Should you buy the extra insurance from the dealership?

[Anonymous]

I am buying a new Honda. I am wondering if I should also buy the extended warranty on the car (is it what they call "Gap insurance"). I already have comprehensive coverage with State farm.

[Anonymous]

anyone?

[Anonymous]

You should have comp and collision on your car. The extended warranty usually covers things NOT covered by insurance, so it's a personal decision as to whether it's worth it to you.

[Anonymous]

No, you should buy gap insurance from your insurance agent. It will be much, much cheaper.

[Anonymous]

GAP insurance isn't an extended warranty. If the car gets totaled, then the insurance company will pay you x for it. If the car is fairly new, then it might be worth less than you still owe on the loan/lease. So, if you are financing for 5 or 6 years and not putting much down, then yes, you should get GAP insurance.

[Anonymous]

Buying insurance from a car dealership is usually not a good deal. Check with your insurance company and see if they offer comparable coverage. If so, there is a reasonable chance that it is cheaper than what the dealership offers.

[Anonymous]

Extended warranty? No. I bought a new CRV b/c I wanted a reliable car. They are looking to make back some of the money they didn't get on the sales price.

They will give you the song and dance about how the cars now are so computer-dependent and that's really expensive to fix if it goes bad, blah, blah.... I was really close to falling for their pressure to buy it... but I held out and I'm so glad I did. I think I said something like "well, it'll cover X" and I was thinking it might be worth it. And the guy said, "X isn't covered."

That's what snapped me out of the trance they were putting me in to get the extended warranty.

You are better off not buying it. Worst of all is to finance the extended warranty!

[Anonymous]

I always tell them that if the car is such a POS that I need an extended warranty I should probably find another car to buy.

Seriously, don't buy anything extra from the dealer. Anything they are offering you can find a better deal on outside of the dealership plus you will actually have the time to evaluate multiple competitors and make your decision on your own timeline.

[Anonymous]

If you must have the extended warranty, make sure it is from the manufacturer. HondaCare is fully portable, so you can buy it from any dealership and use it at any dealership. Saccucci Honda and Curry Honda sell it on a volume basis and will usually be 1/2 of what your dealership charges.