We just purchased a new Honda Accord V6 Sedan. Should we get the extended warranty?
Chances are you will never need it. The Honda accord’s regular warrantee will get you thruogh. You will probably not even have the car more than 5 years before you trade it in. I would say don’t bother.
You need to consider how long you will own the car, and how many miles a year you put on the car. Our last new car I figured 6 years and 60,000 miles bumper to bumper a good bet for $850. We usually keep the cars 10 years and put on about 10,00 miles a year. I don’t know who won, as I had a few small things taken care of and do not know what the cost would have been, but it was reassuring to me to know routine maintenance was the only thing I needed to worry about for the next 6 years. Look at what it covers in addition to the standard warranty, and decide what is best for you.
Given Honda’s well-earned record for reliability and durability, it is very unlikely that this would be to your advantage. You would probably spend well over $1,000. for this coverage, while it is unlikely that any repairs during the period of the coverage would be anywhere near that costly.
In fact, if you maintain the car properly–as per the maintenance schedule that is sitting in your glove compartment–it is probable that no repairs will be needed during the period of that extended warranty.
Would you be buying the warranty because you believe it will save you money?
If so, do a search on this forum for the many discussions on this subject. After you read through them, see if you still contemplate buying it.
No, save your money. Extended warranties are basically profit generators for the seller and offer very little real protection to the buyer. Put the money in the bank instead. You’ll be much better off.
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
The so-called “extended warranty” is a profit-making insurance policy for the dealer. Many of these exclude the most common sources of repair, such as seals and gaskets, and I used to hate it when I had to explain to a customer that their head gasket had failed and the $1,000 they paid on that warranty wouldn’t be worth anything toward the repair. Electrical is also commonly excluded. Not much left because most mechanical repairs are either “normal wear” or are caused by loss of lubricant (gaskets and seals).
So, IF you tend to destroy your cars or have a history of frequent repairs (regardless of the make/model), then you MIGHT consider it only after reading the fine print and all the exclusions. It’s your risk. Personally, I have never had a repair to a vehicle in over 40 years that would have been covered by an “extended warranty” and I would have paid in thousands of dollars for nothing had I chosen to buy them.
if you think your Honda won’t last past the first warranty period, you shouldn’t have bought the car to begin with
If it keeps your piece of mind or if you get ancy and trade after the warranty is up it may be well worth it if allows you to hang onto the car longer.
However in the end it is an added cost that is basically insurance, never really gets used but gives piece of mind.
Would you gamble with a car dealer who gets to set all the rules and knows all the odds?
Las Vegas is 1 living example
You need to consider how long you will own the car
It’s still not a good deal. First off extended warranties only last up to 100k miles. So if your car comes with a factory warranty of 60k miles…then you’re paying for only 40k miles…
Extended warranties are nothing but a very very very expensive insurance policy. And half that goes to the dealership/salesman. Far more people pay into it and NEVER use it then people who actually collect anything. You’d be much better off putting the money in a CD.
save your money.i had one on a 02 montecarlo ss.every time i went to get a oil change at the dealersip.they were on the phone with the warranty company.all about the commision.one time i was waiting in the bay the car was not even looked at and they were on the phone getting authorations to replace parts.had a 0 deductiable.their were over $5000 dollars in parts not counting labor done to this car.never get another one.that was my experince stack of receipts that take up 2 folders
If you are worried about unscheduled repairs, put about half of what they want for the extended warranty in the bank. If you need any repairs, you have the money for it. I have a 2005 Accord EX V6 and haven’t had any unscheduled maintenance yet.
HUH?
Are you saying that the dealer committed insurance fraud every time you took the car in for routine service of any kind?
If so, he is guilty of a felony.
That is a good idea
Upselling extended warranty was very much encouraged at every Dealer I worked at, Maybe the car really needed the work and the owner of the Monte was saved from being stuck.
Really Dominic how much of that 5000.00 were cosmetic,interior trim issues,issues you brought up because you did not like the fit. Sounds to me like you really got your moneys worth.
People with extended warranty and no deductible are very prone to complain about very minor issues and the Dealers are happy to write the work up.