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Mechanical vs Electronic reliability as it relates to extended warranty

2946 Views 40 Replies 27 Participants Last post by  EXcommunicated
How reliable/how problematic are the electronics in my 2019 touring turbo with 13K?

We just bought the car and have a week to decide on the extended warranty from the dealer. The warranty company is reputable and this is not a question as to whether the cost or coverage period is reasonable. We keep our cars for about 10 years or so.

Up until this purchase, I have always declined the extended warranty on my prior cars. Its a Honda after all, what can go wrong? The dealer even agrees we me that today's cars are mechanically reliable. There are exceptions of course, but I have never experienced a catastrophic failure (engine, transmission) that required an expensive repair that would have made an extended warranty pay for itself. But....

The dealer made a case that the benefit of an extended warranty comes into play if any of the electronics go bad like navigation, cruise, crash avoidance systems etc. And although the computer/board/electronic gizmo may be relatively inexpensive, the labor to diagnose and install is where the expense lies. I recognize that today's car's are more electronically sophisticated. I am keeping an open mind to the possible benefit of the warranty despite my 40 years of car ownership that says I have never needed an extended warranty. But in the past, the main warranty pitch was the risk of mechanical failure.

The question is does anyone have experience or thoughts on the reliability of today's car electronics (Honda or others) that would help me assess the need for or benefits of an extended warranty?

Thank you
Jim
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How reliable/how problematic are the electronics in my 2019 touring turbo with 13K?

We just bought the car and have a week to decide on the extended warranty from the dealer. The warranty company is reputable and this is not a question as to whether the cost or coverage period is reasonable. We keep our cars for about 10 years or so.

Up until this purchase, I have always declined the extended warranty on my prior cars. Its a Honda after all, what can go wrong? The dealer even agrees we me that today's cars are mechanically reliable. There are exceptions of course, but I have never experienced a catastrophic failure (engine, transmission) that required an expensive repair that would have made an extended warranty pay for itself. But....

The dealer made a case that the benefit of an extended warranty comes into play if any of the electronics go bad like navigation, cruise, crash avoidance systems etc. And although the computer/board/electronic gizmo may be relatively inexpensive, the labor to diagnose and install is where the expense lies. I recognize that today's car's are more electronically sophisticated. I am keeping an open mind to the possible benefit of the warranty despite my 40 years of car ownership that says I have never needed an extended warranty. But in the past, the main warranty pitch was the risk of mechanical failure.

The question is does anyone have experience or thoughts on the reliability of today's car electronics (Honda or others) that would help me assess the need for or benefits of an extended warranty?

Thank you
Jim
Personally, I wouldn't get the extended warranty on any Honda, my trust is that high. I'm on my 5th one, and have never come close to exceeding what the cost of a warranty would be on repairs over the time I have had them.
 

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It is all about risk tolerance. I research my products putting a high weight on long term reliability and have never purchased an extended warranty which is after all all just an insurance policy that will put extra money in the pockets of the provider for the benefit of a minority. My 2020 CRV is approaching 3 years of age with zero problems or warranty work. If it had given various issues by now I would have considered one but only the Honda extended warranty.
 

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Discussion Starter · #23 ·
Thanks for all the comments and different perspectives. In my case, I own/have owned 5 Hondas and 2 Toyotas in the last 18 years. Never bought an extended warranty and never needed one. Granted, electronic reliance has increased over that time. I'm going to pass on the third party warranty the dealer offers but will consider the Honda Care warranty. Thanks again.
 

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What I do is to find out how much the Honda Care program will cost on a monthly basis (if you finance the vehicle) and then I put that amount into a savings account every month. So I'm essentially self insuring. At $60 per month, at the end of the vehicle warranty period, I'll have over $2,100 saved for any repairs after that. As with other insurance, if you can't afford to drop $3,000 for a repair, it makes sense to buy an extended warranty. If you can afford it, then take your chances. In the long run, you'll make out for the better.
 

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I thought Honda Care could be purchased anytime before the standard warranty expires? You shouldn't have to purchase it in the first week.

Is the dealer selling you an aftermarket warranty or Honda?
Since he said it was a 2019, this is most likely a pre-owned vehicle and I'm pretty sure the situation is different from purchasing a new vehicle.
 

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Do not consider anything but Honda Care and comparison shop online. Sometimes the local dealer charges twice as much.
On our 2010 EXL the only thing we needed the extended warranty for was front struts. The boots were cracked and they were leaking. One dealer refused to replace them and the other dealer took care of it.
Two items that may need the extended warranty would be the undersized engine with a turbo charger and the CVT transmission. Two unfortunate choices by Honda engineers. Not to mention the complex electronics.
 

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Do not consider anything but Honda Care and comparison shop online. Sometimes the local dealer charges twice as much.
On our 2010 EXL the only thing we needed the extended warranty for was front struts. The boots were cracked and they were leaking. One dealer refused to replace them and the other dealer took care of it.
Two items that may need the extended warranty would be the undersized engine with a turbo charger and the CVT transmission. Two unfortunate choices by Honda engineers. Not to mention the complex electronics.
My local dealer quoted about $3k for an extended warranty on our 2020 Hybrid CRV Touring. I have a few months to find a better deal, probably from one of the on-line HondaCare dealers recommended here. Our previous 6 or 7 Hondas had few problems aside from a cracked block a few years ago in a 2007 Civic, but there is a lot more electronics in the 2020 Hybrid than in the previous cars and $1K is worth it to me for the piece of mind.
 

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I bought an extended Honda Care in my prior CRV, and it was transferable to my new one!

I bought it for the electronics. They try to sell you upgrades for things like windshield coverage. That is a lot cheaper by lowering your insurance deductible.

I would never buy from a third party not hired by Honda as I was scammed once.
 

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What I do is to find out how much the Honda Care program will cost on a monthly basis (if you finance the vehicle) and then I put that amount into a savings account every month. So I'm essentially self insuring. At $60 per month, at the end of the vehicle warranty period, I'll have over $2,100 saved for any repairs after that. As with other insurance, if you can't afford to drop $3,000 for a repair, it makes sense to buy an extended warranty. If you can afford it, then take your chances. In the long run, you'll make out for the better.
It is always going to be a risk of higher repair costs than the $2100 you claim to have banked, but really spent on Lattes at Starbucks over time.

How about multiple $3000+ repairs? Yes, it can and does happen, as do $5000+ repairs if you ended up with an engine or transmisison issue (since these cannot be repaired at a dealership, so they must be swapped out and the defective one returned to a central R&R facility for either rennovation, or breaking down for parts).

Simple as this for each owner: What is your threshold limit on non warrantied repair costs, and how would facing multiple expensive ones affect your satisfaction with the vehicle and with Honda in general? Peace of mind also has a value attached to it for most human beings. One forum members poster child example of what happens to peace of mind and satisfaction in the absence of a HondaCare policy, and by no means unique either:
I unfortunately bought the 2017 Ex-L, and at 65K miles I’m on my 3rd battery, have nonstop dashboard flashing lights, broken radiator and coolant system. Now they’re saying I need a new radar sensor bc of ABS and ACC codes, and lights for lane info and cmbs lights wont turn off. In other words, I’m done. I do love the Cr-V though, so looking for recommendations for more recent years to buy? TYVM
Given you can get a HondaCare policy online from select dealers for a bit over $1000, it makes a fixed cost of repairs for the price of a discounted HC policy look pretty attractive from a total cost of ownership perspective.
 

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I hate to say it but, I would not own any car after lets say 2015 +- without a warranty, might be some exceptions but without a warranty on say a hybrid or other electronic safety devices the cost will be $$$$$$. I think any new vehicles value will compromised at say 100K compared with older models. No, Im no rich and drive a 12 CRV and it is pricy enough when it needs repair and the days of DIY are close to being gone.
 

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Never buy those warranties they sell on TV, they’re the biggest ripoff going and should be shut down. Read some of the reviews online, 100’s of horror stories. One example is they’ll give you a rental car, however it only counts while your car is actually being wrenched on. Example, your car sits for a few days while they dicker with the warranty company, you’re not getting a rental until the mechanic is actually working on your care. If they have your car for two weeks you only get a rental for the hours it’s actually being worked on. Total rip-off!
 

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Never buy those warranties they sell on TV, they’re the biggest ripoff going and should be shut down. Read some of the reviews online, 100’s of horror stories. One example is they’ll give you a rental car, however it only counts while your car is actually being wrenched on. Example, your car sits for a few days while they dicker with the warranty company, you’re not getting a rental until the mechanic is actually working on your care. If they have your car for two weeks you only get a rental for the hours it’s actually being worked on. Total rip-off!
Would a guy with this face ever scam anyone? 😎

Motor vehicle Mode of transport Smile Automotive exterior Vehicle registration plate
 

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I have purchased six new vehicles over the years, and have never purchased an extended warranty. I'd rather keep the money for myself and invest it.

I have found that vehicles are most reliable from the end of the standard warranty to 100K+ miles. Any issue will usually appear early during the warranty period or be fixed through TSBs or warranty recalls. If a vehicle requires a bunch or repairs during the warranty period, then it should be dumped as soon as possible.

How about multiple $3000+ repairs? Yes, it can and does happen, as do $5000+ repairs if you ended up with an engine or transmisison issue (since these cannot be repaired at a dealership, so they must be swapped out and the defective one returned to a central R&R facility for either rennovation, or breaking down for parts).
This is the a gamble, but the odds heavily favor the warranty company. I'd suggest that anyone who cannot afford an unexpected $2000+ repair bill has no business purchasing a new $30,000+ vehicle.
 

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This is the a gamble, but the odds heavily favor the warranty company. I'd suggest that anyone who cannot afford an unexpected $2000+ repair bill has no business purchasing a new $30,000+ vehicle.
I see it differently. I could afford to replace the entire $30k car, but I think the chances of needing a $1k repair on a modern vehicle outside the factory warranty period is at least as safe a bet as the equity markets. The warranty is just another element of a financial diversification strategy.
 

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I'll add a little bit to my previous post:

Four of the six vehicles (1998 Honda Civic, 2013 Toyota Camry, 2018 Honda Odyssey 100k+ miles, 2018 Honda CRV 95K miles) did not have a single failure that would have been covered by an extended warranty.

My 1996 Dodge Dakota was sold after 18 months of ownership because it lived in the dealership service bay.
The final vehicle was a 2008 Toyota Sienna. This vehicle needed a fuel pump and front wheel bearings before 100K. So, I might have broken even on this one.

I invest the money instead of using it for extended warranties. This money invested as far back as 1996 easily pays for any needed repairs.
 

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Not everyone is diligent enough to invest the money however and what they are really buying is peace of mind. Curious since you bought frorm a Acura/Honda dlr is this a CPO car? If so it will have at least a 12 mo./12k warranty on it. Amazed you found a 3 yr old car w/ only 13k on the clock. Hope you didn't pay as much as a new one would have been. BTW, I bought the HondaCare on my '17 but it runs out 2/1/23. Who knew I would keep this car as long as I have. Pandemic really changed my annual miles driven and car buying habits.
 

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Not everyone is diligent enough to invest the money however and what they are really buying is peace of mind.
Using the vehicles above, this would be today's value of $1200 invested in a S&P 500 fund instead of purchasing an extended warranty:
1996 Dodge Dakota, $11,959
1998 Honda Civic, $7,341
2008 Toyota Sienna, $4,394
2018 Honda CRV, $1,759
2018 Honda Odyssey, $1,759

The grand total is $27,212. That money buys a lot of peace of mind. It also purchased the CRV with cash.
 

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Using the vehicles above, this would be today's value of $1200 invested in a S&P 500 fund instead of purchasing an extended warranty:
1996 Dodge Dakota, $11,959
1998 Honda Civic, $7,341
2008 Toyota Sienna, $4,394
2018 Honda CRV, $1,759
2018 Honda Odyssey, $1,759

The grand total is $27,212. That money buys a lot of peace of mind. It also purchased the CRV with cash.
Now do it for a 2021 model.
 
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