Extended Car Warranty - Worth it?

iamjoesgurl

Has anyone ever really wished they got the extended warranty?  We bought a new car today and need to decide if we should extend the warranty.  It comes with a 3 year, 36,000 mile bumper to bumper (Honda CR-V) and we will probably keep it at least 10 years.  TIA!

mandysmear

If it's brand new?  No.

Used?  Yes, do it.

My GF bought a used honda CRV and has had to use it twice.  She got the vehicle a year and a half ago. 

amandajean36

if you plan on keeping it for 10 years, it might be worth it (depending on the cost).  most cars start going down hill around 5-6 year mark.  my fiance's car became a HUGE money pit (as in $1,000's of work for different repairs in a 6 month span) at the 7 year mark.

we just bought a new car (to replace said money pit) and didn't get the extended warranty because we only plan on keeping the car for a max of 5 years and we're willing to take the risk.

squirrly

The nice thing about Honda's extended warranty - if you sell the car before the warranty has expired, they refund the unused premium to you.  So, that's sort of nice. 

It really depends on the price of the warranty and what it covers.  If it's under $500, I'd say it's worth it - that's less than the price of one major out-of-warranty service, assuming it covers parts AND labor.  If it's more, or it only covers parts OR labor, then it might not be worth it. 

You should also be able to look online for the projected total cost of ownership over X years for the car, and find out what would be maintenance (tires, oil changes, etc.) vs repairs.  Compare that to the cost of the warranty. 

Whatever you do, with any extended warranty, make sure it's not a perpetual montly payment, like insurance.  That's a sure fire way to loose money on the deal. 

saschaduran

My car is preowned so I bought one.  I have a foreign car too, and the repairs are so ridiculously expensive that it is worth it.  Plus, mine includes the periodic servicing that German cars say they "require" which runs over $500, and the oil changes which run $80.

therickson

I always recommend it but I have really bad luck with cars!!! I had to get a new transmission within a year of getting my last car...

kristinanddan

I've read and been told my numerous people that they aren't worth the money.

baystateapple

I got one on my used Honda, which probably would have been worth it, had I not been in a LDR with FI at the time and put 40,000 miles on it the first year. 

But if you think that you can keep your mileage to under 36,000 over 3 years, then it's probably worth it.

lapcan

Be sure to read the small print on the extended warranty.  They usually don't cover things like alternators and batteries which is more likely to go out than say your cooling system or transmission.

My DH is an auto technician and he says that extended warranties are a waste of money because they are usually expensive and don't cover a lot of the repairs. 

Beachy730

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-boards_etiquette_extended-car-warranty-worth?plckFindPostKey=Cat:Wedding BoardsForum:9Discussion:12b3e048-45d8-4fc7-93b1-4ee92b66cfe8Post:c9b48147-705e-4b16-bfc6-a111edce2f29">Re: Extended Car Warranty - Worth it?</a>:
[QUOTE]Be sure to read the small print on the extended warranty.  They usually don't cover things like alternators and batteries which is more likely to go out than say your cooling system or transmission. My DH is an auto technician and he says that extended warranties are a waste of money because they are usually expensive and don't cover a lot of the repairs. 
Posted by lapcan[/QUOTE]

This.  Look into the warranty you would be getting and see what it really covers.  Also look more into the car, and how much you will probably drive it.  My mom only puts like 6,000 miles a year on hers, where i put like 15,000.  The things you buy the most are usually tires, which are (mostly) never covered. 

Do you have to decide now?  If you are buying the car now and have the 3 years, usually you can decide at the end of the 3 years.

iamjoesgurl

The car is new (2010) and the extended warranty varies in price depending on what you get.  I think that to extend it to 6 years/72,000 miles it is about $1100 and to 7 years/84,000 miles was about $1250.  It is a bumper to bumper warranty which covers most repairs (except for normal wear items like tires, wipers, brake pads, etc.)  I would also pay for oil changes separately from the warranty.

I drove my last car 11 years and 200k miles but I don't drive nearly as many miles now (was in LDR and now that we are married, we do less driving - plus when we visit relatives who are LD, we split between our two cars). 

I haven't read everything but at the dealership, the sales manager explained that most everything in the car now is run by computer and if the computer for a part goes bad, it can be expensive to fix.  The sales person told me that he purchased it for his car but wouldn't recommend one way or the other.  He told me that the car will not need tune-up until 100,000 miles.  By then the warranty will have run out no matter what I have.  But something could go wrong before the tune-up, I suppose.

I can wait and purchase the warranty later, but the longer I wait, the more it will cost.  I guess I need to figure out if $1100 will buy me peace of mind.  The main reason I selected the Honda was that everyone rates it so well for performance and my family has always done well with Hondas.

Thank you all for your great feedback!

bonnyandtim

YES

Look at the fine print...but

I just bought 2 weeks ago a brand new 2010 Chevy Cobalt. The original warranty is 36,000 miles/3 years.

Now, I have a 5 year warranty. & I want more mileage coverage because I drive a lot (12 miles 1 way to work...55 miles 1 way to FI's house)

I did it because:
My car I just replaced fried out ALL of the electrical line & would have cost $5,000 had I fixed it. I had the car for 4 years & it was a only 6 year old car (2004 Neon). 95,000 miles.
Luckily, I paid the car off early. Otherwise, I would still have a loan on it right now.

So, I wanted to get the warranty to last me as long as I was still paying on it. I do NOT plan to pay this car off earlier than the loan terms (5 years) because I have other debts that are at higher interest rates than this new car.

As far as batteries go, those are considered outside extras, as are windshield wipers & stuff. Maintenance.

But my electrical will be covered. & That's what I really care about. Major stuff.

BTW: I plan to keep this car as long as possible. 10 years would be fantastic!

mica178

I wouldn't buy one for a brand new Honda.  Hondas are well made, and if you have a lemon, it'll show itself in the first year or two, not in year 7.  If you were buying used, I would.  Or, if you were a horrendous and irresponsible driver like my sister, maybe.   Or if you're buying an American car.  But if you're a responsible person, I've done the math before, and it's not worth it for the Japanese and German cars.

kbmeow

I would go online and look a tthe average repair cost over the amoun tof years of the warentee.  then see if it is worth it.  I would not, but that is me