Warranty worth it?

[jeff3_l]

Hi all, first time poster here.

So I just ordered my new 2017 Hatchback LX...very excited. Then came the question of the warranty. Here in Canada we get 60,000km (37,500miles)/3yr bumper to bumper and 100,000km (60,000miles)/5yr warranties with the vehicle. First, mind you, I get 50% off the regular warranty price because I knew some people at Honda.

With that in mind, do you think the warranties are worth it? What does the extended warranty cover over and above the powertrain warranty?

Also I drive a decent amount and will likely put +30,000km on it a year.

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[bembol]

If you get 50% off why not, as for what it covers no need to guess as it EXTENDS the manufacturer's warranty right?

 

[SteveGG]

Hi all, first time poster here.

So I just ordered my new 2017 Hatchback LX...very excited. Then came the question of the warranty. Here in Canada we get 60,000km (37,500miles)/3yr bumper to bumper and 100,000km (60,000miles)/5yr warranties with the vehicle. First, mind you, I get 50% off the regular warranty price because I knew some people at Honda.

With that in mind, do you think the warranties are worth it? What does the extended warranty cover over and above the powertrain warranty?

Also I drive a decent amount and will likely put +30,000km on it a year.

In view of the sophisticated electronics (digital speedometer et al), I extended the 3 years up to 7 .

 

[Browncoat3000]

I agree, unless the warranty has some absurd depreciation it's a cheap piece of mind.

Hypothetically, let's say it costs $1000, over 5 years that's $20 bucks a month or so. Now 4 years in you've got 120km on the car. When I had my Jetta, the rear drum brake had corroded and essentially become stuck on just a little bit. I drove it for who knows how long like that before I noticed that the rear rims were becoming scorched with heat. I took it in and VW's warranty covered everything except the ruined pads. It would have been a $2800 repair with labor.

 

[neffster]

It's an odds game. Those who SELL the warranties end up making money or else they would not sell them. They make money at the expense of those who BUY the warranties. Personally, I chose not to buy warranties on new vehicle purchases.

Here is a list of vehicles I've purchased for myself and my family. Not once did I get a warranty, only once would I have come out ahead.

1985 Dodge 600 - purchased used, no warranty option at the time
1992 Saturn SL1 - 164,000 miles, no issues
1996 Saturn SL2 - 68,000 miles, major transmission issues. Spent between $1,000 and $1,500 to fix it. The 'fix' never worked after SIX attempts - thanks for nothing AAMOCO.
1998 Honda EX V6 - 98,000 miles, sold when the transmission started leaking
2001 Toyota Sequoia - 225,000 miles, no issues - still own
2004 Infiniti G35 Coupe - 27,000 miles, no issues, heavily modified, totalled
2006 Toyota Tacoma - 70,000 miles, no issues, heavily modified
2015 Ford F-150 - 22,000 miles, no issues - still own
2016 Honda Civic- just purchased, 1,000 miles, no issues

If the average cost was $1,000 per warranty that would have been $8k spent and I've saved at least $6k by not purchasing one. If the cost was higher, I might have saved even more.

The trick is to know what TSBs are available and at 35,000 miles go to your dealership and have EVERY SINGLE ONE performed. That way the known issues are fixed for free under warranty. Whatever the symptom in the TSB is, tell the dealership you have it and demand they fix it. You should have many trouble free miles ahead of you afterward.

YMMV.

 

[Browncoat3000]

It's an odds game. Those who SELL the warranties end up making money or else they would not sell them. They make money at the expense of those who BUY the warranties. Personally, I chose not to buy warranties on new vehicle purchases.


1992 Saturn SL1 - 164,000 miles, no issues
1996 Saturn SL2 - 68,000 miles, major transmission issues. Spent between $1,000 and $1,500 to fix it. The 'fix' never worked after SIX attempts - thanks for nothing AAMOCO.


2006 Toyota Tacoma - 70,000 miles, no issues, heavily modified
2015 Ford F-150 - 22,000 miles, no issues - still own
2016 Honda Civic- just purchased, 1,000 miles, no issues



The trick is to know what TSBs are available and at 35,000 miles go to your dealership and have EVERY SINGLE ONE performed. That way the known issues are fixed for free under warranty. Whatever the symptom in the TSB is, tell the dealership you have it and demand they fix it. You should have many trouble free miles ahead of you afterward.

YMMV.

You are absolutely right, it IS totally a numbers game and Honda's are a safe bet, that's for sure.

Nice to see a fellow Saturn owner. My Ringchild SL-2 gave me no problems, but passing 50k miles oil consumption was rising, a sure sign that she had the dreaded valve-guide rot that plagued the twin-cam engine.

I traded it for a first-gen Durango. I had it 5 years, and if I hadn't gotten the 2 year extension it would have eaten me alive in the last 2 years. Even so, it managed to strand my pregnant wife and young kids on the side of the road in winter. That was the last straw, 3 weeks later I had my first Honda Oddy.

It's true, in that time I've never really needed more than the basic warranty, but only one of my Oddy's really got rode as hard as the OP is describing.

Oh, my VW came with a 10/100k power train and a 7year bumper-to-bumper. The brake issue happened at 55K. I flew uncovered for 3 years and it had electrical issues in that last 3 years that would have cost more than the extended warranty but I traded it in on my first Civic before I couldn't live with the problem. (The cabin blower only worked in high or off, due to a corroded electrical box.)

 

[Negan]

I don't think extended warranties are worth it. As Neffster said, the warranties are profitable, which means on average, the person buying one does not get enough back to make the warranty worth it.

You might benefit from it, but statistically speaking, you will come out ahead not getting one.

 

[1WickedCivic]

I get 50% off the regular warranty price because I knew some people at Honda.

At 50% off the regular price, it's cheap insurance for potential problems down the road - get the longest one you can. Mine was US$1,035 for 8yr coverage. Here is what is covered http://www.hondafinancialservices.com/static/pdf/Honda_Care_New_PreOwnCoverage.pdf (note: check for particular coverage in Canada, this is for US cars but I don't think it will differ much).

 

[DjinTonic]

I've posted elsewhere in this forum on this. Honda Care for my 2016 Touring is costing me about $135.00 a year (US) for years 4 to 8 figuring in the $66/yr (or perhaps more) for AAA that won't be needed. Would be worth it to me even if it covered only the electronics. At worst it's peace of mind; at best it might save thousands. BTW, 50% off the "regular price" is not so cheap if your dealer's regular price is about the quote my dealer gave me: $2800.00 (plus tax I think). I paid $1005.00 elsewhere (no tax) for the 0 deductible 8 yr/120K plan. Found out that my dealer's cost is $1010.00. While my dealer matched the best discount I found for the car, he would not match my lowest Honda Care offer.

 

[kirkhilles]

Well, keep in mind that if you buy one online from Saccuci or Hyannis that its likely pretty much at their cost, so based on that it's what Honda feels is somewhere close to their anticipated cost. Of course, that DOES NOT MATTER, because you are on the other side of the transaction. Unless you are managing a fleet of Civics, it becomes a game. Maybe you'll never have to visit the dealer once, maybe you'll have dozens of visits. Maybe you'll be the guy that winds up with an expensive repair.

I'm leasing it, so I'm not doing it, but if I had purchased it I certainly would have. Reasons?

- First Year of new Model: This means, lots of problems that will be addressed in later builds but could mean big out of pocket expenses for you

- Turbo: Far more complexity in engine, stress in engine, lots of expensive repairs if something happens

- Lots of brand new tech: Unlike consumer electronics, you can't just swap out a different tablet in for the screen if it fails. If its not covered from warranty, that part alone might be thousands and can't be repaired and can't be done by an independent shop.

- Lots of concern from some users: There are threads with people swearing they will never buy a first year (or even a Honda) again due to build issues. Is that a sign of larger issues? Who knows. I personally LOVE my car and have had none of the issues, but 3 years from now its quite possible that this year's Civic will be labelled as a lemon due to expensive repairs.

Of course, my understanding is that you CAN get the warranty later (as long as you are currently covered), but if I were keeping for 8+ years, $1k seems like a no brainer for me. It was still worth it for us to get it on our 2013 Pilot even though we're halfway through the warranty period and not a single warranty claim yet.

 

[03eunos]

In view of the sophisticated electronics (digital speedometer et al), I extended the 3 years up to 7 .

I'm on the East Coast of Canada and extended the warranty like SteveGG for the same reasons. Most of the stuff that is going to break is not something a weekend mechanic is going to be able to fix.

 

[MickeyDubs]

I just want to make a general statement here in regards to the "profit" of warranties.

Something you have to keep in mind is that a warranty can be profitable to BOTH parties. If a warranty repair is required, and the fix would have cost the owner $2,000, it may only cost the dealer $750 worth of parts/labor/time/overhead. While the dealer is "not getting" $1250 of profit from the repair it has only cost them $750 out of pocket. If the warranty cost $1000 then the break down is as follows

Warrenty
Dealer +$1,000
Owner - $1,000

Repair needed
Dealer -$750
Owner - $0

At the end of the day the dealer is still up $250 and the owner saved $1,000.

The argument of the dealer being out the $1250 is reasonable, but I'd say it's increased loyalty to the customer to not have them pay that money and will probably generate even more revenue further down the road.

 

[DjinTonic]

"Well, keep in mind that if you buy one online from Saccuci or Hyannis that its likely pretty much at their cost"

Not really -- the "discount" dealers are getting the policies at a lower cost than other dealers. Don't worry about them -- they are still making a profit

 

[jeff3_l]

Thanks for all the feedback guys.

For the people out there who bought a warranty, how many of you actually used the value of it and came out on top. From speaking to a few people, seems like it's been great for ease of mind, but not many never actually had to use it - with regular maintenance of course. Especially hoping that Honda's making a fairly reliable car...previous gen. owners, did you actually used the warranty for $1000+ worth of repairs?

Also, what's included in the bumper to bumper warranty that's NOT included in the Powertrain warranty? From what I understand, brake pads, brake lines, timings belts aren't included. So what is there left? Just the electronics of the car?

 

[kirkhilles]

Thanks for all the feedback guys.

For the people out there who bought a warranty, how many of you actually used the value of it and came out on top. From speaking to a few people, seems like it's been great for ease of mind, but not many never actually had to use it - with regular maintenance of course. Especially hoping that Honda's making a fairly reliable car...previous gen. owners, did you actually used the warranty for $1000+ worth of repairs?

Also, what's included in the bumper to bumper warranty that's NOT included in the Powertrain warranty? From what I understand, brake pads, brake lines, timings belts aren't included. So what is there left? Just the electronics of the car?

I've never actually filed a vehicle warranty claim as I've owned older cars, but I'd HOPE that it'd include anything other than "expected" maintenance. So, I've had radiators fail, thermostats get stuck open/close, radiator fans stop working, ignition coils fail, primary and clutch slave cylinders fail, brake calipers fail, etc. I'd also imagine that the number of problems increase beyond 60k which is why the 120k period has value. Seems like 100k is where a lot of stuff starts going wrong.

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