MPP Warranty for used car


#1

I’m about to buy a certified used 2010 Honda CRV at 57k miles. The dealer is saying that the 1 year / 12k miles warranty on certified cars is not really bumper to bumper and it covers only defects because of workmanship or Honda accepted issues, and not for problems caused by wear and tear.

He is forcing me to buy MPP for 1650$. It covers 7 year/100K miles (hope fully from the date purchase of used vehicle) and regular maintenance for seven years. Is the dealer right? Is the price seems to be right?


#2

“He is forcing me to buy MPP for 1650$.”

That alone would be reason for me to get up and leave and never set foot in that dealership again.

Don’t ever buy any kind of aftermarket warranty or service plan for a used car.


#3

Thanks. Does Hondacare offer service contracts for such cars i.e 57k miles? I’m not able to find anything online. If so, where do i buy?


#4

How can he force you to buy it? Is the loan contingent upon warranty?

You’re describing something that doesn’t seem ethical, or potentially even legal. By forcing you to “bundle” the two items (the car and the warranty), he can sell the car at an artifically low price. I wouldn’t be surprised if he’s doing that to get around some tax or regulation.

Tell him you’ll take the car–but not the insurance. If he hems, haws, or stammers, you’ll know he’s conning you, or somebody/something else.


#5

No warranty covers normal wear and tear, sometimes you can get a service plan that pays for oil changes, and wear and tear items but that is usually an incentive to buy a new car. A 2010 Honda in good shape should be a good purchase. See about taking the car to an independent mechanic for a pre purchase inspection, best $100/$150 you can spend. If the dealer won’t let you do this and makes the deal contingent on buying the warranty, take a walk and find another car to buy. This person seems to be high pressure at best and unethical at worst.


#6

Forget the extended warranty or service plan. They are NEVER worth it.

I too am concerned with this FORCING you to buy this MPP plan. That is NOT legal. This dealer doesn’t sound ethical to me. I’d walk.


#7

Never buy an extended warranty. Put the $1650 in the bank for any future repairs but forget about the extended warranty plan. If you want the vehicle…buy it but walk if the extended warranty plan is part of the deal.


#8

One more vote for don’t buy it. The best ones are worth half the cost, many of the others are worthless scams.


#9

Another emphatic vote for skipping the warranty and putting (leaving) the money in your bank account instead.

Or put in a separate account and call it the “warranty account”. That way, if you DO have to make a repair, you’ll have the “warranty” and if not you’ll still have the money. If you give the dealer the money up front and you DON’T have a problem that would have been covered, you’ll have basically spent an additional $1650 for the car… all pure profit for the dealer. You’ll have handed him your money forever, never to be seen again, and not benefitted one iota for it. And if you DO have a problem that’s covered by the warranty within the warranty period, what are the chances that it will exceed $1650?

If he pressures you too much, walk away. Let him find another sucker.


#10

Thank you all for your comments. I will avoid the warranty.


#11

I’d go one step further than walking out if the guy kept pressuring me to buy the warranty. I’d stand up, and in a real loud voice, proclaim “If Honda makes such horrible vehicles that they require an extended warranty, I’m buying Toyota!” THEN leave.


#12

A buyer cannot be forced to buy any kind of warranty plan although they may be BSed into signing up for it. Several problems I would have with this other than the fact that an extended warranty is a bad gamble.

Most extended warranty plans other than factory backed usually have a lot of loopholes; all designed to keep the company off the hook.

After scanning through the MPP website a bit, the BS on the site would have me running. All of that baseless talk about various plans referred to as Platinum, Gold, Silver, Bronze, blah, blah.
Note the barely legible fine print that states they reserve the right to cover a repair with a new, reman, or “used” part along with the laundry list of “why we won’t…”.
So if the engine went south and IF they covered it then this would likely mean that you would get a “used” engine that may or may not even be worth the installation effort.


#13

It’s pretty common here for OP’s to be surprised when something on their “certified used car” breaks and their used car warranty won’t cover it or the dealer won’t help much. This is just part of buying a used car. As mentioned above, besides checking the Consumer Reports Used Car Guide for their reliability report on that make/model/year, if you want to reduce the risk of a lemon, your $1650 would probably be better spent on a pre-purchase inspection by a local inde shop. Then use the rest for keeping all the routine maintenance suggested in the owner’s manual up to date while you own the car

In my way of thinking “Certified Used Car” is a phrase that simply means, yes, everyone agrees it is a used car, not a new one. Used cars can be excellent buys, but at the end of the day, they are used cars, not new ones.


#14

The Honda Certified warranty covers the power train for up to 7 years or 100,000 miles from the original date of purchase (whichever comes first) Hondacare and others are just service contracts. Just keeping up on scheduled maintenance will keep this vehicle reliable. Put the money aside and take care of it. Since buying his 2007 Honda CRV brand new in Nov 2006 my dad has only replaced tires and the battery other than the routine services. But you should verify that the services are up to date on this vehicle.


#15

When I bought my used Toyota, I wanted the extended protection plan. The price they initially gave was $2200, but I was able to talk that down to only $1200. I’m sure the $1650 they are quoting you is variable - make them drop the number down.

It has definitely been worth it. I paid $1200 for coverage, but in 35000 miles avoided a $1100 exhaust replacement, a $500 pump replacement, and some other $400 repair. I’m already $800 ahead!


#16
It has definitely been worth it. I paid $1200 for coverage, but in 35000 miles avoided a $1100 exhaust replacement, a $500 pump replacement, and some other $400 repair. I'm already $800 ahead!

Let’s clarify that…it’s been worth it for YOU. The vast majority of people who bought those things lost money. Insurance companies are in business to make money. They are NOT going to loose money by selling a policy for $1200 and then have to pay out $3000. If you do the math…based on YOUR scenario an 2 out of 3 would have ZERO return on their $1200 just for the insurance companies to break even. Actually it would have to be 3 out of 4 because of overhead. And they are not just going to break even. They are going to make a profit…in fact a huge profit. Extended warranties are the largest profit making insurance there is. So in reality it’s more like 5 out of 100 will actually get back the money they put in.


#17

It is still important to know that these protection plans are highly negotiable.

 " Extended warranties are the largest profit making insurance there is."

Almost everything in the auto industry is tricky and can generate outrageous profits. But these protection plans, just like car prices, as negotiable. The dealer will throw a party if someone pays full price for a protection plan just like if they pay full price for a car.

Extended warranties are also so profitable because the price of repairs is such an abstract concept, and by getting the warranty you are ensuring work will be performed by them.
When you buy a car, you can talk them down 10%. When you buy a protection plan, you can talk them down 50%. But when you get repairs done, the random number they decide is what you pay.
Say you have a $300 part that needs to be replaced. A dealership might charge $200 in labor for the half hour it takes to replace. Obviously the mechanics are making nowhere near $400 an hour


#18

Never heard of MPP.
the biggest problem on our end…getting paid !
Don’t show up in my shop and proclaim that you have an …eh-hem…’‘extended warranty’’ and expect us to do the work with no money from you.
– and this is true with most shops, plus it’s another big loophole in those things —

getting paid.

In most shops YOU are to pay the repair bill .
YOU are to submit that paperwork to your policy writer.
YOU are to wait…and wait…and wait…and HOPE to get some money.
some !..they’ll low-ball you with some oddball reason they’re not going to pay the whole thing.
YOU are then to file…and wait again…an appeal for the ballance…which, I beleive, you’ll never see if you even get paid the first time.

As all the others have said ;
This is NOT a WARRANTY. It is an insurance policy , nothing more. if you never use the policy that money’s gone.
YOU put that same money in a savings account, if you never use the money…it’s still yours !


#19
But these protection plans, just like car prices, as negotiable.

Doesn’t matter that they are negotiable. They are outrageously priced insurance policies…nothing more. I’ve never bought one…and never will. If you feel secure that you bought one…fine. I feel secure knowing I DIDN’T. I have far more things to waste my money on.


#20

Mike, I’m not trying to convince you of anything, just providing information.

The original poster thinks $1650 is too expensive, but might not think $800 is a bad deal. Paying $800 is an option, but the dealer won’t come out an say that without being pressured.