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Comments
The "rocking seat" is a known design defect on that gen Civics. On some of the cars with heavier drivers (say in excess of 180 lbs), over time the seat mounting starts to give way and the seat will rock forward and backwards a little bit. The fix is to put in a whole new mounting assembly on the drivers' side, which is about 5 hours of labor plus parts. The price on my service order was $410 each time this has been done. Plus in the neighborhood of $650 for the front strut replacement. So, if I had not gotten the EW, my delta out of pocket would be at least $500. So, Honda Care did not make any money from me. I'm sure they do from others.
Instead of calling it a "sucker buy", why don't you call it what it really is - insurance for those who do not want to take risks. I really don't give a big rat's behind if you or anyone else approve of my buying an EW. Plus, I don't care if anyone else ever buys an EW. Someone asked for a positive experience with EW's and I responded. I'm not a cheerleader for them, nor a naysayer as you are. With the high price of repairs and the complicated nature of modern cars, some of us like a little financial certainty. Some don't. It's a free country.
Take a chill, chief.
Regards from Texas,
thebean
You beat the odds with your warranty (like winning at the casino), but most will not be as fortunate.
The sale of EWs is actually a very simple business plan...charge more for the warranty than you pay in warranty claims. If not, the company will lose money and go out of business.
So just like playing the lottery or gambling in Vegas, there is a chance you’ll come out ahead, but there is a greater chance you will be throwing your money away.
And you are correct, it is basically insurance for the very risk-averse buyer, but many people don't realize they will likely not get their money out of EWs.
Nonetheless, they were correct in that they showed that the coverage for an 8 year, 120K warranty can extend beyond the "net" figures that aspesisteve presented which were not fully correct.
I could've picked many numbers to display the inaccuracy of his statement. You can as well.
The fact is that an 8 Year, 120K warranty covers exactly that no matter how a person drives the vehicle.
EVERY company should run on the principle that it charges more than costs incurred so that it can be profitable.
The anti-extended warranty group continues to make the argument that just because a company makes a profit for providing a service that the service is bad. That is a ridiculous argument.
You encourage people to self-insure themselves. Did you know a person can save money if they did their own oil changes or grew their own tomatoes too? Do you actively encourage a boycott of those companies and encourage people to do those activities themselves? It's the same thing.
Some people pay others to provide a service that they don't wish to do themselves. The marketplace determines whether the added service provided is valuable or not.
If people didn't think it was valuable, no extended warranties would be bought.
Like everything else, there is good and bad on EW's. Each person should decide before they go in to buy the car if they want one and more importantly, what that warranty can be bought for on the open market. I didn't understand that these things were negotiable until the finance manager kept lowering the price every time I told him I didn't want the warranty. Finally, in my mind it became value for me. For others, this may not be.
Regards from Texas,
thebean
It's been said that EWs are decent bets and buyers are likely to get all/most of their money from them. While a small minority of EW buyers may recoup all/most of their investment, the wide majority will not (since these companies must be profitable). That is all I was pointing out, and it sounds like you agree with me on this.
"The anti-extended warranty group continues to make the argument that just because a company makes a profit for providing a service that the service is bad."
I agree with you that EW's are a "service". I certainly expect EW companies to make a profit for providing that service, and I have no problem if people want to pay for this service.
My only issue is with the perceived notion that buyers will get all/most of their money back from an EW, which is not true. Just as long as they know there is only a small chance of recouping their investment, and instead look at it as paying for a service or insurance.
"Some people pay others to provide a service that they don't wish to do themselves."
The "service" that EW companies provide is taking your money upfront and potentially paying for future repairs (if all of their rules/criteria are met). If you have car trouble, you still have to deal with it yourself. You have to bring it to the dealership, have the problem diagnosed, deal with the repair people, and submit your claims to the EW company.
So the service people are receiving that they "don't wish to do themselves" (as you put it) is writing the check for the repair and bearing the burden of a repairs that exceed the initial EW cost.
"If people didn't think it was valuable, no extended warranties would be bought."
Just because a consumer "thinks" a product/service is valuable, doesn't mean is it, or that it should be purchased. Lots of people saw "value" in adjustable rate mortgages and gas-guzzling SUVs a few years ago, but those items aren't working out very well for them now.
I just want to make sure that potential buyers of EWs are fully informed and make the decision that is right for them.
With Honda Care, I've never had to submit any claims as you state. I bring it to any Honda dealer's service department, I tell them what is wrong, they fix it and I drive away.
There are no claim forms to fill out. There are no hassles with any repair people. If it's a covered repair, they just make good on the warranty.
I have never had to file any claim, nor have I had any hassles with the dealership, just like jet10000 said.
YMMV.
Regards from Texas,
thebean
Thanks again to the dealers (all in New England?) who are selling EWs at such great prices and who are fighting this battle (sure for themselves, but also for consumers)!
Saccucci Honda a.k.a. MyHondaWarranty.com is the only dealership fighting Honda. All the other online dealers were not interested in joining, for fear of retaliation from Honda. Our injunction allowed them to continue selling.
Saccucci Honda is a small family run car dealership. We have 3 generations in the building everyday. My Grandmother(CEO age 84, here 6 days a week), Aunt(VP), Mother(GM), and Cousin(New Car Sales Manager) work very closely together. If this was a typical dealership we probably would have caved to Honda's demand like the others did, but the Saccucci family supports one another, and decided to pursue this lawsuit. We have put alot of things on hold for this trial, and invested a great deal of time and money in this case. This is a true family effort, and we expect to win.
Thank you, Gardiner
on their website they don't say anything about this warranty is provided my "The Honda Care contract is backed by American Honda Motor Corporation" like myhondawarranty.com. So i want to make sure this warranty is from Honda Care of Ameica so I can repair my car with any honda dealership since I live in TX. Anybody have experience?
Also it say 60 month + 84000 mile. Curently I have around 27000 mile so my car is covered upto 111000 or upto 5 years from today whichever comes first?
Thank you Gardiner for the info. Good luck with your court case!
It's good to see that there are businesses out there like yours that are willing to stand up for what they think is right.
Yes you'll get your warranty paperwork from the Honda corporate office in California. You can use it at any dealer.
Also it say 60 month + 84000 mile. Curently I have around 27000 mile so my car is covered upto 111000 or upto 5 years from today whichever comes first?
Yes. That's true. If you gave them the 27,000 mile figure, that should be written onto your Honda Care paperwork and the durations you listed for the extended care are correct.
When I bought my Honda Care contract I noticed that some of the other sites were a little cheaper (like $25 less), but I decided to buy from Saccucci Honda because I like them and I support what they're doing. Good luck, Gardiner!
Sadly escaping some is that at a certain price EW becomes good economics/cheap insurance. But I do not expect to change any closed minds.
Is the trial jury or judge (I would assume you would retain your right to jury)? You may not want to share this kind of information, but have your lawyers provided any insight into the strength of Honda's argument(s)? I suspect that there may not be a wealth of case law regarding internet sales and restrictions on such (especially for a service contract). I ask to gauge whether a purchase of an EW would best be done before the court hands down any ruling.
Thanks for your dedication to ethical business practices and the consumer!
One more question i read it somewhere in this forum. That if i sell my car the warranty is transferrable upto one owner. I read it somewhere but not sure about it, IF I cancel the warranty after 2 years I will get refund on prorated base. In this prorarate based on # of months I have still left on warranty or it is based on miles or any repairs I have?
Yes that is definitely true.
IF I cancel the warranty after 2 years I will get refund on prorated base. In this prorarate based on # of months I have still left on warranty or it is based on miles or any repairs I have?
It doesn't have anything to do with the amount of repairs received. Since the duration is based upon both years and mileage, so is the pro-rate. I believe they give you a prorate on whichever is less, years remaining or mileage remaining.
Your Honda Care contract will have the exact forumla used to calculate the prorate.
I have an 09 Honda LX-S on order. When it arrives, if they do not sell online, I will call them to purchase.
My personal experience with extended warranties only proves that buying an EW is the WORST FINANCIAL decision you can ever make. You're better off throwing money into fire.
Let me start out with my first car that I owned. I purchased a used Toyota Corolla at about 70,000 miles and drove the car until 120,000 miles with ZERO mechanical failures. Yes, that's correct. I took extreme care of my car with everything that was listed in the maintenance schedule, none of which the extended warranty covers. The $2,000 extended warranty was a total waste of money. Putting that money into fire would have yielded the same financial result at 120,000 miles. I didn't use a SINGLE ****ing PENNY of the EW. Dealerships are terrible for stealing people's money, and being dishonest about the value of EW.
Or at minimum, speculation ?
From now on, I don't buy from dealerships that push EWs. If they push an EW, I say to the F&I manager, "Since you pushed an EW on me, I'm not going to buy the car. I don't buy from dealerships that promote mechanical breakdowns. I buy from dealerships that promote reliability, and proper vehicle care. You've just lost $20,000."
It sounds like you're critical of Honda Care because you personally negotiated a very poor deal on your Honda Care. You said you paid $1,495 ($2,000 after financing.)
Had you been reading this forum, you would've been well advised to purchase the Honda Care from one of the online dealers like myhondawarranty.com. They are selling that same Honda Care for the Fit, 7 years, 80K, $100 ded, for only $460. At $460 that is a great price. The 7 years of roadside assistance alone pays for a large chunk of that.
I agree with you that people should be careful when purchasing Honda Care from their dealer and they should make sure they get a fair price. But I disagree with your criticism of Honda Care only because you signed a purchase agreement that you later regretted and you personally overpaid.
The fact that you could've purchased the same coverage for a 1/3 of the price shows that Honda Care can be a good deal, if you purchase it correctly.
The point seems to be that since you can not guarantee a vehicle will not break down, all you can really do is attempt to off set the risk of such a break down. Pay for a warranty first, at a reduced cost, or risk paying after the breakdown, at a much higher cost. Pay now or Pay later, it is your choice.
I do think you are more upset about being taken advantage of, rather than all EW ever created. EW are not evil, you made a mistake! Never enter into an agreement you do not fully understand. :shades:
Consumer Reports takes no money or advertising $$ from the products or companies it rates. Their information is unbiased and based on lab studies and or extensive consumer feedback.
EW: the value is in paying down your fear of a breakdown some 3-6 years down the road. Did you really just buy a new Honda and fall for the EW sales pitch that makes you believe you better buy protection? Just say "no".
Do people who hear about someone's car failure just blindly assume that it will happen to them as well?
That is a false statement. I have assumed no such thing when I bought my contract. I merely paid another company to assume the risk of any such future repairs if and when they may occur. I paid them a fee for their service.
If people want to assume the risks themselves and perhaps save their money, that's fine. For a one time fee, I can be assured that I won't be saddled with expensive repairs.
It's the same concept if someone buys optional collision insurance for their car. There is no guarantee that the car will get in a wreck. But if it does, I have paid a fee to someone and they are providing me a service of assuming future risks.
In both cases, it's a great system.
No, it's a POSSIBILITY. I didn't assume is was 100% going to happen. Just like you've already admitted having collision insurance for your vehicle because it's a possibility it might get wrecked. You're not blindly assuming that it will. But it's nice to know that your out of pocket expenses would be limited should it occur.
There's no difference between that and an extended warranty contract. Either way, you're just paying someone to assume future risk for you.
Ask yourself why collision deductibles are higher than EW deductibles. It's because the benefit you pay for collision coverage occurs with VERY COSTLY accidents. Over the extended warranty period of 4 to 7 years for most EWs, I actually pay less in collision premiums than a $1500 EW. But the financial protection is MUCH MUCH larger with Collision coverage. You're protecting yourself from major financial loss. With an extended warranty, you're protecting yourself against an unlikely engine failure. An engine failure within the EW period is more unlikely than a major accident within the EW period. Smaller repairs can add up in an EW as well, but the likelihood of getting back what you paid for the EW is close to 0 percent according to Consumer Reports.
Extended warranties are by law NOT DEFINED as insurance. It's NOT even a warranty. It's an extended service contract.
Bought 7/75K $0 deductible for over $1K almost 6 years ago.
Got my VSA-TSC modulator assembly replaced &
brake pedal switch replaced today.
The repair costs paid for the EW itself.
Still have over 15K miles or 15 months left on the EW.
But as we covered previously, you paid triple the price for an EW when you should've only paid $460. So the $1,500 figure that you keep throwing out, is a price and most other people reading this forum would not have paid.
but the likelihood of getting back what you paid for the EW is close to 0 percent
Well since you didn't quote the date of the article, I have no idea if the percent they reported is close to zero or not. However, I'm sure the article included many people who purchased from 3rd party extended care companies with inferior coverage compared to Honda Care and people who did not search to get the lowest price from an online dealer as people in this forum do. The people who read this forum, who buy Honda Care from an online dealer at a fair price are much more likely to get a better return on their Honda Care purchase than those that didn't seek out the best price.
Take your case for instance. The likelihood that you would've gotten your money's worth from a Honda Care on your Fit is so much higher had you gotten the best price of $460 rather than the price you did pay after financing of nearly $2,000. If Consumer Reports surveyed a lot of buyers like you, of course their findings will be a lot difference from those reading this forum and using the information to get the best deals possible.
I don't understand why you continue to give the false impression that 1) EWs will pay for themselves, 2) consumers are likely to get their money's worth from EWs, and 3) comparing EWs to investments by using terminology like "better returns"
You have correctly stated that EW companies are in business to make money, which means they must charge you more for the warranty than they will pay in repairs.
Here are a few of your comments:
"EVERY company should run on the principle that it charges more than costs incurred so that it can be profitable...."
"The anti-extended warranty group continues to make the argument that just because a company makes a profit for providing a service that the service is bad...."
"Some people pay others to provide a service that they don't wish to do themselves...."
So you clearly agree that the EW sellers will make a profit from the EW buyer. Yet you continue to use these false arguments:
"The people who read this forum, who buy Honda Care from an online dealer at a fair price are much more likely to get a better return on their Honda Care purchase than those that didn't seek out the best price."
"The likelihood that you would've gotten your money's worth from a Honda Care on your Fit is so much higher had you gotten the best price "
Consumers can NOT get their "money's worth" and a "better return" from these warranties AND consider them a "service" for which the company will make money from. It can only be one or the other, not both.
Since the vast majority of EW buyers will never recoup the warranty cost (regardless of how much they pay), then any discussion of "returns" or "money's worth" is misleading.
That's like saying your return will be -200% if you paid $2000 for the warranty, but you would get a better return of -100% if you pay $1000. I don't think anyone would be happy with a negative return on any investment!
My 7-yr service contract (purchased online) cost $575. I'm assuming the online dealer made a small profit, perhaps $75, and so their cost was somewhere around $500. They have an automated online sales system and they sell in volume, so that should work out reasonably well for them. (Plus, they're obviously not greedy.) I'm also assuming that American Honda makes a small profit, at least enough to cover the costs of running the program and perhaps a little more. I assume that the remaining money (perhaps $400?) goes towards paying the expected claims for my model of Honda over the time/mileage period of my warranty.
Under this scenario, I "overpaid" by about $175, as my expected claims would be closer to $400. Thus, had I self-insured, I could expect to be around $175 ahead. However, I view the $175 as my cost of transferring the risk of expensive breakdowns to American Honda. If something expensive like the AC or the transmission fails (not likely, but still entirely possible), I'll be covered. It's worth $175 to me.
It works exactly like insurance. Surely you don't expect to come out financially ahead on your life insurance, health insurance, disability insurance or home insurance? In all cases your statistically predicted claims should be less than the cost of the insurance, otherwise the insurance companies would quickly go out of business. It's works the same with an extended warranty, except the risks and the cost are both much smaller.
The real problem with extended warranties is that too many people are getting ripped off by unscrupulous dealers.
"The people who read this forum, who buy Honda Care from an online dealer at a fair price are much more likely to get a better return on their Honda Care purchase than those that didn't seek out the best price."
That's not a false argument. That's an entirely accurate statement. The less you pay, the better your return. Because one's rate of return is based upon the initial investment. If you still disagree, you can probably take a course at your local community college and they can instruct you on the proper calculations to understand it.
Consumers can NOT get their "money's worth" and a "better return" from these warranties AND consider them a "service" for which the company will make money from. It can only be one or the other, not both.
Of course they can. You are not using the proper definition of "money's worth". You think that money's worth only means what payments are made by Honda Care and you're completely ignoring the value of transferring risk, which is an actual dollar value. See dantz's reply to your post as he has a well-written elaboration on this concept.
That's like saying your return will be -200% if you paid $2000 for the warranty
You really should take a business course before you go around saying such things. It's impossible to get a -200% return on a Honda Care. For that to happen, you would have to incur additional liabilities above and beyond the original purchase price, which would never happen per the terms of the subcontract agreement.
Thank you for your level-headed analysis on this topic. Your first sentence..."It's not about coming out financially ahead, it's about transferring risk." is absolutely correct. Thank you for stating this more succinctly than I was able to.
Too many people falsely tout the "financial" benefits of an EW by claiming there is a good probability of recouping the EW cost from the vehicle repairs made under warranty. As you correctly pointed out, it is highly improbable that you would come out ahead financially when buying an EW.
"It works exactly like insurance. Surely you don't expect to come out financially ahead on your life insurance, health insurance, disability insurance or home insurance? In all cases your statistically predicted claims should be less than the cost of the insurance, otherwise the insurance companies would quickly go out of business.
All of the insurance you listed covers catostrophic losses that people cannot easily pay for or recover from (unlike what is covered with an EW). If I become permanently disabled, I lose the chance to earn millions in future wages. As a result, I pay a relatively small amount (~$100/yr) for a large amount of coverage ($1 million+), even though I hope to never come out ahead on this insurance.
"It's works the same with an extended warranty, except the risks and the cost are both much smaller."
The risks of an EW are smaller, but the costs are not. In your example, you paid $575 for a few years of coverage, in which the total repair claims are realistically about $2000. I may pay the same $575 over five years for life/disability insurance, but the payout on a claim would instead be $1-2 million.
Financially speaking, paying $575 to avoid the unlikely risk of a $1000 repair bill is not a great idea.
Please help me out here!
You state that consumers are "likely to get a better return on their Honda Care purchase" and "the less you pay, the better your return. Because one's rate of return is based upon the initial investment."
You also state that EW companies must make a profit, which means that the vast majority of consumers will pay more for their EW than they get back in repairs.
So, lets say you buy a Honda Care warranty for $500 (initial investment) and you receive $250 (return on investment) during the warranty period.
What is your rate of return?
I should rephrase this statement by saying that the majority of US states do not define extended warranties as insurance. The State of Florida is a rare exception.
What is your rate of return?
Total rate of return can be calculated by the formula:
(Future Value/Present Value)-1 = rate
In your example (250/500)-1 = -50%
In my statement where I said the more you pay up front, the lower your return lets say someone like wisemoney paid $1,500 for his Honda Care. Using the same $250 return the formula would be:
(250/1500)-1 = -83%
-83% is less than -50% hence displaying the correctness of my original statement, the less you pay the better your return.
In no case could you get a -200% rate like you originally stated. The lowest rate on a Honda Care would be -100% if you felt you received no value. (0/500)-1 =-100%.
Hope that helps.
(250/1500)-1 = -83%
-83% is less than -50% hence displaying the correctness of my original statement, the less you pay the better your return. -jet10000
I think you don't understand that average market value of Extended Warranties is between $1500 and $2500 dollars. The average Extended Warranty is a Poor Deal. Most people pay a high price for extended warranties. That is a fact proven by Consumer Reports. Online warranties are cheaper, so you have a higher chance of getting your money back, but I don't believe in paying for things that might not break. I believe in paying for things that do break, and buying a car that's statistically won't give you $2000 of breakdowns during the EW period.
Oh, I agree with you. $1,500-$2,500 is a poor deal. I would not advise anyone to pay that much. If that is the average, that shows my point that the advise Consumer Reports gives is not based on the typical buyers who read this forum and who get a much better price from online dealers like myhondawarranty.com and bernardiwarranty.com.
If you had asked for advice on this forum before purchasing your Honda Fit extended care, I would've helped you get the best price I know of ($460) instead of $1,500- $2,000 that your dealer charged you.
"-83% is less than -50% hence displaying the correctness of my original statement, the less you pay the better your return."
Thank you for proving my point! However you want to cut it, the "rate of return" on an EW is going to be NEGATIVE for the vast majority of buyers.
So do you see how silly it to use rates of return and getting your money's worth as arguments for buying EWs?
Your argument is...the online Honda EW is a great deal because you will likely lose 50% of your money instead of 83%. Do you use this same approach when managing your financial investments?
Of course, -50% is better than -83%, but it is still huge loss, a horrible rate of return, and not a good financial strategy for anyone! You may want to pick investments that offer a positive return, instead of picking investments with the smallest negative return.
That wasn't my argument. You asked me to calculate the return rate on two given numbers because you didn't know the formula to do it. Some people get positive return rates from their Honda Care. I never said it was likely that someone would lose 50%.
You may want to pick investments that offer a positive return, instead of picking investments with the smallest negative return.
Honda Care is not an investment. It is a transfer of risk as was described earlier. You don't buy it expecting positive returns though you may get them. You're buying a service from someone else who will assume some of your risk.
You admitted to buying disability insurance where you have seen regular -100% returns. I assure you I got a better return on my last Honda Care contract than that!
Too many people falsely tout the "financial" benefits of an EW by claiming there is a good probability of recouping the EW cost from the vehicle repairs made under warranty.
I've never seen anybody state that there is a good probability of recouping the EW cost from the warranty. Where is this being done? By whom? Please provide specifics.
People state correctly that should something happen, you will be covered and they will absorb the risk.
It's up to the individual consumer to judge whether the coverage is of value to them. Just like you judged the disability policy is of value to you even though you have a -100% return on it thus far.
"Honda Care is not an investment. It is a transfer of risk as was described earlier. You don't buy it expecting positive returns though you may get them. You're buying a service from someone else who will assume some of your risk."
"I've never seen anybody state that there is a good probability of recouping the EW cost from the warranty. Where is this being done? By whom? Please provide specifics."
Here are just a few references that you and others have made...
"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" - thebean
Is this a specific enough example of someone claiming than there is a good probability of recouping the cost of an EW?
"The people who read this forum, who buy Honda Care from an online dealer at a fair price are much more likely to get a better return on their Honda Care purchase than those that didn't seek out the best price" - jet10000
So when you mention getting a "better return", you simply meant that a buyer would get a smaller NEGATIVE return, right? If HondaCare is not an investment, and you can't expect positive returns, then why even discuss "returns"?
"The likelihood that you would've gotten your money's worth from a Honda Care on your Fit is so much higher had you gotten the best price of $460 rather than the price you did pay after financing of nearly $2,000." - jet10000
Even at the best price of $460, buyers are still very unlikely to "get their money's worth". So you meant that buyers will LOSE less money when buying at a lower price, right? (Since as you said, you can't expect positive returns or recoup the warranty cost)
I agree with you that EWs are not investments, that they are actually a payment to someone else for them to assume the risk of future repairs. Therefore, would you agree that any discussion of "rates of return", "recouping the EW costs" and "getting your money's worth" are not helpful?
I'm not sure exactly what you mean by this, but if you are "aghast" that some people have an educated opinion against purchasing an EW then perhaps that's where you need to see if from a different perspective.
I understand why people buy the EW - it's mainly due to risk aversion i.e. fear of the unknown, often brought on by a salesman who warns you about the risks ahead with expensive auto repair. I get that.
I realize there are many stories of how the EW has paid off because breakdowns do occur. But even if you have had the need for that statisticly rare breakdown of your Honda, consider averaging it out over the ownership of other vehicles. It would be very bad luck to have consecutive EW's pay off. On the other hand it would be wise to just say no to an EW and do a good job of maintaining your Honda.
Surely you can understand that statistics don't favor a positive payoff for the EW over your lifetime?? That's why the value, if you could call it that, is in comfort or peace of mind - not having repairs taken care of.
I drive about 20k a year and I paid $715 for 120,000 6yr coverage ($100 deductible). New car warranty will die in about a year and half and I intend to keep it longer.
I have owned different Honda for abut 15 years and the reliablity has been perfect, and I never bought EW for my previous Honda.
Buying a German car without EW is suicidal unless you get rid of it before factory warranty expires. In case of Honda, the importance of EW is somewhat less significant. However, all newer cars come with more and more electronic and electrical gadgets. The more of these gadgets installed, the more things that can go wrong. Many of these gadgets are connected to the central computer so if any of these gadgets malfunctions, the computer chip may give you problems. The more advanced the car, the more complicate to repair and the more costly to repair. Dealer's technicians work on it everyday so it is less likely that they overlook something.
I can afford $20/mon to cover the last 3 years and I am 99.9% sure that I won't use it. To some it may be a rip off, but I am being ripped off much more by oil companies, insurance, utilites, etc. daily so I am used to it. For those advise against EW, if my car breaks at 36001 miles and beyond, are you going to eat the bill? I don't think so. It is my money, I decide how to best use it. I have a Rolex. Is that a waste of money? Because I carry a cell phone and it tells time.
I thank this forum for informing me about on-line EW dealer and I did purchase from one of them. I hope my message will help any potentail buyer to decide.
BTY, those advised putting money into a CD FAILED to mention that there is inflation and uncle Sam. At the end of the day, I am not sure if purchasing power is maintained.
If my car breaks at 36,001 miles, I'll gladly pay for the repair, and not a stupid warranty company. That is the risk that I took when I bought the car. If I did have an EW, most likely it won't cover the repair. Even if it does, most likely it won't be more than the EW cost. Therefore, you win no matter what happens by not buying the EW. If your car is so unreliable that the LIMITED COVERED PARTS break down more than the cost of the EW, then I'll suffer the consequences for buying such a horrible car.