| sfitzpa |
Received an offer to purchase an extended warranty from Honda Financial. I did a little checking and found that the warranty is offered in packages of so many yrs/miles with the max. package offering 120k miles for approx. $1650.00 ($300 discount applied).
The brochure has very little details on what is covered and under what circumstances. Can anyone point me to a detailed description of the covered components / labor?
Thx |
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| JL_SS |
quote:
Originally posted by sfitzpa
Received an offer to purchase an extended warranty from Honda Financial. I did a little checking and found that the warranty is offered in packages of so many yrs/miles with the max. package offering 120k miles for approx. $1650.00 ($300 discount applied).
The brochure has very little details on what is covered and under what circumstances. Can anyone point me to a detailed description of the covered components / labor?
Thx
Link |
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| kingmdx |
This will also help you to know if the price is good.... make sure it's a $0 deductible warranty... you'll not regret that later on when they charge like 100 bucks to do a diag. just to tell you what's wrong :p
LINK |
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| mikkibear |
| I'm also looking for a extended warranty. Did you receive this offer in the mail? |
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| brydon |
I think your best bet would be to put your money in an online high-yield savings account and not purchase the warranty. Overall, Honda Financial is making money because on average the repairs needed in the warranty period over the cars they cover is less than the cost of the policy. by buying the warranty you're betting that your car will have problems. On a Mercedes or BMW I would say go for it, but Acura's, even those made in Canada :) have a great reputation for longevity. My college finance professor told me to never buy a warranty or insurance on anything you couldn't afford to replace. Meaning, purchase insurance for your house, purchase it for your car because you're legally obliged, but playing the probability game with the big finance companies is always going to make them richer.
but hey, if you like the peace of mind, then maybe it's worth it to you |
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| dexterbot |
quote:
Originally posted by brydon
I think your best bet would be to put your money in an online high-yield savings account and not purchase the warranty. Overall, Honda Financial is making money because on average the repairs needed in the warranty period over the cars they cover is less than the cost of the policy. by buying the warranty you're betting that your car will have problems. On a Mercedes or BMW I would say go for it, but Acura's, even those made in Canada :) have a great reputation for longevity. My college finance professor told me to never buy a warranty or insurance on anything you couldn't afford to replace. Meaning, purchase insurance for your house, purchase it for your car because you're legally obliged, but playing the probability game with the big finance companies is always going to make them richer.
but hey, if you like the peace of mind, then maybe it's worth it to you
I totally agree with this. I have never bought an extended warranty on anything. None of my cars nor electronics. |
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| kingmdx |
quote:
Originally posted by dexterbot
I totally agree with this. I have never bought an extended warranty on anything. None of my cars nor electronics.
Unfortunately this may not always work in your favor as vehicles have more and more EXPENSIVE electronics...and especially where stuff is getting more integrated ....to change a small defect sometimes the part is doing a lot more stuff in different places hence the cost is a lot. And i can't look at depreciation of parts etc. since I have a 07 and it's the same vehicle being sold in 09 chances are the parts aren't going to drop significantly....and although the mdx is a great vehicle it does call for parts for minor stuff ...example some people have changed cd/dvd players already ...check out the cost of that and that's over half your warranty money...i can call other problems if you like ...you never know what can happen... you may have a great vehicle or you may get problems through the wazoo :p ....but with these vehicles 1 problem may cost you nearly the warranty value... get 2 or more and well you get the point.
I think if i pay lets say 50k for a vehicle w/ 4 years warranty (and i paid for that warranty also btw... if you think that's free then you're crazy) 1-2k for another 4 years isn't that bad.
BTW....i never bought an extended warranty before for any vehicle i owned but do some cost checking what minor parts will cost you and you may think twice like I did and then get the ext warranty for the X.
To each his own....just my $0.02 |
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| dexterbot |
@kingmdx..
I know what you are saying. I have been pondering on this but after talking to several of my friends who owns a 1 Gen (as old as 7 yrs), they have not had anything done except for the regular maintenance. I rather take the risk of something breaking down.
Also, if I understand how the warranty works, it's about $1000 for that extra year (5th year) or you can do 6 years 1000 - 1500.
Only thing I can forsee happening is like you said, a major computer or electronic issue that is not part of a recall but a mishap with my particular vehicle that I would have to replace. I rather take that chance. Most of the other stuff, I'm going with Honda's reputation since I've owned Hondas all my life starting with my first car in HS. |
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| brydon |
| If you don't have a decent pile of rainy-day money stashed somewhere and/or do not have a very low interest rate credit card I would strongly recommend you put that money into savings, or some other liquid investment. While not buying a warranty makes sense to me, not having a a backup plan in case something does go wrong doesn't make any sense at all. |
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| alsea |
| I bought a 7 year extended warranty from Tim. It just takes one jammed CD, a glitch in the telescoping wheel or a problem with the SH drive train to quickly make it worth it. More important is the added resale value to a new buyer. I’ll probably sell at 4-5 years, and a “free, transferable bumper-to-bumper warranty” easily adds its cost to the value. No more “let my mechanic check it out”, as it’s all covered! |
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| kingmdx |
quote:
Originally posted by dexterbot
@kingmdx..
I know what you are saying. I have been pondering on this but after talking to several of my friends who owns a 1 Gen (as old as 7 yrs), they have not had anything done except for the regular maintenance. I rather take the risk of something breaking down.
Also, if I understand how the warranty works, it's about $1000 for that extra year (5th year) or you can do 6 years 1000 - 1500.
Only thing I can forsee happening is like you said, a major computer or electronic issue that is not part of a recall but a mishap with my particular vehicle that I would have to replace. I rather take that chance. Most of the other stuff, I'm going with Honda's reputation since I've owned Hondas all my life starting with my first car in HS.
Well as someone above mentioned...it's all about your financial situation also when making decisions like this. I'm in my 20s so I don't like bad surprises much :p ...maybe in my 30s-50s etc i won't mind the stress from those kinda surprises. Also i intend to keep my X for a long time..so $1900 for the 8yr/120k acura warranty was the way for me...especially where we know vehicles are more prone to do weird stuff as they get older. But who knows my X may never give a problem and i may have wasted my money...or vice versa ...right now though that vice versa part isn't something I want to handle out of pocket. |
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