Except for that admitedly very small percentage of people that do wind up with an expensive problem (with even the very best of any product). The question is simply whether you want to accept the risk that you might be that unlucky soul.
It comes down to how much you want to pay for peace of mind. I think that if you are willing to spend a few hundred dollars for that kind of insurance, you aren't going to be terribly upset if it turns out you never needed it. I haven't yet bought the extended warranty, but I probably will. I look forward for it be the best waste of my money ever.

 

That's like saying if you don't die, then life insurance is a waste of money.

Like you say, this is a form of insurance. Looking at it strictly from a financial standpoint, I agree with what you say about saving your money and investing it. That's self-insurance. It works if you're prepared for the worst case scenario, and that's usually what I do instead of buying extended warranties. But if you don't expect to be prepared for that scenario, the peace of mind has considerable value. I don't fault people for buying it.

 

Thanks for all the answers so far - I appreciate all the information.

Now for a second question. Does anyone have any experience with Toyota's pre-paid maintenance program? I do most of my own oil changes now, so I wasn't really considering it until I saw some folks mention it on PriusChat. Any thoughts?

 

EXACTLY!

Again, if you take the money you would have spent on the extended warranty and invest it, you WOULD have the repair funds should something go wrong with the vehicle. And if nothing goes wrong then you have made money to keep. The odds are in favor of nothing major going wrong. The big issue (and is already covered for 10yr/100k in CA) is the hybrid system. Even the Toyota drivetrain is covered for 5 years.

 

Even Toyota shops have technicians who will overfill a tank instead of doing the job right. I too do my own and will again this weekend.

Bob Wilson

 

Bowenj405, I do think prepaid maintenance is money needlessly spent. Little maintenance is required and, therefore, costs are low even if you pay someone to do it. Most of the routine things are easy DIY jobs.

Not necessarily. Let's assume David Beale's earlier quote of $1K for the warranty. Let's assume a transaxle failure, not covered beyond the base warranty. Several NHW11 models now have experienced that, with repair estimates coming in at over $5K. To get that kind of investment return over the life of an automobile would require either aggressive and risky investing, luck, or both.

You seem to be missing the point that peace of mind has value to some, especially if they won't be prepared for the worst case. For that reason, I'm not about to judge them and call the cost a waste. The value of that peace should be considered along with the realization that the pure economics of the warranty probably don't make sense.

Just curious: Do you have insurance of any kind?

 

This is covered for 5 years by Toyota. Most people don't keep a vehicle 3 years.

 

I did the math , info gathering, factoring in possible inflation.
It's not worth to sign up for the pre-paid maintenance program.
Unlike the "extended warranty", this is the "known expense" that will come up in the next few years. It would be better if you put the money to NetBank CD account, you will have plenty left over.

Cheers.

 

Absolutely. There is nothing unexpected in vehicle maintenance. Put the same money that you would spend on pre-paid maintenance away in any account that earns reasonable interest, and use that money for your regular maintenance costs. You easily come out ahead.

 

Who says? What's your source?

Working on this (questionable) assumption, I give credit to the OP and most others to be smart enough not to ask, "Let's see, if the bumper-to-bumper warranty is 3 years, and I plan to sell the car in 2, is the extended warranty worth it??"

Obviously, how long one plans to keep the car is part of the decision-making process.