Looking at an extended warranty for a new Honda.
This place, for example, offers 7 years/160K km, for $1500.
Is it worth the cost?
This place, for example, offers 7 years/160K km, for $1500.
Is it worth the cost?
Should I buy extended warranty for new car?
- Thread starter ig-88
- Start date
You're betting that your car will need more repairs in that time than the fees you pay for the 'warranty'. They (and their experts with all their stats) are betting that they'll still have profit left over after they've paid for whatever repairs they agree to do under the contract. And if you did get the lemon, what they make on the other guys'll cover it. I believe in the 'gaming industry' it's called betting against the house.
In effect, you're prepaying for your repairs up to the cost of the plan, and relying on the ethics of the folks you paid to take care of you beyond that. If you're comfy w/ that, it's not a bad buy for you. But it's only a better buy if lotsa stuff goes wrong—an odd thing for an owner to be wishing for, I think. Me, I'd insure myself, put the money away against future repairs, and drive to ensure there aren't any.
In effect, you're prepaying for your repairs up to the cost of the plan, and relying on the ethics of the folks you paid to take care of you beyond that. If you're comfy w/ that, it's not a bad buy for you. But it's only a better buy if lotsa stuff goes wrong—an odd thing for an owner to be wishing for, I think. Me, I'd insure myself, put the money away against future repairs, and drive to ensure there aren't any.
I've bought 4 brand new vehicles since I began to drive.
None had extended warranty's which I'm glad in retrospect I didn't purchase because none of them needed one. ( 2 American pick-ups, 1 American pony car and 1 Asian family sedan.)
They way the dealers push them on you you know ultimately the dealer wins.
Honda is known for good reliability (though some Odyssey and Accord models in recent years had transmission issues) so I wouldn't bother, though it might boost resale value if you sell it before the extended coverage is up.
None had extended warranty's which I'm glad in retrospect I didn't purchase because none of them needed one. ( 2 American pick-ups, 1 American pony car and 1 Asian family sedan.)
They way the dealers push them on you you know ultimately the dealer wins.
Honda is known for good reliability (though some Odyssey and Accord models in recent years had transmission issues) so I wouldn't bother, though it might boost resale value if you sell it before the extended coverage is up.
Depends on the amount of driving you do. I have never bought one (dedicated Toyota driver here), and have got over 200,000 km on every car without a major repair.
it all depends....If you are on a tight budget and cant afford any extra costs...it may be a good idea to add a warranty into your finance payments.
I had a 2002 honda mini van that needed a handfull for repairs after the factory warranty expired. The warranty paid for its self three times in 2.5 years.
Like Oldjones said its a gamble
I had a 2002 honda mini van that needed a handfull for repairs after the factory warranty expired. The warranty paid for its self three times in 2.5 years.
Like Oldjones said its a gamble
Think you can also get a factory extended warranty, and you might be able to wait for 3 years before committing to it.
Would be nervous about restrictions on non-factory warranties.
I have always bought the extended warranties, and glad I did. Last repair was the air conditioner core under the dashboard, $2,400 and covered under the warranty.
Try different dealerships to see if the prices are different for the factory warranties.
Would be nervous about restrictions on non-factory warranties.
I have always bought the extended warranties, and glad I did. Last repair was the air conditioner core under the dashboard, $2,400 and covered under the warranty.
Try different dealerships to see if the prices are different for the factory warranties.
KBear is right. You have 3 yrs already..You can actually wait til the 3rd year is almost up and then purchase the extended warranty from Honda. Thats what I am doing.. I got a Honda Civic last year and really happy with it.
I bought an 3rd party extended warranty once and they can be a bunch of f***ing c**suckers when it comes to coverage. They typically covered everything except the most expensive thing on the bill... (Ex. The f***ing computer need to be replaced... I had the High Electronic coverage but since the computer was not specific named they would not cover it, the rear wiper motor went and they didn't cover it because they claim it was a "rear wind screen wiper motor" was not laid out specifically in the warranty (even though the plan was sold to me as a comprehensive coverage), they did however replace the transmission which they replaced then I traded it in on a new vehicle.
When I bought the new vehicle I did buy the manufacturer's extended warranty which I felt was well worth the money.
When I bought the new vehicle I did buy the manufacturer's extended warranty which I felt was well worth the money.
absolutely.
I've bought extented coverage on my last 6 vehicles. Consider that no repair is under 500.00 these days, it doesn't take long to pay for itself. I also found myself having even the smallest thing repaired that I may not have if I didn;t have the warranty. I once had an engine replaced at 95k mi.
I agree that it's a gamble and I do not normally buy them for smaller purchases.
I've bought extented coverage on my last 6 vehicles. Consider that no repair is under 500.00 these days, it doesn't take long to pay for itself. I also found myself having even the smallest thing repaired that I may not have if I didn;t have the warranty. I once had an engine replaced at 95k mi.
I agree that it's a gamble and I do not normally buy them for smaller purchases.
Buying the maximum extended warranty saved my ass on my last 3 vehicles.
Timing chain went on the first at 159,000 km. The pistons came up and bent all the valve stems. Would have been over $3000 to fix in parts and labor, cost me the $100 deductible. Trannie issues in the second car. Everytime they re & re the trannie would have been $2400. It was changed 3 X. Cost me the $100 deductible each time. Repairs on my current car would have exceeded the cost of the warranty, so I'm already saving.
Timing chain went on the first at 159,000 km. The pistons came up and bent all the valve stems. Would have been over $3000 to fix in parts and labor, cost me the $100 deductible. Trannie issues in the second car. Everytime they re & re the trannie would have been $2400. It was changed 3 X. Cost me the $100 deductible each time. Repairs on my current car would have exceeded the cost of the warranty, so I'm already saving.
I would pass. I buy domestics and trade them off @ 160,000 Km every few years and have spent a total of about $400.00 in repairs on the last three combined. They all come with 60,000 km warranty from the factory so if the car is giving you problems before that then buy it.
Best thing you can do for longevity is change all the fluids on schedule.
Best thing you can do for longevity is change all the fluids on schedule.
