Extended warranty
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From: Montreal
Extended warranty
Hi guys! 
New to this forum so let me start off by congratulating and thanking you all for a great forum. It has helped me alot in my decision process.
I have just ordered a black with red interior 04 S2000 and impatiently await delivery.
I had a question concerning extended warranty by Honda. They are offering a 6 year 60 000 miles warranty for about $650 tax included.
I intend to keep the car at least that long
and it is doubtful I will put more than 60k miles on it in that time as I live in Montreal and will be storing it every winter.
So my question is whether or not this is a well invested $650?
New to this forum so let me start off by congratulating and thanking you all for a great forum. It has helped me alot in my decision process.
I have just ordered a black with red interior 04 S2000 and impatiently await delivery.
I had a question concerning extended warranty by Honda. They are offering a 6 year 60 000 miles warranty for about $650 tax included.
I intend to keep the car at least that long
and it is doubtful I will put more than 60k miles on it in that time as I live in Montreal and will be storing it every winter.So my question is whether or not this is a well invested $650?
Joined: Mar 2003
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From: Home
I don't know how they are in Canada, but here the dealerships have REALLY started to be jerks about warrenty repairs. They like to claim it was "driver abuse" that broke ANYTHING they can. Then they don't have to fix it. The extended warantee's seem to be even worse. If you ever modify any single thing on the car, they will try to blame any failure they can on that mod.
Even for $650, I don't think an extended waranty on this car will do you much good.
Even for $650, I don't think an extended waranty on this car will do you much good.
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From: Montreal
Thx for the responses guys!
Honda Canada gives us a 60 day grace period after buying the car to purchase the extended warranty, that's it! 
Ruexp67 addresse the point which causes me concern.. After reading the forums here I have seen alot of people unhappy with Honda's treatment of warranty claims, so if I am only buying air, the $650 seems ill spent...
Originally posted by p0pe
You can wait until your 3 year basic is almost up, then buy the extended care. You don't have to buy it right away.
You can wait until your 3 year basic is almost up, then buy the extended care. You don't have to buy it right away.
Ruexp67 addresse the point which causes me concern.. After reading the forums here I have seen alot of people unhappy with Honda's treatment of warranty claims, so if I am only buying air, the $650 seems ill spent...
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From: Midlothian
It should be obvious to any thinking person that if underwriters and their resellers (dealers/brokers) did not make a ton of money on these, they would not be pushed so hard. That means far more is paid in than paid out. Now people will post all sorts of anecdotes about how it saved them a bundle, and I do not doubt their veracity or sincerity one bit - but as a scientist i tend to look at things long-term and by the numbers, with as much of a dissociation from hunches and gut punches. Perhaps reading Noistradamus might help though, as he now predicted 911 (how come no one ever comes forward and stops something ahead of time ?). And that includes those Oprah crime "psychics".
Read the fine print. Read who decides coverage, and what the appeal process is. You would be paying $650 for 3 years/24k miles. You do not drive your car during the months that are hardest on a vehicle. And you doubt you will even make the mileage. Hmmm, this is a no brainer.
It is an engineering and actuarial fact that if a Honda makes it past the 3year/36K period, then it is likely to make it to 7/70 or whatever with only minor repairs. That is why they offer those warranties cheap - they make money on them - and they make money on them because the odds are in their favor (that your car will be fine). I think they are a sucker deal. Like house odds in gambling.
Personally, i have never bought one of these, and when i add up all the out of pocket repair payments I have made vs. the cost of having bought even a cheap policy for all the cars I have owned, it argues dramatically against against warranty extensions. Plus, I never take my car in for warranty service even if it is covered unless it exceeds $100 - the anxiety factor is not worth it to me.
I would suggest that as you approach your warranty expiration, you have a certified mechanic go over the car and note any major mechanicals that seem to be failing or about to. That should cost no more than $75 and is money well invested. I used to do this for friends and family, and caught things like belt idler pulleys about to fail, bad wheel bearings, exhaust leaks, etc. I was also associated with Nutz & Boltz, a consumer newsletter, and was linked into all sorts of secret warranties, like the GM "morning sickness" steering racks. Saved a guy $500 on that one - got a free dinner out of it.
I have also seen industry demographics on who buys them, and it would be embarassing to some if I posted them, so i won't.*
*chix and old people, primarily. Consumer Reports types. Scaredy cats. Lower SES. People who are afraid to arbitrate repairs, dislike confrontation, and have a minimal knowledge of mechanicals. People who are easy for service managers to abuse. People who lack the financial wherewithal to cover an unexpected monthly expense, vs. a rolled up one in their car payment.
Read the fine print. Read who decides coverage, and what the appeal process is. You would be paying $650 for 3 years/24k miles. You do not drive your car during the months that are hardest on a vehicle. And you doubt you will even make the mileage. Hmmm, this is a no brainer.
It is an engineering and actuarial fact that if a Honda makes it past the 3year/36K period, then it is likely to make it to 7/70 or whatever with only minor repairs. That is why they offer those warranties cheap - they make money on them - and they make money on them because the odds are in their favor (that your car will be fine). I think they are a sucker deal. Like house odds in gambling.
Personally, i have never bought one of these, and when i add up all the out of pocket repair payments I have made vs. the cost of having bought even a cheap policy for all the cars I have owned, it argues dramatically against against warranty extensions. Plus, I never take my car in for warranty service even if it is covered unless it exceeds $100 - the anxiety factor is not worth it to me.
I would suggest that as you approach your warranty expiration, you have a certified mechanic go over the car and note any major mechanicals that seem to be failing or about to. That should cost no more than $75 and is money well invested. I used to do this for friends and family, and caught things like belt idler pulleys about to fail, bad wheel bearings, exhaust leaks, etc. I was also associated with Nutz & Boltz, a consumer newsletter, and was linked into all sorts of secret warranties, like the GM "morning sickness" steering racks. Saved a guy $500 on that one - got a free dinner out of it.
I have also seen industry demographics on who buys them, and it would be embarassing to some if I posted them, so i won't.*
*chix and old people, primarily. Consumer Reports types. Scaredy cats. Lower SES. People who are afraid to arbitrate repairs, dislike confrontation, and have a minimal knowledge of mechanicals. People who are easy for service managers to abuse. People who lack the financial wherewithal to cover an unexpected monthly expense, vs. a rolled up one in their car payment.
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