In article <gr6Yc.2452$JT3.534@newsread3.news.atl.earthlink.n et>, "Arctic
Inferno" <SpamShield-ArcticInferno@yahoo.com-SpamShield> wrote:

> > >> > I have a Honda Civic LX 2001 manual transmission.
> > >> > About six months ago, I had to replace the front struts,
> > >> > but it was covered under the original 3 yr/36k mile warranty.
> > >> > The warranty will expire soon, so I got a letter to extend the
> > >> > warranty. 5 yr/75k mile, bumper-to-bumper, for $250 down
> > >> > payment and $200 x 12 monthly payments, for total of
> > >> > $2650.
> > >> > The payment can be extended over two years without interest.
> > >> > If I decide to sell the car in a year, I can either get prorated
> > >> > refund, or transfer the warranty and payments.
> > >> > Should I get the extended warranty, or should I risk it and
> > >> > save $2650?
> > >> >
> > >> The only issue with an extended warranty is the probability of
> > >> spending the warranty fee ($2650) over the ensuing 39K miles
> > >> or the next two years. The per year expected costs for
> > >> maintenance for years 4 and 5 for a 2001 civic suggest a much
> > >> smaller outlay of funds. I'd pass this up.
> > >
> > >I may not have stated the extended warranty clearly. I will get
> > >additional 5 years and additional 75k miles, after my current
> > >warranty expires. I will need to look at the maintanence cost for
> > >the years 4, 5, 6, 7, & 8, over the next 75k miles (when the car
> > >reaches 111k miles). Do you still think that I should pass up on
> > >the offer? By the way, it's a two-door model, not four-door.
> >
> > Harvey's approach is the right one, though, to figure out if it is
> > worth it. Estimate the likely maintenance costs for the years in
> > question, LESS those that are not covered by the extended
> > warranty... compare to the cost of the extended warranty.
> > It may be called a warranty, but it is more like a flat rate
> > payment plan for maintenance.
> > Pretty well all extended warranties, whether for cars, TVs or
> > cameras, are major ripoffs. That's why they push them so hard.
> > Gravy for them! Total maintenance costs for years 4, 5 and 6
> > for my 1998 Civic EX were zero.
>
> I understand the concept behind warranty and maintenance costs,
> and stuff. My question was regarding my specific case.
> Should I or shouldn't I? What is the probability of break-down?
> What is the reliability of my car? I don't know what the projected
> maintenance cost would be for my situation.
> Is the extra coverage and peace of mind worth $2650?
> Is the Honda Civic LX so well built that I can comfortably risk it?
> If your Honda Civic EX is a predictor of my car's future performance,
> then I think I should pass up on the extended warranty offer.
> How does Honda Civic LX usually stand up?

In general, it is a bad investment. However, everyone is different. I tend
to worry more than the regular person. It's for that reason that I have an
extended warranty. When the engine light comes on, I don't have to worry
about it. If I did NOT have the extended warranty, I would worry a lot
about it until I found out what was wrong with it. The extended warranty
provides you with peace of mind. However, if you are not a person that
worries--save the money and just hope that nothing major--like the engine
and transmission--ever breaks down.

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