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One infuriating high-pressure sales tactic used by some unscrupulous new car dealers is what is known as “fear, uncertainty, and doubt.” Also called FUD. This is when you have just finished a very emotional purchase of a vehicle, and your instincts are to protect your big investment. Dealers tap into your protective emotions and try to sell you a warranty that you do not need.

Mikey’s full overview posted at the Car Talk Community was,

“I just purchased a 2024 Prius Prime Plug-in Hybrid. The salesman strongly encouraged me to buy the extended warranty, which, instead of just the 3-year or 60,000km, would give me seven years or 120,000km. His reasoning is not for the engine and drivetrain but for all the electrical components. He states that if the backup camera or the digital display for the speedometer & gauges & warnings goes, it is extremely costly. He added that the digital screen for the speedometer (etc.) went on his wife’s Lexus, and it cost $9800 to replace. I thought that Toyota would have good enough quality to last seven years without something like that going. Does anyone know of issues like this with the Prius Prime? Has it not been around enough to know?”

This is a question that many new owners of all models from all brands find themselves asking. Did you know that even Tesla offers extended warranties to its shoppers. Many different brands’ dealers use these same tactics. When one of our Torque News contributors purchased her new 2024 Toyota Venza, she was also offered protections she felt were unnecessary at that time. Hande Tuncer recalls,

“I felt it was weird to be asked to buy a warranty on the day I purchased a new vehicle from the most reliable brand on the planet. One big reason I bought a Toyota in the first place was its reputation for stellar quality, durability, and reliability. The dealer even showed me a laminated card he had with all the horrible things that would go wrong and their high prices for repair. Part of the buying experience was negative for me because I was made to feel as if I was mistaken about the brand quality during the purchase of the vehicle. I opted not to buy any added warranties.”

Do I have to Purchase an Extended Warranty When I Buy My Car New?
You don’t need to buy an extended warranty on the day you purchase your new car - nor should you. Nearly all manufacturer-branded extended warranties can be purchased at any time up until the expiration of the initial new car warranty period. With Toyota, that is 3 years or 36,000 miles (in America). By waiting, you give yourself some time to get to know the vehicle. If you love it and plan to keep it, you can buy a warranty if you wish. However, if you opt not to keep the vehicle, you can forgo the warranty and avoid the cost and hassles.

Reasons To Buy An Extended Warranty
There are some good reasons to buy an extended warranty. Here is a quick punch list:

• The vehicle is known  to have some problems or poor overall reliability
• You know in advance that you plan to keep the vehicle long-term.
• You drive so many miles that you will quickly exhaust the 36,000-mile new car warranty
• You like the peace of mind that comes with never having to worry about repair costs

Let’s explore this section in a bit more detail with some real buyer examples. Jerry S is a member of one of Facebook’s many Ford Bronco Sport clubs. The Ford Bronco Sport is a fantastic vehicle that earns high owner satisfaction scores. I myself own a 2023 Bronco Sport Badlands, the top trim and I have been outspoken about my feelings for this SUV. Jerry asked his online community about buying an extended warranty, saying, “What does Ford Protect cost for 2022 Bronco Sport Badlands?” This was a post I bookmarked because I myself an considering purchasing an extended warranty. Although the Bronco Sport is a fine SUV, it has some known issues with the battery, stop-start system, rear brakes, and water pump. So, I followed the dialogue closely on his post. Some commented that the price is less than one might expect, but also noted you can shop around from dealer to dealer to get the best price. You need not buy it from your dealer, and you need not buy it the same day you buy your vehicle new. A member of the Prius Club on Facebook, Kevin S, articulated this perfectly, saying, “I don't remember what I paid, but I did shop around and found it cheaper than the dealer I bought my car from.”

Buying a Warranty And Never Needing To Use It
One interesting aspect of buying an extended warranty is the philosophy of using it. Thinking ahead, if you bought an extended warranty and did not need to use it, would you be happy or sad? A member of the Prius Owners Club on Facebook, Robert B., had that experience. He said, “My dad bought an extended warranty on his Prius, and he never needed to use it even once.” My philosophy is that I would be happy to never need my warranty. It means I never had a breakdown.

A post by Prius owner Leslie M mirrors what Hande experienced as well as Robert’s. Leslie wrote,

“For those who have bought brand new, did you buy any extended warranties? I bought my Ford Fusion in 2009 and bought the extended warranty, but I never needed it. I’m iffy about the one for my new Prius, but all the smart/computer components make me think it’s a good idea. Thoughts?”

We can see that a delay likely sowed doubt in her mind about the electronics, just as was the case with Mike and Hande.

Why You Should Buy From Your Vehicle Manufacturer
I spent multiple years researching and rating extended warranties for another publication. I’ve also owned them from Subaru, Lexus/Toyota, and Honda. My long-running research revealed that the aftermarket warranty companies have a legion of unhappy, uncompensated policyholders. Not so with the owners of contracts from the maker of their vehicle. One reason is that there is no middleman. Nobody loses if you buy a warranty from Subaru and return to a Subaru dealer for a needed repair. Subaru wants you to be happy, and the dealer will make it right. If you have an aftermarket policy and don’t have all the service records from the first day the vehicle was built - even before you owned it - you can be assured that you are headed for conflict. 

All of the manufacturer-sold warranties I researched offered a partial refund if the vehicle was traded in before the policy was fully used. And the trade-in need not be for that same brand. For example, I once traded a Lexus to a Subaru dealer and received a refund on my Lexus extended warranty since it was still in effect. There was a small processing fee, but Lexus was very helpful, and the refund came immediately. 

If you have purchased an extended warranty from a manufacturer, would you recommend it to a friend or relative? Your comment under this story could help a fellow shopper. 

When you bought your last new vehicle, were you pressured to buy an extended warranty on your new car? How did that make you feel? We value your feedback in our comments section below. 
 

John Goreham is a credentialed New England Motor Press Association member and expert vehicle tester. John completed an engineering program with a focus on electric vehicles, followed by two decades of work in high-tech, biopharma, and the automotive supply chain before becoming a news contributor. He is a member of the Society of Automotive Engineers (SAE int). In addition to his eleven years of work at Torque News, John has published thousands of articles and reviews at American news outlets. He is known for offering unfiltered opinions on vehicle topics. You can connect with John on Linkedin and follow his work on his personal X channel or on our X channel. Please note that stories carrying John's by-line are never AI-generated, but he does employ Grammarly grammar and punctuation software as well as image creation tools. 

Image created using the X Grok tool by John Goreham.