Why NOT to Buy that Extended Warranty?

Discussion in 'Clarity' started by kunz427, Oct 31, 2018.

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  1. kunz427

    kunz427 Member

    There are threads posted on the $1300 extended warranty and Clarity's low reliability score (which is most likely BS). However, I bought a honda since I wanted a reliable vehicle. So I'm a little lost and wanted to know if there is an argument to be made against getting the warranty.

    My argument would be-
    - Honda's a generally very reliable vehicles
    - There's already a 3 yr 36000 mile warranty that comes with the car
    - Battery system has a 10 yr warranty
     
  2. Richard Kelly

    Richard Kelly Member

    My rational for not buying the warranty, I never buy warranties;) and if the car starts to becoming problematic in the first three years I will dump it and re-evaluate the electric/PHEV market. With the $7500 tax credit I got and the fact that the credit will not likely be available for much longer, that should help preserve a good part of the resale value.
     
  3. neal adkins

    neal adkins Active Member

    If you live in a green state such as Cali, many items are covered for 10 years and emissions related are covered for 15 years. The good news is that many components of the electric drive system are considered emmisions related. Check the owner's manual to confirm what is covered and for how long. One thing I tell people that want an extended warranty is to wait because it doesn't go into effect until after the 3 year/36k miles are up and you can still purchase it later for about the same price. How many other things do you buy that can't be used for 3 years?
     
  4. insightman

    insightman Well-Known Member

    The fact that spurred me to get an extended warranty before the 6,000-mile warranty cost-jump: The cost of an infotainment head unit is greater than the cost of an extended warranty. The extended warranty covers many other Clarity parts whose high prices have yet to be revealed in horror (it is Halloween, after all).
     
    JackH likes this.
  5. Mariner91

    Mariner91 Member

    Pretty much what I kept repeating to the finance manager doing our ppwk, as he repeatedly tried to sell me the extended warranty. Bottom line, I said, is that you're arguing against your company's own reputation for good quality vehicles.
     
    Bender and jesseosby like this.
  6. Sandroad

    Sandroad Well-Known Member

    Up until about 3 years ago, my argument (with myself) to not purchase "extended warranties" was that I buy reliable vehicles and take excellent care of them. However, sometime around 2014-2015, I began to lose that argument. The new profit center for manufacturers and dealers appears to be parts and service. For those parts that are proprietary (not available aftermarket), prices have become obscene. While the drivetrain components of a modern vehicle from Honda and Toyota, etc., look to remain reliable, there's lot of stuff making up the car that may be iffy long term. I'm especially wary of software, ECUs, and control systems. Since my pattern in the past has been to keep vehicles for at least several years and at least 100K miles, I'm more likely to purchase coverage for vehicles now.
     
    Sloanhoo, V8Power and insightman like this.
  7. MPower

    MPower Well-Known Member

    One of the items not covered by the extended warranty is the catalytic converter which is what has finally gone on my old 2006 Prius hybrid (admittedly way after any extended warranty would have expired). Sample warranty contract posted by Dave C here: https://www.insideevsforum.com/community/index.php?threads/maintenance-plan.3685/#post-36213

    One of the things that worries me is not so much the cost of the parts which is high enough, but the cost of labor. When you look at all the stuff that is stuffed into every nook and cranny underneath, you realize that to get to some malfunctioning part requires the dismantling and reassembling of a large section of the vehicle. That is what is causing the replacement of the dear old 2006 Prius hybrid.
     
    Last edited: Oct 31, 2018
    insightman likes this.
  8. megreyhair

    megreyhair Active Member

    Well, this is my logic.
    There are lots of components that only has the 3 year new car warranty. For example, the radio unit and center display are over $1000 each in part. So let say 4 years from now and the display goes bad, (like your phones), are you going to trade it in or fork over $1500 to replace it? So I think $1300 for 8 years/80-100K of coverage is a good deal.
     
    insightman likes this.
  9. Texas22Step

    Texas22Step Active Member

    Consider also that the extended warranty can be assigned to any new private owner, which should underpin future marketability, if not yield a higher price. Also, you can surrender the warranty if you want to, and get a pro rata refund. Risk is low, cost is pretty low, sleep is better.
     
    insightman likes this.
  10. AnthonyW

    AnthonyW Well-Known Member

    The Battery System is covered for 10 years, the battery itself is only covered 8 years in all but a couple of states.


    Sent from my iPhone using Inside EVs
     
  11. V8Power

    V8Power Active Member

    There's a alot of technology in this type of PHEV car. Two full drivetrains and a system that switches between on the fly. ICE + EV + integration = 2.5. The number of parts that can go wrong is pretty high and I think there's a high number of unique parts that Honda will have exclusive supply for. Even dealers don't understand this car yet, so finding independent service will be quite a challenge. Even with Honda's great reliability track record, I'm leaning towards buying the warranty that would undoubtedly help with resale if we decide to change vehicles within 7 years and perhaps go full BEV.
     
    Sandroad and KentuckyKen like this.
  12. chris5168

    chris5168 Member

    For all the fantastic items above plus:
    Parts will always be a premium in low volume cars.
    Also not a large amount of junkyard parts either.
     
  13. MikeB

    MikeB Member

    Following up on Neal's point above, you can check what's covered and for how long by the emissions warranty in your particular state by following the link below and using the pull-down choice box to find your state. I think there are good arguments for and against buying Honda Care or other extended warranty on this car. I had not bought an extended warranty on anything for many decades for many of the reasons cited above, but I did buy HondaCare for my Clarity. It was a tough call and I'm not sure it was the right one. But knowing what is covered beyond the factory warranty by the emissions warranty (if anything) is a piece of information that anyone making this decision should have: https://owners.honda.com/vehicle-information/warranty?year=2018&model=Clarity-Plug-In-Hybrid
     
    Ryan C, dstrauss and KentuckyKen like this.
  14. kunz427

    kunz427 Member

    So from the warrenty doc, I see that the drive train and transmission is covered for 5 years and 60k miles. Am I correct?
     
  15. GentLarry

    GentLarry New Member

    If I planned on keeping the car past three years I would buy one. I recently had a tick in my A/C fan and the cost would have been 124 diagnostics plus 752 for the fan replacement. The bearing was defective so they covered it but for them it was questionable due to hail damage the cart had suffered. I will probably keep this car and if so I will be looking for insurance.
     
  16. Clarity_Newbie

    Clarity_Newbie Active Member

    So gotta ask...what in the heck does hail have to do with a ticking fan inside a car?

    Another reason not to buy an extended warranty...both dealers and Honda USA come up with more reasons why things won't be covered.
     
    acnxyz likes this.
  17. LAF

    LAF Active Member

    remember, you have to have $1300 in repairs during the warranty just to break even. I have never had that much on any honda or toyota over a 10 year period I owned them.
     
    jdonalds likes this.
  18. RogerB

    RogerB Active Member

    We got the Clarity to go along with a Pilot from last year because my wife was sold on Honda's past rep. In the past year on the Pilot, the sunroof has burst, the passenger side sun shade has fallen out of the socket, the driver side door seal is pulling away, and one of the arm rests doesn't work right. The sunroof was a big pain since both our insurance and Honda claimed that something hit it even though we were going down an open stretch of I-95 with no overpasses in sight.

    I got a quote from the same dealer others have and will see if the local dealer will match.
     
  19. GentLarry

    GentLarry New Member

    My question to them exactly! The final repair on the car was $22,500.00 and they were using that number to say we don't know what happened to the car, let's void the warranty. They thought when the body of the car was put back together the body shop nicked something but after visiting the body shop they debunked that theory. The dealer thought they could treat the car as if it was salvaged and void the warranty but that didn't hold water so all is good.
    In my research I did find a new car warranty could be voided if the car was in a natural disaster, depending on how far they wanted to push it. The fan and bearing assembly are one piece and I know when the car was originally assembled it was a defective fan. That was my first claim in 55 yrs of driving.
     
  20. banshee2008

    banshee2008 New Member

    The fact that they try so hard to sell you the extended warranty is a good indication they make more money if you buy it than if you don't (and pay out of pocket for repairs). Since the fact that they sell such a thing means it is profitable, an extended warranty -- like any other form of insurance -- is something you should not get unless the worst case scenario (a big ticket repair) is going to ruin you.

    Even if you have a single car that costs you a lot in repairs, saving the money you would otherwise spend on extended warranties throughout your life will make up for it in the majority of cases. Especially if you make a habit of buying reliable brands & vehicles.

    Furthermore, cars are getting more and more reliable over time according to J.D. Power.
     
    Ryan C and KevinW like this.

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