I purchased a new Honda Fit Ex last night and ended up with the mechanic repair service platinum extended warranty covering bumper to bumper for 72 months/ 100,000 miles. This ended up costing an additional $1919. I think I way overpaid. I haven't received the car yet and can cancel this extended warranty if I need to. Is this a completely unreasonably price for a warranty and should I have bought one in the first place? I was scared that I'd still be paying the five year loan if something bad happened after the 3 year warranty expired. I don't know what to do. I'm new at this. Thanks for any help.

 

I would cancel it. Do you really think $2K worth of shit is going to happen to your electronics and suspension between 36K and 100K (and in between years 3 and 6)? If the car breaks down while you're paying the loan after the 3 year warranty, use some of that saved (and hopefully invested) $1919 to repair it.

*Edit: There's probably more that could go wrong than those two things i mentioned, but there's not many very expensive repairs you should be looking at under 150K miles minimum.

 

Definitely cancel if you can. That is wayyy too expensive.

If its a HondaCare warranty, you can cancel it. If its a 3rd party warranty, you'll have to read the fine print, but its most likely cancelable as well.

Keep in mind, the new car factory warranty for your car is 3 years/36k miles which covers the entire car except wear and tear, but the engine and transmission are covered for 5 years/60k miles. So you are pretty well covered.

If you do want an extended warranty, buy one in a couple years. It was actually be cheaper and more economical.

 

Never insure against losses that you can afford to absorb. Doing so makes other people rich and you poor. Remember that the money you put toward an extended warranty goes to paying for all covered repairs, the pretty building for the insurance company, the salaries of all the insurance company employees who produce nothing tangible, and the kickback for the finance guy who talked you into the policy.

Think about it. You're betting $2000 that something major will go wrong with your car between 50,000 miles and 100,000 miles. You're out $2000 no matter if the car breaks or not. Let's say that something fails at 99,000 and the bill is $2500. That means that with a service contract you've only really saved $500 over paying for the repair yourself. If the failure occurs at 101,000 miles or 150,000 miles you have paid $4500 for the repair. Considering that the chances of failure are much higher when the car is past 100K miles that deal isn't nearly as good as the finance guy made it seem, does it?

Instead, put that money in the bank. If something breaks use the money to pay for it. If nothing breaks the money is yours to keep. This deal doesn't expire if the car gets more than 100K miles and chances are you will come out ahead in the end.

 

Short and sweet. I'll remember this one.


When I bought my car I came here and asked the same question about whether or not to buy a warranty. I got the same advice from every poster not to do it.

 

Never buy an extended warranty. Especially on a Honda. They are rip-offs

 

The only thing I've ever purchased an extended warranty for was a treadmill, I don't believe in them at all.

 

I don't like extended warranties, and it seems that most of you also feel the same. However, what do you guys and gals think of Mechanical Breakdown Insurance??
The cost in my policy would be $7.80/month, so $93.6/year. So for about $100/year, I only pay a $250 deductible for a repair if it's needed. I think it seems like a fair deal with the potential of becoming a good deal so I'm leaning towards getting it when the time comes (before 15 months or 15k miles).
What's your opinion?

From my insurance company's website:
---------------------------
Mechanical Breakdown Insurance is similar to a dealer's warranty but it is usually much more affordable than a car dealership's extended warranty and in some instances covers much more.

A $250 deductible applies to each covered loss. It also provides daily coverage for expenses incurred due to rental of a substitute vehicle (up to $120 per mechanical breakdown or failure) and up to $40 for towing expenses incurred because of the mechanical breakdown or failure. It can only be added when the vehicle is a new vehicle, is fewer than 15 months old, the odometer reads fewer than 15,000 miles, and you are the first titleholder of the vehicle. Once purchased, MBI can be renewed for up to 100,000 miles(whichever comes first).
----------------------------

 

I canceled mine a couple of weeks after buying my LX. Just do it as soon as possible. I think you'll have to sign some papers to cancel it at the dealer. That's what I did. Then it took 4 to 6 weeks to process. Just stay on it with the dealer after you cancel so that you get your refund.

 

Thank you so much for the advice. Fortunately, they hadn't sent in the financing paperwork and I was able to cancel the extended warranty and lower my payment. If I decide that I want to add a HondaCare warranty within the next six months I can do it online for $745. Either way, I'm happy that I dodged that financial bullet.

 

I got an extended warranty of 8 years / 100k miles for $1800 which covers pretty much everything. Honestly, I don't mind. I'm not worried about the powertrain, but the electronics. These new Fits have touchscreens, cameras, and all kinds of gadgets. Honda does not make these gadgets; they just use them in their cars. I've had smartphone screens fail in under 2 years with no damage caused by myself... I just don't trust it.

The radio on one of my cars went shortly after the warranty period expired. My only savior was that I extended the warranty by 2 years. The cost of the radio and labor was already 2/3 of the cost of the warranty, which ended up only costing a few extra dollars a month when financed.

I understand that in a Honda, which has a stellar reputation for reliability, an extended warranty may not make sense to a lot of people. You just do what you think is best. But, personally, considering the cost of electical components, plus that the Fit's currently still the first model year of a newly refreshed car being built in a different plant, in a different country (specifically, Mexico), I would rather not take any chances. I pay more for health insurance than I use every year, but god forbid I develop a cancer, I'll be damn glad that insurance is covering the bulk of the hundreds of thousands of dollars for treatment.

 

I have had 3 Nissans, 1 Mercedes, and 2 Honda's over the years and purchased a MANUFACTURER's extended warranty on all of them.

All of the warranties paid for themselves, and then some, except the 2009 Honda FIT. (The 2003 Mercedes alone had over 6000.00 in repairs billed to the warranty company between 60 and 80K miles.)

I purchased a 7yr, 125K HONDACARE on my 2009 FIT. Recently sold it with 70K miles and 5.8 years of use, and Honda sent me a residual check for 140.00 for the unused portion of the HondaCare.

On my New 2015 FIT I purchased an 8 Year, 125K mile HONDACARE extended warranty.

A Manufacturer's Backed Extended Warranty like HondaCare (NOT an aftermarket) is one of the best investments you can make in your vehicle IF you plan to hold it long term--up to or more than 100K miles.

There is a hidden benefit to HondaCare or any Manufacturer's Extended Warranty that I did not realize until the 2009 FIT. I brought it in to the dealer for a "check engine" light. Service advisor consults with me after inspection and says, it unfortunately is coding that you have a defective transmission sensor, that is not covered under the powertrain warranty, and that we should also change the tranny fluid at the same time because that can throw a code too. But we can get you out the door on this one for just $326.00 all tax and labor included and we have time to do it this morning. I said great! I have HondaCare--do what needs to be done, I will keep working on my laptop in the lounge--take your time. The Service Advisor's tone of voice goes down--You have HondaCare on the FIT? I did not see that in the system... I give him my contract number. He leaves, comes back 20 minutes later. Tells me that the tech looked it over again, reset the computer--everything is fine now. I asked? what about the sensor? He responds: It's fine, here are your keys.

Why did this happen? Because the dealer has to justify the legitimacy of each HondaCare warranty repair to Honda and is subject to audit. Honda may also contact you after a Honda paid repair to ask you about it.

I would definitely cancel the warranty contract if it is not HondaCare. If it is HondaCare, I believe that they have a provision that once you cancel, you cannot re-warranty the same car again with HondaCare if you find a lower price. But check with them on that if you are planning to cancel and re-HondaCare. It does sound like you paid a bit too much unless it also included the maintenance plan which is an add-on to the warranty. If you want a HondaCare at a reasonable price and are under 6000 miles on your new FIT, please send me a message, and I will tell you where I got mine and you many save some $$.

 

Because the manager is about to rip the guts out of you when he quoted you for some phantom services he just invented. You should report this stealership to Honda for blacken their name.

 

"Because the manager is about to rip the guts out of you when he quoted you for some phantom services he just invented. You should report this stealership to Honda for blacken their name."

NoneTerry: It was a few years ago--I did. Honda responded thanking me for being a HondaCare member and bringing this to their attention. They said that the dealership acted properly in checking the necessity for the repair because unnecessary repairs result in higher warranty purchase costs for future Honda owners.

 

Well, as they say in Las Vegas, "You gotta send out winners to get players." Occasonally someone will hit the "jackpot" of having a major repair that happens to be covered by the warranty and they tend to be vocal about it. Less vocal are all the people who blew $2000 on an extended warranty and never had a covered repair.

The insurance companies don't exist for charity. They have to pay for all covered repairs and their nice buildings and salaries with something, and the extra bucks come from the customers.

In other words, Honda is fine with their dealers ripping off customers by replacing their blinker fluid, but not with their dealers ripping off Honda by doing the same.

Please tell us the name of the dealer. They deserve to have their shady practices exposed.

This is a very good argument to use an independent mechanic for non-warranty repairs. They have a personal reputation to uphold and they don't have a manager hovering over the service writers telling them to increase revenues at all cost. I'd much rather talk directly to the person doing the work than to someone who does nothing but write service orders.

 

That is definitely one of the frustrations of the dealership system of service managers, service advisors, and techs. You rarely get to talk with the person actually working on your car. It can be like a bureaucracy. Worse is that the tech earns less than anyone else and is held to a commission system and as they say in the industry, "chasing cars," all day to make their paycheck.

If you don't have an extended warranty, and can foster a good relationship with the actual person who regularly works on your car, and they are skilled, have a shop, you are far ahead of the game. But you have to watch them too. I took my Mercedes 8 years ago to a small shop for maintenance where I had a relationship with the owner/mechanic because Mercedes dealers are VERY expensive for maintenance. He was under the impression that I used him for all maintenance but the dealer sent me a coupon for a brake special so I had the dealer do it one time--good deal. He calls me during an oil change drop off, and tells me that I can use new front brakes he saw while doing the oil change. I said, Danny, that's weird, I took it to Mercedes a few months ago and paid for new fronts there. Could they have ripped me off at the dealer and not done it? Or did my brakes wear down again so quickly after 8K miles? He then chuckles: "They are OK, I took the wheels off to inspect, so I wanted to put some brakes on since I went through the trouble. Your good for while." I never returned to him for service.

And yes, insurance is a great business--just ask Warren Buffet of Omaha with his Geico company. And you can be in the insurance business too with him by buying his stock that carries Geico in the portfolio, now trading at over $140 a share. (Symbol BRK-B) Same stock 55 a share 10 years ago--not bad for anyone that got in on it.

 

I got the extended warranty and feel its was a great deal as a lot of accident happen in Southern California, and I have a daughter that likes to touch everything as well. This car will be driven from LA-SAC once a few months as well which will wear and tear my Fit sooner.

I plan to pay off the car in 3 years so not worried about the money lost in 6.

 

If your budget can handle it, and you plan to keep the car long term--you are doing the right thing Mr. JukeBox.

Especially on a New Model from Mexico--now the burden is on Honda to keep you going strong mile after mile.

And if you are not already aware--keep your speed in check on the 5 or 99 going from LA to Sacramento and back especially the last week of the month. That corridor is one of the largest state revenue raising highways in California. Some days on I-5, I have seen CHP spaced out and stationed every 2-5 miles blasting radar on the Interstate. It is strictly about the $$ there and helping local cities ravaged by the drought and Sacramento who both get a share.

 

Extended warranties don't cover accidents. They cover mechanical and electrical failures.

Provided you can get them to agree that a particular failure is covered. That's the problem with insurance, they're your best buddy when you're buying it, but get adversarial as soon as you have a claim.
Better to avoid the conflict by insuring oneself against losses that you can absorb.

 

I get an a accident and my car seems fine.

A month later I have a mechanical or electrical failure. I take it in to Honda and they service my car.

I leave a happy camper.