Is Prius extended warranty ever worth it?

Discussion in 'Gen 3 Prius Care, Maintenance & Troubleshooting' started by mrpulp, Jul 26, 2015.

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  1. SageBrush

    SageBrush Senior Member

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    Now that I have dispensed with pleasantries and exceptions, let's agree on the obvious: the lion's share of EW purchases are by people who have strained finances, and very likely carry credit card debt at 15 - 20% apr.
    I'll still maintain that invoking an EW for a rational $3000+ repair is about unheard of before 3 years in a Prius, and really rare before five years. Here is the opportunity gain set out as a spreadsheet for a person who rather than roll an EW into 5 years of 0% apr car payments, applies $30 a month to 15% apr credit card debt for the duration of one car loan.

    Free repairs. For life. And a lot of money left over.
     
    #81 SageBrush, Jul 28, 2015
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  2. JC91006

    JC91006 Senior Member

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    And for the people that don't have any debt in their lives, just put your money into ATT stock and get dividend payments until you need the money for a repair
     
  3. SageBrush

    SageBrush Senior Member

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    I'm not sure about AT&T, but I sure agree with the sentiment.

    The interesting point of the math I wish to emphasize is that it is exactly the people who buy EWs because of strained finances who benefit the most from knowing to walk away. And who have the discipline to put the money into the high interest loan. But that is not math.

    Can we now and forever dispense with agreeing to "peace of mind" rationalizations ? The advice will be much better.
     
  4. lar.smith42

    lar.smith42 Active Member

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    Just by reading your posts i'd be wiling to bet you are not living on a fixed income. In fact you probably up in the 6 figure a year income. I am 73 years old and living on social security and what little bit I can withdraw from my IRA's. We have no debt other than our car payment. we bought a used 2010 Prius with a extended warranty for peace of mind when we travel and because we normally keep a car a bout ten years. Not because of strained finances. That warranty has already saved us $1800 dollars.
     
  5. SageBrush

    SageBrush Senior Member

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    Details ?
    You should realize that you are an uncommon "success" story, and you still have lost money on the EW even before you consider your lost opportunity cost.
     
  6. lar.smith42

    lar.smith42 Active Member

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    front drive axle, boot and bearing, and towing
     
  7. SageBrush

    SageBrush Senior Member

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    Thanks.
    If you had not had the EW how would you have handled the repair and what is your estimate of the cost ?
     
  8. JC91006

    JC91006 Senior Member

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    At 73 years old, you just want the easiest and must convenient solution.

    Or you can source the parts and ask someone at AutoZone to help out for a fraction of what a trained dealer would charge
     
  9. lar.smith42

    lar.smith42 Active Member

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    Cost about $1800. Money would have had to come out of savings which is for Medical expense not covered by Medicare. Thats about the amount of my Soc. Sec. check. Being retired money is not going into savings so we have to keep the out going to a minumum.

    Or you can have a EW and not worry about it like I did.
     
    #89 lar.smith42, Jul 28, 2015
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  10. JC91006

    JC91006 Senior Member

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    Yes another EW success
     
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  11. SageBrush

    SageBrush Senior Member

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    Compared to the usual, that is a "success."

    I don't know how similar these, or these estimates of axle replacements are to your car, but $400 - $800 is reported specifically for the Prius. This is why I'm suspicious of stories that purport to show that an EW covered its cost.
     
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  12. ETC(SS)

    ETC(SS) The other One Percenter.....

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    It wasn't my wish to be cruel, and I didn't want to get into some kind of goofy squirrel chase about the meaning of happiness.
    If somebody gets their BVDs in a twist because of my term for AW's then maybe they will do a little web work to try to prove me wrong.....


    .....I'll be here. ;)

    Sometimes you have to get the patient good and torqued off to get them off their backsides and do the right thing. ;)
     
  13. JC91006

    JC91006 Senior Member

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    If you didn't have an EW, chances are you'll ignore things that need repair. When I'm 73, I would most likely buy an EW so I don't have to work on my own car or figure out where would be the cheapest place to fix it. I've got better things to do with my time and money is not something I can bring with me to the afterlife
     
  14. SageBrush

    SageBrush Senior Member

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    If I reach 93, I hope to be spry enough to repair the thing myself, but in any case not so feeble minded that I buy an EW.
     
  15. JC91006

    JC91006 Senior Member

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    I bought a term life insurance which I'm hoping I'll never use.......and the arithmetic in that really doesn't favor any useful return for me.
     
  16. SageBrush

    SageBrush Senior Member

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    Correct, but if you think that is an argument in favor of EWs then you still miss the point. While both can be viewed as insurance, not all insurance is created equal. Some insurance offers are just silly.
     
  17. JC91006

    JC91006 Senior Member

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    Some people find it convenient to have an EW. Paying for convenience.

    Why do people buy 4x4 vehicles and never go off-road?
     
  18. SageBrush

    SageBrush Senior Member

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    What convenience ?
     
  19. JC91006

    JC91006 Senior Member

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    To be able to just bring it to Toyota when an issue comes up. Let them handle it under warranty.
     
  20. SageBrush

    SageBrush Senior Member

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    Are you unable to go to a dealership if you do not have a warranty ?
     
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