Why buy the extended warranty now?

Discussion in 'Gen 2 Prius Main Forum' started by coonbutt, Apr 8, 2007.

  1. coonbutt

    coonbutt New Member

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    I understand the reasons to buy the Toyota platinum extended warrany, particularly because the Prius has a lot of technology that would be expensive to fix if somethiing failed. Most of the time I would say no to buying a warranty, but this time I plan on buying it in the next couple years.

    The question I have, is why would anyone want to buy the extended warranty when they buy the car, or well before 3yrs/36k miles? What happens to the warranty if, God forbid, the Prius was totaled even before the extended warranty went into effect (in the firt couple of years)? :eek: Do you lose the money? I can see how it "might" be a selling point if you sold the Prius privately before the extended warranty was up, but why not wait until about 30,000 miles before buying so you can play it safe?
     
  2. JimN

    JimN Let the games begin!

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    <div class='quotetop'>QUOTE(prickly commute @ Apr 8 2007, 08:05 PM) [snapback]420014[/snapback]</div>
    Look for the warranty threads. The pros & cons have been extensively discussed. The warranty won't cover collision damage. If you are going to buy, the best price is here. IMO extended warranties are only good for the sellers.
     
  3. chinalfr2

    chinalfr2 Member

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    What is the price difference when you buy the extended warranty now or wait till 36,000 miles/3 years? None.

    Will you get extra coverage with extended warrantly while the vehicle still under manufacturer 36,000 miles/3 years?
    Yes. Dislocation benefit, Substitute transportation.
     
  4. jesart

    jesart Junior Member

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    <div class='quotetop'>QUOTE(prickly commute @ Apr 8 2007, 08:05 PM) [snapback]420014[/snapback]</div>

    Hey Prickly commute,

    You have some valid points that the extended warranty is not needed until after 36K miles. As for my personal reason why I bought the extended warranty before hand, I had the money available and I wasn't sure if the Ext warranty I bought here on PC would go up in a couple of years. I bought the 100K mile warranty for $990. In a few years the same warranty might be a bit more. You could always return the extended warranty and get a refund back. Granted, there might be some fees and you'll probably get a prorated amount back. I believe you have 30 days to cancel and get a full refund. Here in California it's 60 days, if I'm not mistaken. Another reason was just to get it over with, and not worry about buying it later on. I had originally bought my warranty at a dealership and paid well over 2K for the same warranty I bought here at PC. It's basically up to you what you want to do. You have some time to think about it, so I suggest you look at your finances and if you could afford now, go ahead and get it. Good Luck! :)
     
  5. snowdog650

    snowdog650 Member

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    <div class='quotetop'>QUOTE(JimN @ Apr 8 2007, 06:23 PM) [snapback]420018[/snapback]</div>
    x2. He speaks the truth yet again.

    Folks don't offer extended warranties because they are nice guys. They do it to make money. Statistically speaking, if you buy one, you will lose money on the deal.

    If you are willing to do it for the added peace of mind, then it may be worth it. If you are looking at it economically, then they are not worth it.
     
  6. Walker1

    Walker1 Empire

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    <div class='quotetop'>QUOTE(snowdog650 @ Apr 9 2007, 02:00 AM) [snapback]420126[/snapback]</div>
    I have a friend who bought a big screen TV. It broke 10 days after the std. warranty and PANASONIC wouldn't do anything for him. The TV was only 2 yrs. old and would cost $750 to fix. He ended up giving it away to a TV repair shop.

    The same guy bought a SONY big screen. That set broke just before the regular warranty ran out. It would have cost him $1200 this time. He was smart enough to buy the x-tended war. for 4 yrs. on the Sony.

    I have the x-tended Toyota war. on my Prius. I had the money at the time, have peace of mind, and don't even give it a thought now. There are times when an x-tended war. doesn't matter, but a Prius is a big repair $$$ car.
     
  7. snowdog650

    snowdog650 Member

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    <div class='quotetop'>QUOTE(Walker1 @ Apr 9 2007, 07:26 AM) [snapback]420227[/snapback]</div>
    Statistically speaking means that there will be some outliers in the population. Sounds like your buddy is a definite outlier. On the other end of the spectrum, how many people buy the EW from Sears or Best Buy on a new purchase and NEVER use it?

    Like I said, for peace of mind, EWs are great. STATISTICALLY SPEAKING, they are not going to save you any money ... they will cost you money.

    It is elementary business statistics.
     
  8. coonbutt

    coonbutt New Member

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    <div class='quotetop'>QUOTE(snowdog650 @ Apr 9 2007, 11:56 AM) [snapback]420331[/snapback]</div>
    While I agree that extended warranties in general are not worth it, I believe it may be for the Prius. There is just too many electrical components that can fail, and the replacements parts and installation will not be cheap. On my other cars, I have not bought the the extended warranty. One is a toyota tacoma with 105,000 miles (glad I didn't buy it!), and one is a Honda CRV with 40,000 miles (too soon to know). The Prius is a tougher decision, because it is so much different that regular cars
     
  9. priusincc

    priusincc Member

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    <div class='quotetop'>QUOTE(prickly commute @ Apr 8 2007, 05:05 PM) [snapback]420014[/snapback]</div>
    When I recently took delivery of car, dealer offered 7yr/75K/$50 Ded warranty for "special" price of $1795. They said if you buy now, at end of warranty period with NO claims you get your money back. I didn't take it; you can usually get a better price than thru dealer (same for accessories). I haven't decided on warranty yet. If I do, the EW thru PriusChat seems to be best deal, and I have a while to decide. I never considered EW on a conventional car, but due to the technical nature of Prius, it may be worth it if you plan on keeping it for a long time. (An additional thought is that I don't believe the dealer EW included the main battery. Don't know if that is standard, but could be a concern.)
     
  10. Charles Suitt

    Charles Suitt Senior Member

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    <_< Hi prickly commute...

    Why buy the Extended Warranty now?

    Only a few of reasons I can imagine: [1] The Warranty is an Insurance Policy and its price will reflect the historical losses (payouts) for the items it warrants. So... if losses are higher than predicted the price may go up in the 3/36K period... you'd need an accurate 'Crystal Ball' to divine that answer; [2] Your personal availability of funds. If you prefer to add its cost to the amount financed could be a reason to buy now, or if you have adequate cash could also be a reason. [3] Your 'Comfort Zone' may dictate your feeling more secure by having the Warranty in place from the beginning.

    Actually, as previously commented, it's your decision. I elected to wait until the 3/36K expires in part because I am a cash buyer and that $1K can collect a little interest or dividends in that time. You got good advice previously, don't pay the dealer's high price... buy on PriusChat.

    CIAO
     
  11. galaxee

    galaxee mostly benevolent

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    we're waiting because we could really use the money for other things in the meantime. no sense in tying up $990 in an EW right now when we've got another almost-8k miles before we hit end of factory warranty.

    why are we going to get the EW? because even though DH fixes our cars, the parts are still pretty damn expensive. we don't want to be surprised. plus, when we near the 10 year mark, we figure it'll add a little peace of mind for whoever buys the car from us- maybe increase the selling price a little too.
     
  12. ceric

    ceric New Member

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    The only downside to wait before your warranty expire to buy EW is that the price (now $990) may go up unexpectedly.
    Of course, if you bought it too early, you lose on the interest of the $990 (roughly about $150 for 3 yrs -assuming 5% return).
    Insurance is about how much risk one can take. To some, a few thousands $$$ repair is NOTHING. To others, it may impact severely on their financial situation. Statistics means very little when it happens to you. There are more expensive parts of a Prius than a Corolla.

    I am waiting till the end of this year to buy the EW, and hopefully, the price stays put. :D
     
  13. GoEco

    GoEco Red Prii Rule

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    If toyota is no different than any other dealer, if you sell your car you can cancel/cash-in on your extended warranty and get your money back.
     
  14. kenarora

    kenarora New Member

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    <div class='quotetop'>QUOTE(JimN @ Apr 8 2007, 05:23 PM) [snapback]420018[/snapback]</div>
    On many items, I think there's no monetary benefit (statistically, on average) to the buyer. However, for some items, and for the Prius specifically, it may make sense. The main reason is that the cost of performing the repair (the marginal incremental dollars it costs the dealership to do the "statistical average" amount of service for your car) can be significantly different from the price a customer (you) would need to pay for those same repairs. In businesses with high marginal margins (dealership car repair) and relatively few alternatives (how many repair shops can handle the "uniqueness" of the Prius), the difference between cost and price can be significant.

    More simply put, for the "average" Prius, it may cost the dealership $700 (picking a number out of the air, I admit) to do the service, but the price for you may be much higher, say $1400. So, paying $1000 for an extended warranty may be a win-win, in this scenario.

    This also neglects some (second-order, I think) effects -- such as causing more regular inspections, which may reduce under-warranty (dealer paid) costs, or resale value effects But I think that's not the main point.
     
  15. aoc6m6

    aoc6m6 New Member

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    I'm not going to buy an extended warranty b/c I'm a very competent mechanic. I pretty much have figured out to convert my Prius to a bio diesel hybrid.......the ultimate green machine.
     
  16. icarus

    icarus Senior Member

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    <div class='quotetop'>QUOTE(aoc6m6 @ Apr 19 2007, 03:48 PM) [snapback]426360[/snapback]</div>

    I bought the 7 year for peace of mind. The deal was if I didn't use it the money would be refunded at the end of 7 years. It only makes sense if you plan on keeping the car that long however. This is about the only car I would do it for, because of it's basic complexity.

    Keep in mind, that the warranty is a profit center for the dealer, as such the price is negociable. They quote you a price as thought it is set in stone. I was able to get the 7 year for less than the price of the 5 year just by asking.

    Icarus
     
  17. aoc6m6

    aoc6m6 New Member

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    <div class='quotetop'>QUOTE(icarus @ Apr 19 2007, 06:06 PM) [snapback]426384[/snapback]</div>
    I don't find it all that complex at all. I'm sort of a jack of all trades so I'm not worried about warranty.
     
  18. DjEZ

    DjEZ Junior Member

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    this is my story
    i bought the extended waranty for my civic and did enjoyed the dislocation service when i was in chicago.
    I ran over a tire in the middle of the highway, nothing happened to the car but i want to make sure that it wont break down on my way to toronto. It was 8 in the evening and got a towtruck. My car was towed to the nearest honda dealer , left it for the night and the checked into a hotel.
    The dealer checked the alignment the next day, i have a good night sleep. Also i dont have to drive thru a snow storm.(i didnt expected the stormto hit that evening).
    And they reimbursed my hotel and food. I did not pay for towing.

    Im satisfied with the extended waranty,moving on im trading that car for a prius.
    After reading through the treads im beginning to think if i should buy it for the prius. :(

    I ask this question in another tread" Can i Buy from this site extended warranty for my canadian prius, any suggestion"?
     
  19. galaxee

    galaxee mostly benevolent

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    <div class='quotetop'>QUOTE(aoc6m6 @ Apr 19 2007, 06:48 PM) [snapback]426360[/snapback]</div>
    except parts tend to be expensive, as i mentioned above. being a very competent mechanic (i hope you've checked out the service manuals for the idiosyncrasies of the prius) only gets you free labor.

    i'm curious about your biodiesel conversion... could you tell us more in a separate thread so as not to get too OT here?
     
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