Extended warranties
Your thoughts, please. Mine is currently to go ahead and spend the $1,700.00 for the extended warranty to 100k miles.
Maybe I'm way off base here, but I've always believed that extended warranties (for any product) are a waste of money. I figure if something works for 3 years and then breaks, it couldn't be a manufacturing defect, so the extended warranty wouldn't cover it anyway.
Car warranties are worse, because they usually cover parts but not labor, which is often the greater charge. I also distrust them simply because the salesmen try so hard to sell me one. I think it's just a way for them to guarantee that you will take your vehicle back to them for repairs, so they can charge you outrageous labor costs!
Some people buy extended car warranties as insurance against future repairs and maintenance costs, but cars do not usually require rack and pinion replacement. It would be rare to have a repair of that magnitude after your normal warranty expires--especially the Prius with its extra-long warranty for the expensive hybrid components.
With my last car, I kept track of the repair costs after the normal warranty expired, and it turned out I would have almost broken even at 100,000 miles (i.e. cost of repair parts = cost of extended 100,000 mile warranty), but that was only because several larger items failed at 99,000 miles. It was an Oldsmobile--Toyotas have a better record for longevity.
Of course, it depends on the cost of the extended warranty. If it were only $50-$100, I might buy one. However, I think $500+ is more normal and $1700 is definitely too high.
Where did you get your Blue Book value? I just went to
http://www.kbb.com and priced a used Prius. Assuming 2001 with 31,000 miles, excellent condition, and basic options selected (and my zip code: 53226), it said $15,490 for private party sale and $13,415 for trade-in. I think this is normal--it indicates the car lost about 25% of its value in the first year or two. They always drop dramatically in value when you drive them off the dealer's lot. When someone says a car holds its value, they mean several years later, you will still get a decent percentage. If you sell a car after only 1-2 years, you will always lose a lot of money. (Maybe you should have leased it.) Hey, look on the bright side--I think you can claim the loss on your taxes to offset any capital gains this year.
Douglas (2002 Silver, Wisconsin)