Extended warrany on new honda CRV

My wife and I tend to keep our cars a long time. We are replacing her 2000 subaru legacy gt wagon with 112K milis.

We are purchacing a 2008 CRV which only has a 3 year warranty. We can upgrade the warranty and extend it to 7 years for $1300. If we are planning on keeping this car for a kwhile , is this worth it?

Let me be the first of many to say that, if it were me, I would not buy an extended warranty on what is probably one of the most reliable cars on the road. The warranties are instant money-makers for the dealer. Put the 1300 away in savings. I keep my cars 10 years minimum, and have never wished I had bought a warranty.

Agree with texases; the CRV is the best SUV on the market. Investing that $1300 will net you a nice nest egg in 10 years when you will be making some repairs on the car. My neighbor’s wife has a 10 year old CRV and it has not had any breakdowns that warranty would cover. Brakes and other wear items will not be covered by an extended warrnty.

By “worth it”, do you mean that you expect to be paid more in claims than you pay for the warranty on average? If so, that would mean the warranty company is losing money on average for each customer. Do you think that’s their business plan?

Extended warranties are just very very expensive insurance policies. If you read the policy again…it’ll say…7 years or 100k miles. I don’t know any car that can’t reach 100k miles with little or no repairs. $1300 is a LOT of repairs for a car with less then 100k miles.

no,youre getting a honda,so why would you want to extend the warranty?its one of the most reliable cars on the road!

Then again its a single repair like an automatic transmission or stability control controller. However the likelyhood is so low of this happening it is never worth it.

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

For a vehicle as reliable as a new CRV, an extended warranty is not worth the money. As suggested, put the $1,300 into a savings account with the highest possible interest rate.

If you maintained your Subaru by the book and didn’t abuse it, the next owner should be able to get another 8 years and 112k miles out of it. Ours is 10 years old and has 180k miles on it. The CRV should be a 20 year 250k mile vehicle.

Whenever a salesman asks if you want to purchase an extended warranty and they say it’s worth it, tell them you don’t want such a garbage vehicle that needs an extended warranty and you’ll look elsewhere. Get up to leave and watch them squirm.
Put your extra $1300 into a money market account or something similar and let your money earn YOU interest, not the salesman.

No. Extended warranties are nothing more than Additional Dealer Profit.

Besides, you don’t really keep your cars too long. If you had said your Subaru had 212K miles, that would be different. ANY new car should go AT LEAST 150K miles without major problems, assuming you follow the maintenance schedule.

Happy motoring!

Instead of investing money into an extended warranty you should invest it into extra maintenance that should be done more often than what may be recommended.

This would include frequent transmission fluid changes, various maitenance type items such as filters and plugs, and of course having the valve lash inspected far more often than the bone-headed recommendation that the factory makes.