Did any of you buy it? And how much is it?

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2002 Acura TL Type S
Nighthawk Black Pearl
Parchment Leather

 

Here's my take on extended warranties.

A friend I went to school with became an accountant and went on to a career with a car company. He rose up the food chain pretty well and this is what he told me.

Extended warranties are cash cows for the car companies. He said the company he works for basically puts the money they recieve for warranties into an account and pays the claims with the INTREST.

He said statistically most people who purchase extended warranties never use them, that's because they don't keep the cars long enough, not because things don't go wrong with the car. If every owner who purchased the warranty kept their car for the full term, say seven years, the companies would lose money or have to charge more.

Another thing, people who purchase extended warranties are a lot more likely to have their cars maintained at the dealershhip where they purchased the car for the fear of losing the warranty, this works in their favor.

As far as purchasing one, I usually don't because I don't keep cars that long. I think if you're going to keep the car seven years it's probably a good thing. Figure for example that even the remote controls are covered, you can't tell me that in seven years one of the remote controls won't go bad. I know that's a bad example as they only cost a few dollars (but in seven years?)but you get the point. Sorry for the long post.

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Feliz

98 Acura CL, primrose
2002 TL-S, silver

 

I'd say put the money you were going to use for the extended warranty into a money market account or some other investment. If you need it down the road then make a withdrawal. If you don't, then you have a nice size chunk of money.

 

Extended warranties are transferable if you sell the car. Certainly you should be able to get your money back if you sell it as it can only add to the resale value to the car from year 5 to 7.

I do plan to own this car at least 7 years. Given that these cars are high tech (computer controlled), the probability of something going wrong gives me peace of mind in having the warranty.

To each his own.

 

If you're not going to keep the car long term, then the extended warranty is indeed a cash cow for the dealer. However, I do intend to keep my new Type S for at least 7 years. Because of that, I did purchase the warranty for $880. I was told by more than 1 dealer that the list price was $1500. Also, my warranty has no deductible.

If they're giving you a high number on the warranty and you really want it, you should be able to talk them down quite a bit.

Good luck!

 

I don't agree with feliz. The reason for that is that my car is only one year and 5 months old. The warranty will be over in about 2 more months since I already have almost 46,000 miles. I don't care about the years is the milage that I care. I think that almost no one will make the four years before the 50,000 miles in this forum. If I buy an extended warranty, which I probably will. I would like to get 2 years 60,000 miles. That's the kind of deal I want to work out with the dealer. They have already spend more than $1,000 dollars in my car. In conclusion if you put a lot of miles in your car you should get an extended warranty.

 

Warranties are like insurance for your engine and other parts. You may or may not need it but when you do, you'll be glad you got it.

I think the better questions to ask are, should you go through the dealer to get this since there are other warranty programs out there. Also are these companies going to be around when your car is going to need this warranty.

 

"So why not just invest the money? Put the $1000 in a money market account. in 7 years if you haven't used it it will be almost double".

I do not know how you do your math, but if you invest $1,000 for 7 years at a money narket rate of 5% (generous), it would compund to $1,407.

I do not know about you, but earning a total of $407 plus $1,000 will not go very far if there is any significant mechanical breakdown in the car in year 4 to 7 (or based on mileage which ever comes first).

I see it as cheap insurance.

 

The bottom line is Honda/Acura, based on my experience are excellent for reliability. Thats one of the reasons you buy them. As such, the warranty is a waste of $ in most cases unless you drive the shit out of your vehicles, in which case, I bet the warranty has exclusions for misuse and the damage as a result. For example I have a 1992 Accord with 310,000 KMs with no problems except the rad last year. I also have a 1998 Accord EXV6, with 151,000 KMs with no troubles. I will be getting a 2002 TL-s soon and hate to part with my 1992. IMHO warrantys on these cars is a waste.

 

I still have a 1988 Toyota Camry. Very reliable cars. Except that in year 4, my air conditioning broke down. It cost me $800 CDN at the time to fix it (mainly labour cost of having to pull out the dash).

Now, if I had taken out the extended warranty, it would have paid for itslef with one incident.

I know these cars are reliable, but there are no guarantees.

 

That's why I am leaning toward to purchase the Acura Care Extended Warranty not the third company's warranty. Thanks for the advice.

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2002 Acura TL Type S
Nighthawk Black Pearl
Parchment Leather

 

So why not just invest the money? Put the $1000 in a money market account. in 7 years if you haven't used it it will be almost double.

 

I bet things like air conditioning are not covered. I would be interested on the extent of coverage. Please advise on coversge to those who have it. Is it bumper to bumper or just power train?

 

For my TL it is bumper to bumper 7 years or 100,000 miles. Minus: tires, and battery.

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2000 Fire Pepper Red/ebony TL, non-navi. factory spoiler, std chrome wheels, 35% tint, comptech exhaust, wood trim kit, factory body kit, custom grill...
Quiets ride

 

I forgot to mention it does not cover owners neglect to do periodic maintanance as stated in the owners manual.