I just purchased a 2010 Prius and want an extended warranty as we plan to keep this for 100,000+ miles and 10 years. The dealership offered one and I want to know if there are any other reputable companies that I should compare. I went on-line and there are 50+ choices of companies.
Yes, there are other warranty companies.
No, they are not reputable.
If you want an extended warranty that will actually pay for claims, the only one to get is the one offered by Toyota. The others will somehow find a way to deny your claims, assuming that they are still even in business in a few years. These companies have a strange habit of disappearing every few years, leaving naive customers without recourse.
I was not aware that Toyota offers one. Even if they do, how do you know that the dealer in question here is offering that one or a competing one that is not reputable.
Ten years and 100k miles is a cakewalk for a Toyota, as it is for most other vehicles made today. Even 150k miles is easy for vehicles today. Money spent on an extended warrantee is waisted, better to spend it on a good preventative maintenance program.
When I purchased my Toyota and was offered an extended warranty I reminded the salesperson that I was buying a Toyota and he just nodded/smiled and moved on with the sale…
I agree that money for an extended warranty on a Toyota is probably wasted, but if the OP wants one in order to be better able to sleep at night, he would be well advised to get the one offered by Toyota. These can be bought at the time of purchase, though the dealership, or can be purchased directly from the manufacturer at a later date. In most cases, a car owner has up to one year to purchase the extended warranty directly from the manufacturer.
How do I know that the dealer is offering the one from Toyota?
Because they are required to, and because they do receive a commission on the sale of the Toyota extended warranty.
How do I know that a competing one is not reputable?
I do not know this with absolute certainty, but based on thousands of customer complaints reported in the media, hundreds of legal actions filed by the Attorneys General in many states, and multiple negative comments on this site from those who have lost money on “non-manufacturer” extended warranties, IMHO it would be foolish to buy one of these policies.
Well any car can have major expensive repairs.
The profit to the salesman and company is usually over 50%. So for every $1,000 you spend the insurance company has less than $500 to pay for repairs or they will loose money, something insurance companies do not do. Some people will get nothing back and some will get a lot more than they pay. Most will get far less. In addition you need to keep in mind that the insurer has worded it to eliminate as many expensive things as they can.
Remember that the seller is out to make money and they get to write the rules and set the price. They are not going to sell them at a loss so one way or another they are going to have you pay more than they will pay out.
Would you gamble with a car dealer who gets to set all the rules and knows all the odds?
Your decision has to do with the value of the piece of mind it gives you. If that is worth the cost then buy it. Don't expect it to cover everything however, most are written to keep cost down and exempt what they know will cost them money.
Good Luck
Toyotas are among the most reliable cars on the road, and the Prius is the most reliable Toyota. The extended warranty is not worth it, no matter what they charge.
If I ever bought a car and it COULDN’T last 10yrs/100k miles I’d NEVER buy a car from that manufacturer again.
Extended warranties are a complete waste of money. If you maintain your vehicle well then it should easily last 100k miles. Granted some do need repairs…but expensive repairs (those that cost more then the extended warranty plan) account for less then 1% of ALL vehicles sold…Insurance companies know this…that’s why they make MILLIONS selling these insurance policies.
Although I agree that most extended warranties for any kind of product is a lousy investment, I do not believe that any of you have analyzed carefully this specific warranty for the 2010 Prius. The standard warranty is 3 years or 36,000 miles, which does not cover any oil changes, towing, or loaner car. The extended warranty is 7 years or 75,000 miles (7yr./100K and 8yr./100k also avaialble). I am not a dealer nor do I have a vested interest in this game, but am considering the 7/75 for the Prius I am buying. Toyota is offering a $550 rebate and the dealers will also kick in a small rebate so that the cost of the 7/75 is about $1800. With labor reaching $100/hour (in 2009!), and very expensive parts for the Prius, this is not only piece of mind but could be financially smart. The big battery is warranted for 10 years even without the extended warranty, but the latter covers virtually every part, towing to the dealer, temporary transportation, and free oil changes. Seems like a decent investment. Love to hear contrary arguments.
Arnold
Search the archives of various Prius forums and lists. There are a few dealers who will sell the genuine Toyota extended warranty over the phone for roughly $1000 for the 7 or 8 year (I forgot, there are a number of different tiers offered) warranty. Am guessing your dealer wanted $1600?
You can purchase the genuine Toyota warranty any time prior to the original warranty expiration (am thinking thats 3 years or 36k miles). The only risk in waiting is whether the price of the warranty goes up. Then again, perhaps the price may go down? No chance!
IMO, $1000 is a good value for both Toyota and the customer.
Seems like a decent investment. Love to hear contrary arguments.
Just read the numerous threads on this forum about why these extended warranties are not a good deal for the consumer. You may be one of the very few lucky ones who will come out financially ahead, but the odds are stacked greatly against you.
Remember, every extended warranty exist to make money for those who are selling underwriting it. Everyone is selling them because everyone is making money from them. Guess who is paying the money that they are making?
An extended warranty is a gamble with the odds stacked in favor of the house and I agree with VDCdriver that if a warranty must be purchased in order to feel better it should be a factory backed warranty no matter the make of the car.
Two points.
One is that the OP should not be under the illusion that an ext. warranty will cover every glitch that may crop up. Read the fine print carefully.
Two is the warranty simply duplicates the factory warranty for the first half of the 75k miles warranty period. This means 1800 bucks for roughly 35k+ miles of warranty coverage and that figure could be a bit misleading because many or most warranties require a deducitble for each complaint and each visit.
Take it in 3 times for the same complaint and you may get hit for a deductible on each visit even if the problem is not corrected on the first 2 trips. Again, read the fine print.
And has anyone noticed the utter proliferation of automobile extended warranty commercials on TV lately? I don’t watch much television at all but it seems like everytime I do a warranty ad appears within the first 5 minutes and they never stop.
Think the economy downturn is causing people to fall into the trap of thinking their car repair bills are a thing of the past if they simply cave in and buy into these?
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About once a month I get a letter in the mail or a telephone call from some company offering me a chance to extend the warranty on my 2003 Toyota 4Runner. I don’t think Toyotas need extended warranties. Put the money you would spend on the extended warranty in a savings account and you will most likely come out ahead, even if you do need a repair.
What is interesting is that I keep getting unsolicited offers for an extended warranty on my 2003 Toyota 4Runner, but I never get a call or letter wanting me to sell me an extended warranty for my 2006 Chevrolet Uplander. I would guess that these companies access files of repairs and only offer warranties on vehicles where the chances of having to pay off are slim. BTW, I haven’t had any problems with the Uplander and it is off warranty.
Thanks to all who responded to my “analysis.” Especially to David K. Indeed, I did find a dealer who offers the plan - which by the way is the Toyota Manufacturer Platinum plan, no deductible, covers every conceivable part and labor - for $995. I am negotiating with the dealer from which I am buying the car and he agreed to drop the price of the car by the difference. It must be better for them than to reduce the warranty price. My dealer adds on free oil changes into the deal. It’s a go for me.
Arnold
My dealer adds on free oil changes into the deal.
They know they will make more money from customers with those “free oil changes”.
Even with awarranty, there is the chance that NOBODY can fix it anyway if things go wrong with the parts that make the car a hybrid. All my answers are negative today.
Different Toyota dealers offer the Toyota extended for different prices. If you want it, shop several dealers.
I’m curious about one thing here.
You state this ext. warranty covers, quote; “every conceivable part and labor” for 995.
Have you actually read that in the contract (as in the fine print) or is that statement something that you were told by the sales department?
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The 2009 Prius sells for about $1000 under MSRP near me now. Options are just a bit over invoice price. There are also rebates for military ($400) and college graduation in the last 2 years ($1000). Could the extended warranty be paid by the money left on the table?