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Smart Shopper Honda Extended Warranties Pricing and Info
3111 messages, Last post on Dec 02, 2009 at 12:58 AM
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Replying to: mi2kshop (Nov 23, 2006 11:33 am) I'll give you a list... Pro: if something very expensive breaks on your car, a service contract may pay out more than you paid for it, saving you money. Pro: It's a way to budget your money. The payments come out of your pocket slowly. A new window motor requires payment-in-full now. Con: most cars are well-built enough that pricy problems do not happen often during the timeframe of a service contract (before about 125,000 miles) More Cons: claims with an aftermarket service contract company can take excessive time. Many shops won't deal with service contract companies at all because so many have not paid their bills, or gone out of business. Service contract companies will often stall a big job-requiring an inspection, then not sending an inspector out until a week later. They will often require the use of aftermarket or used parts. They will often refuse to pay diagnostic charges. A well-maintained vehicle is your best insurance against a major repair. Dwynne already answered your second question. 
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Replying to: mitzij (Nov 24, 2006 4:54 am)
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Replying to: mi2kshop (Nov 25, 2006 2:59 pm) ...and what do you think the chances are that the mechanic will declare himself incompetent and recommend you see the dealer???? :-II
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Replying to: cwalti (Nov 25, 2006 8:00 pm)  But... Among the considerations for buying or not buying extended warranty are the likelihood of failure and the financial impact of failure. There is evidence that MTs fail at lower rate than ATs, and that Accord's 4 cyl is more reliable than the v6. My understanding is that the v6 warranty sells for more, so perhaps the 4 cyl vs v6 issue is factored in the price (although I think not completely). But there is no price differential between MT & AT warranties. Kind of similar logic as if you were to say that you would buy extended warranty for a Chrysler but not for a Honda, even though there is no assurance of a long trouble free life for the Honda! Chances are pretty low that a mechanic would declare himself incompetent, but then again I am not talking about walking over to a random mechanic on the road.  Plus it is not a question of competence -- he may say that he does not have this tool or that, or he may be planning to sell his business and retire!
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Replying to: mi2kshop (Nov 25, 2006 11:30 pm) Since the plan had a pro-rated refund and is transferable to a new owner and is Honda backed, *I* think it can be a decent deal if you plan on keeping your car past the new car warranty. Dennis |
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Replying to: dwynne (Nov 26, 2006 10:40 am) Also if things like that were common, the Accord would certainly be a car to avoid rather than buying the car and then buying an extended warranty to cover all these problems you are going to have to keep having fixed.
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Replying to: jaxs1 (Nov 26, 2006 10:54 am) Same is true for your car insurance, right? You are a great driver and will not cause an accident so drop your coverage and take your chances. You would save a lot of money that way and depend on your driving skill to not be out a lot of money. This seems to be the pricing and info forum, not the "should you get it or not" forum . It is not for everyone, but if you want to get coverage then get HondaCare from a discount dealer - and we can help you do that in this forum. Dennis
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Replying to: dwynne (Nov 26, 2006 3:31 pm) If you buy the extended warranty on the next 10 Honda's you purchase, you can bet that you would have spent more on extended warranty premiums that you would get paid back in claims. Not just a few dollars more either. Likely thousands of dollars over that time period. That remains true even if one or two out of the 10 cars had some major covered failure that would have cost more than the warranty's premium. That is how it is a money loser. You cannot forget about all the times you paid for the warranty and lost money and think that if you hit the jackpot on some major issue that wipes all the other previous and future costs away. If you had invested the extended warranty money even into something as risk-free as CDs over that time period, the money lost is magnified that much more. Also, of course the dealership is going to print that it costs $2000 or more to replace an A/C compressor on a 3 year old Accord. You have no reason to question the price printed on the invoice and it's a marketing technique to drive future extended warranty purchases by you and all the people you go around telling how great the warranty was to pay so much money out. It increases their business. The service department will get paid the extended warranty's discounted rate which is still much better than the $0 they would receive if you had a reason to shop that high-ball price they print on your copy of the invoice around elsewhere. |
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Replying to: dwynne (Nov 26, 2006 3:31 pm) car insureance you have no choice according to the law. an extended warranty is by choice and a poor one in my opinion - especially on a Honda. If you say it gives you peace of mind, then so be it. I have peace of mind keeping that coin in the bank or on a couple of plane tickets to Hawaii 
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After having recently purchased a 07 Honda Accord w/ NAV, I debated whether to get a Warranty or not. Most dealer Markups on this type of Warranty are all over the place. With advanced components like a NAV system, it could be very expensive to replace. If you are looking for pricing information, may I suggest this web site www.hondacuraworld.com. They sell genuine Honda extended warranties on line. I saved more than a $1,000 purchasing an extended warranty from them rather than from the dealer I purchased my car . At the very least you could use their pricing information to negoiate a better price from a dealer. One thing to remember, you can buy a genuine Honda warranty anywhere. It's good at all Honda dealerships. Hope this info helps. One last thing,with the ody thread discussion, an extended warranty for 8yr 120k goes for $1330.
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