Yes, it gets rolled into the purchase price- but a lot of Honda loans are at 0.9% so it's almost free of interest cost.

 

But that guarantees being underwater on the loan to start with, even before the drive off the lot depreciation....

 

Sure if you don't pay interest on anything else like a home or credit card. Every dollar you borrow at 0% is still a dollar you have to pay back and dollar you can't pay down other debt with, so 0% is a distraction if you have other debt.

 

But wouldn't I be foolish to finance a service contract if I'm cutting it close financially, particularly on a car with a stellar reliability rating and reputation for good-will? I guess it's all perspective.

 

Not exactly. You can dispute whether it's good or bad to spend the money on the extended warranty if you have other debt, but there's no reason not to borrow it at almost a zero interest rate just because you have other high-cost debt. Clearly it's better than paying cash upfront for it if that cash could've been used to pay down other, higher-cost debt.

 

When I was single, working at a Dot.Com making good money, and living where i could go without a car for 3 days to a week, I really did think like a lot of the individuals on here in regards to a warranty being a waste of money.

10 yrs later, I'm married with a 4 year old (who just graduated preschool! I might add) and a good steady job (albeit, not one like the Dot.com era) on one income... I feel a tad bit different.

It's not for everyone and personally, I hope I never use it. If I do, I'm all set, If I don't, It'll be my contribution to the economy.

~SB

 

I have a 2011 honda fit with only 3300 miles. I have been looking at extended warranties and contacted Bernardi's and Saccucci's. Both have the same price of $965 for the $0 deductible 8 year/120k honda care plan. I called Honda care just to ask about the two dealerships since they are both out of state and was told that Honda wouldn't be able to help me if I had a issue with the dealer since I was purchasing the plan out of state. They recommended that I purchase it locally. Has anyone had any issues buying a honda care warranty out of state?

Thanks

 

"if I had an issue with the dealer" If the dealer pockets your money and doesn't deliver you may have less recourse with them being out of state.

It's a Honda warranty. The state doesn't matter.

Don't worry about it

 

Thanks Steve244 I didn't think it would matter.

 

Assuming you pay via reasonable means (i.e. you don't mail an envelope filled with bills or a western union money gram) you can always dispute the charge with your credit card company. But my understanding is that once you buy it, the issuing dealer is irrelevant.

 

If you're insured through Geico here is a lower cost option for an extended warranty. Can add to your policy if your car has less than 15K miles and less than 15 months old. No upfront commitment, just select and add to your 6 month premium and you can cancel at anytime. $250 deductible and can renew for up to 7 years, 100K miles. My brother quoted it for his '11 CR-Z and was only $40 a year so I'd expect the Fit to be similar or cheaper.
GEICO | Mechanical Breakdown Coverage ~ Protect your new car with MBI

_

 

Lol same here, I was like, "ok, I'm not gonna mod this car because its a dd. 3 months in already have intake and exhaust on it with more on the way soon!