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New 2017 Acura MDX - Should I buy the extended warranty?

zimctzimct Posts: 16
edited February 2017 in Acura
I'm looking at buying a new 2017 Acura MDX. Want to buy it and keep it for a long time.

Should I buy the extended warranty?
Is the cost negotiable? What have you paid for it?

I needed the extended warranty for my BMW 550i, but not for my Lexus cars & SUVs.

With all of the new tech and features, I'm not sure of longer term coverage is needed
for failing/wearing/breaking things on the 2017 MDX?

What have you done? What should I do?

Comments

  • kyfdxkyfdx Posts: 131,061
    What is the cost?
    How many years/miles does it cover?

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • karhill1karhill1 Posts: 163
    Acura includes a 4 year warranty. Only the manufacturer can provide a warranty on the new vehicle. What you are buying is an extended service contract. That contract will kick in after the actual warranty expires. So, if you buy a six year extended service contract, you are actually getting only two years.

    If you the cost is $1,000 or less, the extended service contract may make some sense. If, on the other hand, the cost was $2,000 or more, the extended service contract makes little sense.

    These numbers may be different depending on mileage as Acura's warranty is also limited to miles.

    In any case, an extended service contract on anything is a bet. It is a bad bet for the buyer. These contracts are priced by the provider to ensure they make a profit. They then sell to the dealer at the expected payout for the contract plus profit. They dealer then sells to the buyer with an additional layer of profit.

    To illustrate, the contract service provider knows it will pay out $800 on average on the contract. The provider will sell to the dealer for perhaps $1,200. The dealer will sell to the buyer for perhaps $2,400.

    Therefore, the buyer will have paid $2,400 for something the experts know will only pay out $800.

    Of course, you will hear about some folks who actually collect more than they pay. That is correct. However, the vast majority of folks will never recover the amount they paid for the contract.

    Not only is the costing of these contracts a concern, the fine print hidden in the details is also a concern. For example a covered component may fail. However, if if failed due to a failed non covered part, the covered part may well not be covered. The small print.
  • We got our extended warranty for 1200. Is this a good deal? We have 60 days to cancel it if we dont want it.
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