OK, I'm due to get my car this Saturday via my credit union's AutoNation Direct car buying program. I want to run this by you guys before I sign...

Alabaster Silver EX - $18,884
Fees and Taxes (CA) - $1,861.20

Total: $20,745.20

I'm cool with this....now here's where all car buying experiences get interesting - the back-end protection plans. Did any of you go for these? If so, what did you buy? If not, why not? Brian(Flys), I'm gonna check out that Saccucci Honda Extended Warranty you referred us to in the Dealership Price thread. Good lead.

This being said...here's what I'm being offered. Would you take it? Why or why not?

Trying to go in eyes wide open.

Honda Care Service Contract $2115
96 Months/ 120,000 Miles $0 deductible

- provides mechanical breakdown protection
- pays the cost of parts and labor for covered repairs
- provides rental car and towing assistance

Vehicle Care Program $400
10 Services

- lube, oil and filter change
- tire rotation
- multi-point inspection
- redeemable at any AutoNation dealership

Tire and Wheel Protection $509
5 year plan

- repair or replacement from any damage by road hazard
- includes mounting, balancing and valve stems
- unlimited benefits with no out of pocket expenses

Appearance Protection $699
7 Year Limited Warranty

- Paint Guard protects exterior finish of the vehicle
- Fiber and Leather Guard protect the interior of the vehicle
- Helps maintain resale value

GAP Protection $395

- Total loss protection from fire, theft, or collision
- Pays deficiency from insurance payoff to loan balance
- Pays insurance deductible up to $1000

------

$4118 Total added to the loan. That's a lot of protection that I'm not sure I want. Any expert advice out there?

And again, to reiterate...I'd like to hear from you. Did you buy a protection plan? Or no? With whom? Thanks!

 

Don't bother with that stuff. I only got the Honda Care extended warranty, and my fiance insisted on the windshield protection only because the roads here are rocky and large trucks driven around here fling rocks a lot. Depends! Everyone around here has broken windsheilds so it was worth it. Everything else was garbage. The s security package is a joke as well, there are vin number stickers everywhere on my car already!

 

I hope that you do not feel inclined to buy any of the above proposed contracts. This is where you really lose money and the dealer laughs all the way to the bank. I would hope that no one would really waste their money this way.

Now, having said that, put away $500 for future repairs and maintenance, and you will be well prepared. But do not EVER take out a loan for this kind of stuff.

 

Keep in mind that all these fantastic protection packages are BIG money makers for the selling dealer, who will pay a commission to the Finance person that talks you into them. They are also a big money maker to the companies behind the various products. They are all insurance of one kind or another and the seller and supplying (insurance) company is betting they won't have to pay off on the policy. They don't stay in business by paying off.


Anyone considering any extended warranty also needs to remember that the original manufacturer's warranty that comes with the vehicle will be providing the coverage for the first period of years and miles. The extended warranty seems much more expensive per year, if you take the first three years out of the equation.


Any of the extras are legal contracts, so read them over completely and understand them before you sign. The dealer won't always tell you the complete or accurate story. Be aware that these contracts may not be transferrable, so if you sell the car in four years, Honda provides the warranty coverage for the first 3 years (I think the current factory warranty is for 3 years, or X miles - whichever occurs first). The fourth year would be covered by the extended warranty company and when you sell the car, the rest of the extended warranty vaporizes.


I say all this as someone who has worked with car warranties from the manufacturer or dealer side for 5 years, back in the dark ages.

 

Also, when you don't buy the extended warranty during the close of the sale with the finance department. They will send you letters later when your warranty is about to expire with even lower price for the extended warranty. So if you think you need the extended warranty, better off you just wait for them to send the letter.

 

As all the previous have stated- if you do anything- just do the Honda Extra Care Extended Warranty- everything else is CRAP! If possible, just get the Warranty from Saccucci Honda or other dealer's via credit card or cash- so you don't end up having it built into your financing loan. And please share where you are getting the car- since you are in Southern California. I know the GM of Norm Reeves in Cerritos.

 

Excellent sound advice from all that confirms my skepticism and affirms my gut feeling. Thanks.

Purchasing through SchoolsFirst FCU AutoNation direct. They're delivering my car so I have no clue where it's coming from....

 

First of all, CONGRATULATIONS on the new Fit. You will love it!

I have grappled with extended car warranties each time I buy. Here's a link to an independent Consumer Report article on the subject:

Consumer Reports: Extended Warranties for Cars - Consumer Reports

I'm a high mileage owner, so I go through the base warranty pretty quick.

For my 2009 Fit Sport, it was the first model year, and I bought it in mid-2008 (sound familiar?). At that time, California did not allow the warranty to be bought out of state from other Honda dealers, so the $800 coverage was going to cost $3000. So I passed on it. The one time I could have used it was for an A/C system failure that cost about $1500 this past year.

Jump to 2015, and this is the first model year for the new Fit, from a new plant, in a new country (for Honda), and the cars have been delayed for sale several months due to an unreported issue. I will still be a high mileage owner and expect to keep it well beyond the warranty, at least 120-150K miles.

But now, the independent, out of state Honda dealer warranty coverage is available in California:

Honda Care Plan Options

The 100K miles/96 month Honda Care coverage OP listed is available from Saccucci for $1065 with $0 deductable or $960 with $100 deductable. 50% savings over OP's dealer offer. Saccucci also offers other Honda-branded service packages for similar savings.

So, OP and any new buyer, you need to consider your ownership and usage habits to see if you want coverage, squirrel away some money, or roll the dice (this is a Honda, after all...)

IF you decide to consider the extended warranty and service plan route, research your options. This gives you dealing power with your new car dealer and feasible options if the dealer does not match the pricing. They cannot refuse to honor your Honda warranty bought through another dealer.

Good luck and happy motoring!

 

That reminds me of the time I bought a 20" basic lawn mower for $99. They offered me an additional one year warranty coverage for only $50.

When I am offered these type of additional insurance, I ask the salesman "Why do I need it? Is this car a piece of junk? Maybe I ought to look at "brand X" down the street. That usually shuts them down rather quickly.

Only insure things that you can not afford to cover on your own. Have you ever heard the term "Insurance Poor"?

 

I don't think that's correct. The Honda Care coverage is transferrable, according to my contract, and it covers more than the basic new car warranty, including rental car reimbursement, so it provides additional coverage even during the initial 3 years along with the basic new car warranty:

http://www.saccuccihondacare.com/ima...ge_Details.pdf

Again, it's a value calculation every owner must make. Just make sure to do your own research and carefully consider your driving habits and future plans for the car.

Good thing this stuff is so straightforward and non-controversial...

 

When they tell you about all the horrible expensive things that can go wrong with your new car you might try saying "Wow, I didn't know that new Hondas were so unreliable. Maybe i had better reconsider this..." Push your chair back to stand up. Enjoy reaction.

What these "protection plans" are is insurance which is just a nice name for gambling. You're betting that something will go wrong. They're betting that nothing will go wrong. As in any gambling, the house almost always wins.

Another way of thinking of it is that you and a lot of other people are giving packets of money to the insurer. The insurer uses part of that money to pay for whatever repairs are needed on covered cars. They use the rest to pay for the guy who sold you the coverage, his bosses, the plush building they work in, etc. Which is cheaper, paying for repairs yourself or hiring someone else to do it and paying all their expenses too?

The main rule of insurance is that you never insure against risks that you are capable of absorbing yourself. You're buying a new car so for the next three years you have no mechanical risks at all. After three years, the mechanical risks are still low and never really exceed a few thousand dollars, even in a worst case scenario. You'll spend more than that on a "protection plan."

Try this: Determine the amount you would spend on the protection plan. Start a separate bank account and deposit that amount and any monthly instalments that would be required. Pay for repairs from this account. Chances are, you will have money left in the account when the time comes to buy a new car!

 

And if you don't, this time, you certainly will over the five or ten cars you will own in your lifetime.

 

That is a GREAT summation and advice on this topic. I hope that many will heed this advice and save your money. Both saving it, from giving it to the dealer as profit and saving it, in the bank, so that the next car you buy will be for cash!

Never think of any new car as an investment. It is a rapidly depreciating asset. Fortunately, the Fit is one of the slowest depreciating cars, both because it is so reliable and so durable.

 

I got an 8 year, 80000 hondacare warranty for 2k at my dealer. just got the base one.

 

If you are happy with your purchase, that's all that matters. You will certainly enjoy the car and have the extra peace of mind that the additional warranty offers. Price isn't everything, and creating a separate savings account as an alternative may not fit your lifestyle. So file the warranty away and it's there if you need it.

When I priced the warranties through Saccucci Honda, I got quotes on the various coverages (they email a table of prices) that were 1/2 or 1/3 of what my local dealer was offering. 8 years/ 100K miles with $100 deductible cost was $845. This is the HondaCare warranty. Not sure if the pricing is different for Texas rather than California.

Just offering this info in case you were interested in possibly saving some money or reducing a car loan. Or *fuggetaboutit*; just enjoy the car!

 

As Brian said, do what makes you feel good. But be advised that you can cancel the Hondacare warranty you purchased within 60 days and if you really feel better about having such a warranty, you could purchase from another source for less money.

Here is an old forum post about just such an issue:


FYI

Ok, last few days I made several phone calls to Honda Care, googled the heck out of how to cancel and repurchase Honda Care, etc. In the beginning it was very confusing as there were all kinds of wrong information floating around. Here's what I found:

1) You CAN cancel Honda Care and repurchase, no problem. You may cancel it within 60 days if you haven't used the service. On repurchasing, your car has to be under 6k miles to receive the new car price or the contract might be a little more expensive.

2) You DO NOT have to go in to the dealership (hence avoid possible unpleasant experience) where you purchased it to cancel. Simply call Honda Care at 1-800-999-5901 and ask for the cancellation department. Then ask them to either fax or mail you the "Cancellation Request" form. Fill it out (you don't have to fill out the bottom portion of the form where it asks for dealer information and signature) and send it back to them and your contract will be cancelled within 24 hours and the money refunded (to the lender if you financed).

3) Repurchase the Honda Care at a lower price online (it is the exact same warranty no matter where you purchase it).

4) If you are from CA, you can't buy Honda Care online (due to some restrictions). However, there is a work around for this if you have an address you can use that's out of CA (such as friends or relatives). Simply sign up using the out of CA address then later do a change of address.

I was mad at myself for falling a victim to the dealership's lies and deceptions (telling me they were giving me the EW at their cost). I wasted alot of time researching what to do but I've learned much during this process and I got even with the dealership. My Honda Care is cancelled and I'll be repurchasing one for much less online. I just want to inform other DA members who might have overpaid for their EW that they do have other options.

Good luck to all.