I just purchased a certified used 2004 Honda Accord Coupe back in March. At the time of purchase I also purchased an extended warranty called "Honda Care" for $1,590 for 7 yrs. or 100K miles coverage on replacement of major parts such as Transmission, A/C, electrical malfunctions,etc. The coverage is not for regular wear and tear but malfunctions of major parts mentioned above.
Do you think this coverage is necessary? Should I cancel policy and save money on the total amount owed (4.9% interest rate)?
These type of warranties are a gamble. You are gambling that something will go wrong, and the service warranty company is gambling nothing will.
$1,590 total cost, $227.15 per year, and only $4.37 per week.
If something does go wrong, then it is totally worth it. If you plan on keeping the vehicle for the 7 yrs or 100k and if nothing goes wrong in 7 yrs or 100,000 miles...then you still win because you purchased a great car!
Great interest rate! I hope you rolled the service warranty right into the loan.
All My Best,
〉 Answered on Jul 18th, 2007 by Amy Mattinat, Owner and Author at Auto Craftsmen Ltd
The biggest question that you need to answer is if any major component needs to be replaced is do you have the money to pay for it. I do not know what a Honda transmission costs, but if it costs $2000, would you be able to pay for it. If the coverage is good, then I would keep the warranty.
〉 Answered on Jul 18th, 2007 by Jenny Trostel, Partner at Anderson of Hunt Valley
We work with extended warranties all the time. Having said that because we see them often, I would say that it is definitely a good warranty to purchase. There is no warranty, that I know of, that will cover regular wear and tear. Without your extended warranty you could easily/will surpass the $1590 in repairs during your 7 years or 100K miles. I think you made the right choice in purchasing the extended warranty. Simply be sure to read through the warranty policy so that you know exactly what you have.
〉 Answered on Jul 18th, 2007 by Kim Walker, Marketing Director at Peak Automotive