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Honda Extended Warranties Pricing and Info

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  • dantzdantz Posts: 49
    I recently purchased a 7-yr zero-deductible Honda Care policy from Saccucci Honda for $575, and I feel that it offers very good value. The cost was low enough that I don't feel overly "invested" in the policy, and yet I'm covered for the majority of components that might fail. I don't necessarily expect to come out financially ahead in this transaction (although I might), but there are also a few other reasons that this purchase made sense for me:

    1) If anything significant breaks, my wife will be much happier knowing it's covered by the service contract. This prevents the whole discussion about "we didn't buy the warranty because we're self-insured, and so far we're still ahead because our total expenditures haven't exceeded the $575 that we would have paid for the warranty, and we'll be ok as long as nothing else expensive breaks before we sell the car, so let's hope it doesn't because if it does it will make me look like a sap for not buying such an inexpensive plan."

    2) If any non-crucial but covered items fail (i.e. instrument lights, clock, rear window controls, etc.) I'll be much more likely to get them fixed rather than leaving them non-functional in order to save money.

    3) If I sell before the 7 years are up (likely), the vehicle's appeal to a private-party buyer will be enhanced by the service contract. It gives the potential buyer peace of mind knowing that he won't have to worry about any unknown defects that might lead to an expensive repair right after he buys the car.

    I'd also like to put in a good word for Saccucci Honda. I give them credit for standing up to American Honda and fighting for the right to compete in the wider marketplace. It's the American way! In the absence of this sort of open competition it has been clearly demonstrated that most dealers will collude to keep the prices of extended warranties artificially high.
  • jet10000jet10000 Posts: 656
    I recently purchased a 7-yr zero-deductible Honda Care policy from Saccucci Honda for $575, and I feel that it offers very good value.

    You made some great points. In addition, you get seven years of roadside assistance included in your $575. If you would have paid for that with a company like AAA, you could've paid $378 for that alone.

    The prices are so low with the online dealers, it makes a lot sense to pay them to take the risk off of your plate.
  • smat8smat8 Posts: 1
    So I need clarification. Is the Zurich Warranty any better than the Honda Care warranties on Bernardi's site? The dealer said that the Zurich Warranty covers wear and tare items and covers all labor. Do the Honda Care warranties cover labor?
  • duke23duke23 Posts: 488
    Mitzi wrote:

    "Exactly my point. I was reponding to Jet10000's question. "
    I would too. Yah if I'm writing You a check you will follow my rules of collateral or simply state that that you have an opinion but you're not quite willing to share the risk that an insurance company with a large base would.
  • duke23duke23 Posts: 488
    dantz wrote
    "1) If anything significant breaks, my wife will be much happier knowing it's covered by the service contract. This prevents the whole discussion about "we didn't buy the warranty because we're self-insured, and so far we're still ahead because our total expenditures haven't exceeded the $575 that we would have paid for the warranty, and we'll be ok as long as nothing else expensive breaks before we sell the car, so let's hope it doesn't because if it does it will make me look like a sap for not buying such an inexpensive plan."

    That pretty much say's it all. It was cheap insurance. Good post Dantz.

    Matty, I am letting it slide but with your two years experience Are you willing to take on the risks of an insurance company ? Or simply post what you've read with no liability if you are wrong.
  • mitzijmitzij Posts: 612
    Is that the quote you intended to use?

    What collateral of HondaCare's are you holding? You've only exchanged money for a piece of paper and a promise. You're only protected by simple contract law (not insurance law).

    You're right. My opinion is just an opinion. However, that opinion is backed up by years of dealing with service contracts, keeping track of companies that have gone under, and generally paying attention. It is also backed by every consumer-oriented article I've ever read about service contracts.

    Your opinion is based on speculation and what salespeople have told you.
  • jet10000jet10000 Posts: 656
    However, that opinion is backed up by years of dealing with service contracts, keeping track of companies that have gone under, and generally paying attention.

    But I don't think you've ever stated you dealt with Honda Care claims specifically. The name of this forum is HONDA Extended Warranties Pricing and Info. As I recall you work for a GM dealership. A company which just reported a horrendous $15 BILLION loss in the last 3 months alone.

    It is not surprising that a company that is that poorly managed would also have inferior services in their extended vehicle service contracts.

    I have made claims previously using my Honda Care contract and was always extremely satisfied with the ease of making the claims, the services provided, the upfront costs and the value for my money.
  • jet10000jet10000 Posts: 656
    So I need clarification. Is the Zurich Warranty any better than the Honda Care warranties on Bernardi's site? The dealer said that the Zurich Warranty covers wear and tare items and covers all labor. Do the Honda Care warranties cover labor?

    Yes, Honda Care covers labor and material from any covered repair. I am not that familiar with Zurich's coverage. But I've been reading this forum for awhile and I've never seen anyone post that they compared Zurich to Honda Care and found Zurich to be superior and went with them.

    Here's a link to a sample Honda Care contract.

    https://www.hondacareextendedwarranty.com/contract.php

    I would suggest you get the documentation from Zurich and compare them to see which is better and then let us know.
  • mattgg1mattgg1 Posts: 191
    "Matty, I am letting it slide but with your two years experience Are you willing to take on the risks of an insurance company ? Or simply post what you've read with no liability if you are wrong."

    Duke23, I don't understand your post. I am currently taking on the risks of an EW insurance company by not buying the policy!!! I did NOT purchase an EW, so I'm self-insuring against the costs of potential repairs, with the intent to pay for any such repairs myself.

    Therefore, I'm assuming liability if I am wrong, since I have the potential of paying more in repairs than what an EW would have cost. What don't you understand?

    I will gladly assume the responsibility of future repairs myself instead of buying an EW. Across all of the cars that I have/will own, I am almost guaranteed to come out ahead! While you guys buy EW's for your current & future cars, I will save that money and take a vacation to Europe or something.

    I just don't understand why people are so dealthy afraid of the possibility of paying for potential future maintentance. The only reason you need the "peace of mind" of an EW is if you're worried about not having the money to pay for repairs when they are needed. And if you don't have $500 for a future repair, you've got a lot more problems on your hand than the EW will help you with.
  • mattgg

    the EW is a fear based buy.
    I'd probably buy one too, if I worried about all the things that could go wrong with a car. But I've been around long enough to know that it's a poor bet.

    You won't get anywhere with Jet and Duke - I get the feeling they're nothing more than EW sales people sharpening their sales skills here. But hopefully we can provide some balance to those seeking opinions from both sides.

    Did I get that right Jet and Duke?? Are you guys EW sales people?
  • Just as a follow-up. The cancellation process went smoothly & they applied the $1,477 to the principal on my car loan. Was able to repurchase for $895 through myhondawarranty without any problem.

    Wanring to others - when the FI person tells you that you can only buy an extended warranty when you're closing the deal - it's a lie!
  • mitzijmitzij Posts: 612
    A service contract is a service contract is a service contract. The fact (which I have acknowledged several times) that I have never dealt with Honda Care is irrelevent. I don't just deal with GM's service contracts (GMPP). I also deal with all the other companies out there that sell contracts. I know how they work, I know the vast profit they make, I know how often consumers come out ahead on them, I even know the ones that have gone out of business, leaving customers holding worthless contracts. GMPP is the easy one-it's linked with my warranty claims, so after one phone call to confirm coverage, I submit the claim as if it were warranty, with an extra code attached. The really bad ones are the aftermarket companies.

    Honda Care being backed by an RRG, rather than an insurance company, makes me nervous. For an education on RRGs, visit the Warranty Gold thread.

    If your going to tell me how evil GM is, well. If I-a lowly Chevy service advisor-don't see people needing massive repairs on their junkers requiring service contract assistance, then surely, a great and powerful Honda shop would see even fewer than I do! A Honda would never ever need a service contract! Heck, they probably don't even have service departments at Honda dealerships!
  • jet10000jet10000 Posts: 656
    the EW is a fear based buy.

    Statements like this where you try to label purchasers of extended warranties with a derogatory term (such as they're in fear) just displays your inability to look at the facts. People who can't make logical statements eventually resort to name-calling.

    As I've pointed out numerous times, an extended warranty is no different from any other risk contract in the society---be it auto insurance, homeowner's insurance, fire insurance, commodity futures, stock options, etc, etc. In all of these the issuer of the contract are paid a fee by the buyer and in return the issuer assumes future obligation on behalf of the buyer.

    Furthermore, you do not have the psychological profile of every person who purchases such a contract and therefore you have no ability to make a statement as to why a person buys the contract. That is a fact. I challenge you to find one study from a reputable scientific journal which backs up your statement.


    Did I get that right Jet and Duke?? Are you guys EW sales people?


    No, you got that wrong as well. This is of course another error on your part.
  • Kirstie_HKirstie_H Posts: 10,913
    Folks, we're getting pretty far afield from the purpose of this thread. This thread is specifically about Honda Care warranties, not about the decision to purchase vs forego extended warranties in general. The regular extended warranties discussion is probably a better venue for that conversation.

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  • duke23duke23 Posts: 488
    mitzi wrote :Your opinion is based on speculation and what salespeople have told you.
    Lmao, I don't trade vehicles quickly, last one went 11 years nor do I go into negotiations not informed. If you think I don't respect you, you are wrong. On what any part would cost on any Chevy product I would defer to you expertise in a heart beat. I need not hold any collateral of HC as they have deep pockets. I found it hilarious that those who were most adamant would not risk a dime their own capital. Me, ? Give me collateral and I'll write you the check. Sadly neither you our San Diego friend get it, I can sell better than the average saleman and I bargain only from math never fear.Of all the insurance I pay, this is by far the cheapest. One starter and I clean up
  • duke23duke23 Posts: 488
    Oh matty matty matty, sometimes you Californians can be so difficult. Did you really not understand that your state would bankrupt itself when you voted for proposition 13. Blame Enron all you want but when you passed the most retarded energy deregulation bill in world history, you did rather bring it upon yourself. But back to cars, congratulations on passing on the EW and good luck to you. May you fall into normal probability. But if perchance you don't Mr. SE 2 years we will expect that you will post how dumb you were when your starter motor went bad in year 4 and your abs module in year 5. Notice how we don't even count catastrophic failure, that's not even in the equation.
    Now I put to you, what right do you have to advise anyone not to buy HC EW in a HC EW forum. Are you willing to act as insurance company. Obviously not. And the value you bring to the forum is ... ? So stay with your half or less single digit returns, I'm happy for you in your choice. And your opinion counts for my money that I have spent exactly how?

    Apistesteve, Congratulations on buying your SD Re long ago, but one would think over 20 pages you would drop that weak fear argument. Do I seem fearful ? I took 2.9% financing rather that pay then cash in full because I could pay then back with deflated dollars.
  • Just bought a new 2008 Honda Accord Ex - L Package.
    in Georgia - Atlanta
    Dealer then wanted to sell me door guards - to keep from being dented and scratched for an additional 300 bucks which I went for - they said Honda just stopped putting them on this year.
    Then they tried to sell me the extended warranty package for about $890. Gets me to 10 years 100,000 miles.
    Is this a good deal?
    They said that 64% of people go ahead and buy the extended warranty.

    If Honda is so good, then do I really need the extended warranty?
    Any success stories out there regarding the extended warranty is is this just another way to get money out of me?
  • thebeanthebean Texas!Posts: 72
    When I bought my '02 Civic, I bought the EW (HondaCare) that took me to 7 yrs/70K miles with $50 ded. This was the first EW I had bought, and the dealership had to make it attractive, pricing wise - under $700 as I recall, before I would bite on it. Well, fast forward to today, and the warranty has more than paid for itself with coverage on a front strut replacement and two repairs on the infamous "rocking seat" issue. My seat is starting to feel a little loose, and I plan on getting it fixed again under the EW before it runs out next spring. It has been no hassle using the EW, and I'm glad I bought it.

    When I sell the Civic and buy a Fit next spring, I'm probably going to do a hard negotiation on an EW and if I can get it for a decent price, I probably will. On a car that I'm going to keep for the full term of the EW, I think it's a decent bet that it will either pay for itself or come close.

    YMMV, of course.

    Regards from Texas,

    Larry C (aka thebean)
  • thebeanthebean Texas!Posts: 72
    fourkidmom, see my success story just below your post. If the 10/100K warranty is zero deductable, that sounds like a pretty good price to me.

    Regards from Texas,

    Larry C (aka thebean)
  • mattgg1mattgg1 Posts: 191
    "If Honda is so good, then do I really need the extended warranty?
    Any success stories out there regarding the extended warranty is is this just another way to get money out of me?"


    Bingo! You hit the nail right on the head. You do NOT need the extended warranty and it is just another way for the dealer to make money on you.

    You're right...why would you need an EW if you're already paying a premium for the dependability of a Honda. If you're going to get an EW, you might as well buy a much cheaper Chevy or Ford product.

    Of course, there is always a possibility (like winning the lottery) that you will get your money out of an EW. But just like with gambling, the house (EW seller in this case) will always come out ahead. They wouldn't sell them if customers got their money's worth.

    Dealers really push extended warranties because they make so much money on them. Hell, even the salesman gets a commission if you buy an EW! Keep in mind that extended warranties are very profitable for the dealership and the EW companies, and as a result, are not in the best financial interests of the consumer.

    Put the $900 into a savings accout or CD and earn interest on the money instead of giving it to the dealer. If you happen to have a repair, then you can dip into this saving account to pay for it. If not, then you can spend that money however you like, instead of making the dealership richer!
  • mattgg1mattgg1 Posts: 191
    "Well, fast forward to today, and the warranty has more than paid for itself with coverage on a front strut replacement and two repairs on the infamous "rocking seat" issue."

    What is the "rocking seat" issue and how much does the dealer charge for such a repair?

    "On a car that I'm going to keep for the full term of the EW, I think it's a decent bet that it will either pay for itself or come close."

    How do you come to the conclusion that an EW is a decent "bet" and will pay for itself or come close? If that were really the case, then the EW company would quickly go out of business.

    I'm not sure what your definition of "come close" to paying for itself is, but let's say it is $50.

    My neighbor sells cars and makes $40 on every person who buys an EW. Lets say the dealership makes another $40 (they make much more in reality). Lets say the business/operating expenses associated with selling the warranties is also $40.

    So conservatively, the EW company has $120 in warranty costs from day one. If you get within $50 of paying for the warranty, the company just lost $70.

    The EW companies are certainly making money, which means that the warranties are NOT paying for themselves overall. The only way it could be a good bet for you is if you have much worse luck with vehicle repairs than the average car buyer.

    It sounds like you might be a very unlucky guy when it comes to cars, so buying EW's may be a good bet for you. But EW's will most likley be a financial-loser for the rest of the car-buying public.
  • Kirstie_HKirstie_H Posts: 10,913
    I think we all get your position on the extended warranty for Hondas. There's really no value in continuing to argue that point when it's clear there is, and will remain, a difference of opinion.

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  • mattgg1mattgg1 Posts: 191
    My mistake. I didn’t realize this was an Advocates of Honda Extended Warranties Only discussion.

    There are many enthusiastic cheerleaders of extended warranties here who repeatedly post their favorable views. I just didn’t know there was a limit on the number of posts for opposing viewpoints.

    I guess it is in the best interests of forum visitors to read claims that EWs will pay for themselves (or close to it) and not be challenged to provide any substantive evidence or see any contrary opinions.
  • Kirstie_HKirstie_H Posts: 10,913
    No, that's not the point... when it gets to the stage that points are being repeated without new information being added, or new questions being asked, it's generally time to move on. That's where we are.

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  • dantzdantz Posts: 49
    "Then they tried to sell me the extended warranty package for about $890. Gets me to 10 years 100,000 miles. Is this a good deal?"

    I'm not aware of any Honda Care service contracts that run for 10 years. Is this some other other type of extended warranty? Also, what is the deductible? If it's a Honda Care contract with a zero deductible then this would be a decent price.

    "Dealer then wanted to sell me door guards - to keep from being dented and scratched for an additional 300 bucks which I went for"

    Hopefully you are referring to dealer-installed body side moldings, not merely a cheap (under $30) set of door edge guards.

    (Hope you don't mind that I rewrote the title of your post)
  • jet10000jet10000 Posts: 656
    I'm not aware of any Honda Care service contracts that run for 10 years.

    The longest Honda Care is 8 years and 120,000 miles.
  • let us not forget that an 8 year 120,000 EW is a net
    5 years and/or 84,000 mile warranty on top your 3 year/ 36,000 mile factory warranty.
  • jet10000jet10000 Posts: 656
    let us not forget that an 8 year 120,000 EW is a net
    5 years and/or 84,000 mile warranty on top your 3 year/ 36,000 mile factory warranty.


    Well it's possible that the net figures would exceed the figures you give.

    If someone drove 36,000 miles in one year, the standard warranty would expire after one year. Yet the extended warranty could provide coverage for an additional 7 years. (Not the 5 you stated.)

    Also if someone drove only 15,000 miles in the first three years of ownership, the standard warranty would expire, yet the extended warranty could provide coverage for the next 105,000 miles. (Again, much higher than the 84,000 miles you stated.)

    The Honda Care warranty provides great flexibility to cover long periods depending on the driving habits of the owner.
  • mattgg1mattgg1 Posts: 191
    jet10000 -

    Your examples aren't realistic or logical because you are mixing and matching the warranty extremes. You have used the most extreme hypothetical situations that reflect a VERY tiny portion of the new car buying public (if anyone at all).

    "If someone drove 36,000 miles in one year, the standard warranty would expire after one year. Yet the extended warranty could provide coverage for an additional 7 years. (Not the 5 you stated.)"

    If someone drives 36K miles a year, they are likely to drive a similar amount in the future. So if this person maintains this mileage, they would only be covered for an additional 2.3 years, not the 7 you stated.

    "Also if someone drove only 15,000 miles in the first three years of ownership, the standard warranty would expire, yet the extended warranty could provide coverage for the next 105,000 miles. (Again, much higher than the 84,000 miles you stated.)"

    Someone driving only 5000 miles a year is likely to continue this trend. But your example has them going from 5000 miles/yr for the first 3 years to 21,000 miles/year for the next 5 years. That is more than a 400% per year increase!

    How many new car buyers have a driving pattern like this? Very few, which is why this example is completely absurd.

    The far more likely scenario is the driver continues to put on 5000 miles per year, which means they would be covered only to 40,000 miles. (again, much lower than the 105,000 miles you stated).
  • mitzijmitzij Posts: 612
    Careful, there mattgg1! Throwing logic around like that can be a dangerous thing! ;)
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