Honda Extended Warranties Pricing and Info

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Comments

  • packer3packer3 Member Posts: 277
    Thanks, I have never droped AAA I have had for a long time, I guess I won't need the Honda Care
  • firemanandyfiremanandy Member Posts: 2
    Thanks to all of the postings on the extended warranty. We bought the CVR yesterday and after the sale we got hit with the "what ifs" doom sales job. Sounds like we should save our money.
  • batrachianbatrachian Member Posts: 13
    Anybody buy from hondacareextendedwarranty.com? Is it legit?
  • ezshift5ezshift5 West coastMember Posts: 858
    ...the lawsuit again AHC.....

    I wonder how the drama is playing out: internet sales of Honda's Extended Warranty was reported to cease May 1. Peer pressure from the dealer special interest. A lawsuit - by a major player in internet ew sales - ensued. Any news at all?

    .....ez....
  • gardinerrgardinerr Member Posts: 39
    I literally got off the phone with our lawyer minutes ago. The case is going full steam ahead and is now in Federal Court. The schedule will be nailed down in a June 2nd meeting.

    Honda had originally asked us to take down the notices on our site after we won the restraining order. They told us a new policy would be coming out that we would be happy with so we removed the notice in good faith. They were not true to their word, and are pushing for a trial instead.

    We will be putting the notices back on our site. We also have a few dealers that will be joining us in court.
  • jet10000jet10000 Member Posts: 656
    Anybody buy from hondacareextendedwarranty.com? Is it legit?

    Yes, it is legit. You get a genuine honda care service contract straight from Honda's corporate office.
  • pinnumberrpinnumberr Member Posts: 13
    I don't know the first thing about extended warranties but I see that there is alot of information on line about them as well as all of your good insight about them.

    I'm going to be buying a CR-V next week and wanted to know if I needed to buy the extended warranty the same day to get a better deal on it. In other words do I get a better price for buying it now as opposed to a later date. I assume that that one can buy the warranty at any time before the manufacturer warranty expires. Is that correct?

    If I don't need to buy it now that will give me time to read up on the topic. Thanks!
  • jet10000jet10000 Member Posts: 656
    I assume that that one can buy the warranty at any time before the manufacturer warranty expires. Is that correct?

    Well that is true. But, the cost of the extended warranty changes the longer you wait and the options for time periods and mileage decreases.

    However, as long as you purchase the Honda Care before the 6,000 mile mark you can get the same "new car" pricing that you would get if you purchased the warranty the day you bought the car. So that will give you some extra time to do more research.
  • aspesisteveaspesisteve Member Posts: 833
    my advice would be to wait till you get near the expiration of the manufacturers warranty (the price goes up substantially after this point) - decide if you will keep the car much longer, determine how well you've taken care of the car and follow reliability reports from publications like Consumer Reports to see if your make and model year are problematic.

    Buying the extended warranty up front when you already have 3 years of warranty ahead of you is not a good place to park your hard earned money imo.

    for most cars, I think the Extended warranty is a poor wager.
  • packer3packer3 Member Posts: 277
    How much are they asking for the warranty and for how many miles and years
  • macdaddygmacdaddyg Member Posts: 7
    Ok, advice please.

    I have an 2006 odyssey lx purchased in 9/05. Has 14000 miles or so. I'm in los angeles. Any opinions on where to buy extended warranty? Thanks.
  • mooger1mooger1 Member Posts: 14
    Does anyone know what an extended warranty would cost for an 06 oddy. has 27000 miles.. mixed feeling on getting one.. with the high price of repairs i'm thinking of it.. opinions welcome , experiences welcome thanks
  • jet10000jet10000 Member Posts: 656
    Just go to myhondawarranty.com and they'll give you an instant quote.

    They have different prices for different times & miles and deductibles.

    You can get up to 84,000 additional miles and an additional 60 months of coverage.
  • bjpominvbjpominv Member Posts: 4
    My question on Barnardi and Saccucci, etc is on the pricing of these warranties. Whenever I have performed online quotes, the pricing is as expected as the duration of the warranty increases, but then at the long/high end, the price is less than the previous one.

    For example, I did a Saccucci quote for a 2006 civic with 20,000 miles and it had the following:

    36 mo / 36k miles: $750
    60 mo / 84k miles: $810
    48 mo / 48k miles: $850

    As you can see, the 48 mo / 48k miles costs more than the 60 mo/ 84k miles - why is that?

    Also, these extended warranties are from the date purchased right? So, if I purchased the 60 month / 84k miles one today for that 2006 civic with 20000 miles, it would expire 06/02/2013 or at 104k miles, whichever comes first, correct?
  • gardinerrgardinerr Member Posts: 39
    The 48 mo /48k is for any vehicle under 40k miles, while the 60 mo / 84k can only be sold on vehicles under 30k. You vehicle qualifies for both, though obviously the 60 mo /84k is a better deal.

    You are corrrect.

    The Honda Care trial has been scheduled for July 28th. -Gardiner
  • m1e1b1s1m1e1b1s1 Member Posts: 4
    We just purchased an 08 Civic two weeks ago. 3 years ago, we bought and Accord from a different dealer. We paid $1075 for an extended warranty to 75K, we didn't use it....only for a thermostat, which we were charged for, and it was a NIGHTMARE to be reimbursed.

    WIth that...when the dealer offered the extended on this, we were going to refuse. However....we paid $1200 for 6 year/100K extended warranty....if we don't use it, we get it back after 6 years is up, so we really can't lose this time. I will only use it if the cost is high, otherwise if we run into $200 etc, we'll pay it out of pocket.

    We were pricing the Civic for weeks...other dealers wanted 1800 for the SAME warranty so people..CHECK AROUND before you buy :-)
  • bjpominvbjpominv Member Posts: 4
    That's a good deal with the refund. Is that a local dealer option or how does that work?
  • jet10000jet10000 Member Posts: 656
    We paid $1075 for an extended warranty to 75K, we didn't use it only for a thermostat, which we were charged for, and it was a NIGHTMARE to be reimburse

    It sounds like the Accord warranty wasn't a Honda Care but a third party warranty.

    With Honda Care you don't get reimbursed. They pay the dealer directly and you don't have to deal with that.
  • wisemoneywisemoney Member Posts: 42
    Honda Care Extended Warranties are the worst products ever created. You will only lose money long term by buying such a financially stupid product. Long-term reliability is the number one factor and decision maker in buying a new car. Therefore when you choose a reliable car like most Hondas are, you're saying that your Honda is going to break down, and repairs will cost more than the overpriced cost of the extended warranty, within the short time frame, and within the short mileage limits, and most importantly within the extremely limited parts that are covered. If a Japanese Honda mechanic read the entire Honda care vehicle service contract, he or she would say that the covered parts are LEAST likely to breakdown, and the parts that are NOT covered are MOST likely to break down. It is so so so sad, that consumers can be so stupid to throw away their money and buy an extended warranty on a Honda Fit for example. A Honda Fit is by far the most reliable car in Japan, and quite possibly the most reliable car ever made. Why would anyone bet on a breakdown in just after 3 years of proper care. I've never heard of that in any well maintained Honda.
  • jet10000jet10000 Member Posts: 656
    Honda Care Extended Warranties are the worst products ever created. You will only lose money long term by buying such a financially stupid product.

    I didn't lose money on my last service contract. The repairs that were covered plus the years of roadside assistance that I would've otherwise paid for, more than made up for the cost of the service contract.

    In addition to that, since I sold my car before the end of the term, I got a pro-rated refund for the time and mileage I did not use.

    I was very pleased with the value of the contract and purchased another one with my new Honda. Sure, some people may take a chance by not getting one and come out ahead and that's fine. You may also own a car without collision insurance or a home without homeowner's insurance, and perhaps you'd pocket what you'd spend on premiums. Or perhaps you would incur large uncovered expenses.

    There's something to be said for the peace of mind of knowing that major repairs are covered on my vehicle for 8 years or 120K miles. At the low cost that Honda Care is sold online, plus the 8 years of included roadside assistance, I have determined that it is a good deal.
  • wisemoneywisemoney Member Posts: 42
    Extended Warranties are NOT insurance policies. Insurance is meant to protect against catastrophic events. Of course I have collision coverage at a very low cost because it protects against catastrophic accidents costing over $15,000 or more. Same with homeowner's insurance. It protects against total loss of a home which typically costs more than $200,000. I would suffer a devastating financial set back without insurance. Same goes for health insurance. Health insurance protects against catastrophic operations and costly disease management. We're talking millions of dollars of potential financial destruction. On the other hand, the worst that could happen with a car is the engine totally breaks down as far as warranty coverage goes. That's not more than $5,000 on most cars. The bottom line is if your repair costs more than the value of the car after the factory warranty expires, trash the vehicle and buy a new one because it's not worth keeping a problematic vehicle past its factory warranty. Put that $2000 you would have spent on an extended warranty in a high-yield savings account, and compound interest until the factory warranty expires. Now you have TRUE PEACE OF MIND because you know your money will cover ANY part at ANY time at ANY mileage.
  • jet10000jet10000 Member Posts: 656
    Insurance is meant to protect against catastrophic events.

    Well that's not insurance's only purpose. True, insurance does offer protection during catastrophic events. But collision insurance will also pay for a minor collisions as long as it's over the policy deductible. Same for homeowner's and health insurance. A person need not have a catastrophic operation as you claim, it will also cover something as simple as a broken arm.

    Same with a extended care contract. It can cover a $5,000 engine breakdown as you mention. It can also cover electronic CD players going bad, power windows becoming inoperable and many other technical or electronic things that go wrong with a complicated automobile.

    And your statement about selling a car that has had excessive repairs bills during the factory warranty period doesn't have anything to do with extended care contracts. Extended care contracts are for people that are expecting to keep a car beyond the factory warranty which can be a period from 3-8 years after a car is purchased, when all of these complicated systems are much more likely to malfunction.

    If you're saying to put $2,000 in a savings account, it's obvious that you haven't priced Honda Care at one of the online dealers like Bernardi or Saccucci. I can buy an 8 year 120,000 mile Honda Care with $0 deductible for a top of the line Accord for only $995.

    And in case you haven't noticed there aren't really any high yield savings account currently. The highest I know of is 2.75%. Even if you compounded the $995 for 8 years, you'd only have $1,200. Which is certainly not enough to, "cover ANY part at ANY time at ANY mileage" as you claim. Nor would it also cover the $432 that I would pay AAA for roadside coverage for 8 years that I get included with the Honda Care.

    The facts simply do not back up the claims you're trying to make.
  • wisemoneywisemoney Member Posts: 42
    The question you need to ask yourself is this.

    How do extended warranty companies make money?

    The answer: By paying out less in repair claims than the cost of the warranty itself.

    Statistically the odds are against you that you will get more than the cost of the extended warranty in repair savings. That has been proven by Consumer Reports, and everyone that I've spoken with. Yes, there are a few who saved on repairs, but the majority lost money with extended warranties.
  • mitzijmitzij Member Posts: 613
    We're thisclose to the old 'peace of mind is worth something argument'.
    Gentlemen, return to your corners...
  • jet10000jet10000 Member Posts: 656
    The question you need to ask yourself is this.

    How do extended warranty companies make money?

    The answer: By paying out less in repair claims than the cost of the warranty itself.


    Right. And how do insurance companies make money which you yourself admitted you pay for. By paying out less claims than the cost of the premiums received. Does that mean insurance is a "financially stupid product"? By your logic, consumers would be "so stupid" to buy that too.

    Companies that agree to assume potential future costs get paid a fee for the service they provide whether they provide insurance, extended warranties or even a futures contract which guarantee that a certain amount of oil can be purchased at a locked in price.

    These agreements are widespread throughout a free-market society. It is up to the person involved whether he feels the service provided of assuming future risk is worth the cost charged.

    If he doesn't feel the service is a good value, then he doesn't need to purchase it. As in any free-market society, if something of poor value is being sold, people will stop buying it. If it provides a good value it will continue to sell.

    The fact that Honda Care has been sold for many years and is continued to be sold, would indicate that the market as a whole, considers it a good value for not only the actual repair costs being made, but the service being provided of assuming future risk.
  • wisemoneywisemoney Member Posts: 42
    It is a fact that dealerships make a profit by selling extended warranties. With extended warranties, you're fighting all odds that you'll come out ahead. Statistics prove that you lose money on extended warranties.

    YES, with insurance, you sometimes pay more in premiums than the claims paid out. But it is WELL WORTH the protection from catastrophic events. Certainly, I pay a low premium for car and health insurance, and it has more than paid off. Most people I know couldn't survive without car or health insurance. And yes, there are the MINORITY who pay more in premiums than the amount paid out in claims, but it is WORTH the protection from potential future financial destruction or catastrophic events.

    If I had bought an extended warranty on my last car, I would've lost $1,000 or whatever the cost of the warranty was, because I never needed any repairs other than oil changes, tire changes, and regular maintenance items that are not covered by extended warranties. For 120,000 miles, I never used the extended warranty because either the factory warranty covered the item or it wasn't covered by the extended warranty and my car was extremely reliable so not many things broke down. Choosing the right car has a lot to do with it.
  • wisemoneywisemoney Member Posts: 42
    The way to save money is to buy a reliable car like the Honda Fit, and bet on reliability, not on major breakdowns. If an unlikely breakdown does occur, I'll gladly fix it for a fair price knowing that my money is paying for a repair, not a stupid warranty company. It's very unlikely that you'll see more than the cost of the extended warranty in repairs costs from a Honda Fit within the limits of time, mileage, and covered parts. If the worst happens and something big breaks after the factory warranty, then decide if it is worth it to fix the problem. If not then buy a new car.
  • jet10000jet10000 Member Posts: 656
    It is a fact that dealerships make a profit by selling extended warranties. With extended warranties, you're fighting all odds that you'll come out ahead. Statistics prove that you lose money on extended warranties.

    And insurance agents make a profit by selling insurance policies. And statistics prove that people also lose money on insurance as well.

    And yes, there are the MINORITY who pay more in premiums than the amount paid out in claims,

    That's just a completely false statement. There is no way an insurance company could stay in business if a majority of its customers received more money than it paid in premiums. Many people drive for years and years paying thousands in auto insurance and never have a claim. Many people stay healthy for years and years and never receive medical services to cover the premiums that are paid for the insurance.

    You're trying to say the two things are different when they're not. Insurance companies and extend warranty companies are providing a SERVICE in addition to the money they pay out in claims. The service is that if you pay a small fixed amount, they will bear the risk of future claims. That service is something that one receives in addition to the actual cost of the claims.

    The value of that service is a matter of personal opinion. I value not having any expensive repair bills for my car so I have a Honda Care. And I value not having to pay for huge costs in the case of an auto collision so I have car insurance.

    You're trying to accuse buyers of extended care contracts of being financially stupid, yet you admit to buying insurance in which most people pay out more than they will ever receive in actual financial benefit. You are doing the same thing.
  • wisemoneywisemoney Member Posts: 42
    You're trying to accuse buyers of extended care contracts of being financially stupid, yet you admit to buying insurance in which most people pay out more than they will ever receive in actual financial benefit. You are doing the same thing.

    Again, I need to repeat myself because you didn't understand what I've stated. The amount that you lose to car and health insurance is WELL WORTH the protection from devastating accidents. The amount that you lose to extended warranties is NOT WORTH the unlikely potential $5000 engine repair. The WORST that can happen when you don't have an extended warranty is a $5,000 to $10,000 repair bill, which you shouldn't pay for. That's nothing compared to a major car accident or major surgury without insurance. It is more unlikely that you will have an engine breakdown within the time and mileage limits of an extended warranty, than the chances that you get diagnosed with cancer, or other costly disease. That is the crux of my argument.
  • wisemoneywisemoney Member Posts: 42
    Let me just back my statement up by saying that this.

    There has not been one reported case of a total Honda engine breakdown in a Honda vehicle that has been properly cared for with less than 100,000 miles.
  • jet10000jet10000 Member Posts: 656
    The amount that you lose to car and health insurance is WELL WORTH the protection from devastating accidents. The amount that you lose to extended warranties is NOT WORTH the unlikely potential $5000 engine repair.

    It's not worth it to you, but that doesn't mean it's not worth it to everyone. You're making perfect sense on why you value a type of insurance and not a value on the extended care contract. That doesn't mean that everyone applies the same criteria you do in placing a value on it.

    It is more unlikely that you will have an engine breakdown within the time and mileage limits of an extended warranty, than the chances that you get diagnosed with cancer, or other costly disease.

    You can't make that blanket statement for everyone. That would depend on the health of the person. If a person is younger and healthier, they may have better odds of the car breaking down.

    Also, while costs for a major surgery or a major car accident can be more than a repair for a car system malfunction, health insurance and car insurance can also cost far more than the cost of an extended care contract. So comparing potential dollar costs is not an equal comparison.

    Let me just back my statement up by saying that this.

    There has not been one reported case of a total Honda engine breakdown in a Honda vehicle that has been properly cared for with less than 100,000 miles.


    Never in the history of all of the vehicles that Honda has produced? What is your source for that claim?
  • wisemoneywisemoney Member Posts: 42
    Never in the history of all of the vehicles that Honda has produced? What is your source for that claim?

    Please read my bolded statement carefully. I did not say that a Honda engine has never broken in history under 100,000 miles. Aside from rare manufactured defects that are covered by the factory warranty that appear in the first year that the car is driven, a Honda that has been PROPERLY CARED FOR (implying no factory defect or lemons counted and extremely well maintained (no Honda technician errors)) with less than 100,000 miles has never had a reported engine breakdown.

    By Honda engine, I mean since the inception of VTEC technology. Or in other words any Honda engine manufactured after around 1990.
  • joel0622joel0622 Member Posts: 3,299
    Honda that has been PROPERLY CARED FOR (implying no factory defect or lemons counted and extremely well maintained (no Honda technician errors)) with less than 100,000 miles has never had a reported engine breakdown.

    Well thats a big load of crap.
  • wisemoneywisemoney Member Posts: 42
    Long-Term reliability is the number one factor in choosing a car. I've know people who have 500,000 miles on their Hondas, and they run perfectly and in perfect condition like the very first day.
  • aspesisteveaspesisteve Member Posts: 833
    Jet1000,

    re: "It's not worth it to you, but that doesn't mean it's not worth it to everyone"

    I hope you can see it both ways as you ask wisemoney to do.

    Maybe you cashed in on your extended warranty and made it pay off and that makes you a believer or worrier.

    I have owned 5 hondas in my life from new ownership and never once would a warranty of paid off for me.

    Some people may sleep better knowing they have the extended plan, but for me I sleep better with my hard earned $$ someplace else.

    Just the sales tactic alone, is reason for me to say NO Thanks!. I mean as soon as the carsalesman closes the deal, he hands you off to Mr. Fear Factor who tells you, you had better protect yourself.
  • jet10000jet10000 Member Posts: 656
    Jet1000,

    Maybe you cashed in on your extended warranty and made it pay off and that makes you a believer or worrier.

    I have owned 5 hondas in my life from new ownership and never once would a warranty of paid off for me.


    As I said before, there's value in what the warranty pays for and there's also a value in the risk that the contractor is assuming and the risk that I'm getting rid of.

    I don't care if I get dime one back in repairs. In fact, I'd rather not have anything breakdown because there's the hassle of taking it in. In the contract price, I'm already getting years of roadside assistance coverage which I would pay for somewhere else. In addition to that, I get rid of any concern about paying for repairs in exchange for paying, what I consider, is not that much money. To me $995 for 8 years of coverage and 8 years of repairs as needed is a small amount. If someone else is low on cash and that $995 is significant, by all means, keep the dollars in your account and don't spend it. I have enough money where I can enjoy the luxury of not worrying about repairs.

    Just the sales tactic alone, is reason for me to say NO Thanks!. I mean as soon as the carsalesman closes the deal, he hands you off to Mr. Fear Factor who tells you, you had better protect yourself.

    I didn't buy from Mr. Fear Factor. I bought online at the lowest price I could find. The sales tactic had nothing to do with my purchase.
  • joel0622joel0622 Member Posts: 3,299
    he hands you off to Mr. Fear Factor who tells you, you had better protect yourself

    I have never made anyone eat live bugs in my office.
  • wisemoneywisemoney Member Posts: 42
    In the contract price, I'm already getting years of roadside assistance coverage which I would pay for somewhere else. In addition to that, I get rid of any concern about paying for repairs in exchange for paying, what I consider, is not that much money.

    First of all, I pay about $14 a year with my car insurance company for full coverage roadside assistance and towing. Roadside assistance is not a good reason for buying extended warranties. With an extended warranty, I'm very concerned that the parts that break will not be covered. Many parts in a car do break down over time, even with the most reliable car, but most of the repair bills will not be covered by extended warranties.
  • joeyjoejoejoeyjoejoe Member Posts: 68
    I purchased a 7 year/100,000 mile contract for right around $945.25 after credit card discounts and other promotions at Hyannis Honda...before they took the option down from their site. This is for a beefy 2008 AWD Pilot, that I'm sure has something expensive that wants to break before that 7year, 100,000 mile mark.

    Will I "lose" money on the deal? Perhaps. Let's look at it from an investment stand-point: If I stick that $950 in a high interest savings account (to keep it liquid) of 4% for example (I think that's what my HSBC is right now) and assuming I don't spend it or the interest rate doesn't change in those 7 years, I would come out with around $1,250.....or roughly $300 in interest. That's not counting any taxes or any other variables that will inevitably cut a chunk out of it. I'm personally willing to sacrifice that $300 over 7 years and the opportunity cost of having that cash on-hand.

    I'm not trying to prove anyone wrong, but let's take it down a bit here. Why call these products and anyone that purchases them stupid or a waste of money? They are not for everyone. If you disagree with their purpose, state your EDUCATED reasons and move along. If you say certain parts are not covered...gasp...give examples. There may be something the rest of us are missing, but not likely. The fact that we purchased a Honda and actually read this forum puts us a cut above the rest already...at least in my opinion. Cheers.
  • jet10000jet10000 Member Posts: 656
    Many parts in a car do break down over time, even with the most reliable car, but most of the repair bills will not be covered by extended warranties.

    This is a generality and a falsehood. How do you calculate that "most" repair bills will not be covered. What specifically isn't covered that you feel should be? Do you have any facts or statistics to back up your argument? Have you even read what Honda Care does cover?

    You certainly didn't know the price of a Honda Care contract and you were throwing out a figure that was double the actual price.

    You still didn't post one source or backup to your statement that: "a Honda that has been PROPERLY CARED FOR (implying no factory defect or lemons counted and extremely well maintained (no Honda technician errors)) with less than 100,000 miles has never had a reported engine breakdown."

    With an 18 year record like that, surely, that must have been written about in some automotive journal if true. What is the source? Or do you happen to have a high-level position at the Honda corporate office to know that there have absolutely no reports of such incidents. Please state where you are coming up with such information.
  • aspesisteveaspesisteve Member Posts: 833
    you bought an extended warranty because you bought a "beefy AWD Pilot"??

    That's a reason to buy the extended warranty?
    and you want the sceptics of extended warranties to state "educated reasons" as to why not buy them?

    I think people buy the extended warranty out of fear. They have so much fear of an impending breakdown that they would rather just give up now and throw away a $1,000 to say to themselves "whew! now I don't have to worry anymore". It's rather remarkable that they can sell these plans to someone who just bought a brand new vehicle with an existing warranty. And the sad thing is that many of the extended plans are so full of fine print and loopholes, there can be major aggrivation waiting to come back at you.

    How about taking a look at Consumer Reports reliability data for the Pilot. I own a "beefy" Pilot (LOL), and it has had nothing needed but fluid changes to this point.
    It's the 5th Honda product I've owned and although I have considered buying an extended plan out of fear, I have overcome that fear with truth.

    I purchased a PC yesterday and proceded to get the extended warranty sales pitch. Since the PC was a price leader, I could see the salesman's dissapointment after my decline. His sales pitch was so full of spreading fear - it's very manipulative to the weak and ill informed imo. This guy wasn't looking out for my interest - it was his interest, his commision he was looking out for.

    You make it sound like the default is to buy the extended warranty when it's really the exception. Don't take my word for it, take the word of Consumer Reports which in my opinion is as unbiased as you can get when it comes to consumer advice. Their advice would be to just say no.
  • tidestertidester Member Posts: 10,059
    Perhaps the OP had items like tires, glass, trim, upholstery, spark plugs, air filter, oil, batteries and so on in mind.

    tidester, host
    SUVs and Smart Shopper
  • jet10000jet10000 Member Posts: 656
    I think people buy the extended warranty out of fear.

    You think? Do you have a psychology degree? Have you published your research findings in a journal showing how you came to that conclusion? If so, please publish the source, I'd like to read about your studies.

    Don't take my word for it, take the word of Consumer Reports which in my opinion is as unbiased as you can get when it comes to consumer advice.

    They may be unbiased, but I read their article on the website. Their conclusion is based upon a survey of how much dollar value was obtained in claims by the people that took their survey. They totally ignored the value of the service provided of the warranty companies assuming future risk.

    Obviously if more was paid out than claims taken in, nobody would offer these extended warranties. It's a business and assumption of risk is a service. They get paid for assumption of risk as in other businesses.

    Why didn't Consumer Reports do a survey on people with car insurance and ask how many people received the value back of all of their car insurance premiums. And when the majority answers no, Consumer Reports could advise people not to buy car insurance too because it's a "bad buy" because insurance companies take in more money than they give out.

    Consumer Reports survey also doesn't differentiate between people that buy extended warranties at a online dealer with very little markup, as I did, versus people that buy the warranty at an inflated price at their local dealer.

    The dealer that I bought my extended warranty from sells them so low that other dealers and Honda are protesting and trying to take them to court to prevent them from selling to others at such a low price. I got a far better deal than many people surveyed by Consumer Reports.
  • tidestertidester Member Posts: 10,059
    Do you have a psychology degree? Have you published your research findings in a journal showing how you came to that conclusion?

    It was not a "conclusion." It was an expression of opinion. This is not a criminal trial so stringent burdens of proof aren't required. I suggest we drop the confrontational posturing and enjoy a good friendly discussion.

    tidester, host
    SUVs and Smart Shopper
  • joeyjoejoejoeyjoejoe Member Posts: 68
    You guys wouldn't describe an '08 Pilot as "beefy"? The thing is a monster. Maybe not as long or tall as other SUV's, but it is quite wide....and stocky...like a big slab of beef. :shades:

    Anyway, I think there probably are quite a few people that purchase the extended service contracts out of fear. I didn't. I took a completely rational approach and determined the following points (aside from the aforementioned financial incentives):

    1) Pro-rated refund if I decide to return (I think there was also some mention of a larger refund if never used)
    2) Ability to transfer to other buyer for small fee (great selling point!)
    3) Roadside assistance and other ancillary benefits
    4) My wife is the primary driver of the vehicle and I like to know that she will have help if something were to happen in my absence (whether at a repair shop or on the side of the road)

    The fact that I saved so much on my Pilot by using this site alone makes up for any sort of financial loss I may incur from such a 'waste of money' product. To each his own. We can all argue back and forth about this until the end of time. I feel like I should get some cut of the sale though in case I influence someone to purchase a contract! :D
  • aspesisteveaspesisteve Member Posts: 833
    "Why didn't Consumer Reports do a survey on people with car insurance and ask how many people received the value back of all of their car insurance premiums. And when the majority answers no, Consumer Reports could advise people not to buy car insurance too because it's a "bad buy" because insurance companies take in more money than they give out. "

    buying auto insurance isn't optional it's the law.
    That's why CR doesn't ask such a question.

    Auto insurance is obligatory (at least it is in Calif.)
    Extended warranty - you have a choice!

    I don't have a pshyc degree, but I do have a Sociology degree and 15 years of sales experience. I've seen all the training in selling based on fear - it's in alot of advertising - probably more than you realize.
  • aspesisteveaspesisteve Member Posts: 833
    joey,

    If your wife uses the roadside assistance, and I agree that's nice to have, then does that make the warranty non-returnable?

    In lieu of the extended warranty, I would advise for someone to purchase the roadside assistance through AAA or their insurance provider.

    The cost for my household (two cars) is $60 per year through AAA and that includes free maps!
  • bug4bug4 Member Posts: 370
    I did a comprehensive list of what is NOT covered under the HondaCare warranty several months ago (maybe 5-6 months ago?? - I'm way to lazy to go find it on this thread - but for those of you who are interested - its there!

    I am a bit startled at what is not covered. But, I went and bought the 7 year 120k warranty anyway. Seems like it was only $765 at the time through Succuci Honda (on-line). My prime reason was both the "piece of mind" and resale value. A high mileage, long life, transferable warranty is like gold at the time of private resale.
  • jet10000jet10000 Member Posts: 656
    buying auto insurance isn't optional it's the law.
    That's why CR doesn't ask such a question.

    Auto insurance is obligatory (at least it is in Calif.)
    Extended warranty - you have a choice!


    Collision and comprehensive insurance is NOT required by government jurisdictions. People have a choice to buy it. So why have it?

    Certainly on average people pay more in premiums than they ever receive back. By Consumer Reports logic, it would be labeled a bad buy too. If they are so unbiased why don't they mention that? Why shouldn't people just save their money on their premiums and pay for any damages out of their pocket should they occur. Certainly most people would save more money that way. Why isn't Consumer Reports advising anyone on that?

    There is no difference between collision insurance and an extended warranty. People are buying a service to relinquish some future risk they would otherwise have to carry themselves. The companies that are taking the risk get paid a premium for doing so.

    Consumer Reports arguments are flawed because they do not look at that side of the equation. They only look at dollars paid out and not the value of the service being provided.
  • sunnfunsunnfun Member Posts: 168
    There is no difference between collision insurance and an extended warranty. People are buying a service to relinquish some future risk they would otherwise have to carry themselves. The companies that are taking the risk get paid a premium for doing so.

    There is a very big difference between collision insurance and an extended warranty. Should you be involved in an accident, the extended warranty will not cover your expenses for repair nor the cost of the other car (if one is involved) if you are fault.
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