Posted by newsgroups.comcast.net on March 18, 2007, 1:15 pm
Usually, I reject extended warranties on principle. I figure they know
their product and its failure modes better than I and have calculated the
statistics in their favor.
However, when we bought our 2007 Prius, we bought the 7-year 75Kmile
extended warranty. There are just too many computers and funky systems, that
I do not expect to be able to diagnose or fix myself.
Our dealer offered us an extended warranty which will refund the $500 at
the end of the 7 years if we never use it. So, if we have a little cheap
problem, we'll just pay to fix it. But if we have an expensive problem, like
a failed computer, we'll use the warranty.
Posted by Bob Wilson on March 18, 2007, 1:22 pm
This seems a reasonable answer. The interest on the $.5k is their
profit, if it never used.
Posted by Marilyn & Bob on March 19, 2007, 5:06 pm
Their other profit is all the repairs you make yourself, hoping to get the
$500 back at the end. Then three years in you have to make the expensive
repair and you don't get your money back anyway. It's a bad deal. Better
off getting the plain 7/100K plan for $95. Note that I am starting year
six of our seven year plan and have never had to use it (or the basic 3
year/36K one) for anything.