They were pushing this hard at the dealership, the extended warranty. That makes me think its a scam

Anyone buy one for their Fit? I drive quite a few miles (15k a year), so my base warranty wont last for more than a couple years.

 

There's been a couple of other posts on this subject:
https://www.fitfreak.net/forums/2nd-...20k-930-a.html
https://www.fitfreak.net/forums/gene...nty-worth.html
https://www.fitfreak.net/forums/gene...-warranty.html

I bought one for mine (8yr/100k) for what it's worth, but I bought it online... I'm not sure how much they are now. I don't think I'd buy it if it was too much more than what I paid. Plus, I have the Navi model, and I think the chances of the nav system having a problem in 8 years is pretty high. The warranty does come with roadside assistance as well, which might be handy if you'd otherwise be paying for AAA.

 

The general opinion among the industry rags is they are not cost effective for any car. The consensus is if you must buy one shop around aftermarket for a better deal.

Don't forget the drive train is warranted for 5 years 60k by Honda.

It's a Honda, not a Ford or a Kia.

 

Think of warranties as gambling -- you're betting the price against the possibility you're going to need more than that amount in covered (there's a big rub) repairs. If you must buy extended warranties, I'd negotiate the price, and make sure the period doesn't begin until your factory warranty expires. Also, take a look at what you get already -- if you're in the USA, in addition to the standard OEM's warranty, you also get an emissions warranty mandated by the feds, and you may have additional "state warranties". I only bought a warranty one time, on a motorcycle, and I negotiated the price way down and got the dealer to include a 15% discount on non-warranty parts and labor. I never had a warranty claim, but the discount more than paid for the warranty so I made out.

 

They are just one step removed from being a scam. Your salesman or the F & I guy (whoever sells it to you) will probably get a bigger commission for selling the extended warranty than they get for selling the car. It's a fear they try and hook you with. I have never bought an extended warranty for a vehicle or appliance I have bought and I haven't regretted it once. And, I've been buying vehicles since 1952 !!

 

I have never seen so many car add ons being pitched by the finance guy before:

Extended warranty (its gonna break down at 36,001 miles)
Gap insurance (its not worth what you paid for it)
Tire coverage (new car tires are crap, your gonna get a flat)
Paint coverage (new car paint is crap, water based)

He made it seem like the car was going to fall apart so I better get covered!

 

I know exactly what you mean. After I retired from the real world I got a job for a short time selling motorcycles. It seemed ridiculous to tell a guy how well made and how dependable a Honda motorcycle was and then after he bought it, try and sell him an extended warranty. Sort of contradictory huh?? Consequently I didn't even try because I was too embarrassed to try and sell it.

 

I think it's car marketing 2009 style. My wife bought a Pontiac this summer. The F&I guy was selling the same stuff. The only difference is GM was high pressure where the Honda guy gave up the first time I told him I wasn't interested. Yours sounds like he got laid off from a Pontiac dealer.

 

I got pressured into buying it. When I finally got it in the mail and started reading it wow. It seem everything is covered except this, except that. After a couple of pages I could feel the pain you know where.

I asked for and got my money back. It was around $1000. That will go a long way to paying first major repair if I ever need one.

After Refund and a little Prep H I felt much better.

 

Whether it's worth it is arguable. It IS where dealerships make their money. I got one (8 year, 120K no deductible) from Bernardi honda for $790 but that was two years ago. Honda corporate was trying to stop online purchases like this at the time. The same warranty was being pushed for $1500-2000 at the time by dealerships. check out Bernardi and see. Choose for yourself and it is like betting. Will something break or not?

 

I think one of the main reasons we bought Hondas is it's a pretty good bet.

Add proper maintenance and you're not going to see major repairs after warranty. Minor stuff up to 150K. After that you'll start to see some big ticket repairs but you won't get any extended warranties for that many miles.

I had to replace the half axles (CV joints) and radiator at about 150K on the last Honda I had (97 Odyssey). The radiator was $100 (1800radiator.com). CV joints cost about $600 for both sets installed (aftermarket). Still less than the cost of a warranty.

At 200K the ABS and steering wheel controls went out. $500 for an accumulator and another $300 for a cable reel. The muffler needed changing then too ($300 for a Honda part). Still less than most extended warranties that don't offer coverage that long and you have to pay a deductible in most cases.

Follow recommended maintenance and don't abuse the car and it'll give you 150K without any trouble. Repairs after that point will still be less than a new car payment.

 

I checked Bernardi's site and the max warranty they now offer is 6 years and 102K miles and they didn't post the price. You have to email or call. I'm not as thrilled with those conditions.

 

I think you looked up the warranty for an older car, not a new one. There's still an 8yr/120k option: New Fit Personal-Use - Bernardi Service Contracts

Honda already forced dealers to stop selling plans online, which is why you have to call everywhere now, and why the prices aren't advertised.

In any case, if you're still considering an extended warranty, you should make sure it's HondaCare and not from some other company.

And obviously, these plans exist for companies to make money, on average. That's not to say that they'll make money on every plan, just that overall, they net positive.

A few notes:
1) as far as I could tell, the price of the plan only depends on the model, not which trim line, i.e. a base manual fit has the same warranty cost as a sport auto fit with navigation. There's more to go wrong on the later...
2) the warranty cost doesn't seem to depend on the area of the country (assuming you buy from a dealer online). A car in an area with 4 seasons probably gets more wear than one in a temperate climate like CA, so it may be more worth it...

So I'd say the odds are probably skewed more in your favor if you have an upper optioned model in a harsh climate... not to say that you'll definitely get your money's worth from the warranty, just saying it's probably more likely.

 

I stand corrected! I'm glad they still offer 8 yr/120K. I didn't see a price but bet Bernardi will be competitive.

 

+1

This is a good read

Amazon.com: The Car Buyer's Art: How to Beat the Salesman at His Own Game (9781890308018): Darrell Parrish: Books

 

The biggest problem that people face with extended contracts is a very easy fix. READ the contract before you purchase it. This is not a "warranty" it is a service contract. If you have interest in one of these contracts, then ask to see the actual paper work, it could be up to 10 pages long explaining the coverages and exclusions. You have a right to know what is listed and when they say "bumper to bumper" ask then where bumpers are listed.

 

dont get it. it's a waste of money unless you intend to keep it for a long time. plus you can always get extensions during ownership. just say "NO." they can't force anything. if they become annoying, i just tell him 'do i need to ripup the contract?'

 

<= this reminds me of this.