself when I was not inclined to bite on the extended warranty, again suggesting to me that this is a money-maker for the dealer. I think that if it is worth it to you to have the peace of mind, you should do it, but it is not likely to be something you'll need.

 

I am aware of a dealership in Carson City NV which sells the official Toyota Extended Warranty with an interesting twist: If you do not use the EW, you receive all of your premium back (at the end of the EW period). If you use even 1 penny of your EW, you do not get any of the primium refund.

I questioned the Toyota distributer (SoCal) about this exciting EW premium rebate program, they explained that this "full premium refund" was offered through the dealership only, and that is a way for this particular dealer to offer something extra (to sell more cars?). Apparently, the dealer retains the lion's share of the EW premiums anyway, and this rebate must be applied-for within 30 days after expiration of the EW period. So, in most cases, the dealer ends-up with 100% of the premium anyway (people forget about applying for the rebate within that 30 day period, or they move-on to a different part of the world, or ??).

In any case, the distributer suggested that I try to buy this EW from Carson City Toyota, even though I did not purchase my car from them. I'll give this a shot when I approach 36,000 miles.

Of interest, I tried to buy my Prius from this Nevada dealership six months ago, and they would not budge off their MSRP + $2,000 price (I ended-up buying for MSRP from Ventura Toyota's Internet Sales, very positive experience)! Now we know how the NV dealership can afford to offer this EW premium rebate program!! The moral?? Look at the bottom-line

 

<div class='quotetop'>QUOTE(Lazy Cat @ Apr 8 2006, 08:37 AM) [snapback]236755[/snapback]</div>

I tried negotiating with this dealership and it was an exercise in futility and purchased elsewhere for thousands of dollars less. Apparently they have enough gullible locals to keep their doors open.

 

I purchased the EW when I purchased my 04', this was a safety net coming from owning a ford & chevy products lol and needing the EW..
I may never use it, but I & the wife know its there as a safety net.

 

OK I am a total winie L7. But there is a lot of new stuff in this car and my guess is that it was worth it. I am considering a new Prius, if and only if they continue to make the Prius a cutting edge car. At that time '08? I will pass this car and the warranty to one of my kids. That is a good excuse to buy a new car! Depending on the advancements I will get another extended warranty that I get over the internet!

 

My dealer sold me the extended warranty for $990.00 and it is the 7year, 100,000mi, $0 deduct. same deal as through priuschat.com, zero hassle, no complaints...

 

I think my dealer offered me the best of both worlds with the extended warranty.

I was shocked when he told me that price would be $990 for the 7 year/100k warranty. What really impressed me about his offer was when he told me that it was 100% refundable if I ended up not using the warranty. I asked him to put that refundable offer in writing---and he did!