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Quick question on how warrantees work.

Discussion in 'Newbie Forum' started by will_College_Station, Oct 17, 2010.

  1. will_College_Station

    Joined:
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    Hi all:
    I have a quick question about how warrantees that is probably so obvious, most people don't bother mentioning it. Hence, I haven't figured out after reading other related posts on this site.

    Can I get an extended warrantee of some sort if a previous warrantee on my car has expired for any period of time?

    I assume from comments like "I'm at 33K miles and need to decide quick" that warrantee coverage has to be continuous; but I want to make sure.

    My specifics: I bought a 75K miles extended warrantee from the dealer with my 2005 Gen2 Prius that I bought new in 05. In hindsight this may not have been as good an investment as I thought, but oh well. I used the warrantee when replacing a leaky coolant pump, but that's it.

    Fast forward to today: I'm at 72K miles, 3K short of expiration. I'm driving less these days, so can probably stretch that a fair amount. But I'm curious: does this mean if I go past 75K, I lose the option to buy a warrantee up to 100K or 125K at a later date?

    That's my simple question. If once you're warmed up with that, you want to throw in any additional advice on the *value* of such a warrantee - specifically for the mileage between 75K and 125K or so - feel free :) This is my first vehicle, and I'm not sure what I should expect the "end game" of my Prius to be - whether I'm buying a new one at 125K, limping til 175K but with mounting repair bills, or what.

    Thanks!
     
  2. qbee42

    qbee42 My other car is a boat

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    The value of all extended warranties is peace of mind. The average user will pay more for the warranty than the cost of any covered repairs. That is how warranty companies make their money.

    Extended warranties are essentially insurance. There are only two reasons to buy insurance:

    1) To avoid catastrophic losses.

    2) Peace of mind.

    There is no economic justification for #2, but some people are willing to pay extra up front and thereby avoid some worry. It's up to you as to whether that makes sense, as long as you realize that it isn't a good economic investment.

    Tom
     
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  3. richard schumacher

    richard schumacher shortbus driver

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    Ditto Tom. Don't repeat the mistake of buying an extended warranty. Put the $1000 into an interest bearing account and let it work for you.
     
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