Extended warranties

I just purchased a new Prius, with package 6 options. At the end of the my discussions with the dealer, I received the typical pitch for an extended warranty.

Does it make sense to purchase an extended warranty for a car with complex and expensive technology? The prices I have been quoted for the warranty are around $1650 for 7 years/70,000 miles and around $1950 for

7 years/100,000 miles. Supposedly it covers everything but hoses, belts, brakes and other items that wear out predictably with use or age. I have not yet tried to negotiate price.

Thanks for any advice.

Jim

Reply to
James H Thessin
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Hi James,

Congratulations! And Welcome to a group of very satisfied hybrid owners!

I too got the same pitch. From the cost of it, it sounds like you are quoting the price on the Toyota Platinum Extended service contract. Because that is the price I agreed to pay for it when I bought my Package 6 in Feb. Shortly after that I found this www site and others. Mostly Prius Chat

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Here I found a Toyota dealer in the N.E. that sold me the same product for a SUBSTANTIAL discount. I suggest that you join this free group, and contact Danny and see if he can assist you too!

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Good Luck!

-John

Reply to
JJ

First, beware that there are Toyota-backed extended warranties (honored at any Toyota dealer) and independent extended warranties that may not be honored or be more of a hassle to deal with. As a rule, extended warranties are a huge profit center for the dealers and are often a bad deal for the customer. Many dealers will sell the non-Toyota warranties because they make more profit. I would HIGHLY recommend that you don't even consider any of the non-Toyota warranties and get only the real deal from Toyota.

If you decide to get the Toyota extended warranty, keep in mind:

  • There is no pressure to buy it. You can purchase it any time up until the 3-year, 36,000 mile warranty expires.
  • You can buy it from any dealer, not just the one who sold you the car.
  • There is at least one dealer who is selling the 7/100,000/0-deductible genuine Toyota warranty online for around 0. Search Google for Prius Extended Warranty. Mentioned often in the Yahoo groups, also here.
  • Armed with this information, you can either wait and buy it online or use it as leverage to get a better deal from the selling dealer.
Reply to
Jay Hennigan

Common question, so here's my brain dump on it, including what's covered, how to cancel/transfer, and Prius-friendly dealers and their discounted prices.

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Note that the MSRP on the Toyota Extra Care Platinum Plan (only version available from Toyota for the Prius) is only $1300 for the 7 year/70,000 mile/$0 deductible version, and $1650 for the 7 year/100,000 mile/$0 deductible, so already your dealer is trying to overcharge you. Considering that you can get the 7/100/$0 from several places for $985, I wouldn't use your dealer unless they can meet that price. If you're in the southeast or gulf states Toyota regions, I'd also make sure that it's the genuine Toyota document, and not one just from that region...

As someone else already mentioned, you have any time up until the end of your basic new car warranty (3 years/36,000 miles) to decide to buy the extended warranty, so you have time to think and to shop around.

Reply to
mrv

As a Toyota dealer, i would not pay that much for that warranty. The

985 is about right. It lets the dealer make a small profit and gets you covered just in case. You should probablly wait till near 36,000 miles and see if the cost of the coverage goes down some. Never finance the warrant!!! Just makes you upside down faster(on a normal car that is)!!!

Trever Toyota West Statesville NC

Reply to
toyotrever

I wholeheartedly agree. Here in Florida, dealers are not allowed to discount the warranty. I am going for the $985 warranty from Troy Dietrich at Toyota of Greenfield. It will add a smaller amount to my loan than the amount the dealer here is wanting to charge me, but to me, it's worth the peace of mind. Being that it's a Toyota, the depreciation will be lower than most other cars. I originally purchased an extended warranty through my credit union, but I cancelled it as soon as I found out I could get the real Toyota Warranty elsewhere for less. In addition, the warranty here is not through Toyota, it's through some other company. However, the dealer swears up and down that it's a 'Toyota Warranty' even though it has another company's name on it. I said no thanks, I'll get the real deal.

Reply to
Teknojunkie

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