If you are speaking of and Extended Service plan please shop around on the internet for a Honda dealer that will discount the plan. You can always get it later on. I saved $700 by getting my Ford Extended Warranty from a dealer I did not purchase the car from. ESp are like cars, the manufacturer sells them to dealers for a price and the dealers can re sell those plans for whatever price they want, just like a car only diff is the markup is usually huge. Shop around for a extended warranty from the manufacturer if that is what you are looking for.
Do I take the factory warranty?
- Thread starter coopns
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Got the extended warranty on my 08 right before the factory one ran out. Too many electrical things in these cars. Get a price online from Bernardi, Curry, etc. and then negotiate with dealer. Warranty is transferrable if you sell. Like all insurance, it is a gamble if you will use it or not.
There is a reason the finance guy gets $600.00 out of the $1,200.00 warranty. The company knows they are not likely to spend more than $600.00 per car. It is a game of statistics that you are more than likely on the losing side. I don't buy lottery tickets for the same reason- I am good at math.
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Originally Posted By: 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?
Probably not. If you change the ATF every 50k with any vehicle you will usually more than double the transmission life. Even my 2 old Chrysler T&C vans went over 100k easily because I change atf every 50k in all of my vehicles. I know at least 3 people with Honda Odyssey vans and those who change the atf have no issues.
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?
Probably not. If you change the ATF every 50k with any vehicle you will usually more than double the transmission life. Even my 2 old Chrysler T&C vans went over 100k easily because I change atf every 50k in all of my vehicles. I know at least 3 people with Honda Odyssey vans and those who change the atf have no issues.
Originally Posted By: 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?
While I disagree with a lot of what my Sister does she is very good about maintenance with her vehicles. She likes to pay them off early and drive them for 150K+ so she makes sure she does all the required maintenance so they last. I don't know exact mileage figures but in discussions about it she told me on the 1st one she followed the owner's manual for maintenance like she always has but on the 2nd one she cut the trans service interval in 1/2( I suggested she be more agrressive with tranny maintenance on the 2nd one )but it still died.
Lack of proper maintenance was NOT behind her 2 trans failures. A poorly designed/built transmission was. End of story.
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?
While I disagree with a lot of what my Sister does she is very good about maintenance with her vehicles. She likes to pay them off early and drive them for 150K+ so she makes sure she does all the required maintenance so they last. I don't know exact mileage figures but in discussions about it she told me on the 1st one she followed the owner's manual for maintenance like she always has but on the 2nd one she cut the trans service interval in 1/2( I suggested she be more agrressive with tranny maintenance on the 2nd one )but it still died.
Lack of proper maintenance was NOT behind her 2 trans failures. A poorly designed/built transmission was. End of story.
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Originally Posted By: Doog
Probably not. If you change the ATF every 50k with any vehicle you will usually more than double the transmission life. Even my 2 old Chrysler T&C vans went over 100k easily because I change atf every 50k in all of my vehicles. I know at least 3 people with Honda Odyssey vans and those who change the atf have no issues.
Do a search on Odyseey transmission troubles and see just what a massive problem it was/is. As I said ^^^ my Sister takes care of her vehicles and the tranny's still failed.
Probably not. If you change the ATF every 50k with any vehicle you will usually more than double the transmission life. Even my 2 old Chrysler T&C vans went over 100k easily because I change atf every 50k in all of my vehicles. I know at least 3 people with Honda Odyssey vans and those who change the atf have no issues.
Do a search on Odyseey transmission troubles and see just what a massive problem it was/is. As I said ^^^ my Sister takes care of her vehicles and the tranny's still failed.
Originally Posted By: Vikas
If you believe your brand new vehicle is going to blow up before 100K miles, why in the world are you buying it in the first place. Buy something which you believe will last.
While I believe this to be EXCELLENT advice, many times a newer or brand new car may not have much info available.
The consumer rags all pretty much knock any add on warranties as a poor investment.
If you believe your brand new vehicle is going to blow up before 100K miles, why in the world are you buying it in the first place. Buy something which you believe will last.
While I believe this to be EXCELLENT advice, many times a newer or brand new car may not have much info available.
The consumer rags all pretty much knock any add on warranties as a poor investment.
The thing is by buying the extended warranty, you are essentially betting that it will break. On the other hand, the manufacturer is betting that on average he will be making money on the deal.
Why in the world do you want to bet against your own self-interest? If you are worried, don't buy that vehicle. If you really want that vehicle badly, self-insure it by putting that money in to a CD.
Simple logic should tell you that purchasing those add-ons after doing the deal on the new car are all for suckers. Don't be one.
Why in the world do you want to bet against your own self-interest? If you are worried, don't buy that vehicle. If you really want that vehicle badly, self-insure it by putting that money in to a CD.
Simple logic should tell you that purchasing those add-ons after doing the deal on the new car are all for suckers. Don't be one.
well, years ago (not too many ) I agreed that extended warranties were not necessary, a waste of money. then came computers, hard drives for jukeboxes, navigation systems, 12 way power seats, all electric motors or computer controlled and each component $$$$$. So, mostly for the electronic issues, (not the basic starters, alternators, transmissions etc.) I recently purchased a ESP from Ford for my new vehicle. being transferable also offers somewhat of a plus in re sale to the new owner.
Just too many computer components to go wrong on these new ones that can easily, in one swoop, exceed the cost of the ESP.. And,if you shop the internet for a dealer that will discount the plan so much the better. IMO times have changed and buying a new car without the computer components is about impossible to find, or, do you really want one stripped down bare bones! I guess if you trade once the basic warranty is up that is fine but that truly is a waste of money to trade a car that quickly, depreciation has killed you.
Putting into a CD,at today's rates you will not really add much to the initial funds and again, one display screen is $3,000 so which is the better investment?
Just too many computer components to go wrong on these new ones that can easily, in one swoop, exceed the cost of the ESP.. And,if you shop the internet for a dealer that will discount the plan so much the better. IMO times have changed and buying a new car without the computer components is about impossible to find, or, do you really want one stripped down bare bones! I guess if you trade once the basic warranty is up that is fine but that truly is a waste of money to trade a car that quickly, depreciation has killed you.
Putting into a CD,at today's rates you will not really add much to the initial funds and again, one display screen is $3,000 so which is the better investment?
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^It's all a matter of luck. If you get lucky, the car and it's components will last for 300k within issues.
Originally Posted By: Vikas
If you believe your brand new vehicle is going to blow up before 100K miles, why in the world are you buying it in the first place. Buy something which you believe will last.
x2. I bought my 98 Toyota Camry V6 and 07 Civic EX (bought automatic) because i felt and believed that they were both good vehicles that will give me years upon years of worry free service, and they both have. The Camry has been good to me for 15 years and 225,000 miles (Only went in for a failed sensor @ 30k miles) and the Civic has 157k on it.
The Civic got:
~The rear control arms replaced under warranty due to camber issues during the first 20k miles.
~Air bag light came out @ 30k and got replaced under warranty.
~Alternator pulley and bolt got replaced under warranty.
This was all done before the 36k bumper to bumper warranty expired. Nothing else has been needed for the last 120k miles of ownership.
Did I purchase the extended warranty for this vehicle??? NOPE!
Did i end up beating the odds and winning / saving money in the long run? YUP!
It's like the lottery, people, only with better odds.
Originally Posted By: Vikas
If you believe your brand new vehicle is going to blow up before 100K miles, why in the world are you buying it in the first place. Buy something which you believe will last.
x2. I bought my 98 Toyota Camry V6 and 07 Civic EX (bought automatic) because i felt and believed that they were both good vehicles that will give me years upon years of worry free service, and they both have. The Camry has been good to me for 15 years and 225,000 miles (Only went in for a failed sensor @ 30k miles) and the Civic has 157k on it.
The Civic got:
~The rear control arms replaced under warranty due to camber issues during the first 20k miles.
~Air bag light came out @ 30k and got replaced under warranty.
~Alternator pulley and bolt got replaced under warranty.
This was all done before the 36k bumper to bumper warranty expired. Nothing else has been needed for the last 120k miles of ownership.
Did I purchase the extended warranty for this vehicle??? NOPE!
Did i end up beating the odds and winning / saving money in the long run? YUP!
It's like the lottery, people, only with better odds.
Originally Posted By: Artem
^It's all a matter of luck. If you get lucky, the car and it's components will last for 300k within issues.
................
When it comes to vehicle warranties, terms like "luck" is a misnomer. Luck is instances that are more likely out of your control. The better term is "probability" and much of that can be within your control through how you maintain the car.
When someone wins the lotto, that is "luck". If they will be bankrupt within 5 years, that is "probability" and that person was in more control loosing the money than in winning it.
When you shop or offered extended warranties, you are weighing the probability of a failure and not if you are (un)lucky.
^It's all a matter of luck. If you get lucky, the car and it's components will last for 300k within issues.
................
When it comes to vehicle warranties, terms like "luck" is a misnomer. Luck is instances that are more likely out of your control. The better term is "probability" and much of that can be within your control through how you maintain the car.
When someone wins the lotto, that is "luck". If they will be bankrupt within 5 years, that is "probability" and that person was in more control loosing the money than in winning it.
When you shop or offered extended warranties, you are weighing the probability of a failure and not if you are (un)lucky.
Besides, with the extended be it either factory or aftermarket warranty really is only applicable between specific years and miles and has a so many weasel words to spin your head. So even if you get 7yr/100K for few thousand dollars, what you are getting is actually extra 3yr/50K (assuming original was 4y/50K factory) and on top of it, there will be tons of exclusions and possibly deductibles etc.
If it breaks after 7th year or after 100K, you are back to square one. If you are of the type not to keep the vehicle for 7+ years, then just trade it in at 4yr/50K mark and don't bother putting that 2K towards extended warranty. Use it to offset your cost in perpetually having a new car all the time.
Besides, you have a chance of getting some insanely great deals at the end of the model year or calendar years on new cars if you shop wisely.
So, either keep a vehicle for 10-15years or for 4 years. Don't be a sucker and pay multiple thousand for peace of mind for the extra 2-3 years.
If it breaks after 7th year or after 100K, you are back to square one. If you are of the type not to keep the vehicle for 7+ years, then just trade it in at 4yr/50K mark and don't bother putting that 2K towards extended warranty. Use it to offset your cost in perpetually having a new car all the time.
Besides, you have a chance of getting some insanely great deals at the end of the model year or calendar years on new cars if you shop wisely.
So, either keep a vehicle for 10-15years or for 4 years. Don't be a sucker and pay multiple thousand for peace of mind for the extra 2-3 years.
How does one do preventative maintenance on electric motors, computer chips, display screens. One is not paying multiple thousands either, comes to maybe 300-400/year for the additional years not counting the original warranty in the years. Like most things in life, whatever lets you sleep at night.
Originally Posted By: Spector
well, years ago (not too many ) I agreed that extended warranties were not necessary, a waste of money. then came computers, hard drives for jukeboxes, navigation systems, 12 way power seats, all electric motors or computer controlled and each component $$$$$. So, mostly for the electronic issues,
Although my experiences with the electronics has been great, I get where you are coming from. While I violated the 1st rule of car buying by buying a brand new model with a completely new drivetrain and such, the car has been relatively trouble free.
However, I did have 2 issues that an extended warranty may have helped....
1. The knock sensor went bad in the car. On the Ecoboost 3.5 it's a PITA to replace as it's buried in the valley and the manifold, injectors, coolant, etc all have to come out. It was done under warranty and the part was cheap ($25 or so, IIRC) but the labor was around 8 hours. Easily a $1000 repair at the dealer. Had it happened after 60k it would have paid for the extended warranty.
2. I've got the rear sunshade in the Taurus and I use it frequently. Last month it started clunking and searching the Internet it seemed that those that had it happen in warranty, they replaced the whole assembly. Those out of warranty, the quotes were around $800-1000. I took it apart as I was out of warranty and found you can get the motor for under $100 while the dealers always change the whole assembly (at a cost of $600) as that always fixes the issue. I replaced the motor and found it was a broken gear in the motor assembly. Works fine now.
So for just those 2 issues, the extended warranty would have paid for itself.
The extended warranty on my previous Infiniti would have paid for itself when the AC went and needed a circuit board, condenser, and hose - to the tune of $1000.
So yes it's a roll of the dice but chances are something will go wrong and you may make your $$ back. The key is to go with the one from the automaker not an aftermarket company.
well, years ago (not too many ) I agreed that extended warranties were not necessary, a waste of money. then came computers, hard drives for jukeboxes, navigation systems, 12 way power seats, all electric motors or computer controlled and each component $$$$$. So, mostly for the electronic issues,
Although my experiences with the electronics has been great, I get where you are coming from. While I violated the 1st rule of car buying by buying a brand new model with a completely new drivetrain and such, the car has been relatively trouble free.
However, I did have 2 issues that an extended warranty may have helped....
1. The knock sensor went bad in the car. On the Ecoboost 3.5 it's a PITA to replace as it's buried in the valley and the manifold, injectors, coolant, etc all have to come out. It was done under warranty and the part was cheap ($25 or so, IIRC) but the labor was around 8 hours. Easily a $1000 repair at the dealer. Had it happened after 60k it would have paid for the extended warranty.
2. I've got the rear sunshade in the Taurus and I use it frequently. Last month it started clunking and searching the Internet it seemed that those that had it happen in warranty, they replaced the whole assembly. Those out of warranty, the quotes were around $800-1000. I took it apart as I was out of warranty and found you can get the motor for under $100 while the dealers always change the whole assembly (at a cost of $600) as that always fixes the issue. I replaced the motor and found it was a broken gear in the motor assembly. Works fine now.
So for just those 2 issues, the extended warranty would have paid for itself.
The extended warranty on my previous Infiniti would have paid for itself when the AC went and needed a circuit board, condenser, and hose - to the tune of $1000.
So yes it's a roll of the dice but chances are something will go wrong and you may make your $$ back. The key is to go with the one from the automaker not an aftermarket company.
Originally Posted By: itguy08
So yes it's a roll of the dice but chances are something will go wrong and you may make your $$ back. The key is to go with the one from the automaker not an aftermarket company.
I agree with you, and you significantly increase your odds of getting your money back if you don't pay retail for these warranties.
Many on here don't seem willing to separate the benefit of the warranty from the cost of the warranty. If the warranty were free, would you take it? Of course you would. If it cost $2000, would you take it? Most would not, myself included. Where any one individual draws the line in the middle can and will vary greatly from person to person.
The key is to separate the benefit from the cost and look at them separately. Do you like the benefit the warranty provides? If so, NOW you can assign some values to that, regarding what you'd like to pay and the most you'd be willing to pay. In some cases, you may find that you can buy these things for much less than retail, and you can significantly alter the cost/benefit ratio in your favor.
So yes it's a roll of the dice but chances are something will go wrong and you may make your $$ back. The key is to go with the one from the automaker not an aftermarket company.
I agree with you, and you significantly increase your odds of getting your money back if you don't pay retail for these warranties.
Many on here don't seem willing to separate the benefit of the warranty from the cost of the warranty. If the warranty were free, would you take it? Of course you would. If it cost $2000, would you take it? Most would not, myself included. Where any one individual draws the line in the middle can and will vary greatly from person to person.
The key is to separate the benefit from the cost and look at them separately. Do you like the benefit the warranty provides? If so, NOW you can assign some values to that, regarding what you'd like to pay and the most you'd be willing to pay. In some cases, you may find that you can buy these things for much less than retail, and you can significantly alter the cost/benefit ratio in your favor.
So here is the quote I have:
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The quotes start now though and I already got bumper/bumper for 3 years right?
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The quotes start now though and I already got bumper/bumper for 3 years right?
Something about this does not compute right. When there is a deductible, it applies to every single individual incident i.e. you will be paying it every time you take the car in under the plan. Given that, how could they sell zero deductible plan just by asking you extra $105?
The D82 plan makes the most financial sense if you want to buy factory extended warranty. I can understand the allure of that Cadillac plan at Chevette's price!
The D82 plan makes the most financial sense if you want to buy factory extended warranty. I can understand the allure of that Cadillac plan at Chevette's price!
Coopns, I'm guessing by the time that has elapsed that you've already taken delivery of the vehicle, right? In full honesty, the time for you to score a deal on an extended warranty is likely over. The best time to negotiate this is in the "closer's" office, in the finance office. They're trying to sell you the fabric protection, the under coating, the extended warranties, etc. This is where some negotiating skills come in handy...let them think you're interested in the warranty. The guy at the Honda dealer where we bought our CR-V actually said, "I really want to see you guys have this extra protection." That's all the opening you need. I finally acted as if I was giving in, "okay, you know what, for $600 I'll buy it." Hint: that's the price I had in mind at the beginning. I wasn't going to pay retail for Honda Care, but I'll buy it for "half price".
You already have a basic warranty for 36/36k. You already have a powertrain warranty for 60/60k.
So D34 though D56 are simply extensions of your basic warranty, as powertrain is still covered for those durations. D56 essentially extends your basic warranty to be the same as your powertrain warranty, for $475. Is that worth it to you? I might pay half that for that coverage, but I don't think it's worth nearly 500 bucks to me. And D68 through D62 are basically one year extensions of your powertrain warranty (as well as the rest of the car too) at different mile intervals.
D82 is likely the best value. Your vehicle will be covered for 8 years, which represents a 5 year extension over the basic warranty and a 3 year extension over the powertrain warranty, and 120k miles, which represents an 84k mile extension over the basic warranty and a 60k mile extension over the powertrain warranty. Would you expect to have $1,295's worth of dealership repairs over those extended intervals?
Probably not. They price these things to make money. Again, Honda's already sold the car; they don't have any reason to lose money after the sale by selling you a warranty under their cost. So ON AVERAGE, it costs Honda less than $1,295 to both cover your repairs under the D82 plan AND to administer the D82 plan. I've heard that a standard rule of thumb on these is that, on average, you can expect to pay half or less in terms of actual repairs on the cars for any given warranty duration. That is, Honda knows the average value of repairs for any given duration and marks that up by a factor of 2 to cover overhead, administration, profit, etc. I don't know if the "factor of 2" part is correct, but by the nature of business, we know there has to be SOME markup, whatever that is.
So I guess I said all that above to reiterate something I mentioned earlier in the thread. Extended warranties aren't a good value if bought for the "asking price". You can reduce your risk of losing your money significantly if you can buy them under retail. The best time to do that is in the finance office, when all the books are open and they're still hungry to get your money. I don't think it's likely that you can get much off the warranty by buying it after the fact.
BUT...all that said...there's certainly value in not worrying about any future repairs. Will $1,295 help you sleep better at night? Nobody here can tell you that; only you and your family know what is right for your situation. In terms of objective financial value, you're likely better off putting that $1,295 into a money market account and at least letting it bear interest while it waits for you to have to use some of it. But in terms of living a stress-free live, it's hard to put a price on that, right?
You already have a basic warranty for 36/36k. You already have a powertrain warranty for 60/60k.
So D34 though D56 are simply extensions of your basic warranty, as powertrain is still covered for those durations. D56 essentially extends your basic warranty to be the same as your powertrain warranty, for $475. Is that worth it to you? I might pay half that for that coverage, but I don't think it's worth nearly 500 bucks to me. And D68 through D62 are basically one year extensions of your powertrain warranty (as well as the rest of the car too) at different mile intervals.
D82 is likely the best value. Your vehicle will be covered for 8 years, which represents a 5 year extension over the basic warranty and a 3 year extension over the powertrain warranty, and 120k miles, which represents an 84k mile extension over the basic warranty and a 60k mile extension over the powertrain warranty. Would you expect to have $1,295's worth of dealership repairs over those extended intervals?
Probably not. They price these things to make money. Again, Honda's already sold the car; they don't have any reason to lose money after the sale by selling you a warranty under their cost. So ON AVERAGE, it costs Honda less than $1,295 to both cover your repairs under the D82 plan AND to administer the D82 plan. I've heard that a standard rule of thumb on these is that, on average, you can expect to pay half or less in terms of actual repairs on the cars for any given warranty duration. That is, Honda knows the average value of repairs for any given duration and marks that up by a factor of 2 to cover overhead, administration, profit, etc. I don't know if the "factor of 2" part is correct, but by the nature of business, we know there has to be SOME markup, whatever that is.
So I guess I said all that above to reiterate something I mentioned earlier in the thread. Extended warranties aren't a good value if bought for the "asking price". You can reduce your risk of losing your money significantly if you can buy them under retail. The best time to do that is in the finance office, when all the books are open and they're still hungry to get your money. I don't think it's likely that you can get much off the warranty by buying it after the fact.
BUT...all that said...there's certainly value in not worrying about any future repairs. Will $1,295 help you sleep better at night? Nobody here can tell you that; only you and your family know what is right for your situation. In terms of objective financial value, you're likely better off putting that $1,295 into a money market account and at least letting it bear interest while it waits for you to have to use some of it. But in terms of living a stress-free live, it's hard to put a price on that, right?
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