Car warranty. Thoughts?

[UteStar]

So, what would you do:
2007 Acura MDX with Navigation and all of those goodies. It has around 60,000 miles. Dealer has offered an extended warranty of 4 years/48,000 miles for $2000. This would take care of all electronic issues (navigation, dvd, cd, radio), heating and air condition, Engine and Transmission issues. Parts and Labor. You pay $50 deductible per visit. So, if Air Conditioning and something else is wrong and I bring it in - it costs just $50 to fix one or three problems.

If I am within 40 miles of this Acura Dealer, I need to take my car to them. If it is further away, I can take it to anyone as long as I call it in (I am assuming that they will direct me to a shop, within 40 miles of where I am stuck. Roadside assistance is included in it. This warranty would take my car to around 110,000 miles.

Thoughts?

[cougjunkie]

So, what would you do:
2007 Acura MDX with Navigation and all of those goodies. It has around 60,000 miles. Dealer has offered an extended warranty of 4 years/48,000 miles for $2000. This would take care of all electronic issues (navigation, dvd, cd, radio), heating and air condition, Engine and Transmission issues. Parts and Labor. You pay $50 deductible per visit. So, if Air Conditioning and something else is wrong and I bring it in - it costs just $50 to fix one or three problems.

If I am within 40 miles of this Acura Dealer, I need to take my car to them. If it is further away, I can take it to anyone as long as I call it in (I am assuming that they will direct me to a shop, within 40 miles of where I am stuck. Roadside assistance is included in it. This warranty would take my car to around 110,000 miles.

Thoughts?

It is an Acura I would pay it.

[falafel]

I would do it. $2000 is not much to secure your car over 100k miles. Lots of stuff can go wrong in that range that will cost more than $2000. And the work is done by the dealer, so you can use that info if you end up reselling it.

[Donuthole]

It is a gamble. They wouldn't be offering it if they didn't think they'll make money off it in the long run. Of course, they're not banking solely on your warranty, but that they will pay out less than they take in for the total warranties sold. Essentially, you are paying $2000 for peace of mind.

[falafel]

It is a gamble. They wouldn't be offering it if they didn't think they'll make money off it in the long run. Of course, they're not banking solely on your warranty, but that they will pay out less than they take in for the total warranties sold. Essentially, you are paying $2000 for peace of mind.

Its hard to know exactly what is covered by the warranty without reading it, but I think its a pretty sure bet that he'll have over $2k in repairs on the car in the next 48k miles.

[Donuthole]

Its hard to know exactly what is covered by the warranty without reading it, but I think its a pretty sure bet that he'll have over $2k in repairs on the car in the next 48k miles.

You're right, they are not planning on making money on the warranties. They are looking to save their already-purchased-a-car customer some money.

In other words, I don't think it's a "pretty sure bet" at all.

[Moliere]

So, what would you do:
2007 Acura MDX with Navigation and all of those goodies. It has around 60,000 miles. Dealer has offered an extended warranty of 4 years/48,000 miles for $2000. This would take care of all electronic issues (navigation, dvd, cd, radio), heating and air condition, Engine and Transmission issues. Parts and Labor. You pay $50 deductible per visit. So, if Air Conditioning and something else is wrong and I bring it in - it costs just $50 to fix one or three problems.

If I am within 40 miles of this Acura Dealer, I need to take my car to them. If it is further away, I can take it to anyone as long as I call it in (I am assuming that they will direct me to a shop, within 40 miles of where I am stuck. Roadside assistance is included in it. This warranty would take my car to around 110,000 miles.

Thoughts?

Go to wall street and protest until they give it to you for free.

[falafel]

You're right, they are not planning on making money on the warranties. They are looking to save their already-purchased-a-car customer some money.

In other words, I don't think it's a "pretty sure bet" at all.

Like that's what I said.

I think the bet comes from whether people haul their cars in for whatever little thing. People are lazy. If their older car is still driving, they'll put off having repairs done, even if its only $50.

I think car warranties are more like gift cards. They're betting people won't actually use them.

[Color Me Badd Fan]

So, what would you do:
2007 Acura MDX with Navigation and all of those goodies. It has around 60,000 miles. Dealer has offered an extended warranty of 4 years/48,000 miles for $2000. This would take care of all electronic issues (navigation, dvd, cd, radio), heating and air condition, Engine and Transmission issues. Parts and Labor. You pay $50 deductible per visit. So, if Air Conditioning and something else is wrong and I bring it in - it costs just $50 to fix one or three problems.

If I am within 40 miles of this Acura Dealer, I need to take my car to them. If it is further away, I can take it to anyone as long as I call it in (I am assuming that they will direct me to a shop, within 40 miles of where I am stuck. Roadside assistance is included in it. This warranty would take my car to around 110,000 miles.

Thoughts?

Don't do it. The transmission and air conditioner aren't going to be breaking on that thing -- those are the two big expense items. Otherwise, think of how much you would spend in car repairs on other items. Honda/Acura don't have too many problems with electronic issues.

[Color Me Badd Fan]

Its hard to know exactly what is covered by the warranty without reading it, but I think its a pretty sure bet that he'll have over $2k in repairs on the car in the next 48k miles.

Really? I'm not so sure about that. 110k miles on an Acura is nothing.

[Green Monstah]

I got a 125K (brand new) warranty for 3k. He may not be able to, but I'd try to push for 65k miles at the same price.

[falafel]

Really? I'm not so sure about that. 110k miles on an Acura is nothing.

I admit I haven't owned an Acura into that mileage (or at all), but I've had a Honda that had some major engine issues at around 90k. It was older than this car, though.

[Green Monstah]

I admit I haven't owned an Acura into that mileage (or at all), but I've had a Honda that had some major engine issues at around 90k. It was older than this car, though.

Was it a timing belt issue? Honda's were notorious for that in the late 80s and 90s.

[falafel]

Was it a timing belt issue? Honda's were notorious for that in the late 80s and 90s.

No, and I'm pretty sure that wouldn't be covered by any extended warranty.

It was an issue with the cylinders. 2 of the 4 lost their spark (or whatever, I'm not a car guy). It felt like I was driving a golf cart.

[mUUser]

As an alternative, if you have a favorite independent mechanic you like, call and ask them if there's a third party warranty they have had success with. Then check the cost of that third party warranty. My experience is that it costs less than dealer warranties.