I just bought a 2007 Honda Accord with Low Miles. I am looking for an extended warranty (the engine and transmission still have 27,000 miles warranty left from Honda). Can people recommend any companies to look at or avoid? The web searches either give me company pages or “reviews” that are sponsored by companies. I am aware of the existence of Wachovia’s warranty, Greenlight and CarChex, but not their quality or value.
Thanks for all recommendations, both positive and negative
Most people would advise against an extended warranty. Of course, given the unknowns regarding the maintenance of a used car, it might actually be a good idea. This is really a crap shoot, but on balance you can probably avoid this extra cost–even on a used car with a murky maintenance record.
That being said, if you still want an extended warranty, the only one worth considering is one from Honda itself. The others will always manage to use some kind of technicality to disallow any claims, thus meaning a total waste of the money that you spent.
Additionally, many of these companies are dissolved every few months in order to not have to deal with claims. Then, they resurrect themselves under a new name and go on to hoodwink a new crop of suckers. Be very careful before you send money to any of these charlatans!
I advise avoiding extended warranties altogether. The industry is the focus of a huge number of complaint from customers of these companies. Most of these warranties don’t cover much, and are more about profit for the seller than coverage for the buyer.
You bought a reliable car. Take care of it according to the manufacturer’s maintenance schedule and you won’t need an extended warranty. Many Accords go 200,000 to 300,000 without major problems.
First, you are not buying a “warranty”…You are buying a pre-paid repair plan packed full of exclusions, exemptions, waiting periods, co-pays and arbitration requirements…They make money, at least 50%, selling these plans. Why not just put that money in YOUR bank account instead of theirs?? If you need repairs, the money will be there. If you don’t need any repairs, you get to keep your money!
I recommend that you avoid all extended warranty companies. If you must have an extended warranty, create your own. Shop for an extended warranty to get prices. The put the same amount in a savings account. Withdraw money as required for repairs (not maintenance). When the extended warranty period is over, take a nice vacation with all the money you didn’t spend on repairs. Yes, it should be that much. I have a 2005 Accord EX V6 with about 68,000 miles on it. I have spend somewhere between zero and nothing on repairs so far.
I second all of the other posters’ comments – keep your money in your bank and pay for repairs as needed. You bought one of the most reliable used cars on the market. Now, if you bought a Mercedes CL65 with all sort of complex and expensive parts to break, that would be a different story.
If you are really set on buying a pre-paid service contract, talk to several of your local independent Honda repair shops (not dealers). Ask them which extended warranties they have seen which actually paid for the work done with reasonable deductibles. Listen to what they have to say.
Twotone
We['ve had numerous threads on the issue of extended warrantys. They’re a scam. We all agree.
Put the money in a seperate bank acciount and call it “my warranty account”. Then, if you need it you’ll be “covered”, and if not you’ll have the money for yourself.
If you send them the money (no matter who “them” is), the money will be gone forever and you may or may not be covered should you need it, depending on the exclusions and when the problem occurs. Insurance plans, including extended warrantys, are designed to take your money and to not return it. That’s how they make their money…