Has anyone heard of an extended warranty called Portfolio Protection

Discussion in 'Newbie Forum' started by eidling, Jul 20, 2013.

  1. eidling

    eidling Junior Member

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    We are about to pick up a 2013 Prius2 on Tuesday. The guy at the dealership who addressed our financing talked to us about an extended warranty called Portfolio Protection. I haven't seen this specific plan mentioned on Prius Chat.

    We are leaning toward not buying the extended plan, but I'd like to hear of anyone's experience with this specific one.

    thanks!
     
  2. JMD

    JMD 2012 Prius 4 Solar Roof

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  3. JMD

    JMD 2012 Prius 4 Solar Roof

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    You can see the repair costs are very low the first 5 years


    image.jpg
     
  4. eidling

    eidling Junior Member

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    Thanks. I read quite a bit of the various opinions before posting this questions, however it snuck up on me that this was not the warranty most people were discussing. Another question though - since this is offered through the dealership, I thought the dealership would offer any work that was needed.

    However (and it is a big HOWEVER) he only gave us a brochure, not a copy of the actual contract I would sign. Also, as an FYI, although it looks very comprehensive, it is much more money than the ones I have read about on PC, specifically, $1875 for an 8 year / 100,000 miles (actually 5 years beyond the initial 36 months) or $1675 for 1 7 year (2 years beyond the initial warranty) /100,000 policy. The latter would make more sense for someone who drives a lot like me (probably in the neighborhood of 15,000 miles or so a year)

    The one thing that would be a potential plus for us is that we are financing the car and if we did decide to get this warranty (although it is unlikely), having it be part of a payment vs. possibly incurring a big expense all at once would be a potential benefit, since money is always tight for us and I have a daughter about to start college. That said, so far we have been leaning toward not doing this.

    A couple of last points: possibly because the term "portfolio coverage" yields a lot of search engine finds that have nothing to do with this plan, I did not find any info on it. I also note that there is no contact information on the brochure - the reader is referred to the actual contract, but none of the following are on the brochure: the company's name, address, phone, email, or web address.

    I am attaching the main parts of the brochure so you all know a bit more about this specific offering.

    In advance thank you to any/all who respond!

    Portfolio Protection Brochure 1.jpg Portfolio Proctection 2.jpg Portfolio Protection brochure - what's not included.jpg
     
  5. rdgrimes

    rdgrimes Senior Member

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    Its called "Portfolio Protection" because it protects the dealer's investment portfolio.
     
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  6. SteveLee

    SteveLee Active Member

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    Extended warranties are excellent profit producers for the dealer. Occasionally they are a benefit to the buyer, depending on the reliability of the car. The Prius is among the most reliable. I wouldn't buy the EW on a new Prius but I probably wouldn't buy a new car either.
     
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  7. eidling

    eidling Junior Member

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    Thanks Steve. This is only the second time in our lives (and I am 62 years old) we are going with a new one. I am more than content to drive my 2001 Accord with 214,000+ miles (the other car we bought new), but, because I am the one who puts on many more miles I will be driving the Prius. We did consider buying a used Prius, but (at least through a dealer) it didn't seem like there was that much of a difference in price for the ones with low mileage and they are offering 0% financing, we get the initial warranty and a couple of dealer incentives this way, so we went with new. Thanks again for your comments.
     
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  8. SteveLee

    SteveLee Active Member

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    Well, I may have to rethink my blanket position on buying used over new, considering the current 0% financing and the excellent value retention of the Prius. But I don't think an EW has much value in this scenario.
     
  9. Ct. Ken V

    Ct. Ken V Active Member

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    eidling,

    One last negative aspect to 3rd party extended warranties is that some/many of them are only honored at the original selling dealer, whereas if you were to buy the Toyota Financial Services official extended warranty (the one you can purchase on this site at quite a discount), it must be honored at all Toyota dealers (a clear advantage if you were to break down on one of your many trips far from home).

    I believe that the official one also still includes a free rental car for up to 5 days per each breakdown. And you have up to the end of the 3yrs/36,0000 miles (whichever comes first) to make up your mind if you still think the extended warranty would be a wise investment. On many of the 3rd party warranties you must buy them at the time of the car purchase or the price will increase for every day/mile of use.

    Don't forget that you have 5 yrs/60,000 miles of drive train protection on the original factory standard warranty, and 5 yrs/unlimited miles on rust-through, and in most states 8 yrs/100,000 miles on the hybrid components [but in the CARB states that's extended to 10 yrs/150,000 miles & in California I think some aspect of that (pollution control equipment?) it's 15 years/150,000 miles.

    I myself did buy one (the 7 yr/100,000 mile one) from Troy (the guy on this site) for my 2005 Prius back in 2006 mainly because back then there were a lot of Priuses with the MFD (Multi-Function Display) screen crapping out & word that the PSD [Power Split Device (transmission) was unserviceable---only replaced at the price of about $9,000]. That said, I did buy the official one although I never needed to use it, so it was really a waste of my money. But I only paid $990 for it from Troy/Warranty shack when the list price at Toyota dealers is $1,600+ and many dealers were charging $2,000 to $3,000 for the same official Toyota Financial Services extended warranty.

    Troy tried to save me about $100 to $125 by pointing out how fast my mileage was accumulating & trying to talk me into the cheaper one with the same 100,000 miles but only 6 years (instead of 7), but I was stubborn & thought my annual mileage would start lessening once the newness of driving the Prius wore off. It didn't & my warranty had run out by miles at only 5 1/2 years of ownership. I didn't consider it lost money because I didn't pay all that much for it (a lot less than many others did) and I felt fully confident to drive this new technology (back then) anywhere I wanted to without any fears whatsoever. Since then Toyota's engineering & reliability has proved itself & I don't think I would buy another extended warranty again (at least NOT for a Toyota).

    Ken (in Bolton,Ct)
     
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  10. eidling

    eidling Junior Member

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    Thank you Ken for all those excellent points. It's interesting to me that the dealership did not offer the Toyota warranty, especially since he was the finance guy. Knowing that we can still buy the warranty until the end of the initial warranty period is huge, as well as knowing it can be purchased from someone on Prius Chat for a really good price. I have a lot of reading to do on Prius Chat. I want to pay attention, in particular, to issues related to the 3rd generation Prius.
     
  11. SteveLee

    SteveLee Active Member

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    The finance guy is the one responsible for improving the profitability of each deal. Oftentimes, his selling of interest rate, months, back-end additions like extended warranties, most anything you are paying for that you didn't originally bargain for, is more profitable than the actual car sale. That is his contribution to the dealership bottom line. He is not your friend and he is not just to get signatures. He/she is usually charming, as with any successful salesperson, and they are not necessarily bad guys, just doing their job. But their job is to part you from your money. Part of the job of the buyer is to know what the job of the sales people are, including the finance guy. Not that you don't know this. Just got me to thinking about his job. Just saying.
     
  12. eidling

    eidling Junior Member

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    Thank you again, Steve. I've only just joined Prius Chat, but have already learned a great deal.
     
  13. massparanoia

    massparanoia Active Member

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    If you want an extended warranty, insist on a factory one. DO NOT get a 3rd party one. If they won't sell you a factory one, buy one online or from another dealer later. As long as you are under the original factory warranty, you can still get a factory extended warranty.

    Take it from an ex F&I guy...
     
  14. eidling

    eidling Junior Member

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    thanks. What does F & I stand for?
     
  15. massparanoia

    massparanoia Active Member

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    Finance and insurance.
     
  16. eidling

    eidling Junior Member

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    Thanks for the clarification. We picked up the car this morning. We told the F & I guy we did not want the extended warranty he was offering. When we reviewed the contract, the monthly payment seemed too high. He wasn't able to figure out why, but I did. It was because he included the extended warranty price after we told him we did not want it. This could have been an innocent mistake, but if it wasn't, I guess the "I" stands for "Intentional" and I've got another idea what the "F" stands for!!

    Again, thank you all for your informative feedback and advice!
     
  17. JMD

    JMD 2012 Prius 4 Solar Roof

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    Not a mistake. You did good to check his math
     
  18. SteveLee

    SteveLee Active Member

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    Good catch. These guys generally only make mistakes in their favor. Now that you've survived the stealership minefield, ENJOY the car!
     
  19. eidling

    eidling Junior Member

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    Thanks Steve - For me (coming from a 2001 Honda Accord with crank windows, pull-up locks and manual side windows) it's a bit like driving a space ship, but I am definitely enjoying it and this forum is really great!
     
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