I have a new Fit Base 2013. Dealer tried to sell me extended warranty :8 years 100000 miles ,no deductible . The company is Zurich .
I don't think it's worth the $1900.00 the Honda dealer wants for it , nor do I trust these contracts . What do you think ?

 

Statistically? None of these add ons are "worth it." Like all insurance products they are priced slightly above the expected average payment the company will make. Of course, some people will have a big failure, because not everybody has an average experience, and want to be covered for that. Whether you feel it's worth it to YOU to cover your potential risk, only you can say that. But, you can probably find a policy for cheaper online or through an insurance agent.

 

Never buy a third party warranty. If you are going to want an extended warranty from honda, get quotes from multiple dealers so you get a reasonable price. I've seen prices from others here of under $1000.

But as a rule, extended warranties are at least 50% profit. And for third party warranties, the goal is to soak all the money as profits, go bankrupt nullifying those warranties, then starting a new business.

 

These warranties are how dealerships make their money. There is very little money to be made on an economy car as far as mrsp vs invoice goes. All the extra "stuff" they try to sell you is their proffit, and it's comission based. I always refuse all of it; dealerships don't like me.

The Fit is such a reliable car, I won't waste money on any type of extended warranty anyways.

 

First, you're not even getting what is being sold. Extended warranties overlap with your factory warranties and your Federal and State warranties, if applicable, so subtract those years/mileages from the 8/100K.

Next, extended warranties are a gamble: you're betting your car will have mechanical failures that 1. will be covered (which includes the warranty company still being in biz), and 2. that will exceed the amount the warranty costs. Sure, you can find folks who won that bet, but statistically, it's a losing bet, particularly if you have a historically reliable vehicle. If it wasn't, the warranties wouldn't even be sold.

Further, why would you want to be in a position to cheer for your car to have a lot of problems so that you can "win"?

 

you can always buy extended warranty later if you decide to keep your car longer than the manufacturer's warranty.

no need to buy now.

 

I bought the 7year 110k mile warranty, Zurich is a huge company, not going out of business anytime soon. Also, only reason I purchased it was because I drive so much that I'll run out of my 3/36 within 12 months. I really don't want to have to put $$ into a 1 year old car. A least 110 covers me out to 3-4 years (normal person warranty, lol)