Extended Honda Care 7/100k Warranty on a 2005 worth $900?

Joined
Nov 3, 2002
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11,247
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PA
I tend to think so. If I keep the vehicle, I get exactly what I want out of the purchase, near zero repairs costs. If I sell it early, I get a top-dollar priced from the next owner. Win-win? It's an Element AWD, BTW.
 
Joined
Aug 6, 2004
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2,635
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Chicago
I look at the $900 and think it would be a good deal. Then I read in the trade journals that the extended maintenance contracts are very, very profitable. Then I think about my experience, my last 4 new vehicles required -0- maintemance in the contract period. Three went over 100,000 miles with no major maintenance and one went over 7 years. So I guess you pay your money and take your chances. [Burnout]
 
Joined
Dec 21, 2004
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894
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Sudbury, Ontario
My parents bought the extra warranty for their new model year 1997 RAV4 and nothing broke during the extended warranty period. It did had some things go during the normal warranty and some things after the extended warranty. They used to own a Topaz so they figured the extra coverage was gonna pay big dividends. [Duh!] Steve
 
Joined
Aug 2, 2002
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Dixie
AJ, Consider an extended warranty to be just another form of insurance....The bean counters have determined that - ON AVERAGE - the company will make a profit selling these policies. So the chances of you having to spend more than $900.00 on a Honda are very slim. Auto problems are rarely random - the vast majority of them are systematic, ie due to inherently poor design and/or assembly. If you have a problem with your element, the chances are that many other folks will as well. Given the power of the Internet, Honda will then be required to recall and fix the problem(s) free of charge. Got it? Tooslick
 

JHZR2

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Dec 14, 2002
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46,585
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New Jersey
My father made out bigtime on his toyota corrola, because his radiator and rear shocks went. I think he paid $600 for the plan, and the radiator job alone was more than that. However none of our other vehicles, including the American ones, have had any issues. I got the new car warranty plan through geico for my new saab. It comes out to $5/month, and a $250 deductible. Gives me 7 years/100k mile bumper to bumper warranty, with $250 deductible. The way I figure, with that car, if something goes wrong, itll probably be expensive, because the whole car is fiber-optic networked, very advanced turbo engine, etc. If I dont use it, its only $420 out of my pocket, but I got such a good deal switching, that its chump change over 7 years. This is NJ insurance, mind you, and though I have a great record, and get much better than average rates for NJ, theyre still high. JMH
 
Joined
Nov 9, 2004
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432
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central Georgia
x2 to everything else already stated. The factory-backed extended warranties are the way to go, if you must do it at all. From what I have heard/read, the prices on these extended warranties are LARGELY negotiable. Try getting them to knock off $200. Then send half the money you saved to me. [Big Grin]
 

Kestas

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Jun 4, 2002
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14,022
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The Motor City
I vote against the extended warranty. Tooslick explained it well. I say this even though we once bought extended warranty coverage for my sister's car and it payed off. The circumstances were that the car was an 84 Horizon, loaded with options, such as a/c, automatic, and power steering, and I wasn't around to maintain the car. If you're a DIYer and do most of the work on your cars, then the reason is double why you shouldn't get the extended warranty.
 
Joined
Sep 6, 2003
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950
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Loveland, Ohio
I am amazed at how many people consider these a good deal. I will never buy one. Seems like a fair number of people have trouble collecting on them, and the fact that they try so hard to sell them tells you they are money makers. They are very popular on the Odyssey site, but I have 72K on my 2001 and would never have used it to date. If my tranny gives out I may regret that decision, but I don't think so. Just my .02 worth........
 
Joined
Apr 1, 2003
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San Jose area, CA
If you got a lemon, I would say by all means! If you beat your car to death and put it away wet (so to speak) ditto. If you take reasonable care of your vehicles, my history says it is cheaper to pay out of pocket USUALLY for those remote repairs. So given your circumstances; YES and a resounding NO if you are not a car abuser. A small example, the dealer did a recall on my 2001 Corvette Z06 and not shortly after the BCM went down (one of 12 on board computers) a 7/72k ) 600 out of pocket. Just for grins I called the company that had offered a 7/72 at 1250 years back and asked what exactly would have been covered in this case. It would have required a 100 deductible and they would not pay for one computer reflash procedure so the total cost would have been 1350 plus 87=1437-app 600 dollars=837, meaning they are still ahead.
 
Joined
Jun 15, 2003
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Silver Spring, MD (USA)
Always always always read the fine print. Alot of the extended warranties are borderline scams! One "mazda" warranty I was offered said in the fine print that ALL SERVICE work much be done at the dealership! Ya pay 1300 for an extended warranty, then pay out the wazzo to have the dealer do all your maintance =/. Alot of the warranties also state that you can't perform any modifications whatsoever to your car. All parts have to be approved for use in the vehicle...aka no suspension/engine mods, etc. If your not doing that, its fine, but just realize extended warranties don't fall under the mogg-mass act and thus you aren't protected against getting the whole wazoo voided for installing an aftermarket air filter. Also don't expect fast turn around on payments...we've been waiting 11 months for my sisters alternator cash to come back from her extended warranty. [Frown]
 
Joined
Mar 27, 2003
Messages
472
Location
Cleveland, GA
I bought a new 2005 Toyota Sienna LE last November. I did ALOT of research and found a salesman in Virginia I think that sells the genuine Toyota platinum warranty 7 year/100k mile (unavailable in the Gulf States region) for $1 over cost. Verified this many times. The ost is under $800. I have owned 6 Toyota's and never really had any problems. BUT, this Toyota has alot of "gizmo's" like power doors, rear entertainment, dual AC, etc. These would be very expensive to fix outside of warranty. Just do some research (if you haven't already) on the Honda boards (not just Elements) and see if there is a similar deal. IMO, it would probably be worth it. Vehicles these days have alot of computerized (read: EXPENSIVE) things that can go wrong.
 
Joined
Jan 27, 2003
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Pac NW
When we purchased our SVX in 1992 it was the 1st year for this model. It came with a factory 3 yr/36k bumper-to-bumper & 5 yr/60k powertrain warranty. The people at the dealership almost fainted when I said I was not interested in purchasing an additional 7 yr/100,00k bumper-to-bumper warranty ($50 deductible) for a mere $1,100.00! "This is the 1st year for this car! It is by far the most powerful expensive Subaru yet produced. You MUST buy this warranty." I told them I would purchase the extra warranty under one condition: if I never used it I was to get 100% of the $1,100.00 back at either 7 years or 100,000k miles, whichever came 1st... Got this in writing from the Dealer principal too. 7 years later (@ about 85k) I called the dealership and picked up my $1,100.00 three days later. [Big Grin] Wonder if this kind of contractual provision is still available? [I dont know] Cheers! [Cheers!] p.s. Under the factory warranty the 4EAT transmission (a very sore spot for SVX owners, especially on the '92 model) was replaced @ 54,000 miles. Never had a single problem with it since!
 
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Nov 6, 2002
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Saskatchewan
I wouldn't do it. I like to keep the number of people making a profit off me as low as possible. Insurance only makes sense if you can't afford the consequences of not having it.
 
Joined
Dec 25, 2002
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3,593
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Outside smalltown, IL
Extended warranties are easy cash for dealers. Better money than selling financing and insurance in fact. Years ago I worked at a motorcycle shop and we sold extended warranties. For every $5 the warranty companies paid out for repairs, they collected $100 in initial fees. A 20-1 difference. Pretty good profit don't you think? Of course, things are more complicated now so many "simple" repairs are really expensive. But I still avoid extended warranties. When I bought my used 4Runner a few years back a friend had just purchased a used Explorer. Same age as my truck, similar mileage etc. He got a 7/70K warranty extension from one of the aftermarket companies. Before it was over, he had an electric window mechanism replaced and some other things so in his case he broke even, maybe came out a little ahead. In my case, I had a few small problems fixed on the manufacturers warranty and nothing else has gone wrong with my truck. It would have been money right in their pockets and out of mine. An unsurprising thing, I quoted a warranty from the same people that sold his just out of curiosity. His Explorer was about 60% more to cover than my 4Runner even though my truck was a more expensive vehicle to purchase initially...
 
Joined
Oct 10, 2004
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1,979
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Houston
it's a toss-up. Best buy I ever made was ext warranty on the 93 Dodge minivan, saved over 4x the price we paid ($1500, 7/100k). A partial list: 2 compressors, 2 trans rebuids, a complete ABS system, power door lock, window motor) The one we bought on the 87 Voyager returned over 5x what we paid (but it was only $750 for a 7/100k, such a deal). Bought one on my 97 camry. Never used it, not even once. It expired at 115k. But I did sleep better at night as a single compressor would have paid for it. some may see a trend here...
 
Joined
Dec 22, 2002
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The Garden State
Audi Junkie, Is that $900 a bumper to bumper warranty or is it "selective" coverage warranty? Like Ford has different levels of after the bumper to bumper warranty coverage. The Ford base coverage of around $1000 covers nothing that will break it seems. With you having a Honda I suspect that you will not need an extended warranty [Big Grin] . The extended warranties are formulated as a gamble with the house, the manufacture/insurance company, having the better odds for payout. Whimsey
 
Joined
Aug 6, 2004
Messages
2,635
Location
Chicago
quote:
Originally posted by Norm Olt: When we purchased our SVX in 1992 it was the 1st year for this model. It came with a factory 3 yr/36k bumper-to-bumper & 5 yr/60k powertrain warranty. The people at the dealership almost fainted when I said I was not interested in purchasing an additional 7 yr/100,00k bumper-to-bumper warranty ($50 deductible) for a mere $1,100.00! "This is the 1st year for this car! It is by far the most powerful expensive Subaru yet produced. You MUST buy this warranty." I told them I would purchase the extra warranty under one condition: if I never used it I was to get 100% of the $1,100.00 back at either 7 years or 100,000k miles, whichever came 1st... Got this in writing from the Dealer principal too. 7 years later (@ about 85k) I called the dealership and picked up my $1,100.00 three days later. [Big Grin] Wonder if this kind of contractual provision is still available? [I dont know] Cheers! [Cheers!] p.s. Under the factory warranty the 4EAT transmission (a very sore spot for SVX owners, especially on the '92 model) was replaced @ 54,000 miles. Never had a single problem with it since!
You are the "wheeler dealer" of the month - great deal! [Big Grin]
 

Al

Joined
Jun 8, 2002
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19,297
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Elizabethtown, Pa
quote:
Originally posted by terminaldegree: x2 to everything else already stated. The factory-backed extended warranties are the way to go, if you must do it at all. From what I have heard/read, the prices on these extended warranties are LARGELY negotiable. Try getting them to knock off $200. Then send half the money you saved to me. [Big Grin]
I would get it. Insurance is always great when you need it and bad if you don't. The thing is no matter how bad the factory screwed up your car in the manufacture and how bad the dealer bungles the job..your costs are fixed. That's what I like. The other way, the sky is the limit. And as far as the manufacturer making money on it ..duuuuhhh..they are in business to make money. with that attitude you shouldn't buy a car bc they are making money Anyway..to each his own..I sleep better at night.And even if my car breaks down under warranty I get a Rental and towing. As pointed out try to negotiate the price. As far as TV and appliance warranties..I agree they are a waste. Just throw the TV away.
 
Joined
Jul 13, 2003
Messages
1,462
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MD
If you do decide to get an extended warranty only go with one from the manufacter.A lot of those aftermarket warranty's are worthless!
 
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