I am purchasing a 2008 Honda Civic Hybrid. It comes with a 3 year warranty. I am considering getting an extended warranty, either 6 years, 80,000 miles or 8 years 120,000 miles. What do you think? I plan on keeping the car for at least 10 years as I do that with every decent car I have purchsed. Do you think it is worth the extra expense?
You have not stated the cost and what is covered. The standard warranty on a Prius hybrid looks like the optional extended warranty on the Civic.
The so-called extended warranty is actually an insurance policy. It is worded to make it very difficult to collect. Few buyers ever recover their premiums, or anything close to them. Whatever the cost, pass on this one.
The warranty covers roadside assistance, concierge emergency service, no high end repair cost suprises and comprehensive component coverage (drivetrain, electronics, chassis, heating/cooling). The cost is 6 years, 80,000 miles $1180, 7 years, 100,000 miles $1599 and 8 years, 120,000 miles $1849. Any and all advice is appreciated. The battery for the car engine comes with a standard 8 year warranty. Thanks!
I read in Consumer Reports that 60% of people surveyed(over 7000) on these were not happy with them. That means likely only 40% recovered the cost.
If the $1800 leaves a warm fuzzy feeling to you it may be worth it. However the likely case is you will not even recoup half if any of the cost.
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 peop;le 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
Thanks for the advice people. It pretty much confirms what I want to know.
Pass on the extended warranty. The Civic is one of the most reliable cars you can get. Why pay the premium for a reliable car AND an extended warranty?