Savvy Shopper: What's Your Guarantee? Comparing New Car Warranties
Honda's cars, such as the Fit, have short warranties because they have a reputation for reliability.
The strength of a new car warranty is something most shoppers don't think of until they are signing the sales contract. And they think of it then because the dealership's finance manager tries desperately to ram an extended warranty down their throat.
The time to think about the warranty is before you start car shopping. And the best way to do this is to review our warranty and roadside assistance chart . Take a moment to click the link and scan the chart. Then I have a quiz question for you.
Now, here's my followup question. Why do all these popular brands have such bad warranties? Because they have found that they don't need to offer a better warranty to sell their cars. In other words, their reputation is their warranty.
So now we arrive back at the ultimate question of whether to buy an extended warranty from the F&I manager trying to shove one down your throat. Here's how to answer that question:
1. Review the chart and understand what is included with the car for free
2. Estimate how long you will keep the car
3. Make a guess about what is likely to break, when and how much it will cost to have it repaired
4. Ask yourself if you are willing to take a gamble to keep your money in your pocket
A friend of mine (a woman I might add) said that when it comes to extended warranties, "I roll the dice." Another friend said, "I've never lost money buying an extended warranty." One friend is hoping the car won't break down while the other is hoping it will break.
Which friend are you most like?
- Posted by
- Philip Reed November 1, 2009, 12:00 AM
- Permalink
- Categories:
- Car Buying, Car Warranty
I have purchased extended warranties on my last two cars. Far from "hoping the car will break down", what I am actually doing is nullifying Murphy's Law.
I noticed that you used a Honda Fit to illustrate this post. Considering that your own (previous) long-term Fit required a transmission replacement, how much of that expense would Honda's "reputation" have covered if the failure had happened out of warranty?