Honda Extended Warranties Pricing and Info

richk1 · February 2005

I just bought an EX-6 w/ Nav.....I may have it for 3 years, maybe 7......probably somewhere in between when it just "feels right" to move on. Despite not knowing when that is exactly, I've got to believe that the transferrable, extended warranty becomes a huge benefit when I sell it. The peace of mind that it gives a potential buyer should 1) make it easier to sell the car, and 2) allow me to recoup some of the money I've paid for it.

Obviously, still a personal choice with no clear right or wrong answer at the current price point, but the value/importance of transferabilty was somewhat overlooked in the conversation.

Rich

kyfdx · February 2005

In a purchase of any insurance policy, the odds are against you coming out ahead..

But, that doesn't mean you shouldn't buy the insurance.. and, it doesn't mean that you, specifically, won't come out ahead..

Sometimes, you can even find an instance where the insurer has underpriced their product..

And, even if you buy the policy and never use it, doesn't mean it was a waste of money.. I don't think people that buy 20 year term life policies get really upset when they don't cash in.. Most people consider that a good thing..

And again... I don't recommend them one way or the other... I don't think I even mentioned if I have an extended warranty on my Honda.. ;-)

I will say.. that in getting the Hondacare warranty, you have an insurer that has a vested interest in keeping you happy with your car.. Something a third-party insurer does not have.. That can make a world of difference..

My main argument was with the "self over country" argument in buying a Honda.. I don't get that..

regards,
kyfdx

P.S.: Be glad we are talking about Honda warranties, and not GM.. That would be a sad, sad thing..

richk1 · February 2005

okay - so I've decided that I want to get an extended warranty on my 05 EX v6 w/ nav so the "to warranty or not to warranty" question isn't an issue for me......I'm now up to "which warranty, why, and for how much"

Unfortunately, leading up to the purchase, I had spent so much time doing research on the car and the trade that I came to the table utterly unprepared to talk warranty.

What was offered to me that I bought (completely separate from the Honda loan and totally refundable) was a 72/100 w/ no deductible through "Resource Automotive" which is part of AON.

For the priviledge of having this warranty, I paid $1375 which comes in $485 above what is being offered by CurryHondaCare....wow.

So, if anyone is familiar with Resource Automotive and HondaCare - can you tell me the primary differences? If no one is familiar with RA, what are the questions/comparisons to make to fully evaluate these (and any other) options?

In selling me on the RA warranty, I was told that a primary benefit of it is that any ASC certified tech can work on the car - which may be a benefit in terms of convenience, but as someone here pointed out, there's a certain value in having Honda service the car since they have a vested interest in keeping me happy. I was also told that RA has broader coverage than HondaCare - is there an easy way to compare? or am I going line by line with the list that each covers?

Two last questions (thanks for tolerating so far): 1) are there other EW options anyone can recommend beyond Honda and RA? and 2) if I go with HondaCare, besides taking the Curry pricing back to the dealership where I got my car, is there a way to shop it, or is Curry that much better than everyone else that its not even worth the effort?

Many thanks for everyone's help!

Rich

richk1 · February 2005

oh - one last thing in case it influences anything....in addition to the EW on the new car, I also plan on getting one for a recently purchased 2002 Odyssey EX with 11k miles (and still under the original 3/36 until November)

midnightcowboy · February 2005

Actually the main purpose of an insurance policy is to provide for your loved one ones in the even of your death. Extended car warranties serve a completly different purpose.

dep · February 2005

One of the many issues with a 3rd party EW is that while you may be able to go to any ASC tech. the EW will only pay what IT thinks is a resonable cost for the work.

So, if your shop bills out at $80/hour and they spend 4 hours on the fix your EW admin. might say, "The standard rate for your area is $40/h and that job should have taken 2 hours; here is your $80" when you bill might be a lot more than that.

You have to either eat difference or find a shop that is willing to get all the work pre-approved and accept the EW's rates and I would guess that shops that are willing to, in effect, discount their work are not going to be the best ones out there.

Just IMO!

-D

supcrds · February 2005

What I have nor seen mentioned (I only looked at the last 15 or so posts) Is it varys so much from person to person. I have had EW on 3 of the last 4 cars I bought. I am not very picky about all the tiny little things, a minor squeek, the chrome peeling from a trim ring on the shift boot. I have never come close to recouping my cost. My sister in law has taken the other extreme, she takes her car in for every noise and the slightest problem. If her mileage changes by more than 10% she takes it in. She has 100K EW on everything she buys and easily gets her moneys worth. Even though we have never gotten our money back in repairs my wife will always have a EW on her car. I hav'nt bothered on the last 2 cars and will not in the future (unless I happen to get a GM)

onboost91 · February 2005

Does the EW cover more than the standard warranty? I know it offers some roadside assistance but does it cover anything else that the standard 3YR Warranty doesn't?

kyfdx · February 2005

In general, it covers less... trim items, upholstery, things like that aren't covered..

denver5357 · February 2005

"What I have nor seen mentioned (I only looked at the last 15 or so posts) Is it varys so much from person to person... My sister in law has taken the other extreme, she takes her car in for every noise and the slightest problem. "

True. I assumed this was something beyond logical control when I debated the value of an EW. I have never actually bought an extended warranty on a car until now, because I am more like you (living with small problems). The number of expensive features in the 2005 Ex-L with DVD/NAVI pushed me over the hump this time.

qbrozen · February 2005

continued from another discussion ....

Is that a state law in Florida you are referring to? How is it that they can change the rules surrounding a manufacturers warranty? Does the same thing apply to warranties you get on your refrigerator or TV?

Unless you've already been down this road, I would call Honda directly and ask them. What if you purchased the vehicle out of state? How does it work at that point?

secondrow · February 2005

Should the HondaCare cost more for a more loaded trim?

If yes, what should be the appropriate price for an 05-Odyssey EXL given that for touring+nav+res is $1079?

dep · February 2005

Nope. Honda Care on the base LX is the same as on the EX-L /w Nav or RES.

The price of the plan is based on the year/miles combination and the $50 or $0 ded.

Google for a number of on-line sources for Honda Care plans. As an example, the 5/75k/$0 plan will run you about $750-$800 depending on where you buy. The dealer will ask $1100+ and may or may not be willing to come down to the going internet rate; just hold your ground and don't let them talk you into paying more.

-D

vanhelp · March 2005

When we bought our Odyssey, our car insurerer - Geico - offered us 7-year/100K "mechanical breakdown coverage", for less than $70/year. It sounds basically like an EW. Anyone know much about this?

blueiedgod · March 2005

When we bought our Odyssey, our car insurerer - Geico - offered us 7-year/100K "mechanical breakdown coverage", for less than $70/year. It sounds basically like an EW. Anyone know much about this?

It is still a "third party" program. Geico may not want you to take your Honda to the dealer, because dealer charges $80 or more an hour in labor, while the shop down the street may charge $40 an hour. Honda care is only accepted at the Dealer, and Honda care will not tell you to take your car to "Joey's collision and repair," because he charges less for labor.

The question should be, why did you buy the Oddysey? Was it because of the way it drove, because you liked it, or because you belive in quality that Honda is capable of producing? If it is the latter, then you are doubting your self with extended warranty insurance. You might as well buy a Dodge Caravan and extended warranty on that, and save your self some money.

Even though Honda care is comperehensive, it does not cover regular maintenance/"Wear and tear" items, and if you miss some of the maintenance items, it will be very difficult to get Honda care to cover a possible problem.

nwng · March 2005

I have a 97 accord and there were 0 warranty repairs. I am buying an ody and I am seriously condisering 7/100 EW. The power doors are pretty much the only reason why I am considering it. I would do the same thing if I am buying a caravan or sienna with power doors.

Would I get one if I am buying a plain jane accord? I would rather spend the dough in getting better tires.

mrjoe · March 2005

Honda Care warranties are backed by the manufacture. Any warranty is only valid as long as the company is in business. Most of these companies will use used parts to save money and will deny a warranty claim because the part is worn out and not defective. Dealers will direct you to use the warranty company that provide them the most profit. I'd stick with the manufacture. They will be in business as long as you own your vehicle and Honda will replace any part covered. You can check out www.jayhondacare.com to compare pricing.

Kirstie_H · March 2005

curryhondacare.com has also been recommended - I have no personal experience with them, just passing along another site I've seen mentioned.

cccompson · March 2005

I am only passing along what I've heard from many other posters as well as information that is on some dealers' websites about extended warranties.

Whether the same provisions apply to appliances is unknown to me.

The only thing that seems to matter is where the owner lives at the time the Honda extended warranty is purchased - if in Florida, the warranty must be purchased from a Florida dealer.

Not to belabor the obvious but this most likely has zero to do with anything other than the wishes of certain lobby groups being met at the expense of consumers.

Here in Ohio we have state minimum prices on cigarets and alcohol. Hmmm...wonder why that is...

qbrozen · March 2005

hmmm.. well, maybe i'm wrong, but i believe the warranty only gives the state their sales tax on the item, whereas alcohol and cigarettes provide much money than just sales tax. but, who knows? they may have their hands in the warranties for some reason. i feel bad for any florida buyers if this is indeed true. i'd definitely give honda a call regardless, though, just to make sure.

cccompson · March 2005

I guess I should have stated my point more plainly. Florida's provision on extended warranty (like Ohio's minimums on cigs and alcohol) keeps prices high. In Florida's case, it limits the number of places where one can buy a warranty for a Honda to in-state dealers only.

Interesting that you'd mention sales tax - when I picked up my Odyssey last week the dealer made a brief pitch to sell an extended warranty. I asked if sales tax was charged on it. Given a price in excess of $1000, 6.75% tax is not a small consideration. The answer was yes, sales tax would be charged. No matter, they were not price competitive so it was a no sale.

Sooooo, when I do buy from an out of state dealer, the price will be cheaper and I'll pay no sales tax to boot.

heywood1 · March 2005

Of course, you know that, technically, you are supposed to declare that purchase with your state of residence, file a form and pay the sales tax. Just like we all do with all of our internet purchases!

midnightcowboy · March 2005

Given a price in excess of $1000, 6.75% tax is not a small consideration.

$67.50

richk1 · March 2005

"You might as well buy a Dodge Caravan and extended warranty on that, and save your self some money."

au contraire....I'm coming out of a 2002 Grand Caravan (and into an Odyssey) that had an extended warranty and it didn't save me any money whatsoever......fool me once.....

denver5357 · March 2005

"Folks, there is no such thing as a free lunch."

Sigh. Seems like about every 3-4 months, we get one of these posts. Someone who thinks they know more than everyone else about EWs and are "coming out ahead."

Here are the facts:

1. The 2005 Honda Ody is a new model. New models typically have bugs.
2. Many of the features on the 2005 Ody are more than $1,000 to fix and/or replace. Some, like NAVI, is much more than that.
3. We are all aware of the common point that MOST drivers would be better off putting the money that might buy an EW into a special "repair" account and using it when needed. But that doesn't mean ALL drivers would be better off doing that.

Given those facts, some people think $795 for a 7 yr./75,000 mile Honda care EW is a good buy. If even one major thing goes wrong, it is covered. Some percentage of people WILL come out ahead with an EW. Whether it is 10 percent or 60 percent or somewhere in between, no one knows, yet. And those folks will also have peace of mind during the warranty period.

So, it is somewhat of a gamble. But given the price of an EW and the cost of a repair and the facts stated above, for some it will be a smart gamble.

mitzij · March 2005

Considering the vast number of service contracts I've seen come through our shop, I'm betting the percentage of people who come out ahead on a service contract is around 1%.
I used to say I've seen about 3 people come out ahead in the last 4 years, but recently, I added 2 more to the list. All were people who kept their vehicles for over 5 years, and 4 of the 5 had GM service contracts.

cccompson · March 2005

Actually, the exact price I was quoted was $1200 for 7year/100,000 mile with $50 deductible and the tax would been $81.00 if my math is correct.

Not really a great number when 7/100 with zero deductible can be purchased from several stores for less than $1100.

heywood1 · March 2005

WHY is the Honda 7/100/zero EW for the Odyssey so much more than the same coverage for the Sienna? Dealer cost for the Honda seems to be around $1,050, and dealer cost for the Toyota coverage is around $750. I seriously doubt the Honda warranty provides 33% more coverage.

apjlm · March 2005

Hi All, I used Edmunds' forum to buy my Pilot (my best buying experience ever) and now I'm considering an EW. I tried to contact Eric Stodderd (msg #2) but he no longer works for Moss Honda. The recent prices posted seem to be much higher than the prices he had. If anyone out there is shopping around andhas had luck with better prices, I would love your feedback. I'm considering either the 7yr/100k/$0 or 7yr/75k/$0.

In addition, I recall reading that if you purchase an EW within the first 3 months of ownership, you qualify for better rates. I can't seem to find the info again - can anyone confirm?

Many thanks!

qbrozen · March 2005

the rate goes up after 2yrs/24k miles by $60. But, before that time, its always the same (just varies by who you buy it from - shop for the best price).

fezo · March 2005

Sorry to hear that. He sold me the extended warranty on my 02 Ody.

That 1% figure sounds mighty low. I generally do not buy extended warranties but if there is something that just gives me jitters or such I will make an exception. I had an extended warranty on my 98 Sebring convertible (third party) that I used once. Net I lost on that one. Given the Ody tranny stories I bought on that alone. Tranny went at 64,000. Seems to be a little disagreement on whether the whole tranny is covered anyway or not, but I am glad I paid zip for repair or rental. Worth the bother.

nw1997 · March 2005

Hello Everyone,

I just received an email from Curry Honda. They are offering a $109.00 discount on any Honda Care warranty. You would need a promo code.

pilot seeker · March 2005

I am looking for a 'rock bottom' price for a Hondacare 5yr/100k/0 deductible warranty. Curry Honda of Chicopee, MA offers one for $970 (-$109 promotional discount) = $861........does anyone know 'who' can beat that?...thanx

cccompson · March 2005

Ok, folks, kindly fill us in on the reported "promotional" discount.

How does one qualify? Does this apply to various Honda models (I'm in the market for EWs for two vehicles)?

Curry has repeatedly been cited as having a most competive price. If it can be beat, it would only be by a few dollars.

pilot seeker · March 2005

..I went on their website, www.curryhondacare.com and selected 'pricing'...I entered my email addy and within 10 min. they sent me a reply with a 'promotional code number' that you enter when purchasing a warranty......$109 dollars can be deducted from any of their Honda Care warranties....it could be a regional promotion...not sure..hope this helps....

voicemailking · March 2005

Unfortunately i cannot get my warranty discounted, i live in Florida, and law dictates i buy from a Florida dealership...Funny, when i purchased my 2000 Odyssey, it was from a Honda dealer in Delaware, and i used it many times with no priblems, that one 7 yr 100k mile 0 deductible cost me only $850.00!!!

clovisguy · March 2005

Curryhonda sent me an e-mail for $109 off untill March 15th. I compared the price for an Accord 4cyl. with http://www.jayhondacare.com/Pricing.htm
and jayhondacare is still lower but not by much. However, with Jayhonda the offer is good untill March 31st. This price difference may not be the same with all Honda models? Some incentive must be going on to sell more warranties this month?

mitko · March 2005

http://www.smartmoney.com/consumer/index.cfm?story=20030319

pilot seeker · March 2005

Thanx 'mitko'....I bought a '05 Pilot EX-L two weeks ago..and every day since I've been 'toying' with the idea...and shopping for....a Honda Care EW.........this article helped me make an informed decision..I like the peace of mind that an EW would afford me....but for now...I am going to hold off.....this next line is from your link...thanx......."First of all, experts recommend you put off your purchasing decision until your original warranty is nearly up. At that point you should have a better idea of how long you plan to own the car, and you'll also know if you have a clunker that needs additional protection. "It's rare that a car will run well for five years and then blow up," says Karl Brauer, an automotive expert with Edmunds.com."

blueiedgod · March 2005

Honda care price goes up once you have reached 2 years or 24,000 miles. So keep that in mind if you still want the EW.

midnightcowboy · March 2005

Remember that for the first 3yrs or 36,000 miles you are covered by Honda's factory warranty. So when you buy and extended warranty you are really paying for the period only after the factory warranty.

Blueiedgod mentioned that Honda Care warranty goes up after 2years or 24,000 miles. The reason is that they are not getting your money as far up front and therefore cannot invest the money, your money , as soon and therefore cannot make as much additional financial profit. When you pay up front, the extended warranty does not come into affect for 3 years or 36,000 miles. That is three years of interest and financial investment available to the extended care company on your money. For example if you pay $1,000 for a policy up front and the Interest rate is only 3% then the future value of your money three years down the road is actually $1,000 * (1.03)^3 or $1092.73 This is even more dramatic if the investment rate is higher, at 10% this equates to $1331. That is why Honda Care or any other extended warranty vendor wants you money up front and if they don't get it up front then you pay a higher amount.

You might also very carefully read the warranty coverage. In a recent message on the honda problems and solutions , a person had a side air bag deploy without a wreck. The cost is estimated to be $1,200-$1,5000 to repair and Honda Care warranty won't cover it.

Post #256 by Mitko is a very good article on extended warranties.

Good Luck! Make Wise educated decisions!

YMMV,

Manual Shift MidCow

eta · March 2005

What if you hold off on getting the extended warantee and it turns out that the company starts to see lots of problems with your vehicle model (before you get the extended warantee yourself)?

For example, with the 2005 Odyssey, I'm concerned about the various new technologies which are being used on that model. Lets say (this is totally hypothetical obviously) that the technology to shut down 3 of the 6 cylinders when cruising under light loads ends up causing engine blocks to crack quite frequently after 2 - 4 years.

Couldn't Honda decide 2 years from now to either stop offering extended warantees on used Odysseys or greatly increase the price to account for the increased likelihood of expensive claims?

If so, you'd have been better off getting the EW when you bought the vehicle, no?

ETA

kyfdx · March 2005

I don't agree with a lot of midnightcowboy's views on EWs, but he has made one good point, in the past..

One of the main reasons for buying a Honda is their stellar reputation for reliability..

Realistically, none of your hypotheticals is likely to happen..

Anything is possible, but I really wouldn't worry about this.. The price on the warranty does go up after a certain time, but the increase is minor.. The article quoted above is, I think, right on the money... Wait until you are much closer to the end of your warranty before purchasing an EW..

By then, you may not choose to buy one at all..

regards,
kyfdx

pilot seeker · March 2005

very good point 'midnight cowboy'.....I had thought about that....but had never seen a post here regarding that 'fact' until your post....if I get a 5yr/100k warranty...I am in essence..only getting a 2yr/?k warranty.......(due to the factory warranty 'overlap' with the EW)..thank you for pointing that out....and yes, I will reeval my decision just prior to 'hitting' 2yr/24k..(due to the price increase...how much of an increase is it?)..thank you both....

pilot seeker · March 2005

I just re-read a few posts..am I correct in my last assumption? (that a 5yr/100k EW would in essense be a 2yr/?k warranty?)

kyfdx · March 2005

Yes.. but, if you are really driving 100K in five years (20K per year), then you would be out of the original warranty in just 1.8 years..

So, the extended warranty would take effect at that time.. Meaning your coverage would be effective for 3.2 years and 64K miles...

If you aren't driving 20K per year, then they have different year/mileage combinations that might work for you..

regards,
kyfdx

scottyb · March 2005

"The article quoted above is, I think, right on the money.."

Since the article talks about EW generally, it doesn't consider relevant topics that have been discussed ad nauseum in various edmunds fora:

1. The "higher" the trim line, the better deal an EW is--more bells and whistles to break down, many of which are made by outside vendors, not Honda. (And Hondacare costs the same for an LX as a Touring RES/NAV.) The prime examples posters have mentioned is the navigation system.

2. Hondacare includes a number of benefits that are in effect from the time of purchase, even before the EW period kicks in: roadside assistance, trip planning, meal and lodging reimbusement if car breaks down on trip, and others.

While Hondacare appears to be reasonably priced for the peace of mind it offers, I am going to hold off as long as the prices stay stable, or until 24,000 mi, since I have AAA, which has superior roadside assistance and trip planning, and the possibility of using the meal and lodging reimbursement is remote. Even if we waited until 36,000, according to the curry honda website, the additional cost is only $60.

There are also the possibilities--which are very remote--that the car could get totaled by that time, or that we could decide to sell it. (I know it is transferable, but I doubt one would recover anywhere near the full price on resale).

In addition, by the time we hit 24k or 36k, we will have a better idea of which mileage/time combination is best for us (prob the 7 year/100k).

That said, there are many valid reasons for buying now, not the least of which is having one less thing to think about in a year or so.

midnightcowboy · March 2005

http://moneycentral.msn.com/content/Savinganddebt/Saveonacar/P37269.asp?Rating=9&PageID=37- 269#Rating

Look at the fourtennth one:
From the article:

" Buying an extended warranty. Most manufacturers allow you to wait until just before the regular warranty expires to decide. By then you should know whether your car is troublesome enough to require the extended warranty. Most of them arent worth the price."

YOPMV,

MidCow

kyfdx · March 2005

Most extended warranties aren't worth the price..

But, the Hondacare warranty is much better than almost any other EW...

I'm still not saying it is worth it, or that someone should absolutely get it.. But, if you shop around and get a price similar to what is available online, it is not a bad deal..

With one other caveat.. If you pay for a term that doesn't match your driving habits, then it is definitely a waste of money..

IMO, the 7yr/100K term is a very good deal, if you drive 14K-15K per year.. If you buy the 5yr/100K and only drive 10K/year, then that will not be cost-effective.

And the good part... whether you buy an EW or not, you have a Honda.. You are likely to be happy, either way..

regards,
kyfdx

hok1 · March 2005

Going to purchase a '00 V-6 Certified Accord with 50K. Deal includes 12K or 1 year comprehensive warranty and Honda's certified 7 year or 100K drive train protection. This runs out in 10/06 and/or 50K. I average 25K driving per year. The dealer has offered me Honda extended warranty which would take me up to 100K comprehensive coverage for $600.

I will continue to sort throught the post here to find an answer but any direct responses to my post would be appreciated. At this point I don't knowwhat to do.

Honda Extended Warranties Pricing and Info

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