Should I buy an extended warranty on my new car?

[Grestarian]

@blondebear

I got an extended warranty (“Platinum” coverage, whatever that means–$1500) on my Mazda3 and never used it. Per the terms of the contract, I’m supposed to get that money back when the term expires, which is next week. We’ll see how that works out.

So how did that work, out, Blondebear?
[Since this is a zombie thread now anyway]

–G!

[Mean_Mr.Mustard]

The fact that extended warranties are pushed so aggressively tells me all I need to know about who* it will most likely benefit.
mmm

*whom?

[chrismurray]

If Hondas never break why is the service department 3 times bigger than the sales department?

Honda does not manufacture any of the components you are worried about, they are from vendors and last about as long as an iphone (about two years) so you were wise in buying some kind of coverage.

No one ever needs a parachute until they are falling out of a plane but it sure is nice to have one if you find yourself in that position!

[chrismurray]

If I buy a new car and there is no factory warranty how much less should I pay for the car?

[chrismurray]

@krzzyktty

At first I said no to the extended warranty, but somehow I ended up with 6 yrs/ 100,000 miles. I went back 2 days later and canceled it. The relief was unbelievable. When I went in to get rid of it, I felt a bit cornered though. 3 guys telling me that the natural gas civic has special parts and it’ll be expensive to fix (if it breaks). Blah blah blah. It’s a brand new car!!! I wish I could have just stuck to it the first time around, but I’m glad I stood my ground the second time around.

You will change your mind in about two more years when you cannot get your vehicle safety inspected without major repairs…you made a big mistake! I am speaking from experience!

[chrismurray]

Why does a Honda dealer have a shop then?

[Kimballkid]

nm

[Sicks_Ate]

@Really_Not_All_That_Bright

You guys could just buy Hyundais and get 10 years/100,000 miles included (on the powertrain, anyway.)

Or a Kia, which also has 60k “bumper-to-bumper.”

If I remember the numbers right, I could have paid $2k to extend the b2b warrants out to 10 years. I opted not to.

[chrismurray]

@Machine_Elf

Insurance (and a warranty is a type of insurance) is for reducing risk, and on average, it increases cost. If your bank account can handle the worst-case scenario (e.g. a car that spontaneously turns to dust when you drive it off the lot), then statistically you’re better off not buying insurance/warranties.

Note that even the original manufacturer’s warranty isn’t free. Everyone’s purchase price for a new car is higher because the manufacturer has promised to fix anything that goes wrong in the first few years, free of charge. It’s nice peace of mind for all the buyers, but since things rarely go seriously wrong during the warranty period, statistically we would all be better off with no warranty at all, and a purchase price that’s somewhat lower than it is now.

Homeowner’s insurance is a good example of a situation where most folks’ bank accounts can NOT handle the worst-case scenario (i.e. the house burns to the ground), and so insurance is advisable.

Health insurance is somewhat different in that insurers use their leverage to obtain services/products at prices that you can’t get without insurance - so this is a case where insurance really is advisable, even if you’re rich enough to pay cash for your own heart transplant.

But car insurance? Warranties? Go as cheap as you can. Skip the warranties, and go with the highest deductible you can on insurance. Once in a while you’ll get stung, but over a lifetime, you will almost certainly save money.

That is some of the most ridiculous advice I have seen on this topic.

[SmellMyWort]

@chrismurray

Why does a Honda dealer have a shop then?

How about oil changes and other routine maintenance? Maybe that’s something you neglected and now it seems you’re all whiny and pouting because your car crapped out on you.

[boytyperanma]

As to why dealerships push manufacturers extended warranties. Dealerships don’t make a huge profit on extended warranties, Manufacturers make that profit. What the dealership gets is guaranteed well paid service work down the line. The dealership gets paid by the manufacturer for any warranty work they do on vehicles, no need to worry about fighting for payment or getting stiffed by customers.

I generally opt out of extended warranties and make out because of it. I also buy un-complex vehicles that I can do basic repairs on. If I were buying a car with a lot of cool gadgets I’d definitely put more thought into an extended warranties. Replacing those automatic extending heated cup holders can get expensive.

[Really_Not_All_That_Bright]

@Sicks_Ate

Or a Kia, which also has 60k “bumper-to-bumper.”

If I remember the numbers right, I could have paid $2k to extend the b2b warrants out to 10 years. I opted not to.

Hyundai has that too. Kia is a Hyundai subsidiary.