Originally posted by: thomsbrain
Originally posted by: bctbct
Originally posted by: skyking
We got one with our new Pilot. It was about $1100, and if we do not use it, we get the money back at the end of the period. That is not a bad gamble when you consider the cost of one transmission/transaxle repair could go 3 grand or more. I can stand losing the interest on 1100 for the peace of mind it gives to my wife
Something about this seems weird, mostly the part about them giving your money back. Sure you didnt get confused that you could cancel and get a portion of the money back on a prorated basis?
no, he is correct. they will give the full amount back to him at the end of the period. Honda are so confident that the car won't break that it's basically an interest-free loan for them, and still a no-brainer deal even though they have to give the principle back in a few years. for the consumer, it works out to very cheap insurance. personally, i still wouldn't buy it because i know i'd never need it on a honda.
edit: it's also good for honda because you'll likely FINANCE that extended warranty, meaning you're PAYING interest on the cost of it, versus making interest investing it yourself. so honda earns interest from you, and as you're making the payments, they're building principle with which they can earn interest from the banks, then they give you back your principle, and dance around in all the money that should have been yours.