that's probably better than buying from saccucci since honda has taken them to court. a sales rep locally said, "at some point honda may not recognize a warranty purchased from saccucci if the car is serviced some place else."
yep, he's a salesman, but it seemed like a reasonable possibility.

 

Anyone know where to get the extended warranty for cheap in CANADA?

 

If you received the paperwork from HondaCare saying you are covered, then you are covered. I find it almost impossible to believe that they would decide later not to honor the warranty.

(btw, I just joined this forum today and finally made it to the end of this thread -- I can clear up a lot of misconceptions about the warranties that I noticed while I was reading, but not tonight... I've been here 11 hours already and I need to go home)

 

good point. damn sales reps can make anything sound reasonable.

 

Thank you for all of the posts on this thread! I learned so much by reading these prior to my '09 storm silver sport purchase yesterday. I sat through the dealers sales pitch on Honda Care extended warranties and then I showed him the print out of the rates offered by the R.I. dealer mentioned on previous posts, and I said that I needed to be careful of how I spent my hard earned money and that I guessed that I was going to go the internet purchase route. He went for a talk with his manager and then offered me $100. over the internet dealer's price. I agreed to buy from my local dealer at the reduced cost to save the internet purchase hassel and also to keep good relations with the people who will have to fix my car if there are any problems in the next 8 year. A great $ savings for me. Thanks.

 

good deal mimi...

 

Congratulations. Good job. Welcome to the Clark Howard informed buyer crowd.

 

The bottom line with extended warranties:

If the company offering the warranty was spending more money in claims than they were taking in on premiums, they would not be selling them. So, the odds are they come out ahead.

Say you pay $1500 for a warranty. $300-400 of this goes to dealer profit right off the top, minimum, maybe more, could be as much as 600-700 markup on this. This is one of the most profitable areas for car dealers. The salesperson who sold you the car probably gets some kind of spiff for it, too. So, say at most, $1200 of the $1500 goes to the warranty company. They have paid actuaries a lot of money to determine the statistical numbers on what is likely to break on your car, and what will likely not. If something breaks, they have analyzed what the likely repairs are. Very smart people have done this, to ensure that the warranty company makes a healthy profit on your premium, in the neighborhood of 30-50%. If they are getting $1200 from you, they are banking that repairs on your car are likely going to cost approximately half of that, and worst case 75% of that. Believe me, they are not in the business of losing money. Yes, you may have the one car out of a thousand that has a major failure. For the other 999 people, not.

They are betting, with lots of data to back them up, that your car will cost significantly less in repairs than they received after the dealer profit.

They try to sell these things based on fear. You have the fear that you are going to get some horrific repair bill, and you'd rather shell out now to avoid that. Problem is, the horrific repair bill has a statistically tiny chance of happening, especially on a Honda.

Also consider that the most statistically likely time for a part to fail is initially. When a new complex product is manufactured, at the initial phase of use, say the first year, all the components that may have manufacturing defects are used and may fail. Failures usually either occur early on, or never. Defects tend to pop up early, and under the manufacturers warranty, again mitigating the need for extended warranties.

My family has owned Hondas since the late 1970's. None of them has ever had to have a $1500 repair, except the time my mother blew her timing belt at 135k miles due to never changing it. This was her fault and would never have been covered under any warranty anyway.

I used to work at several car dealerships, and there is a reason they push extended warranties. It makes them a LOT of money. I never pushed them to customers, much to the aggravation of my management. Hmm...maybe that's why I sold more cars than the other guys...I didn't try to mislead my clients. Novel idea that they never quite got.

Waste of money more often than not. I personally know a guy who makes about $90k a year as a trainer going to dealerships teaching the people how to sell extended warranties more effectively. You wonder if they'd be doing this if cars were breaking with expensive repairs that they had to constantly shell out for. Hmm.....

Put your money in a CD, and use it if the car breaks 5 years from now. When it doesn't, you'll still have it.

 

[75r90rider]...after reading most of this... i think you have nailed it!
i was leaning towards getting the online reduced rate , but i will put it in a CD instead....thanks

 

Since an extended warranty is not a manufacturers extended warranty but a 3rd party company you can get a better deal with the same coverage by going to the 3rd parties direct. And you can do it after the sale. WarrantyDirect.com and Nation Warranty Corporation (NWC) are a couple of the big ones.

From my experience I find it more of a fear factor... Never had major repair on a Honda because I maintain them well and I put some money aside just in case. Only major problem I had was a premature Air Conditioner Compressor failure that was due to a manufacture defect. I went to arbitration - Honda had to pay for it.

 

I just purchased an 09 Fit Sport MT/NAV last night, and to my surprise, there was NO HARD SELL on the warranty!? Just a brochure and a light sales pitch AFTER all of the paperwork was done. "Think about it and let me know" type of thing.

But what surprised me even MORE was that they did NOT try to sell me the Honda Warranty! Some Coast Guard or something. I asked why and they started telling me that the Honda warranty didn't cover this and that, blah blah blah. I know from working in sales that most reps will sell what makes them the most $, not necessarilywhat is best for the customer.

So, I was wondering other people's thoughts on Honda Care vs. 3rd Party? I do have to mention that I bought a 3rd party warranty when I bought a used 2001 Acura MDX. I KNEW they had a history of XMission trouble, and my gamble paid off! At 90K I have a brand new $3500 tranny, courtesy of the warranty!!

Although I had pretty good luck, I HAVE heard horror stories--even from the service manager as he told me that I may have to pay for the diagnostic charges if they don't actually do a repair (no trouble found or not covered by warranty).

I DO like the fact that I can get a 8yr/120K $0 deductable hoda warranty for about $800. The fact that others paid over $1700 tells you how much profit there is in that!!

I DO intend to keep this car for 8+ yrs (then give it to my now 9yr old daughter!) Still undecided on the warranty, though . . .

 

after you cross the 5000 mile mark, you are no longer eligible for a "new" car hondacare extended warranty, and the terms are much less favorable for a "preowned" extended warranty.

question: if you buy from saccuci, how do they know if your odometer says 7000 mi or not?

 

This thread was very helpful wish I would have read it before going to the dealership. The dealer was trying to convince me to buy it and after saying how much it would cost and I said no, he say well actually Honda is offering XX% off this month on the extended warranty. I turned him down and he was a little upset. I just purchased my warranty over the internet, got the 8 year 100k for $795 better than he was offering for the 7 year 80k.