Just bought a 2013 honda odyssey Ex-l. The dealership offered an extended warranty for $2500 down from $3500. Uh NO thank you. I got a quote for honda car from Hyannis for 8/120 o ded at $1330. Trying to justify the additional expense. Why did you decided to buy or not to buy the honda care? This is my first new car purchase ever. I have had a prelude and an accord in the past and they were great used cars.
Minimomma
Statistically speaking extended warranties do not pay off. Honda knows very well what the average repair costs will be for every age/mileage stop along the way, meaning they know what the average repair costs are for 3yr/36K miles of the standard warranty, and they know the average costs for 8yr/120K miles. Since they know that they are going to price the warranty at more than that. They will not intentionally lose money. Now the cost that Honda sets is the dealer cost and the dealer will not sell the warranty for no profit, so now there are two mark ups in the cost you pay for the warranty above the expected repair costs. With the warranty cost based on the AVERAGE repair costs, if you buy the warranty you are betting that your van will need MORE repair than the average van. My '06 cost me $35 in non-maintenance repair from 36K to 120K miles, so every penny over $35 spent on an extended warranty would have been wasted in my case. Obviously an average is arrived at by finding the middle of both extremes, so somebody with an '06 had $3000 in repairs to make up for my very low repair van.
Of course there are other factors to consider. Will a $500 or $1000 repair while you are still making payments wreck your household budget because you live paycheck to paycheck? Do you just sleep better at night knowing you won't have any surprise car expenses? There are personal reasons that people buy extended warranties that all the facts in the world won't dissuade them so it really is just a personal decision as long as you understand the fact. JMO of course.
PS, you may ask the dealer if the warranty cost is different based on the model. If so everything is equal. If the price is the same across all models and you have a Touring or an EXL-NAV or RES you are getting a better deal on the warranty than if you were buying it on an LX or EX without all the expensive electronics.
Of course there are other factors to consider. Will a $500 or $1000 repair while you are still making payments wreck your household budget because you live paycheck to paycheck? Do you just sleep better at night knowing you won't have any surprise car expenses? There are personal reasons that people buy extended warranties that all the facts in the world won't dissuade them so it really is just a personal decision as long as you understand the fact. JMO of course.
PS, you may ask the dealer if the warranty cost is different based on the model. If so everything is equal. If the price is the same across all models and you have a Touring or an EXL-NAV or RES you are getting a better deal on the warranty than if you were buying it on an LX or EX without all the expensive electronics.
If you have a tool kit and know a breaker bar from a 1/2" ratchet you'd be better off putting that amount in a lock box for repair work.
My 03 has 200k on it and I've yet to spend the amount a 100k HondaCare would cost on repairs that would have been covered.
But if you're the type that finds replacing an engine air filter intimidating, it might not be a terrible choice. You're considered a "mark" in the auto repair business, so you might as well pay now instead of paying later.
My 03 has 200k on it and I've yet to spend the amount a 100k HondaCare would cost on repairs that would have been covered.
But if you're the type that finds replacing an engine air filter intimidating, it might not be a terrible choice. You're considered a "mark" in the auto repair business, so you might as well pay now instead of paying later.
How long do you typically own vehicles and for how many miles? I normally keep a car 5-7 years and about 50-70K miles. I have never purchased an extended warranty and have never needed it, as it won't cover the majority of wear and tear issues anyway.
Now if you are likely to keep the car 8 years and into 100K miles, perhaps it is worth the cost. At any rate don't feel pressured to buy any type of extended warranty right away, I was still getting offers well into 5 years and 50K miles.
Now if you are likely to keep the car 8 years and into 100K miles, perhaps it is worth the cost. At any rate don't feel pressured to buy any type of extended warranty right away, I was still getting offers well into 5 years and 50K miles.
It's a dice roll. With the sophistication of todays vehicles and $125+ per hour labor rates. You can rackup a large bill quickly. I popped for it out of fear of transmission, sliding door, electronics or who knows what. Because I drive 40K a year, my 120K policy will cover me for two more years.
I'm faced with what to do with my wife's car as she's creeping up on 36K on a trouble free ...so far car.
I'm faced with what to do with my wife's car as she's creeping up on 36K on a trouble free ...so far car.
Its a $1300 life insurance policy for me. 8 years/120,000, I know I am covered if something flukey happens, I plan on having the dealer do all the maintenance, when the little light tells me to do it, this way I know I have some ammunition should something go, plus the dealer is fairly priced for oil changes and stuff like that...
The 100-200% markup prices dealers try to charge on OEM warranties are awful, and I'd never pay them, but if you do what you did and find a good internet dealer willing to sell you an OEM warranty for a small/fair markup, then I think they're a good idea.
I know people here are saying even with the big discounts you'll lose money on average, but I think one thing they're not considering is that when Honda Financial pays a warranty claim out on your warranty, they're paying the dealership less than half as much as you are for labor and even less for parts. When you pay a dealer for an out of warranty claim, you usually pay retail rates for parts and labor... but dealers don't get to make nearly that profit margin on warranty claims.
So yes Honda makes money selling you the warranty, but that doesn't necessarily mean you're on average going to lose money by buying the warranty.
Aside from all that... I tend to buy them because I value the peace of mind. I tend to get OCD about funny noises and vibrations coming from a car. Knowing it's under warranty basically clears my mind of any worries and I can just say "if it breaks, it's Honda's problem" and move along.
I know people here are saying even with the big discounts you'll lose money on average, but I think one thing they're not considering is that when Honda Financial pays a warranty claim out on your warranty, they're paying the dealership less than half as much as you are for labor and even less for parts. When you pay a dealer for an out of warranty claim, you usually pay retail rates for parts and labor... but dealers don't get to make nearly that profit margin on warranty claims.
So yes Honda makes money selling you the warranty, but that doesn't necessarily mean you're on average going to lose money by buying the warranty.
Aside from all that... I tend to buy them because I value the peace of mind. I tend to get OCD about funny noises and vibrations coming from a car. Knowing it's under warranty basically clears my mind of any worries and I can just say "if it breaks, it's Honda's problem" and move along.
Have you tried the dedicated warranty forum? The question of if the extended warranty is worth it or not has been kicked around several times over.
Well, if you are past your warranty you don't have to use Honda service to do the work. I have several experienced trusted mechanics that are typically much cheaper than the dealer for work.
I have been lucky, my 06 Odyssey has been a complete rock. Outside of normal prescribed maintenance, we have replaced all the tires once (van is just shy of 70K miles), replaced the battery once (we now live in Minnesota where it is hell on batteries), and that has been it. Even the rotors and pads are the originals (we were at 50% pad at 55K).
In my case, since we are going to be selling the Odyssey, the extended warranty would have been a loss. But again, we don't keep vehicles past 5-7 years typically. If I drove them until they died the extended warranty would make much more sense to me.
I have been lucky, my 06 Odyssey has been a complete rock. Outside of normal prescribed maintenance, we have replaced all the tires once (van is just shy of 70K miles), replaced the battery once (we now live in Minnesota where it is hell on batteries), and that has been it. Even the rotors and pads are the originals (we were at 50% pad at 55K).
In my case, since we are going to be selling the Odyssey, the extended warranty would have been a loss. But again, we don't keep vehicles past 5-7 years typically. If I drove them until they died the extended warranty would make much more sense to me.
I bought the 10 year/120k package back when I got my 07 and it was worth every penny of the $1,100 I paid for it.
So far it has covered 2 struts, motor mounts (destroyed because of the two locked up struts), 3 power steering pumps, 2 A/C units a master cylinder and one transmission.
I got either a Monday van or a Friday van. Either way, it was a lemon. Were it not for Honda Care, I would have been looking at close to $10k in repairs.
Note: All of these issues cropped up AFTER the factory warranty expired.
I now own a 2012 Touring. Why did I buy another Honda after all that crap? Despite all the issues I had with the 07, Honda has treated me well.
Still have the 07 too... it's paid for and still has 4 years and 40K worth of Honda Care warranty left.
So far it has covered 2 struts, motor mounts (destroyed because of the two locked up struts), 3 power steering pumps, 2 A/C units a master cylinder and one transmission.
I got either a Monday van or a Friday van. Either way, it was a lemon. Were it not for Honda Care, I would have been looking at close to $10k in repairs.
Note: All of these issues cropped up AFTER the factory warranty expired.
I now own a 2012 Touring. Why did I buy another Honda after all that crap? Despite all the issues I had with the 07, Honda has treated me well.
Still have the 07 too... it's paid for and still has 4 years and 40K worth of Honda Care warranty left.
Don't forget, you are only guaranteed a loaner while your vehicle is down if you have HondaCare. If you don't have HC, they don't have to give you one.
The more expensive the purchase is, the more value the extended warranty has. I work in the automotive field, and I see how much electrical components are (e.g. module for smart cruise control/frt parking sensors on a Hyundai Genesis. ehh, couple hundred bucks right. Nope, $5,700, part only). Since buying a Touring Elite, and all the gizmos it has, there was no way I was going to go without an extended warranty. Especially since we plan on keeping the van for awhile.
Plus, be aware for extended warranties from outside companies. They aren't worth the cheaper price. They don't cover very much compared to the extended warranty from the manufacturer. (e.g. again. Almost all of them I see will cover power steering LINES, but not HOSES. Well, the power steering pressure HOSE is the most expensive of the 3 or 4 hoses or lines in the p/s system. Also, seatbelts are almost never covered by them either) And if you need an engine or transmission, I hope you like getting used, because 99% of the time they'll only pay for a junkyard one.
The more expensive the purchase is, the more value the extended warranty has. I work in the automotive field, and I see how much electrical components are (e.g. module for smart cruise control/frt parking sensors on a Hyundai Genesis. ehh, couple hundred bucks right. Nope, $5,700, part only). Since buying a Touring Elite, and all the gizmos it has, there was no way I was going to go without an extended warranty. Especially since we plan on keeping the van for awhile.
Plus, be aware for extended warranties from outside companies. They aren't worth the cheaper price. They don't cover very much compared to the extended warranty from the manufacturer. (e.g. again. Almost all of them I see will cover power steering LINES, but not HOSES. Well, the power steering pressure HOSE is the most expensive of the 3 or 4 hoses or lines in the p/s system. Also, seatbelts are almost never covered by them either) And if you need an engine or transmission, I hope you like getting used, because 99% of the time they'll only pay for a junkyard one.
I purchased my 06 EXL new and purchased honda care (7 years 112 miles) I just traded it in with 94 k and still had 4 months left on honda care.
In the 7 years we had both lower control arms replaced, both middle rollers on the sliding doors replaced, knock sensor, power steering reservoir twice , power steering pump, and cat. converter heat shield replaced. So it paid for me without a doubt. I just traded in the 06 for a 13 exl res. Im shopping for the 8 /120 plan
In the 7 years we had both lower control arms replaced, both middle rollers on the sliding doors replaced, knock sensor, power steering reservoir twice , power steering pump, and cat. converter heat shield replaced. So it paid for me without a doubt. I just traded in the 06 for a 13 exl res. Im shopping for the 8 /120 plan
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