Honda extended warranty

honda
accord
warranties

#1

We just bought a Honda-certified EXL Accord from a dealer, a 2007 with 36,000 miles on it, for $17,750. Honda extends the bumper to bumper coverage for another 12,000 miles. The dealer offered us an additional extended bumper-to-bumper warranty for three more years and up to 100,000 miles, for what he said was his cost, $777. We can opt out any time and get our pro-rated money back. Was this a good deal–basically 260 bucks a year to insure the car in its fifth, sixth, and seventh years of life?



Rob


#2

If it’s like Acura’s extended warranty, yeah, actually, it’s not bad, IF you have fancy electronic geegaws in the car. Acura’s costs more than double that, but pays for itself if your navigation system breaks ($5,000) or the hands-free-link breaks ($3,000) etc.

(and btw, while Acura’s costs more than double, it doesn’t extend the warranty as far, since the stock warranty is longer than the Honda one)


#3

It depends on how many miles a year you put on the car. If you only put 12,000 miles a year on the car then the extended warranty is only extending your warranty for two additional years, and 24,000 miles past the standard warranty, IMHO not worth it. However if you plan on racking up a lot of mileage and getting close to the 100,000 mile mark it may.


#4

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


#5

$777 is better off in your bank account than it is the dealer’s.


#6

It is a good deal as far as pricing goes for warranty.

If it makes you feel better go for it.

My sis in law did well with one of these things. She purchased the same for $1000 and had a $1000 sliding (power) door fixed within it just past the 12k Honda warranty.