I purchased a 2017 MT EX new about a month ago. I initially purchased Hondacare but then decided to cancel the contract. It was $1522 for 8yrs/100 miles I believe. I just think the 5yr/60k power train should be sufficient.

 

I did purchase an extended warranty but it was with another outfit (can't remember the name off the top of my head) for around $1200 for a 4 yr 100,000 mile coverage. It paid for itself a few months ago when repairs were needed on my Fit, since the factory warranty had expired. I knew I would be driving a lot miles early on so I wanted the extra coverage. So for me it worked out. But I think most people won't need it.

 

I don't do new car warranties, instead I self insure. Chances are you won't need it and are paying for the just in case. I'd rather pocket the money.

I do the same with home warranties. They typically charge around $50 a month but at the end of the year you have nothing to show for it. Instead I put $50 a month away in a separate account. After a year there is $600. A few years of no issues and you'll have several thousand dollars.

So I do the same with my car fund. I squirrel away a little bit a month and when something needs fixing, I just pull it out of there instead of my regular checking account.

 

When I asked this forum whether the extended warranty was worth it, the consensus was no. I didn't get it, so far so good at 25K miles and 3 years.

 

It's a Honda, so no. And I also do what 2Rismo2 does - squirrel away the money that I would have paid for the extended warranty and gain interest at the same time.

 

i never buy extended warranty. you can buy 3rd party ext warranty near end of warranty if you want..
one of those BS things finance guys try to sell u.

 

I agree with all of the above.

The only exception to the warranty rule is if you have a vehicle that is known to likely have costly repairs. You still don't buy the warranty until the factory warranty is near expired though. No reason to pay for something that you won't use for at least 3 years.

 

Put the money in a managed investment fund, if you havent used it by the time you get rid of the car, put it in a 401K...

 

I personally would avoid purchasing that vehicle lol

 

Sometimes either the heart or necessity wins out.

Think of a sport model BMW or a diesel truck. Neither are near as reliable as a cheap Honda or Toyota, but they both have their place in the marketplace.

 

Extended warranties are very profitable for the issuers. Since a contract is a two way street, they win and the consumers lose most of the time.

 

I guess there's the reason I've never owned either

I get what you're saying though.

 

I agree about price, but not reliability. Had a 98 Dodge with a Cummins Diesel engine. Drove it 175K before selling it because it wasn't needed anymore. Oil changes, air filter changes, one set of brakes and tires were the only maintenance items needed during my ownership. Got 18 mpg whether I was driving in town, on the highway or pulling my enclosed trailer with my car inside. Too bad Honda didn't make a truck that could do that? Because it would be so much more reliable and require even less maintenance. LOL. Go drink some more Koolaide

 

From a retailer's point of view, extended warranties are almost pure profit margin. Doesn't matter whether you're buying a car, a stereo or a toaster, it's all the same. No wonder retailers try to talk you into one. The margins on an extended warranty can often exceed the margins on the item itself. Think about that.

And bundling the cost of extended warranty into a multi-year car loan...well, now you're essentially paying for that warranty twice when you consider the accrued interest.

 

Everyone has different experiences, but here's mine...

I owned a '96 Chevy 6.5 diesel. Injector pump issues every 30,000 miles. Then had a '99 Ram 1500 non-diesel. Dash cracked in half sitting in the driveway. Power window motors/regulators failed. Transmission problems, A/C issues...on and on. Traded it in on an F250 Superduty Powerstroke. No more problems with poor build quality Dodge junk, but then had injector issues and ultimately blew head gaskets due to poor design. ARP head studs and removal of the EGR fixed it, but was glad warranty picked up the expense.

One of my best friends is replacing the junk automatic in his '05 Ram 3500 Cummins at under 60,000 miles as I type this. His has also had issues with interior switches/motors/plastics breaking.

The Cummins motor will last forever. Rest of truck falls apart around it. Well known by anyone that has owned them.

I still like trucks and will own another, but they are not as trouble free as a cheap econobox in my experience.

 

I'd rather buy a factory warranty at the beginning of a term than a third party one at the end. I won't touch a third party warranty.

All a Honda factory extended warranty does is extend the factory coverage. You can also negotiate the cost. I bumped my 2015 Si up to 4 years and 100K for $300. Of course I'm at 84K and have had zero issues but still, it was only $300. I'm getting one on my 2018 Fit as well. Especially with these possible Di issues.

I never buy a warranty for anything else because yes, as mentioned above they are pure profit but a factory warranty on a car only requires a couple of things to go wrong for it to pay for itself. I didn't buy one on my last two Mazdas because, one was a lease and the other was my MX-5 which I knew I would be modifying anyway. Even with the mods, zero issues in 104K.

 

You can buy OEM warranties at the end of the bumper to bumper. Doesn't have to be aftermarket.

 

I'm not sure that I knew that. Good to know.

 

Dealers don't tell you that minor detail.

Especially better if you are financing the vehicle. Saves from paying interest on a warranty that you can't physically use for 3 years.

Honda Extended Warranty | Honda Care

I'm not sure how pricing compares on new vs used for Honda. With Ford warranties, it's about the same.

 

There is a mileage cap for doing the extension warranty as well,, so check that.. On my Jeep it was 25,000.. But that was years back.. I never did it, had it too modified by then.. LOL