Should I buy extended warranty for new Honda Civic?

Question

I just bought a Honda Civic Couple LX 2006 - current warranty is 3 year/36,000. Dealer is giving me option now for 5 year/80,000 for $1,200. Should I get it?

Answer 1

Extended warranties on new cars are usually not a good long-term value. Since your original car warranty runs for the first 3 years, you are essentially paying $600 a year (In advance) for an extra two year's coverage.

You would be better off putting that $1,200 in your own savings account and keeping it in reserve for future car maintenance costs. If you take care of your car and perform scheduled maintenance as suggested by the manufacturer, you may never need to touch your bank account, and will still have that money (plus interest) at the end of five years.

Answer 2

Your automobile is most likely your 2nd largest investment that you use on a day-to-day basis. After the manufacturer's warranty expires on your vehicle, you have nothing to protect yourself from expensive vehicle repairs. The right extended warranty will protect your investment and save you money.

Extended warranties, vehicle service contracts, and mechanical breakdown insurance are basically the same thing and we will refer to all of them as extended warranties. An Extended Warranty is basically a contract between you and the warranty provider that says if a part or component described on the policy breaks, or wears out in some cases, the warranty company pays to have it fixed. It is also important to know that extended warranties cost less the earlier you buy them. The cost for a good warranty rises as your vehicle ages and accrues mileage.

Most people buy their warranties from an Automobile Dealer. At the dealer there is not much choice or negotiating but lots of pressure. You could buy the warranty directly from a car dealer, but you will save 40% ~ 60% for the exact coverages if you shop online.

Extended warranties can also include benefits such as free 24/7 roadside assistance for emergencies like lockouts, fuel and fluid delivery, battery jump, flat tire repair, and towing. Many also come with car rental reimbursement and travel interruption protection in case of a breakdown. A fully transferable extended warranty can also greatly increases the resale value of your vehicle.

We do agree that the extra cost of an extended warranty is worth it to those who are already struggling to meet their new car payments. They may find it saves them from financial disaster.

The bottom line is that new car buyers who are in a cash-tight situation usually find the warranty worthwhile, even as a source of psychological comfort if for no other reason. An extended new car warranty can also help avoid apologizing decisions over whether costly repairs need to be done.

Answer 3

If it is backed by Honda, not a third party. I have an extended warranty on my car and I've used it several times. It really is worth it, and you'll walk out of the service department with a smile when your bill says $0.00. You probably won't have much (or anything) go wrong during the first 36,000 miles, but when you get closer to 60, you will probably be happy you opted for the warranty extension.

Answer 4

Extended warranties on brand new cars are a ripoff in my opinion. I believe that if they need to sell you a warranty, then they know there's some kind of malfunction/recall waiting to happen. If it happens to die in the first 6 months to a year, then they sold you a lemon. Face it, it's going to fall apart eventually, why would you want to tack on an extra $1500 plus interest to hold it together, when all you have to do is keep up with the regular required maintainence? It's a waste of money.

Answer 5

Two points:

1) "JetDoc" is correct on all counts. Keep the money, save it, earn the interest yourself.

2) Because I am supporting someone else's answer, MINE is the best answer! LOL!!!

(If you still decide to take it, realize that your $1,200 figure is negotiable, just like the "retail" price of your car.)

Enjoy the Civic! Good choice!!

Answer 6

No. it is a waste of money. if you like insurring everything and have the money go for it but if you look at the things that
warranty covers it is not necessary. My neighbor has a civic with 250,000 miles on it and it runs with no problems. the warranty would have wasted money for him.

Answer 7

Personally, I wouldn't waste the money. Hondas are VERY reliable. If you MUST buy one, check the net. Other firms offer the same package for a LOT less money. About HALF that much.

Answer 8

yes that a good deal go ahead with it even though its a honda you want it to be covered hops this helps you will save more in the long run

Answer 9

I would only buy the one from Honda. I got one for my Honda and it was not from Honda. I got screwed

Answer 10

it isn't waorth the money hondas are reliable and will not cause any problems until 200,000 miles. just keep up with the maintenance