Do I take the factory warranty?

[Mr Nice]

Originally Posted By: JHZR2
you cant afford the car if financing. Put what cash you have to a van that you can afford, and keep some excess for repairs.

Not every person can pay cash for a new vehicle. You keep saying people can't afford it if they finance. Why is that ?

 

[Doog]

Originally Posted By: coopns
Honda Odessey EXL 12. Do I take the warranty or leave it? It has 3 year bump to bump.

8 years 100k - $1690
7 years 80k - $1290

I am at 349 a month and would like to stay right near that. Could finance that in but...I don't know. I never do warranties. It is covered 3 year bumper to bumper.

Let me know what you think. Have to decide by tomorrow at 12.



On a Honda? Never. Use the money to do a trans ATF and coolant flush every 50k and run synthetic oil. When you hit 200k on the clock re-assess the vehicle. 100k on a Honda is nothing.

 

[Doog]

Originally Posted By: JHZR2
you cant afford the car if financing. Put what cash you have to a van that you can afford, and keep some excess for repairs.


silly

 

[tdpark]

I would pass on the extended warranty and if you plan on keeping - invest in the factory service manuals. I bought the manual and it has more than pay for itself.

 

[user52165]

Buy a Hyundai with the standard 10/100 and 5/60 warranty.

 

[KitaCam]

Some dealers will offer you an extended warranty with A COMPLETE REFUND if NOT USED...so if you don't need to use it (paying out of pocket for small costs) you will benefit from the peace of mind you seem to want...not a wrong desire...

Another option is to consider a 3rd party extended service "contract"...such as one offered by your lender (if not Honda)...like yor Credit Union...

 

[MarkM66]

Originally Posted By: LT4 Vette
Originally Posted By: JHZR2
you cant afford the car if financing. Put what cash you have to a van that you can afford, and keep some excess for repairs.

Not every person can pay cash for a new vehicle. You keep saying people can't afford it if they finance. Why is that ?




Yeah really. Does the same hold true for houses?

 

[Hokiefyd]

Originally Posted By: MarkM66
Originally Posted By: LT4 Vette
Originally Posted By: JHZR2
you cant afford the car if financing. Put what cash you have to a van that you can afford, and keep some excess for repairs.

Not every person can pay cash for a new vehicle. You keep saying people can't afford it if they finance. Why is that ?




Yeah really. Does the same hold true for houses?

In addition, Honda may be offering 0.9% financing on 2012 models right now. Assuming one has cash to pay for a vehicle, you could likely do better than 0.9% by investing that cash over the same 4 or 5 years as a typical car loan.

 

[demarpaint]

Originally Posted By: NHHEMI
Transmission = $4000+

I would do it.


I think you might be a little low on that figure if the dealer does it. In 2003 when I left Honda they were getting over $5,000 at the dealer I worked for. I'm not a fan of extended warranties, however unless Honda made some major changes to the transmissions they use in the Odyssey, if you plan on keeping it beyond the factory warranty it might be a good investment. Years back when I was selling Honda products I had more complaints from customers with transmissions failing in Odyssey's than I can count. Opinions vary.

 

[KrisZ]

Originally Posted By: Hokiefyd

In addition, Honda may be offering 0.9% financing on 2012 models right now. Assuming one has cash to pay for a vehicle, you could likely do better than 0.9% by investing that cash over the same 4 or 5 years as a typical car loan.


The question is, could you negotiate a much better price with the dealer if you had a certified cheque in your hand?
I only bought one brand new car, so far, and I financed it, but I bought several used cars for cash or certified cheque and I find that this motivates the seller much faster than waiting for the financing to go through.

 

[eljefino]

I'd get a factory warranty if I wanted to defend a transmission, as you are doing.

Aftermarket ones sometimes don't cover solenoids, computers, or electronics then magically every problem is caused by one of those three things.

I'd get a phone with data plan then start flipping through online warranty offers at the closer's desk.

 

[refaller]

Ah, this was always my favorite part as a car sales guy. People beat you up, complain about trade-in price and then get the paint coverage, special tire protection, leather protection and warranty. The warranty company knows that they will spend less most of the time than you will on repairs. The Finance guy got 50% of the cost of the warranty too.

FWIW, I have a 2005 Oddy. 110,000 miles. No issues. I change tranny fluid every year (just a drain and fill), follow the OLM using synthetic oil and changed my timing belt. Engine burns 0 oil in about 8,000 miles. My 2000 CRV had the tranny replaced under warranty. Now has 177,000 miles and I do the same things. It just now leaks about a half quart of oil every 7,500 miles.

ref

 

[Hokiefyd]

Originally Posted By: KrisZ
The question is, could you negotiate a much better price with the dealer if you had a certified cheque in your hand?
I only bought one brand new car, so far, and I financed it, but I bought several used cars for cash or certified cheque and I find that this motivates the seller much faster than waiting for the financing to go through.


I've done it both ways. I bought a new Camry and had a USAA blank check in my hand when I walked in. When I bought our CR-V, I also had a USAA blank check, but Honda's in-house financing was better, so I financed it through them. Took about 30 minutes for the application to get typed up and put through.

 

[JTK]

Originally Posted By: KrisZ

The question is, could you negotiate a much better price with the dealer if you had a certified cheque in your hand?


In today's market, no.

Dealerships make more money on you through financing. There's no incentive for them to give you a better cash price over a financed price.

I know I've done it both ways and it made absolutely no difference.

In regards to the "you can't afford it if you need to finance it" statement. Sure, on a depreciating asset like a car, it's more financially sound to not have to pay interest on a loan, while you're also eating depreciation dollars.

IMO, if you get a good rate, don't sweat it.

Joel

 

[Clevy]

I read an article about extended warranties being a huge cash cow for manufacturers.
The writer said that the extended warrantee doesn't go far enough since build quality will keep most cars on the road for well into the 200000 mile range with just regular maintenance. He wrote that it wasn't a good value.
Personally if it was cheap enough I'd take it,just in case but 1100 sounds like way too much.

 

[Vikas]

Last time I bought the car, I told the manager to not even bring the extended warranty or paint protection. I do not even want to hear it. Period.

Don't even give them a chance to offer it. If you think your new car would be a lemon, don't buy it.

 

[fdcg27]

+1
Dealerships have long made money on financing.
Approvals are also given at light speed.
When we decided to take the .9% on the Accord, rather than simply writing a check, I got approved in minutes and we didn't put a nickle on the table in the transcation.
Those dealers who are willing to give competitive prices via email rarely ask whether you're paying cash or want financing.
I have never had a dealer offer a lower cash price.

 

[NHHEMI]

Originally Posted By: demarpaint
Originally Posted By: NHHEMI
Transmission = $4000+

I would do it.


I think you might be a little low on that figure if the dealer does it. In 2003 when I left Honda they were getting over $5,000 at the dealer I worked for. I'm not a fan of extended warranties, however unless Honda made some major changes to the transmissions they use in the Odyssey, if you plan on keeping it beyond the factory warranty it might be a good investment. Years back when I was selling Honda products I had more complaints from customers with transmissions failing in Odyssey's than I can count. Opinions vary.


My Sister has had 2 Odyseey's and both had the tranny fail. She said it was $4000 something both times. I never got an exact figure. You are probably right in that it is closer to $5000.

I laugh when she cracks wise about my MOPARS and how undependable Chrysler brand vehicles are. Funny but I have never had a major failure on any of them. Her all mighty Honda mini-vans however both lost their tranny's and it cost her a fortune to repair. When I asked if she had lost her mind buying the 2nd one she said but it is a Honda and they are so reliable and dependable.

You can bet your sweet behind if I was to buy one of those mini-vans, and I planend to keep it beyond the factory warranty period, I would have an extended warranty. It is far cheaper to buy them when you 1st purchase the vehicle than at the factory warranty expiration period.

 

[user52165]

Originally Posted By: NHHEMI
Originally Posted By: demarpaint
Originally Posted By: NHHEMI
Transmission = $4000+

I would do it.


I think you might be a little low on that figure if the dealer does it. In 2003 when I left Honda they were getting over $5,000 at the dealer I worked for. I'm not a fan of extended warranties, however unless Honda made some major changes to the transmissions they use in the Odyssey, if you plan on keeping it beyond the factory warranty it might be a good investment. Years back when I was selling Honda products I had more complaints from customers with transmissions failing in Odyssey's than I can count. Opinions vary.


My Sister has had 2 Odyseey's and both had the tranny fail. She said it was $4000 something both times. I never got an exact figure. You are probably right in that it is closer to $5000.

I laugh when she cracks wise about my MOPARS and how undependable Chrysler brand vehicles are. Funny but I have never had a major failure on any of them. Her all mighty Honda mini-vans however both lost their tranny's and it cost her a fortune to repair. When I asked if she had lost her mind buying the 2nd one she said but it is a Honda and they are so reliable and dependable.

You can bet your sweet behind if I was to buy one of those mini-vans, and I planend to keep it beyond the factory warranty period, I would have an extended warranty. It is far cheaper to buy them when you 1st purchase the vehicle than at the factory warranty expiration period.


Did she ever bother to have the ATF changed and at what mileage?

 

[Jarlaxle]

Originally Posted By: Hokiefyd
It's not worth it if you pay retail, no question about it.

But there are certainly a number of items that can fail after the 3/36 is out, and they're not powertrain related. Things like wheel bearings, things like HVAC blower fans and blend door motors, things like steering wheel clock springs. Are these common failures? No. But if you buy the Honda Care smartly, for $500-700, you may very well get your money back over the period of what amounts to many years and miles closing in to 100k miles. People who pay retail for it won't get their money back, on average. That's the way the game works. If they want to sell it bad enough, they'll sell it at a discount.

I did the same on my Toyota Corolla. I think I paid $650 on a warranty that "cost" $1,200. I got most of it back when I traded the car at that dealership. So it's not just Honda...it's at least two different manufacturers, and is likely industry-wide. Folks who pay retail essentially subsidize folks who negotiate for a deal. This doesn't apply only to the warranty, but to the car business in general. They don't make as much on some people, but make that up based on profit from others.

Edit: If I recall, the OP is buying an Odyssey. The HVAC system is all electronic on that, with who knows how many small motors. Hint: those motors are almost $200 each, just for the part. I repaired one on our MDX earlier this year. This stuff can fail. The Odyssey has any number of power windows, doors, sunshades, etc. It's not unheard of for wheel bearing problems on Odysseys, though I don't know if that applies to the current generation. There's a thread on here about a Sonata that is 5 years old, with 81k miles, and it needs a $1,700 ABS pump. Stuff like that happens sometimes.

These are complex vehicles with many electronic assists that make them work. Saying in sarcasm that it's a Honda or a Toyota, so it's perfect and shouldn't need a warranty is silly. We all know that no vehicle is designed or assembled perfectly. Warranties are an ownership tool; buy them smart if you can and enjoy the peace of mind.


I work with a guy that drives an Odyssey...his transaxle hasn't blown up (yet), but he has put almost $1500 into it this year, all for the stuff you mention: HVAC, the electronic doors, an ABS controller, and a power seat motor. He just turned 100K last month.