I spelt the title wrong before. It is early in the morning. I would like to know if it is worth buying the extended warrantee for my 2007 Honda Fit? thanks
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.
No, it is not. The extended warranty covers items during the time in their life when they are least likely to break, and the warranty does so at a very high price.
Put the money in the bank. That way you’ll have the coverage (your own money) if something breaks and you’ll still have the money if it doesn’t. Why give it to them? If you give it to them and nothing breaks you’ll have just thrown your money away!
See my post to Gundalow on the same subject.
TSM Makes A Very Good Point.
“The extended warranty covers items during the time in their life when they are least likely to break, and the warranty does so at a very high price.”
That’s why health insurance is inexpensive for young folks and very expensive for older folks.
Save your money in a separate “car maintenance/repair” account. Make regular contributions from your budget. You will then be “self-insured”!
Warranty can be spelled either way, but no matter how you spell it it’s not worth the money.
Extended warranties are mostly just additional profit for the seller. Put the money in the bank instead, and let it earn interest for you. If you need it, it will be there. If you don’t need it, it will still be there.
If you give your money to the dealer, he will put it in HIS bank account. Where would you rather have our money?
Thank you very much for your responses to my question. The salesman said it would cover everything which obviously is not true. I agree it is better to save the money. I am now curious to actually see the contract and read it to see what is really what. thanks
[i]It’s An Extended Warranty. An Extended Warrantee Would Be A Very Tall Person To Whom The Warranty Is Made.[/i]
Since you were concerned with “spelling” . . .
Warranty - a contract
Warrantee - a person to whom it’s made
Other than agreeing with others that it’s generally a waste of money, the salesman is wrong when he states that “it covers everything”.
Warranties, either original factory new warranties or extended ones, do not cover maintenance and wear/tear items such as brakes, clutches, timing belts, etc.
There is usually a deductible that applies to each repair also; a 100 dollars is common. This applies to each and every complaint each time it’s made so that hidden cost should also be figured into the price of the warranty.
Take a car in for 3 separate complaints at the same time and you’ll get hit for 300 in deductibles for example; a 100 ded. on each complaint.
Agree; my experience with extended warranties has been that the fine print has a lot of exclusions, and on consumer durables, the average payout on these warranties is about 10%. I turned down the Toyota extended warranty on my new car in 2007, since I don’t drive enough and the car has a solid record of reliability.
Having said that, if you decide to buy a car with NEW and UNPROVEN technologies in the power train from a manufacturer not known for thorough testing and good design, such a warranty may well be worth it. The Cadillac 4-6-8 engine of the 80s, GM’s infamous Olds diesels, Mercedes Air Suspension on the S Class, some really bad transmissions come to mind.
Some extended warranties, like Dell’s for their laptops cover all manner of accidents as well as failure. Since I travel a great deal, I ususally buy the 3 year coverage, I don’t buy it for the desktop, which is bullet-proof and just sits there.
I had a good experience with ibuypower.com for my computer. 3 year warranty standard. Built a similar equipped at IBP for half the price of Dell
Just to make a point on the other side of the discussion, I paid $1997.00 for an extended warranty for my used 2004 Grand Cherokee that I bought in August of 07. I have had over $5000.00 worth of work done (Blend doors, adjustable pedals and front differential) plus rental car fees that was covered by the warranty. I have paid $200.00 in $100.00 deductibles.
I don’t know much about how good a Honda fit is, but a major failure of the engine or transmission would cost much more than the warranty.
Could you care to comment on the prices you pay to outlets like IBuypower,Newegg and then your local computer store and then the big guys like Dell?
The prices are all over the map. Could it all be warranty issue related,like Intell gives overnight replacement on motherboards while AMD takes yours and trys to fix it and it could take months.
I do a lot of web browsings for my school papers,I was getting malware (trojan agent) infections weekely. I went and bought a 200.00 Pentinum 4 with all the software and thats the only computer I browse the web. If it gets infected I just boot off a rescue disk and write over everything from my external hardrive. Even paying 200.00 for software and hardware I think I overpaid. It’s funny this old Pentinum 4 works just fine for web browsing,all this big hardware push is just a sales job.I do photoshop on a Dual core machine,everyone says you need big power for that also,it works just fine.
I just hate to say bad things about Jeep products (tall tale), but you made a good move with your warranty. To the OP, maybe just bet on the Honda and maybe you won’t need extra coverage. No way to know for sure, so maybe flip your luckiest coin.
It looks like you did exactly what I recommended in my earlier post above. If you knowingly buy a car from a manufacturer not known for reliable products (such as Jeep/Chrysler), such an extended warranty may be a good choice.
When touch pads first appeared on appliances I was shopping for a microwave oven. The Sears salesman said I “would need” the extended warranty since the touch pads were trouble-some. He had his replaced already on his Kenmore unit. We decided to buy a unit with the old manual non-touch controls and it worked well for 22 years.