Hey Guys,

I recently bought got my '08 Honda Fit Sport AT my parents bought the extended warranty (96 month, 120k miles) for about $1053. Is this worth it because there seems to be some limitations like this one. "Contract exclusion #8. Any mechanical breakdown or damage resulting from misuse, abuse, negligence, collision or upset, fire or smoke, theft or attempted theft, vandalism, riot or civil commotion, explosion, logjtemomg, earthquakes, freezing, rust or corrosion, windostorm, hail, water or flood, acts of god, salt, enviromental and road hazard damage, chemical, nuclear incident, or acts of war". With this one line, I basically can't get anything fixed if they deem one of these as a cause.

So should I try to cancel it or keep it? BTW it says its GE Auto Warranty Services

 

Extended warrantys (unless you own a Lada...) are a waste of money.

 

In the past 10 years I can't think of one auto publication or consumer mag that has shown any value in an extended warranty. There will be issues after the included warranty runs out but the cost in all of the studies are less than the cost of the warranty.

Check out this link. There is usually a loss of value in the warrranty
WAVE 3 TV Louisville, KY | Is that new car extended warranty really worth the cost?

If you are in college it may be a value to you since even a repair less than the $1050 will be a HUGE expense. And it gives your parents one less thing to worry about.

 

Ok... well we also bought the InTire 5 year warranty ($289), but this one seems like a good deal where they will replace your tires and wheels when they go flat or pop or anything. Or if they just wear down to a certain tread length.

Keep it or trash it as well?

Also, I can cancel the extended warranty at no cost, but we haven't payed our tax yet because we purchased the car in our neighboring state. How will the taxpan out( will we have to do some new forms and such to get the correct tax)

 

That's even a worst waste of money than the extended warranty.
As a mechanic at a large GM dealer I heard this all 20 years ago......

 

It states that "termination refund: You may terminate this Contract by contacting the Issuing Dealer listed in Box H of the schedule. .... about contract information to process... If this contract is terminated within sixty (60) days of the contract purpcahse date, the total amount paid by You for this Contract will be refunded provided no repair work has been performed or commenced." So the contract value will be completely refunded, but will the dealership charge a processing fee to cancel since it is a warranty through GE Auto Services?

 

Dump the tire warranty! Heck, those tires are cheap.

W/ the extended though the price is not bad for that type of warranty, but high when you consider it as a % of the cost of the car.
However it's value holds up for 2 reasons.
1) if you ever have an issue of course and these days pretty much any mechanical problem can quickly make it up to $1k in cost.
2) Resale. You'll get much more for the car when selling it at 80k miles if the buyer knows they are covered up to 120k! ( Assuming the warranty is transferable!! Check that out.) It's a big selling point that could certainly make up for the cost.

Real world example. We sold our Jeep grand cherokee Limited to downsize ( but upsize in MPG!) to the Fit.
We had the 7 yr/100k warranty for $1,500 when new in '02.
When we decided to sell the car it had 99, 857 mi on it. While it was listed we started to hear a noise. A guy who test drove it decided not to buy it b/c of the noise. We decided to check it out. Well, the dealer did a little over $4,500 worth of work to the drivetrain no questions asked or concerns about the small print!
We sold it the next week.
So in our case it turned out to be totally worth it.

 

[quote=rpboy06;327489]Hey Guys,

I recently bought got my '08 Honda Fit Sport AT my parents bought the extended warranty (96 month, 120k miles) for about $1053. Is this worth it because there seems to be some limitations like this one. "Contract exclusion #8. Any mechanical breakdown or damage resulting from misuse, abuse, negligence, collision or upset, fire or smoke, theft or attempted theft, vandalism, riot or civil commotion, explosion, logjtemomg, earthquakes, freezing, rust or corrosion, windostorm, hail, water or flood, acts of god, salt, enviromental and road hazard damage, chemical, nuclear incident, or acts of war". With this one line, I basically can't get anything fixed if they deem one of these as a cause.

Now you know why ConsumerReports recommend against extended warranty. I suggest you go to your public library and peruse the CR monthlies. The problem with misuse is you have to prove you didn't misuse, not the other way around. Did they give you a contract to have a lawyer check before they signed you up? Wonder why.
Not the least thing you want to investigate is the financial security of your warranty holder. More than one have found themselves out in the cold with a warrantor taking Chapter 11.

 

Most extended warranties are through a third party.
I don't even know if Honda is involved in the decision making regarding warranty claims.
I know the local GM dealer wasn't.

 

Do you plan to keep the car well past the three year warranty? If you are likely to get bored and trade it in then there's no reason for the contract. If you are likely to do modifications to the car that might void the contract then its not wise to keep it.

Since your parents bought it won't the money go back to them? They wanted to buy you piece of mind, so unless you know you won't keep the car long enough or plan heavy mods, I say keep it.

The odds are that you will lose money with a service contract. If this wasn't the case the companies couldn't turn a profit. You are buying piece of mind that if your transmission or engine dies after 36K miles you won't have to come up with $$$ to fix it (assuming this is due to normal mechanical failure and not because of the exclusions).

 

Only reason I got it was in case the DBW or electronic steering fails after the factory warranty is over. I dunno if it's gonna be worth it.

 

Hey guys... interesting discussion. Does anyone know if there is any way to get out of an extended warranty? I bought my Fit last September and was pressured into getting the extended warranty as well. Now that I'm adding an intake and an axle back I'm afraid that will make the warranty really useless to me in the future and render it void. Thoughts?

 

man i bought that extended warranty just for a piece of mind and for resale.

i shouldnt have bought it...but heck i cant change my mind now.


rynozebz...just keep your stock intake, and whenever you go to the dealer to fix your car just slap it back on.dont even trip about the exhaust....meh, like exhaust warranty means all that much, i mean you can fix your entire exhaust for like 500 . if your cheap you can go to a local exhaust shop for 150

dont even worry about the little things.

 

I ended up getting the extended warranty under the Honda Care program. I paid 1,015 total added to the contract, but it covers the car for 84 months and up to 150k ,miles. I got this one in particular because it covers a lot of the wear and tear items like the brake pads and clutch, and also comes with roadside assistance and free car rental for up to 14 days. It's also transferable so I'm sure it would give anyone who might buy it later a piece of mind.

Having had to us the extended warranty for cars in the past I definitely think they're worth it

 

Nope, its yours now.
Remember, the guy sitting with you to arrange financing and payment SELLS the extended warranty, rustproffing ect.
He gets COMMISION on the plans he sells. This is the only supplement to his wage.
He wants you to buy it all!
I bought none of it, much to his dismay.....

 

Its a reasonable cost as far as those things go but the carrier may be suspect. Is GE General Electric?
You have already paid for the warranty and getting money back is tough. It's out of the dealership's hands in most cases. Here are 3 suggestions:
1. talk to a local lawyer; hopefully any should direct you to one known for their familiarity.
2. seek legal advice from the internet. Try warranty lawyers or warranty problems
3. Read the recent Consumer Reports articles on warranty problems and try their approach if you can.
The sad thing is once they have your money it ain't easy to get any back. Read your contract; there may be a section on early cancellation (if for example you traded or wrecked the car).
Good luck.

 

The Dealer tried to sell me The Extended warranty and even tried to give me a realy good deal on the warranty but since I knew I was going to be modding the car and already have (cars will be 1 year old in October) I figured why waist the money when I will and have voided some of my standard warranty

 

Are you sure? This sounds way too good to be true. Extended warranties almost never cover wear and tear items and my Honda Care contract is no exception. The only way I could see someone offering that is with a large deductible.

 

I love the look on the finance people when you decline all those extras. We went to the same dealer to get the Fit and our 07 Pilot, when we told them we didn't want any of the extras they looked at us like we had 4 heads. They could not believe we declined all of it. Was too funny.

 

Read your contract. You can most likely cancel it but you will only be due a pro-rated portion of your initial payment. If its Honda Care you can definately cancel it.