Hi All, My name is Sandy. I just bought 2018 Prius Prime Advance last Sunday from the Broadway Toyota dealership in Portland, OR. The manager suggested me to buy the extended warranty for $2,885.00 which will cover for 7 years. He said I can cancel this warranty within 30 days and receive the full amount. To be honest with you, I don't know anything about car. I drove my Honda Accord for 20 years. Now, I decided to buy the electric car, so I can drive to work and save money on gasoline. I have two questions to ask: 1. Should I keep this warranty or should I cancel it? 2. What kind of problem that I have to face after one year or two years the standard warranty is expired, and I have to come up more than $2,885.00 to fix my car? Thank you for your time and your recommendation. Sandy
Cancel it... Those warranties are fear-based and sold at a profit, almost never at a loss... The odds you'll have to spend that much money on your vehicle in the next 7 years in a way that is fully covered under the warranty are way too close to zero to spend that money right now. Take the money and invest it and 8 years from now when your car needs a repair a year after the warranty runs out you'll have alot more than $3K to cover the cost.
Agree 100%. If your financing the car you would be paying interest on that amount also. Take the difference in your car payment and put it in a savings account to pay for repairs.
welcome! cancel it, it's a ripoff and 100% profit for trathe dealership. more importantly, remove your street address from your avatar location. congrats on your new prime, all the best!
DITTO But go one step further. Put the $2,885.00 saved into a CD or money market account. Keep it or if you have some extra money, put more in. Now after 3 years when your basic warranty expires. you have a nice nest egg for a rainy day if you PRIME needs it. Chances are you don't need it. BTW, welcome to PC.
Hi PriusCamper - Thank you for a great advice. I did cancel it and the financial manager told me it will take around 8 weeks for me to get a refund. That is a very long time to get a refund. Thanks again.
Hi Skibob - Thank you for a great advice. I borrowed money from my siblings and paid cash to Toyota, because I decided to get $3,000 cash rebate from Toyota. Their interest rate is almost 5%. I could not afford it. Thanks again.
So now see if you can put a little away every month in a savings account to use for repairs. The way Toyota’s are you might actually use the bulk of it towards a new car in 10 years or so.
