Buying a new car is an investment, and, as in business, the mindset should be to protect your investment to the fullest extent possible. In business the methods of doing this include guarantees and charges, but when it comes to vehicles, one popular method of doing so is purchasing an extended warranty.

While Honda cars have managed to make their mark on the industry and have won awards for performance and style, the fact remains that they are subject to wear and tear just like any of their counterparts. While the company’s default warranty is decent when compared to the market practice, as we will see below, most issues start to come up in the long run and default warranties tend to run out by that time.

Today, we’ll talk about what warranties Honda currently offers and debate whether it is adequate coverage for your vehicular investment. We’ll also analyze the costs of Honda Extended Warranty and decide if it’s a worthwhile expense.

HONDA’S DEFAULT WARRANTIES

Currently, Honda offers a five-year, 36000 mile (whichever comes first) warranty for all new cars. The warranty covers any issues you may face with the engine and transmission, and other important components of your car. In addition to that, there is a three-year, 36000 miles (again, whichever comes first) warranty for factory defects such as alignment, wheel balancing, batteries, etc.

On paper, the above seems to be a great offer, especially considering that you’re covered for five years when it comes to the critical components of your car. However, what most people don’t realize is that critical component issues usually come up at the 100000-mile mark (which is way past the warranty expiration mileage). So, if you happen to drive a lot on a daily basis then your warranty will have run out because of the mileage threshold and if you use your car only occasionally, then the five-year time limit will have run out long before you face any issues.

When you take the above into account, an extended warranty seems like a great idea. For a nominal amount of money, you’ll have coverage for your car especially when issues are expected to come up, based on past trends and statistics.

HOW MUCH WOULD AN EXTENDED WARRANTY COST?

Default warranties are almost identical across all car companies. Extended warranties, on the other hand, depend on the vehicle in question, what features it has, the technology used in the car, and whether the car is brand new or a used vehicle. All of these factors have bearing on the cost of the extended warranty, which makes it difficult to give an exact quote.

However, regardless of the above, we can discuss a range that would be payable on a monthly basis if you were to purchase a Honda Extended Warranty. Depending on the car you have, you could be paying anywhere between $20 to $50 a month on top of what you would be paying for your car already. Considering you’ve paid a significant amount of money for your new car, paying a small amount on top should not be a very big issue. If it were to be looked at simply as a maintenance cost, you end up saving a lot of money in the long run (which leads to our next point of consideration).

HOW MUCH WOULD YOU SAVE WITH AN EXTENDED WARRANTY?

This is the million-dollar question! Money talks, and when people see the amount of money they could save with an extended warranty, they’re all ears. On average, costs for critical component issues can range from $500 to $1000 (Head Gaskets can sometimes cost more than $1500). If you’re past the 100000-mile mark, then you can expect repair bills for $2000 to $3000 as well. Hypothetically, if your extended warranty costs a total of $1000, then you can do the math and figure out how much value you are getting for your money.

WHAT ARE YOUR OPTIONS FOR EXTENDED WARRANTIES?

Luckily, you don’t HAVE to buy your extended warranty from Honda itself. There are many independent service providers that offer “protection plans” in exchange for monthly payments. In fact, these independent service providers are able to offer individualized coverage which car companies simply cannot, oftentimes due to the number of restrictions placed on these companies by the law, regulators, and, sometimes, industry associations.

Also, because such providers are competing with other counterparts AND car companies, they tend to be more open and accommodating than car companies. One of the most common answers car owners get is that an issue is “not covered under the warranty”. Independent providers will, at the very least, actually check if coverage is offered for your issue and try to work out a solution if it's not because they have to make a name while challenging industry giants.

As is with extended warranties offered by car companies, providing a generalized quote for the cost of the extended warranty will be difficult. These providers assess coverage and costs depending on the manufacturer, model, mileage, and many other factors. You will need to check local listings for a service provider and sit down with them in order to gauge the costs involved.

GET SOME KIND OF COVERAGE!

As time progress, cars are getting more sophisticated and are being fitted with all sorts of technology, which is updated faster than we’re able to fully understand and keep up. As these changes are implemented, the costs associated with cars, and by extension the repairs involved, are also getting higher. Overall, it is becoming expensive to repair cars, which leads to a disposable culture which is wasteful and toxic for the environment.

Whether you choose to go with Honda’s own extended warranty options or opt for more individualized service with an independent warranty provider, you need to have some form of coverage in place to protect your investment. Cars are a responsibility and, more often than not, we form a relationship with our car. Why not put in the extra consideration and ensure that you get the most out of your vehicle for the longest time possible?

 

Published by Charlesa Gibson