xviper's comments about reading the fine print and getting all the facts are critical. From my limited experience, the minuses outweigh the pluses:

- It's not an investment in the future value of the car. You may think "I'll want to keep this car for the rest of my life" when you're buying it, but time has a strange way of altering perception. If you decide to trade the car before the extended warranty runs out, it will NOT add to the car's trade-in value. It could, though add to its value if you sell it privately. (The reason for the former is that the dealership will toss yours out and try to sell their new buyer a new extended warranty.)

+ In the fine print, be sure that there's some kind of rebate (whatever it's called). What I mean by this is that you get a pro-rated chunck of your premium back if you don't use the policy or turn it in before it runs out.

Potentially - Be absolutely sure about who's workmanship is covered by the warranty. If you're comfortable with its saying the gibberish equivalent of "only Honda dealer shops", then that's your choice. But be sure. (I had one that said "only dealer shops unless you're farther than 50 miles from one; I lived 70 miles from the nearest one so I felt OK.)

Another potentially - Also be sure you're comfortable with the repayment terms. Some are warranties are supposed to do what was suggested above (a phone call and a phone payment by the company via credit card -- but a 24/7 phone coverage company would help here, no?). Some have you pay and then pay you back (possibly only partly). And check to see what shop rates the warranty covers. Many good shops charge more than the warranty will reimburse or pay for.

My own bottom line is that I've stopped buying them for everything except latest-technology TVs. HPH

 

Don't think of a Hondacare policy as a warantee. That is the wrong way to look at it, think of it as an insurance policy. This is a much more accurate view of the contract.

If you have ANY modification to the car, Hondacare will void the policy on sight. A local member had his warranty denyed because he had an aftermarket exhaust and a CF hood. The Hondacare rep literly walked into the dealership, GLANCED at the car, and denied the claim on spec.

I would avoid the Hondacare policy, and if you really feel you need something similar, look for a third party company to provide it (Hondacare is also technically a third party company.) If you are buying a new car, you can wait until your factory warranty runs out before buying an extended policy.

 

There is no need to buy the extended warrantee at time of purchase. Wait and get all the details on several types of policies. Do your homework and comparison shopping so you can get the deal you feel comfortable with.

 

I bought one and I am glad I did. I bought an additional 4 years. I will probably sell my car at 6.5 years. As we all know S2000's are not like an Accord, Camry etc.

These are cars that people are concerned about when buying used. I think when I sell my car the Hondacare plan will make my car more desirable in the market. Will I get all my money out? NO. Will I get some of it back or sell my car faster? I think so. I also have the peace of mind that if something goes wrong I am covered on most major items.

I bought an extended plan when I had my M3. I realize a BMW and a Honda are different animals but they are cars and they are expensive to repair. I saved big $'s with my BMW plan.

I have zero mechanical skills so this gives me extra comfort.

Many other programs charge $ 3000 + dollars. The Hondacare plan was right for me.

 

And when you show up at this "favourite" shop of yours to get something fixed, suddenly, this whole creidt card thing has a problem. You pay for it first, then make the claim and your dealer warranty guy says that shop told them you had a CAI. CLAIM DENIED! Or they'll say, it'll take a while for the paperwork to clear, then pay partial because there's a limit for such a claim or they'll say, "Oh, that was a wear item or it was from abuse".

You're going to believe someone whose sole job is to make money for himself and his dealership? You are even more suseptible to being lied to, fooled, conned or "sold a bill of goods" if you are young, impressionable, anxious to buy this car, eager to believe that he is your "friend" and on "your side" or are willing to accept something that makes you "feel" good about the deal. Are you?

ps. There is a whole thread recently on this Honda Certified thing. I think it was in S2000 Talk in the last week. Don't believe for a second that this always means something, either.

Insofar as this extended warrantee is concerned, it's like insurance. And like insurance, it's got a lot of exceptions and loop holes. As "Dirty Harry" once said, "You feel lucky?"

ps. It almost sounds like you want this real bad and want to believe that you really "need" this thing. You are trying to find ways that go against the advice already given here. I think you should go ahead and buy this thing. It'll always bug you if you don't.

 

I don't know how much each of you paid for your HondaCare, but do you realize the kind of markup and variability there is on these things? Do you know that a couple of years ago, a group buy was negotiated for the 5 year HondaCare for $600.00 Cdn. That's right ------------ CANADIAN! What does this tell you about profit margin and how much this means to a dealership's accounting ledger?

I'm not saying this warranty is a bad thing. I'm just saying that a buyer needs to be informed as to the fine print and the fact that it is something that can keep some dealerships going strong or just "getting by". Have you bought anything at FutureShop lately?

 

I did purchase the extended Hondacare warranty (got the 5 year one) for my 2005 S2000 I purchased in November. It was about 700 bucks and I bought it mostly for peace of mind and in lieu of purchasing a AAA membership.

I do have a question though: I was thinking of upgrading the head-unit on the stereo system. Does anyone know if that would void the warranty?

 

ONLY your warranty guy/business manager whom you bought this warranty from can give you the final word on this because it will be that person who will slam the door shut on your future claim. It would be rediculous to think that a stereo system would affect, for example, the operation and health of your engine or transmission, but by the letter of some extended warranty, "ANY" modification to ANY part of the car can void this thing.
Let's say one day your engine developed a nasty upper cylinder head rattle. You fit the profile of someone who might drive the crap out of the car. Your factory warranty has been over by 6 months and you take your car to the dealer for a fix. They take a look at the engine and they take a look at you and they tell you that the damage was caused by over-revving but they can't quite prove it and you swear up and down on a stack of bibles that you drive it like a wuss. You fight about it back and forth but without resolve. Then they spot the aftermarket stereo and come back and tell you that because the extra wattage on the equipment, the charging system was taxed more than normal. This, in turn, caused the engine to work just a little harder and as a consequence, put additional stress on the valvetrain. Sounds pretty stupid, doesn't it? Wanna bet they'll try? Do you want to test the "fine print"?
Best thing to do? Ask them.

 

best to do is ask and if its okay get it in fine print so later on they can't say we told you otherwise because you have it on paper.....

 

How is there no interest? Are you paying for it up front? If so that money could be used to pay down the car so you'll be paying interest on that money (in the form of a larger car loan).