Hi - just purchased a new Prius (package #2). The F&I lady tried to sell us an extended warranty that included the electronic components, which would only reach 100k miles for $850. Is this something that could be a problem?
Read the fine print very carefully. Is it the electronic components (i.e. the computers) or is it the electric-drive components. If it’s the former, forget about it-- they practically never fail and aren’t expensive enough to justify insurance. If it’s the latter, it might be a good idea if you want the peace of mind. For what it’s worth, the batteries and motors have been extremely reliable and most failures seem to be from manufacturing defects that manifest themselves within the factory warranty period. However, failures do happen very rarely and a battery pack or a traction motor are both multi-thousand dollar repairs. And, of course, if you do decide you want the peace of mind, read the policy very, very carefully-- extended warranties are notorious for being written in such a way that it’s practically impossible to make a claim.
I’d avoid it. Since it’s such a low cost, I’d bet it covers the electronic accessories, radio, power windows, maybe computer. I haven’t heard of any rash of electrical problems with the Prius. Chances are, the company backing the ‘extended warranty’ will go belly up before you’d ever need to use the ‘policy.’
Agree; skip the extended warranty; it most likey only covers things that seldom break and are not that costly to fix. It will certainly EXCLUDE the main battery and electric motor, the big items.
Just to be safe . . . why not read the basic warranty with the dealer . . . then have the dealer show you on the “extra” what the extended covers beyond the basic . . . have them initial both for you, and underline the extra stuff, and then get back to us here and advise what “extra” is covered. We can then help you to evaluate if the extra stuff (if any) is worth $850. It’s hard to determine whether this is worthwhile given the info we’re privvy to. Rocketman
Good article/survey on these and well worth a read >>> http://www.consumerreports.org/cro/cars/new-cars/buying-advice/extended-warranties-4-08/overview/extended-warranties-ov.htm
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 peop;le 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 $500 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