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My new prius and the extended warranty contract

Discussion in 'Gen 2 Prius Main Forum' started by dbaro, May 30, 2006.

  1. dbaro

    dbaro New Member

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    We recently (five days ago) purchased a prius and was directed into taking the extended 7 year, 100,000 mile bumper to bumper insurance. This covers all the electronic and mechanical malfunctions and takes over in years 4 thru 7. The insurance tacked on an additional $1881 to the cost of the car and @ 5.59% will cost $120 per year or $600 over the 5 year period in interest.

    I must explain that prior to this car we had a 99 XLE Sienna which had an engine meltdown in the 4th year. There must have been a service bulletin on the Sienna because, though we were on vacation, the dealer took care of rebuilding the upper portion of the engine except for about $1400 which included car rental fees. There is a 60 day cancellation on the extended contract for 100% except for a $50 administration fee. But, given the all the electronics on board, would it not be smart to just keep it and eat the costs?

    Thanks
     
    #1 dbaro, May 30, 2006
  2. jsm

    jsm New Member

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    You can get the same warranty through Troy for $990 here on Prius Chat - look at the specials section on the site.
     
    #2 jsm, May 30, 2006
  3. powrfuel

    powrfuel New Member

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    <div class='quotetop'>QUOTE(jsm @ May 30 2006, 08:22 AM) [snapback]262755[/snapback]</div>
    how long do oyu have to wait before getting it? like before the inital warratny period expires?
     
    #3 powrfuel, May 30, 2006
  4. richard schumacher

    richard schumacher shortbus driver

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    Toyota will sell you an extended warranty anytime before the initial waranty expires. Invest the money and wait.

    Of course, the average buyer saves even more by not buying an extended warranty. Extended warranties are priced to make money for the seller of the warranty, not for the buyer. Note that if sellers of extended warranties don't make enough profit they can go out of business and leave the warranty owners out of luck.
     
    #4 richard schumacher, May 30, 2006
  5. gnagel

    gnagel New Member

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    I was able to negotiate with my dealer to bring the cost of the same warranty down to $990. The dealership also threw in provision making the extended warranty fully refundable in the event that I don't use it over the seven year period.
     
    #5 gnagel, May 30, 2006
  6. ghostofjk

    ghostofjk New Member

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    B2B2,

    This topic has been thoroughly debated here. I agree with you on the desirability of having an extended warranty. Cancel the one you bought IMMEDIATELY, save that interest (plus you paid double what you needed to) and buy one here when you have 35,000 mi. on your car. The one to which we refer here is the Toyota Financial Services "Platinum" warranty, 7 yr/100K mi, zero deductible. Your dealer will not be thrilled (look at his profit!), but that's life. He may even agree to lower the price of the EW to near what you can get it for here. Then you'd have to decide whether it's worth it to finance it or not (I don't think it is).
     
    #6 ghostofjk, May 30, 2006
  7. dbaro

    dbaro New Member

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    Thanks all for the imput, especially ghostofjk. I've think we've decided to cancel- if I can ever get a hold of the finance officer again. I will take a chance with the company onboard- hopefully he/she/it will still be in operation at that time.

    Thanks again, you all are very helpful
     
    #7 dbaro, May 31, 2006
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