Questions and Answers
My Honda dealership is offering an extended warranty package. The comprehensive plan includes all major components (transmission, engine, suspension etc) plus other items such as A./C, radiator, door latches etc. A 6 yr/100,000 km warranty is available for $563 or 7 yr/160,000 km for $983 (Cdn $$).
Extended Warranties
Q. Hi there! I have a 2000 Honda Civic SE which comes with ABS brakes, A/C, power locks and automatic transmission. I currently have 10,000 km on it. I use my car mainly for driving in the city so I don't put on a lot of mileage and I am a very careful driver.
I have been checking the internet for comments on reliability and performance of Honda Civics. I have found very little information on consistent problems Civics experience, especially the newer models. I have not heard of anyone experiencing any major problems within the first few years of owning a Civic. As you have probably come across more issues and concerns with Civics, do you know of any major problems Civics consistently experience and can you offer any advice weather it would be worth it to purchase extended warranty?
Thanks for any info and advise you can offer,
JulieA. Let me tell you a little story about an extended warranty I was offered. I bought a GE air conditioner for my house and it came with a five year parts and labor warranty. About two weeks later I got a call from GE offering to sell me an extended warranty for it. It was a five year parts and labor warranty for the amazingly low price of $338.00. As Eddied Murphy used to say "WOW! What a bargain!!" I said I would be glad to purchase it after the current warranty on the unit expired. She told me that I would not be able to get it after my current warranty expired, it was a "limited time offer." Gee, wish I had a dime for every time I heard that. I said okay, I'll buy it today as long as the effective date was the same date my present warranty expired. She said she wasn't allowed to post date a warranty. So I said "Thanks, but no thanks." They offered me the same exact warranty that was already covering the unit. Why should I pay for a warranty that I already got for free simply by purchasing the item?
It's almost the same for extended vehicle warranties. Most times the extended warranty on a car goes past the base warranty of the car, so it's not entirely a bad thing.
Say you buy this extended warranty and you're driving along and the engine blows up. You have 30,000 miles on the car and you have it towed to the dealer and they replace the engine. The dealer submits the claim to your extended warranty company and they say it's covered under the Honda warranty so they kick it back to Honda who pays for the replacement. The warranty company got your money, but they didn't do anything for you because the Honda warranty was still in effect. I've seen it happen, this is a normal part of doing business. Why should they pay for something when they can get someone else to pay for it?
I'm not saying you shouldn't buy an extended warranty, I just want you to be aware of how they work. It may sound cheap, but you need to do a little math to get the true cost of the warranty. Take the base warranty of the car, generally 3 years 36,000 miles (whichever comes first) and subtract it from the warranty you are purchasing. Lets say, for arguements sake, 6 years 100,000 Kilometers or 62,137 miles. Subtract the base from the extended and that is what you are actually getting for your money. In this example, 3 years and 26,137 miles. Not as cheap as it was a few minutes ago, was it?
Let's take it to the next level, 7 years 160,000 kilometers or 99,419 miles. Now you get 4 years and 63,419 miles, but the cost is almost double. Funny how that works out. I don't know of any warranty company that will cover a car after 100,000 miles. They know that after that milage, things will start breaking down and it could run into big bucks to repair.
A lot of people keep a car until the base warranty expires and then trade it in on a new car, so they don't need an extended warranty. Or they have a three year lease vehicle that they turn back in at the end of the lease. Again, they don't need it. If you plan on keeping your car for a few years, then an extended warranty is a good idea. It will probably pay for itself the first time you use it.
As far as your particular car goes, the Civic is a solid well built car. They have few inherent problems and should give you many years of dependable use. However, when something does go wrong, it is usually expensive. For example, after five years the alternator goes bad. You have the Mitsubishi alternator and it is $751.38 and the labor to replace it is $100.00. The warranty has paid for itself with interest.
Before you buy it, make sure you understand it completely. Find out exactly what is covered and what is not. Find out if towing and rental cars are covered. Find out where the warranty is honored. Most warranty companies are nationwide but I have seen some that are dealer specific. Not much good if the dealer is in New York and you move to California. If it is offered by Honda, then it will be honored at any Honda dealer. Find out if the coverage will pay if you take your car to your local mechainc. Chances are your local guy can't submit a claim and it will be up to you.
In short, ask a lot of questions and look it over very carefully. Knowledge is power and can save you money in the end.
