toblerone

Hi All,

I'm new to TCC and hopefully I'm posting this is the right section.

I'm looking at buying a 2010 Civic. Just wondering what your thoughts are on purchasing extended warranties? I've also heard that the price is negotiable and that there is a huge markup.

Any advice is much appreciated. Thanks in advance.

chonky22

it can be worth it if you think you're gonna be holding on the car for a while. when you buy the car and meet with the business manager make sure you get a pamphlet of what is covered by honda comprehensive warranty. sometimes it can pay for itself or you may never need it.

Adair

to TCC.

toblerone

Ty Ty Chonky and Sha. I'm lovin TCC! In regards to the extended warranty, I'm extremely reluctant to purchase it because of the way the sales manager was/is pushing it. The main reason why I have bought and will continue to buy civics is because of their reliabilty. I leaning towards passing on the warranty.

Robb

iTrader: (1)

Dont bother with extended warranties, unless you are buying a Chrysler or GM car !
As long as you maintain your Honda properly/regularly, and dont abuse the car, they are pretty bullettproof.
It's just a piece of mind to have.

FiveO

Extended warranties do have a huge mark-up and they are pure profit centers for dealerships.

You should think of an extended warranty as being just another insurance policy on your car. You're buying coverage for something that may never happen.

In some cases they can be a good bet, especially when you are buying certain types of low-volume, high-end used cars with complex mechanical or electronic subsystems, but I don't think they're of much value on a new Civic.

As long as you aren't driving the crap out of them they'll run reliably for a very long time with few major mechanical breakdowns. Because Civics are high volume cars, OEM and aftermarket parts are generally easy to come by at reasonable prices. Also, Hondas are common enough that you have options when it comes to finding cheaper places to repair the thing.

Don't forget that extended warranties usually tie you into rigid service schedules, and sometime they also stipulate where you must get that service done. The old Lubrico warranties required you to get oil and filter changes done at specific shops so you could get the required Lubrico shop stamp on each of your scheduled maintenance points. You couldn't get that stamp if you did your own oil and filter changes at home. Being late on a scheduled service invalidated the rest of your extended warranty.

I had a Lubrico warranty on an old used Mercedes I bought years ago. It worked out well and saved me thousands, but only because the car was a lemon. What are the odds of you buying a lemon Honda new out of the dealership where the issues can't be resolved during the term of the factory warranty?

The extended warranty is payable at the time you buy the car, but minor exceptions aside, the real value of that warranty really only kicks in when the Honda OEM warranty on major components expires. That means the extended warranty people have your money in hand for 5 years or 100,000 km before you'll start to see value out of it. Assuming they are even in business by the time your factory warranty runs out, the extended warranty company will have had the use of your money during all that time. Even then, most warranties come with deductibles and all have a list of conditions and exceptions restricting what is covered, so you may still be cash out of pocket for minor repairs and certain expensive ones.

Are you paying cash for that extended warranty? If it was me, I'd put that money aside in some secure investments like GICs or safe mutual funds and have the discipline to not touch it. If after 5 years your car needs major repairs, you'll have the money plus interest or investment gain made on it. On the other hand, if your car is still running great, you still own the money and can use it for other things, like putting it towards a new car or vacation.

If you're financing your car and extended warranty, consider just how much that warranty will have cost you with all of the financing charges over the term of your payments. Then ask your self what the odds are that you'll ever need to use that warranty.

toblerone

Thanks guys for the advice. I do follow the recommended service schedule and generally put on around 20k/year. I'm certainly not hard on my vehicles. Thats a great point about "OEM and aftermarket parts are generally easy to come by at reasonable prices...". I'm gonna take your advice and pass on the warranty and put it into a secured investment. This way I still have piece of mind that its there if I need it, and hopefully if I dont - then I'm way ahead of the game. Thanks again all for the replies (wonderful and very helpful post - fiveO).

rick10

welcome to tcc !!

I wouldnt buy an extended warranty ! , I heard to many horror stories of people not getting their stuff fix under warranty..

But it is up to you i guess !

Sumol15

F the extended warranty, waste of $$ and too many stipulations that will cause them to null and void it. I suggest FiveO's advice.

Welcome to the site btw, please show us pics of the car!

HabaneroRed06Si

Your the best judge of how you drive your car. Listening to other peoples opinion is redundant.

I purchased a three year for mine because I know I kill clutches. So I'm covered for three years. Plus if anything goes wrong I know the $15k payment I need to make will be on a drivable vehicle.

Make your decision wisely.

rick10

you gotta becareful as there are too many stipulations on those extended warrantys.. A friend of mine bought in for his mazda 3 and when his clutch went ,the dealer told him it wasnt cover it because he was driving the car too hard ( they actually took in his car and examine the reason why it went too early)..

I seen other people not getting their engine cover for the same reason... If your clutch goes and they find out you been abusing your car they may not cover it ... Also you got to follow a rigid schedule and most of the time you can not even mod your car , some dealers would void your warranty for an intake

I dont know how much an extended warranty cost , but i m assuming it is somewhere in the 1k - 3k range ... I dont think replacing the clutch will cost that much ...

But yea, it is really up to you , do your research and make a decision ..

My dad bought an extended warranty for his van and he only used it once for something that would of cost him 400$ ( he paid 2500$ for the warranty) ....

HabaneroRed06Si

Yes it is true and thats a good point rick10. Mine is not covered 100%. But the main housing as well as labor is covered. It's an estimated $100-200 for me if mine gets smashed.

From my previous experience with my 2G Eagle Talon (Maybe it happened because DSM's quality is comparable to a Rat Hat) I had my Clutch bang after I owned the car for 9 months from it being rebuilt when I purchased it. It was pretty scary when it happened on the hwy. Was stuck on Lawrence and Kingston in the worst possible area. Happened on a Friday night!

Had to spend two days in a pay-by-the-hour motel. Sheets had blood stains on the right side of the bed!.

rick10

Buying a warranty its really a tossed up , you may pretty well use it or you may throw out your money in something you will never use

Honestly , if you are paying 2gs for an extra warranty , the only time it will be worth it is if your engine goes and maybe your transmission ( if its automatic)
then it was well worth it ..

You also have to remember the standard warranty goes for 3-5 years ( i believe) , so you are still cover for a while ... After 3-5 years you may want to get a new car and there will be more used engines and transmission available for your car ( if you ever had to replace it)