Honda Civic LX 2001 extended warranty worth it ?

[Arctic Inferno]

I have a Honda Civic LX 2001 manual transmission.
About six months ago, I had to replace the front struts, but it was covered under the original 3 yr/36k mile warranty. The warranty will expire soon, so I got a letter to extend the warranty. 5 yr/75k mile, bumper-to-bumper, for $250 down payment and $200 x 12 monthly payments, for total of $2650. The payment can be extended over two years without interest. If I decide to sell the car in a year, I can either get prorated refund, or transfer the warranty and payments. Should I get the warranty, or should I risk it and save $2650?

 

[Harvey J Cohen]

I have a Honda Civic LX 2001 manual transmission.
About six months ago, I had to replace the front struts, but it was covered under the original 3 yr/36k mile warranty. The warranty will expire soon, so I got a letter to extend the warranty. 5 yr/75k mile, bumper-to-bumper, for $250 down payment and $200 x 12 monthly payments, for total of $2650. The payment can be extended over two years without interest. If I decide to sell the car in a year, I can either get prorated refund, or transfer the warranty and payments. Should I get the warranty, or should I risk it and save $2650?

The only issue with an extended warranty is the probability of spending the warranty fee ($2650) over the ensuing 39K miles or the next two years. The per year expected costs for maintainance for years 4 and 5 for a 2001 civic suggest a much smaller outlay of funds. I'd pass this up.

 

[Arctic Inferno]

I have a Honda Civic LX 2001 manual transmission.

The only issue with an extended warranty is the probability of spending the warranty fee ($2650) over the ensuing 39K miles or the next two years. The per year expected costs for maintainance for years 4 and 5 for a 2001 civic suggest a much smaller outlay of funds. I'd pass this up.

I may not have stated the extended warranty clearly. I will get additional 5 years and additional 75k miles, after my current warranty expires. I will need to look at the maintanence cost for the years 4, 5, 6, 7, & 8, over the next 75k miles (when the car reaches 111k miles). Do you still think that I should pass up on the offer? By the way, it's a two-door model, not four-door.

 

[Harry Cox]

I may not have stated the extended warranty clearly. I will get additional 5 years and additional 75k miles, after my current warranty expires. I will need to look at the maintanence cost for the years 4, 5, 6, 7, & 8, over the next 75k miles (when the car reaches 111k miles). Do you still think that I should pass up on the offer? By the way, it's a two-door model, not four-door.

Harvey's approach is the right one, though, to figure out if it is worth it. Estimate the likely maintenance costs for the years in question, LESS those that are not covered by the extended warranty... compare to the cost of the extended warranty.

It may be called a warranty, but it is more like a flat rate payment plan for maintenance.

Pretty well all extended warranties, whether for cars, TVs or cameras, are major ripoffs. That's why they push them so hard. Gravy for them!

Total maintenance costs for years 4, 5 and 6 for my 1998 Civic EX were zero.

H.

 

[Arctic Inferno]

I have a Honda Civic LX 2001 manual transmission.

Harvey's approach is the right one, though, to figure out if it is worth it. Estimate the likely maintenance costs for the years in question, LESS those that are not covered by the extended warranty... compare to the cost of the extended warranty. It may be called a warranty, but it is more like a flat rate payment plan for maintenance. Pretty well all extended warranties, whether for cars, TVs or cameras, are major ripoffs. That's why they push them so hard. Gravy for them! Total maintenance costs for years 4, 5 and 6 for my 1998 Civic EX were zero.

I understand the concept behind warranty and maintenance costs, and stuff. My question was regarding my specific case. Should I or shouldn't I? What is the probability of break-down? What is the reliability of my car? I don't know what the projected maintenance cost would be for my situation. Is the extra coverage and peace of mind worth $2650? Is the Honda Civic LX so well built that I can comfortably risk it? If your Honda Civic EX is a predictor of my car's future performance, then I think I should pass up on the extended warranty offer. How does Honda Civic LX usually stand up?

 

[Harry Cox]

I understand the concept behind warranty and maintenance costs, and stuff. My question was regarding my specific case. Should I or shouldn't I? What is the probability of break-down? What is the reliability of my car? I don't know what the projected maintenance cost would be for my situation. Is the extra coverage and peace of mind worth $2650?

Sure, go for it.

 

[Jason]

I understand the concept behind warranty and maintenance costs, and stuff. My question was regarding my specific case. Should I or shouldn't I? What is the probability of break-down? What is the reliability of my car? I don't know what the projected maintenance cost would be for my situation. Is the extra coverage and peace of mind worth $2650? Is the Honda Civic LX so well built that I can comfortably risk it? If your Honda Civic EX is a predictor of my car's future performance, then I think I should pass up on the extended warranty offer. How does Honda Civic LX usually stand up?

In general, it is a bad investment. However, everyone is different. I tend to worry more than the regular person. It's for that reason that I have an extended warranty. When the engine light comes on, I don't have to worry about it. If I did NOT have the extended warranty, I would worry a lot about it until I found out what was wrong with it. The extended warranty provides you with peace of mind. However, if you are not a person that worries--save the money and just hope that nothing major--like the engine and transmission--ever breaks down.

 

[Harry Cox]

In general, it is a bad investment. However, everyone is different. I tend to worry more than the regular person. It's for that reason that I have an extended warranty. When the engine light comes on, I don't have to worry about it. If I did NOT have the extended warranty, I would worry a lot about it until I found out what was wrong with it. The extended warranty provides you with peace of mind. However, if you are not a person that worries--save the money and just hope that nothing major--like the engine and transmission--ever breaks down.

This is not an issue about your car breaking down. It will do so or not regardless of whether you have an extended warranty. This is about money. Don't worriers worry about money?

H.

 

[Nobody]

I have a Honda Civic LX 2001 manual transmission.
About six months ago, I had to replace the front struts, but it was covered under the original 3 yr/36k mile warranty. The warranty will expire soon, so I got a letter to extend the warranty. 5 yr/75k mile, bumper-to-bumper, for $250 down payment and $200 x 12 monthly payments, for total of $2650. The payment can be extended over two years without interest. If I decide to sell the car in a year, I can either get prorated refund, or transfer the warranty and payments. Should I get the warranty, or should I risk it and save $2650?

check out the price at www.curryhondacare.com

 

[kiselink]

Some (all?) extended warrantees will have issues such as the following:

a) The allowed repair shoppes will be limited in some sort of way - certified mechanic, just dealers, etc. - so your choice of repair shoppes are reduced. .

a') are you required to religiously follow maintenance schedules? Whoops we won't cover you because you waited a bit to long on that one maintenance. Meanwhile, practitioners in the field may know from experience that such maintenance can be done less ofter. Is the plain old factory recommended maintenance sufficient or do you have to do more?

b) what happens if you move to another state? Usually insurance companies are licensed in a state ... will the policy be honored in another state? By whom?

c) oops ... bad accident - car is totalled....now what....$$$$ down the drain?

d) even though Joe Blows repair shoppe is a qualifying repair shop for insurance purposes, do you think they want to screw with it? Labor rate paid by contract will probably be reduced from the normal retail rate. Once the problem is diagnossed, the shop will need to get authorization to proceed with the repair. (Meanwhile you call and you get "sorry, the insurance company hasn't authorized the repair yet"...time delays). And Joe Blow can repair other peoples car because yours is sitting on the lift all torn apart.

e) Fraud prevention: The insurance company makes its profits by controlling expenses. Necessarily, tis means it must guard against fraudulent claims. Thats gobbs of overhead to audit, verify and deter. $$$$$$.

 

[Robert]

I have a Honda Civic LX 2001 manual transmission.
About six months ago, I had to replace the front struts, but it was covered under the original 3 yr/36k mile warranty. The warranty will expire soon, so I got a letter to extend the warranty. 5 yr/75k mile, bumper-to-bumper, for $250 down payment and $200 x 12 monthly payments, for total of $2650. The payment can be extended over two years without interest. If I decide to sell the car in a year, I can either get prorated refund, or transfer the warranty and payments. Should I get the warranty, or should I risk it and save $2650?

I have a 98 Civic DX, 120K miles. Only expense besides fuel and oil changes:
-Tires
-Timing belt
-Battery
-Cracked exahust manifold (covered under extended warranty and paid by Honda) Runs great, looks great, looks like it has a lot of miles to go.

 

[Nobody]

wrote in 4ax.com:

Some (all?) extended warrantees will have issues such as the following:

a) The allowed repair shoppes will be limited in some sort of way - certified mechanic, just dealers, etc. - so your choice of repair shoppes are reduced. .

a') are you required to religiously follow maintenance schedules? Whoops we won't cover you because you waited a bit to long on that one maintenance. Meanwhile, practitioners in the field may know from experience that such maintenance can be done less ofter. Is the plain old factory recommended maintenance sufficient or do you have to do more?

b) what happens if you move to another state? Usually insurance companies are licensed in a state ... will the policy be honored in another state? By whom?

c) oops ... bad accident - car is totalled....now what....$$$$ down the drain?

d) even though Joe Blows repair shoppe is a qualifying repair shop for insurance purposes, do you think they want to screw with it? Labor rate paid by contract will probably be reduced from the normal retail rate. Once the problem is diagnossed, the shop will need to get authorization to proceed with the repair. (Meanwhile you call and you get "sorry, the insurance company hasn't authorized the repair yet"...time delays). And Joe Blow can repair other peoples car because yours is sitting on the lift all torn apart.

e) Fraud prevention: The insurance company makes its profits by controlling expenses. Necessarily, tis means it must guard against fraudulent claims. Thats gobbs of overhead to audit, verify and deter. $$$$$$.

www.curryhondacare.com sells the Honda Care warranty.

 

[kiselink]

..

www.curryhondacare.com sells the Honda Care warranty.

Nice web page but were is the actual policy? How are disputes dealt with? Do you think the repair shop doesn't have to get authorization to go ahead with a covered repair? Are there any inducements back to the dealer to discourage repairs (e.g., HMO primary provider)?

 

[Nobody]

wrote in 4ax.com:

.

Nice web page but were is the actual policy? How are disputes dealt with? Do you think the repair shop doesn't have to get authorization to go ahead with a covered repair? Are there any inducements back to the dealer to discourage repairs (e.g., HMO primary provider)?

It's a 'Honda Care' Manufacturer's Extended Warranty at a discounted price. Talk to your local Honda dealer about the details of the plan.

 

[Me]

I understand the concept behind warranty and maintenance costs,

and stuff. My question was regarding my specific case. Should I or shouldn't I? What is the probability of break-down? What is the reliability of my car? I don't know what the projected maintenance cost would be for my situation. Is the extra coverage and peace of mind worth $2650? Is the Honda Civic LX so well built that I can comfortably risk it? If your Honda Civic EX is a predictor of my car's future performance, then I think I should pass up on the extended warranty offer. How does Honda Civic LX usually stand up?

I will say this. I have a 1994 Civic DX 5 speed. I bought it at 89,500 miles in May 1999, and it is now over 177,000 miles. I have put in 4 CV axles, a clutch slave cylinder, one set of brake rotors, 3 or 4 sets of front brake pads, one set of rear brake shoes, one actuation cylinder (at $29 from Autozone) for the rear brakes that I messed up myself, a timing belt with water pump, a tranny fluid change, MANY oil changes, and a coolant flush. I don't think that very many of these things would be covered under your warranty, but that's my maintenance history. Some years were very close to zero, this year will be expensive due to the upcoming timing belt/water pump replacement.

Nate

 

[Bubba]

$2650 is a lot of cash to lay down for a "mechanical breakdown insurance policy" that is not going to pay one red cent toward any of the routine repairs Nate delineates in his reply. Stick the $2650 in a savings account.