On Sat, 28 Aug 2004 15:48:44 -0700, Jason@nospam.com (Jason) wrote:

>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.

This is not an issue about your car breaking down. It will do so or
not regardless of whether you have an extended warranty. This is about
money. Don't worriers worry about money?

H.