My warranty is about to expire...

P

ProspectiveBuyer

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I'm closing in on 36,000 miles and trying to figure out what to do. Any thoughts on whether it's worth buying an extended warranty? And how much I should expect to pay? I contacted someone in Finance at the dealership and they gave me a quote of $1950 for 5 years/100k miles or $2295 for 5 years/120k miles.
 
Guess it depends on 2 things. 1) How reliable has your Clarity been for the first 36K miles? 2) Aversion to risk?

I personally won't be buying an extended warranty for my Clarity. I put money aside in an emergency fund and use that if necessary. So far, I've never had to use those funds for car repairs and take an annual vacation on 'warranty money'. In addition, the most expensive to replace component (the main traction battery) is covered for 8 years.
 
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Depends also on if you are in ZEV state which has a longer emissions/drive train warranty.
 
I'd look at the usual suspects for factory extended warranty if you decide to get it (search to find them)--unless you're in a state that doesn't allow out-of-state sales of extended warranties (Florida?) or your dealer matches for the Honda warranty, I'd ignore your local dealer--that price is much too high.

As for the question of worth it, do your own risk calculation. I don't really buy the argument that Honda must be making money on us, so it's not worth it--while possibly true, it's also possible that Honda's retail parts markup is so high on non-consumable parts that they make money on the warranty, but your expected warranty value is still more than you pay (i.e., the parts (e.g., the tablet) cost them almost nothing if they need to replace them, but if you replace them, you'll be paying the dealer a lot of $$$).
 
First, keep in mind the Honda brand extended warranty starts when the vehicle is put into service. So, the 5 year warranty is only buying you 2 more years, since the factory warranty covers the first 3 years. Of course miles are important too, if you are high mileage driver.

Second, only consider the Honda warranty. Aftermarket warranties are iffy.

Third, price is affected by level of coverage and the per-visit deductible.

Last, here is a long thread on the topic:

https://www.insideevsforum.com/comm...s/why-not-to-buy-that-extended-warranty.3703/
 
Think of it like a slot machine.
Almost everybody that plays loses money. A few basically break even, even fewer win money. If you are one of the "lucky" ones that needs a major repair that would cost more than the warranty (don't forget to factor in any deductible), then you "win" by purchasing a warranty.
 
ProspectiveBuyer said:
I'm closing in on 36,000 miles and trying to figure out what to do. Any thoughts on whether it's worth buying an extended warranty? And how much I should expect to pay? I contacted someone in Finance at the dealership and they gave me a quote of $1950 for 5 years/100k miles or $2295 for 5 years/120k miles.
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in the same boat. got a quote from the dealership finance guy for 3rd party vendor. not even Honda. i can't even find that company in the top 10 warranty list. 6yr/72k (plus the 35K that i already have) w/$0 ded=3538, w/100 ded= $3118 and w/250 ded=2936.
he said honda care will be more expensive. i'm going to pass on these #, but i'm calling around to over dealers in FL (i have to get it from FL dealer, by law)
any suggustions? i heard of ppl having major a/c problems and w/car being so new on market, i'm sure as time goes on, more problems will come to the surface. so far, i been problem free.
 
If you’re not in California or Florida, Hyannis Honda consistently has the lowest price for Honda Care. Just go to their site and buy on line. I won’t get into the risk vs gain or risk aversion arguments on whether or not to purchase. Each person makes their own call.
 
Car sales are dropping off the cliff, by the end of this month I would suspect dealers trying to sell anything they can for the month.
 
glockgirl said:
in the same boat. got a quote from the dealership finance guy for 3rd party vendor. not even Honda. i can't even find that company in the top 10 warranty list. 6yr/72k (plus the 35K that i already have) w/$0 ded=3538, w/100 ded= $3118 and w/250 ded=2936.
he said honda care will be more expensive. i'm going to pass on these #, but i'm calling around to over dealers in FL (i have to get it from FL dealer, by law)
any suggustions? i heard of ppl having major a/c problems and w/car being so new on market, i'm sure as time goes on, more problems will come to the surface. so far, i been problem free.
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Those prices are obscene. That dealer should be embarrassed. My dealer tried desperately to sell me a third party "warranty" when I bought the care. I don't remember specifics now, but I think the finance guy started at $2700 and by the time he gave up he had come down to $699. For the same thing! @ab13 has it right; dealers are going to be selling anything they can for super discounts just to have sales on the books. Negotiate like a crazy person if you are in the market for an extended warranty and don't take anything but the Honda brand.
 
ProspectiveBuyer said:
I'm closing in on 36,000 miles and trying to figure out what to do. Any thoughts on whether it's worth buying an extended warranty? And how much I should expect to pay? I contacted someone in Finance at the dealership and they gave me a quote of $1950 for 5 years/100k miles or $2295 for 5 years/120k miles.
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Don't bother- you have to spend $2000 just to break even. Even if you spend $3000, which is highly unlikely it would only cost an extra $200/year
 
LAF said:
Don't bother- you have to spend $2000 just to break even. Even if you spend $3000, which is highly unlikely it would only cost an extra $200/year
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I strongly disagree, these cars are quire delicate and part prices are ridiculous. My wife touching the car with her small SUV cost $4200 with not a mark on her car.I paid $1500 for my Honda 8 year/120k warranty and believe most any equipment failure will cost more than this.
 
For what it’s worth, consumer Reports now says the car is expected to be very reliable ( they said it was one of the 10 least reliable cars last year)
 
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