The Ol' Extented Warranty

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Feb 16, 2005
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Used Honda Accord 2019, dealer serviced, certified Honda Pre-Owned. 80k on it.

Just looking for some opinions on buying the warranty. I hate debating this...if I do take it, it puts my monthly up too much. I guess getting burned before I'm just not sure. I know...if can put that money away...never happen. Seems like after 5 years things just start to go/wear/rust out...my experience anyway. My luck after 3 years it will start to go. I understand factored in to all this is keeping up the the maintenance.

From dealer:
Both are 0 deductible, parts & labor, computer & electronics, engine & transmission. They are platinum plans which has no restrictions other than wearable items, i.e. Glass (car insurance) rubber (tires, brake pads, windshield inserts). The ABS braking system is completely covered. Along with complete concierge for towing (unlimited miles), roadside, dead battery, flat tire, lockout, out of gas etc. This is NOT a 3rd party plan. This is our used car plan through CCC which is Toyota. Since we own the Toyota store in Braintree we have this as an amazing option. Meaning, this is the same coverage as a new vehicle and the dealership does the legwork. You would drop off your car, get a loaner and go home. You would then pick up your vehicle upon completion with no out of pocket expense.

Option 1 is 3 years and 36,000 more miles. $2,615

Option 2 is 4 years and 50,000 more miles. $3,240
 
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Any option to find say a Civic for less, and thus have both a newer car and the extended warranty?

IMO I would skip and get paid off, if you “luck” is such that you can only make it 5 years before something goes, well, 5 years you could be paid off and then saving money after payoff for repairs.
 

dishdude

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I would do some research into this warranty company. I've never heard of CCC and I would be surprised if they are indeed owned by Toyota.
 
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I would look at it the same way one would (should) look at insurance. If you experience a major component failure with no warranty, is that going to be a financial catastrophe? Or in the absence of savings, do you have access to a line of credit with a palatable interest rate which could be used to replace an engine/transmission/whatever?

If you can manage a big repair bill on your own, don't buy the warranty. If spreading the cost of the warranty over the financing term is easier to manage, do that - not because it makes sense statistically, but because you can manage it.

With that said, if both options (buying the warranty vs. out of pocket repair expense) are major strains on your finances - respectfully, you're buying too much car.
 
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I'm not finding anything about an extended warranty from a company called CCC. What kind of a dealer are you considering purchasing the Honda from? Do you have a printed brochure that describes what is and is not covered from this company?
 

dishdude

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I'm not finding anything about an extended warranty from a company called CCC. What kind of a dealer are you considering purchasing the Honda from? Do you have a printed brochure that describes what is and is not covered from this company?

This would be the most important thing to me in this consideration, there are a lot of lousy third party warranty companies out there that will sell a policy that isn't worth the paper it's printed on.
 
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On my recent Maverick purchase I bought the Ford TOTL 8 yr 100K 0 Deductible for around $1700. This is from Zeigler dealership group. Your price quote is just horrible and what my local dealer wanted. Zeigler also sells warranties for many brands. Worth a shout out to them. Glad I bought this warranty as a friend recently had to replace a turbo at 64K and it was over $2K. My lady friends 2015 Fusion lost its steering and a new rack is required. Guess how much, $2K with labor. The rack is $1100 and 4-5 hours labor, tax was $115
 
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I just went through this looking at vehicle extended warranties for our 2022 Silverado for the heck of it. Mainly to see how much they were compared to either a GM extended warranty, or a AAA extended warranty. Coverage and companies all over the map!

Went with a Platinum exclusionary extended warranty for around $2100 which was about 1/3rd less than the equivalent GM extended warranty and 1/2 the amount the dealer wanted for their super-duper exclusionary warranty. All warranties were for 84 months, 120,000 miles and $100 max deductible. Finance guy at the dealership just could not believe AAA offered essentially the same warranty as his for 1/2 their price.
 
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I just went through this looking at vehicle extended warranties for our 2022 Silverado for the heck of it. Mainly to see how much they were compared to either a GM extended warranty, or a AAA extended warranty. Coverage and companies all over the map!

Went with a Platinum exclusionary extended warranty for around $2100 which was about 1/3rd less than the equivalent GM extended warranty and 1/2 the amount the dealer wanted for their super-duper exclusionary warranty. All warranties were for 84 months, 120,000 miles and $100 max deductible. Finance guy at the dealership just could not believe AAA offered essentially the same warranty as his for 1/2 their price.
That half was their profit.
 
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Yup. I was told the lowest they could go on their warranty was about $3200, so I know that extra $1200 was pure profit.
 
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The only extended warranty that is any good that is actually worth buying is the one direct from the manufacturer itself. I would say stay far away from any other extended warranty besides the real-deal Honda plan, I believe it is called Honda Care. Even then, OP will need to ask politely when in the F&I office to see a copy of the actual warranty that will be applied to the car he is buying, and read every paragraph to be sure there are no restrictions on maintenance etc. Some extended warranties require that you have all maintenance done at the selling dealership and a lot of them will deny repair claims if you can not prove you took the car back to the selling dealer for every single little service and checkup that is listed in the factory warranty manual. Not saying OP's dealer is like that but a lot of dealers do use that as an excuse to weasel out of paying claims.

OP also should find out if any claims would be paid directly by Honda itself or is it a self-insured gimmick deal where the dealer has to first get an approver to review the claim then they pay the repair themselves, less any deductibles off the dealer's service P&L. There are a lot of ways to get screwed over on an extended warranty. Rule #1 is if it is not the actual factory Honda Extended Warranty and that is what is listed on the buyer's order, do not buy it. Third party extended warranties are not worth doodley-squat. They are nothing more than pure profit for the dealer. I spent 3 years in the extended warranty administration business. You would not believe all the excuses and loopholes dealers use to weasel out of paying claims.
 
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Honestly, I'd look at a cheaper car. If I'm understanding the post correctly then adding the warranty makes the monthly payment too high. If a $2-3k price difference makes the car unaffordable then you are dealing with too close of a margin to begin with and when life happens as it inevitably does, you're going to be broke. Ask me how I learned this one!
 
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Be more detailed...
What version Accord/options/engine/transmission.... dealer asking price? price + warranty + closing/tax/title/plates?

I wouldn't buy an 80k mileage car if a warranty is pushing the monthly payment budget. You should consider something cheaper/newer/less-options/smaller and get new with new car warranty! CPO means nothing to me but 'used car saleman' marketing tactic. My ex-wife is CPO and yours for the taking if you want to live in misery, addictions, and financial spending distress.

The used Accords that I've seen are only a couple thousand away from a new Accord. Obviously, its the option package that some can't live without.
I second the vote toward a new Civic/Corolla, even though I love how big the Accord/Camry is now.

Use autotrader and do a 100 miles search for new accords and sort by price. Step down some options and get new... or consider the previously mentioned new Civic.
 
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I'm not a great advocate of extended warranties.
However, if you feel so compelled, the only one to consider is the manufacturer plan (Hondacare.)
Three dealer names consistently come up with the best prices nationally: Hyannis, College Hills and Saccucci Honda,
You can save hundreds by buying from one of these three; however you should shop all three for best pricing.
 
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Yeah, it's basically an aftermarket warranty so the usual applies, they either deny claims, go out of business or don't cover what they say they will cover. And those aftermarket warranties are very heavy on profit for the dealer which is why the coverage is typically so bad which is why the manufacturer extended warranty/CPO warranty is usually better, the manufacturer won't be going out of business and if you take it to the dealer, if they find something wrong, it'd be covered, no need to get pre-approval to see if it's really covered.
 
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Wasn't there a recent post where an internal engine problem was denied because there was no record of the tires being rotated? Even though all other required maintenance was done on time by the selling dealer. Now is a terrible time to buy but I would probably go for a cheaper car and keep the difference back for possible repairs.
 
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If you are worried about payments being high without a warranty don’t buy the this car. Spend less. It’s not fun as I own less expensive used stuff outright with repair buffer in bank but never worry.
 
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Wasn't there a recent post where an internal engine problem was denied because there was no record of the tires being rotated? Even though all other required maintenance was done on time by the selling dealer. Now is a terrible time to buy but I would probably go for a cheaper car and keep the difference back for possible repairs.
Yes, there was a big thread on that not long ago. I would love to know how that one turned out but it was basically the same thing, a useless extended warranty that the dealership used a nonsensical loophole to weasel out of paying for a blown engine claim. We never got the final update on that one, but it was a prime example of what can happen with a worthless third party extended warranty.

 
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