Thursday, August 18, 2005

A Few Tips for Extended Car Warranties

If you're searching for a new or used extended auto warranty, knowing a few important things can help you save money. has several articles discussing car warranties. Here are some tips that I found useful:

  • If you're considering an manufacturer's extended warranty, check prices at several dealerships. Don't hesitate to ask about their markups and to negotiate for the best price.
  • Beware of dealers pushing aftermarket car warranties. They usually only offer these to make more money.
  • Some extended warranties have buy-back clauses that allow you to get some or all of your money back if you don't use the contract.
  • If you don't have an extended warranty, you sometimes can get after warranty assistance from a dealership if you've dealt with the dealer for maintenance and have kept the car well maintained.

One of the articles gave an example for a Honda car warranty. The exmaple included a 2000 Honda Odyssey. The Honda Manufacturer's Limited Warranty that came with the purchase was the typical 3 years/36K miles. The manufacturer brand Honda extended warranty ranged from a retail price of $1435 that covered 7 years/100K miles with $0 deductible to a price of $965 for 4 years/60K miles and $50 deductible.

It gave an example of a comparable aftermarket Honda extended car warranty. In that case the maximum price was $1072 for 5 years/100K miles with a $100 deductible. The other options were comparable in price with different year and miles.