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Honda Odyssey, Honda Accord, Honda Civic, Honda Element, Honda Pilot, Honda S2000, Car Warranties
#2549 of 3848 Honda Care Extended Warranty in practice
Jul 30, 2008 (10:37 pm)
All I am in the middle of buying a new 08 EX0l with Nav or myabe a Touring and have been doing lots of research on all aspects through the forum. It does look like some very good buys for EW over the internet are available.
Anyway I own a 2000 Odyssey EX that I bought with a 7 year 100K, $0 deductible EW for around $1K. I had very good luck with my Honda so the use was minor but worth every penny. No matter how little or great the issue was it was taken care of under warranty. Sticking doors, door rollers, hood latch, ... the doors are pretty sophisticated and delicate so over the 100K miles they were fixed a few times.
Just before the 100K miles was up I brought the car in for the dealer to go over and make sure no other warranty work. They replaced a few minor items - I aksed them to check the tail gate rear pistons as they were not the same as when we 1st got the car and replaced under warranty. I learned about this based upon my 1993 Accord Station Wagon - so I pointed it out on the Oydssey and taken care of.
I even then took the Oydssey to a seperate Machanic, paid him for an hour to go through the car - gave him all the extended warranty stuff to make sure if there was anything else that could/should be replaced under warranty. He came up with front stabilizer links.
I then took back to Dealer who then looked, ordered front stabalizer and also new struts. Weird how they did not get this when I asked them to go over it 2 weeks before. So moral was it was worth it to also have the independent mechanic at my dime go over the car.
All in all was $ for the EW worth it? I absolutely think so. It may or may not have been close to break even before the last warranty work, but just the fact I felt I could take it in and not pay for the silly stuff - latches, side door issues, pistons...
Honda makes great cares but like anything you take to 100K miles something goes. I will say other than tires, brakes, battery (50% seperate warranty), which are normal wear and tear items nothing major. The car is 8 years old, 140K miles now. Had to do the A/C for $1500 ugh! but that is how it is.
#2550 of 3848 Re: Honda Care Extended Warranty in practice [markrr]
Jul 31, 2008 (9:27 am)
Wow, thanks for providing that experience. I find it amazing that you could just bring your car in right before the EW expired and the dealership was willing to go over it all and fix things that were wrong (and then respond to your secondary request about the front stabilizer links). It would appear by your email that some of the things may have been wear and tear (though I'm getting the feeling that it's up to the dealership as to whether they make that decision - and many of them are loose with the term "mechanical breakdown"). Would you classify some of the repairs as such?
Have you had any experience with a denial of a repair under the EW? Any disagreements over what is covered?
#2551 of 3848 Re: EW in calif [thecity]
Jul 31, 2008 (10:08 am)
Thanks for sharing your experiences with the Honda Care folks. I too was happy with the way I was treated by Curry.
I can tell you that I purchased the EW not because of the mechanics of the car, I think it will probably run for nearly forever, but mainly because of all the electronics. I have a Touring which includes a nav system and I am not all that confident that it can bounce around under my seat for the next eight years and still continue to operate . I looked into the replacement cost of the unit, which is basically a fancy dvd player, and found that it costs in the neighborhood of $1600 not including installation. Just the display unit would run at least $400. Things like seat memory, backup camera, power tailgate, power seats, ac system, parking sensors, and the radio system are not nearly as robust as the powertrain and suspension systems and I would certainly not bet that all of them will continue to function correctly for the next 8 years and 120k miles. And if everything does work perfectly? Good for me then. I have spent $1365 on much more foolish things than this.
#2552 of 3848 Re: EW in calif [duke23]
Jul 31, 2008 (10:38 am)
thecity is not related to me, but I can only assume that great minds think alike and that is why he/she brings up the excellent recommendation from Consumer Reports;
"1) buyers usually pay more for the EW than what they get back in terms of repairs 2) EW are a better deal for those buyers w/ more troublesome cars - we are all Honda owners so I'm not certain this logic applies 3) most parts covered by an EW usually don't fail- the parts that do fail are not covered by the EW "
Other than the recommendation provided by Consumer Reports, the other reasons I choose not to buy the EW is due to the known reliability of most Honda Products and the way I drive and take care of my vehicle.
Even if I have a breakdown that far exceeded the cost of the EW, I still have to average out that cost over all the Honda's I have owned over my lifetime - cars that have never made it worth buying an EW.
With that said I believe most of the "value" in an EW is peace of mind for people who worry excessively about the future. Most people end up buying while on a purchase high with their check books open - they think to themselves another $1,500 is minor compared to the car purchase - it's an emotional buy.
#2553 of 3848 Re: EW in calif [thecity]
Jul 31, 2008 (11:13 am)
Thank you for providing the link to the Consumer Reports study on Extended Warranties. I would suggest that everyone carefully read this article before spending money on an EW. It clearly proves the point that, on average, you will LOSE money on EW's.
I'm not sure why everyone is so deathly afraid of the possibility of future vehicle repairs. If you can afford to buy a $25K-$35K vehicle, then you should be able to afford to maintain that car. If not, you have no business buying that car in the first place.
I can only assume this fear is due to most people living paycheck to paycheck and being unable to cover any unexpected expense. Let me suggest this as an excellent alternative to EW's...
Take the money you would spend on an EW, put it into an FDIC-insured high-yield money market account, and let it earn interest for the term of the extended warranty.
If you have an issue that would have been covered by the EW, then pay for it with funds from this account. If you never have a claim, then you will end up with a nice pile of money to can spend any way you like!
#2554 of 3848 Re: EW in calif [mattgg1]
Jul 31, 2008 (11:23 am)
The sellers of these contracts are professionals, too. They know exactly what buttons to push to convince people that they neeeed a service contract. Being told that terrible things might happen and, for a small fee, "We will take care of you" is very attractive for some people. It's comforting. Kinda like a security blanket. It doesn't protect you from a real monster, but it helps with the imaginary ones under your bed. If big sis convinces you they're real-you neeeed that blanket!
Ask you favorite Honda service department how many DVD players, radios, and other high-ticket items the F&I guy uses as examples of why you need a service contract he actually sees break down. The power-sliding door motors, maybe, but the rest of that is smoke-blowin'.
#2555 of 3848 Re: EW in calif [mattgg1]
Jul 31, 2008 (4:32 pm)
Most amusing, btw, you will most likely lose money on average on car insurance and home insurance but your lender requires it so there you go.Although the original Consumer Reports rebuke is better written and more logical. They don't seem to grasp that people can buy for half or less online.
"Take the money you would spend on an EW, put it into an FDIC-insured high-yield money market account, and let it earn interest for the term of the extended warranty. "
"If you have an issue that would have been covered by the EW, then pay for it with funds from this account. If you never have a claim, then you will end up with a nice pile of money to can spend any way you like! " High yield money market account?
1.5 % ? You have the absolute right to your opinion, and good for you. But unless you will rise to the challenge, mitzi you too, better keep it as mho and not absolutes. But as written before,
lest this forum turn into a format of why you shouldn't buy a HC EW then your value you have added is ? Like Mathguy10, I'm not worried about powertrain warranty. They threw in a free one( life time) on my purchase and I valued it at $75. Scroll back, much knowledge to be obtained.
Mitzi, a Chevy Dealership service manager who somehow feels compelled to be knowledgeable on HC EW failed to respond to the challenge.
A few other posts to keep in mind. Lord, why won't anybody scroll ? 2381, 2383, 2384. Like Jet 10000 and Mathguy10 , I saw value. If you don't, no skin off of my nose.
I think this comes off as confrontational and if so I apologise, as it it meant only to deflate those that oppose insurance but are not willing to take the risk themselves. Uh, why we have insurance.
link title The challenge.
#2556 of 3848 Re: EW in calif [duke23]
Jul 31, 2008 (7:10 pm)
you will most likely lose money on average on car insurance and home insurance
I don't think it's quite so clear cut. Even if you never file a claim, you were covered and that coverage has value. The fact that you were willing to pay for that coverage knowing you may possibly never file a claim proves that it has value. And the precise value of that coverage is the premium you were willing to pay meaning it is a breakeven situation. Finally, if you do file a claim, you suffered a loss but are reimbursed by the coverage. Again, it's a breakeven situation.
Could you have made (or lost) money by doing other things? Of course. But that does not make insurance in and of itself a losing proposition.
SUVs and Smart Shopper
#2557 of 3848 EW + lowered APR question
Aug 01, 2008 (1:56 am)
Hello, just helped my girlfriend purchase an 08 accord coupe...while sitting with the finance guy we started to discuss EW's...we were interested in the 7yr/80k...knowing that the lowest price online was $635 I delined his offer of $1095, however he offered to lower the APR from 3.9 to 2.9 which in essence lowered the price of the EW to $664 just $29 dollars higher than my lowest price and it would be rolled up in the financing and through the local dealer making it easier...my question is...if I was to cancel the EW before the 60 days would the APR stay at 2.9. Does anyone have any experience with a deal like this...
#2558 of 3848 Re: EW + lowered APR question [doctorb98]
Aug 01, 2008 (4:31 am)
I don't see how they could raise your APR, but the EW refund could be paid to the finance company instead of being returned to you. Read the loan contract - most of them are pretty straight forward due to regulation and the squirrely business that went on in our parents generation.