Buying Extended Warranties on New Cars??

[Bleacher Creature]

Does anyone have an opinion? I bought a Honda Odyssey that comes with a 3 years/36,000 warranty. I also bought additional coverage that brings it up to 5 years/60,000 for about $2,400.

Worth it? If I don't use the warranty, I get the money back in 5 years. . . .

[FooFootheSnoo]

1. Is it from Honda or is an aftermarket warranty?

I used to do customer service for GM. I talked to several people that had GM extended warranties and were very glad they did. If you are getting a warranty from a warranty company rather than the manufacturer read the contract over very carefully. You want to make sure you can always get your car fixed. I talked to a man once that had bought an aftermarket warranty, drove the family out of state for vacation, car broke down and he couldn't find anyone in the area he was in that would honor the warranty. He was stuck paying a rather large bill even though he had a warranty.
I think if you can afford it, it's nice security. Honda's are pretty good cars, I wouldn't expect a whole lot to go wrong in the first 60k. If you were buying a Pontiac, on the other hand, I'd say you couldn't afford not to get it. LOL.

[DainBramaged]

4. I'd say with a 5 year/100,000 mile warranty now, Pontiacs don't need them either.

[alarimer]

2. Yes I think so

I did that too actually. I think cars are about the only thing you should buy extended warranties for, though because repairs are so expensive, especially for newer cars and makers do not seem to be offering longer warranties anymore. Gee, so they can make money off extended warranties, I guess. If it gives you peace of mind, it's probably worth it.

[DainBramaged]

3. Being from the auto industry (in and outside as a consultant)

My answer to you is, if the dealer doesn't have faith in their product to HAVE to sell you a extended warranty, you bought the wrong car.

It's a profit center for the dealers. Especially on a Honda or Toyota (and their Acura and Lexus brands) and it is not worth the paper it's written on since these cars just don't break that early in their lifespans. Chrysler offers 7 years 60,000 miles standard, Ford 6/60,000, and GM 5/100000 miles, all of these powertrain only. I have friends with a 1998 Honda Accord with over 190000 mies on it and have put brakes all around on it twice.

The dealership will try their best after the 36,000 miles to make SURE you use the warranty so you DON'T get a refund. Or they will invoke the "you didn't get it serviced here" clause or some stupid thing like missing an oil change to prevent a refund.

Do you really think you will NOT put under 60000 miles on it in under 5 years?

Put the $2400 in the bank in case you need it for the car, don't give it to the dealer.

[Cobalt-60]

5. If I have to pay extra for a warranty

I'll just skip the purchase.
A guarantee or warranty used to be a boast, a bet on the part of the manufacturer that their sh*t was so good it would never break with normal use.
Rolls Royce had the worlds greatest guarantee and but rarely had to honor it because their quality was so high.
If a product is so shaky, so inferior that I need added warranty, I don't want that product at all.