catalytic

http://www.acura.ca/AcuraEng/Purchas...us/Default.htm

What is your opinion on the Acura Plus Extended Warranty? It costs about $1,600 CDN ($1,300 US) to extend the bumper to bumper warranty to 7 years. Of course, wear and tear items are not covered, nor are delicate things like the Navi LCD screen, etc., but most of what's covered under the factory B2B warranty are simply extended to 7 years.

At first glance, this seems like a good deal. If anything breaks, it is likely to occur after the factory 3 year warranty has expired. Furthermore, in 7 years, I would expect not one but two component failures. Things like:

• A/C compressor
• MAF/O2 sensor
• at least one power window
• CV joint
• CD changer/Navi system

are IMO likely to fail within 7 years. The combined cost would be, what, $1,400 including labour? There is also the likelihood that other things could fail, some of them costing major $.

You could probably bargain them down a bit too... maybe 10% or so... around $1,200 US.

I'm positive that I would be spending at least $1,000 US on repairs over 7 years on any car, no matter how reliable. And I would say spending $1,300 is a definite possibility as well.

Also, if you were to sell the car after a few years, I am sure that a prospective buyer would pay a little more for your car... $500 more would not be an unreasonable incremental amount to expect on the used car market.

In fact, I would say the only thing that would make this a losing proposition is the opportunity cost of investing that $1,300 into stocks and such. If you can turn a 5% after-tax profit on your investments, you can turn that $1,300 into $1,800, allowing you to cover almost any component failure that could happen in 7 years... and if there are no component failures, you get to keep it. (although, there's no guarantee that the stock market will behave for those 7 years... you could put it into bonds, although they are unlikely to yield anything over 3% after-tax for that time span)

What do you think?

KJSmitty

My first question would be: Do you really really think you will keep the car 7 years..?? Has this been your trend in the past..? Many folks go for the extended warranty for that reason then end up selling/trading the car in 3-5 years, never using the warranty. Sure, it's prorated and most likely refundable (then again some aren't) but you still loose if not used. Your idea that it could boost selling price is also iffy. Sometimes you get a little more for a trade in if you have an extended warranty, but that's all that I have seen.
If it were I,,, (Like you mentioned) I would take the $1300/1600 and tuck it away in a mutual fund etc.. By the time your new car warranty expires you could have very well doubled your "warranty fund" (it could happen... ). Go a step further and dollar cost average say $50-$100 a month into that fund. This way you have the cash available if the car has a significant issue, or better yet have a nice little nest egg that you never had to use.
Just my humble opinion but 9 times out of 10 extended warranties benefit the dealer/seller vs the consumer.

Good luck

KilroyR1

I have never had much luck getting things covered under warranty. To make money, they have to deny anything they can. Ever heard a dealer say "They all do that" as if a problem is not a problem is everyone has it. I think they are a waste.

I choose high-quality cars and take great care of them and hope for the best. If something breaks, I'll fix it at the time.

Just my .

Don

mickey3c

I never buy an extended warranty. Ever. Never had a case to use one except with acura's 2G tranny but acura stepped up and covered it to 100K... Yeah great acura but the tranny sucked since they detuned it. There is the other rub, if they cannot fix a bad design you are stuck with a car regardless of the warranty.

Batman-JGII

I am on the opposite side of the fence then my other fellow Acura owners who have posted so far but somewhat agree with Don. I try to take care of my cars the best I can but stuff happens. I always buy the warranty and get most of my money out of it. I keep my cars for 5 – 6 years but I am pretty anal once I hit my extended warranty period when it comes to having them look at something I don’t think is right (I make them work for it) .

I have never seen this plus coverage but I normally just get the 7/yr 100,000 option and talk them down a bit on the price. If the CD player alone breaks that could cost you upward of $1000 to get fixed. I also like the fact that I can continue to get free roadside assistance for the duration of the extended warranty, which adds some value. With all of that said it all comes down to your gut. It’s just like any other insurance policy. Is it worth $1,200 for some peace of mind or like KJSmitty stated put that money back and wait until something happens.

vp911

I'm with batman - I take care of my car; however, closer to when my factory warranty expires I will get the acuracare warranty. I say this because my last two cars I have had bad luck with, and although they were both bought back before the warranty expired, I am hoping this one will last a while - I do, afterall, have a lot of school left to complete and I don't want to be worried about shelling out a thousand dollars for repairs or several thousand for a new car.

If you have navi, you will spend easily a thousand+ to get it fixed if something goes wrong. I would go for it.

Jss1

I have a warranty, mostly for insurance as I have navi etc. and it makes the car easier to sell if the person buying knows it still has a warranty. Of course I have had zero probelms in the first 1 1/2 years. I was able to get it way cheaper than $1,600 when I negotiated the sale. Maybe its a different warranty as I have $25 deductible.

JetJock

History proves that the dealers make money on extended warranty's. They are in the business of making a profit and not looking out for your best interest no matter what hype they say. If peace of mind is worth $1300, then go for it, but realize the dealer most likely will come out the winner. Most things break during the original warranty if they are going to break. Normal wear items are not covered so the likelyhood of you ever cashing in on your warranty is pretty slim.

TerminaderTL

I would rather keep the US$1300 and invest it. In four years, if I need it, I can use it to pay for repairs...

Moosh

Do you guys have any idea how much an extended warranty could cost if we wait until the end of our factory 4 year 50,000 mile warranty? Will it be significantly more than $1200?

vp911

Check with curry acura, I believe they sell them online http://www.curryacuracare.com/# They give you a price quote there and I *think* if memory serves me correctly, it will adjust for the # of miles you have on your car.

prashants17

Keep in mind Acura dropped from number 3 to 17 on JD power, reason was bunch of transmission problems in 02-04 models, now the 3rd gen. has been ok, but remember one major screw up and you end up with a bill of 2K or more, I would buy a extended company warranty, and Tyre warranty from discount tyres.

Moosh

If I call Curry Acura and buy the warranty through them, will I be able to go to local dealerships as if I purchased the warranty through the local dealership?

vp911

Yes. It is an acura warranty, you can use it at any acura dealer.

Moosh

Do you get rentals with the extended warranty?

vp911

Yes - I think it is limited to only a few days while it is in for warranty repair.