Buy extended warranty for used 2003 Honda Element?

#1

This is not being sold by a Honda dealer and comes with only a 30 day warranty. They will sell me an extended warranty $1600 to $2000 depending on length of time (3 years/5years). The vehicle has 58,000 miles on it. Is it likely that I will need $1600 worth of repairs in the next 3 years?



The other consideration is that the local Honda dealer has stopped honoring extended warranties purchased elsewhere. Said they weren’t getting paid. So, if I buy this car and warranty, I will have to take it out of town to get it repaired somewhere else.

#2

If this is not a Honda extended warranty, I would absolutely not buy it. Many are found to be worthless, as the companies refuse payment for the flimsiest of reasons.

#3
Well any car can have major expensive repairs.  

The profit to the salesman and company is usually over 50%. So for every $1,000 you spend the insurance company has less than $500 to pay for repairs or they will loose money, something insurance companies do not do. Some people will get nothing back and some will get a lot more than they pay.  Most will get far less. In addition you need to keep in mind that the insurer has worded it to eliminate as many expensive things as they can.

Remember that the seller is out to make money and they get to write the rules and set the price.  They are not going to sell them at a loss so one way or another they are going to have you pay more than they will pay out.  

Would you gamble with a car dealer who gets to set all the rules and knows all the odds?   

Your decision has to do with the value of the piece of mind it gives you. If that is worth the cost then buy it. Don't expect it to cover everything however, most are written to keep cost down and exempt what they know will cost them money. 

Good Luck

#4

Skip the warranty if Honda does not offer it. The aftermarket ones are absolutely useless in most cases and difficult for mechanic and holder to collect on.

Put the $1600-$2000 in a bank account and you will more likely than not collect it.

#5

Skip the warranty if Honda does not offer it.

Skip the warranty even if Honda does offer it. They are nothing but a very very expensive insurance policy.

#6

The warranty companies are like weasels. They will use any excuse to not pay you. Those ones that come in the mail are not anything great or even good either.