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I just bought a new 2017 Civic Hatchback EX-L to replace my 2002 Civic. The hatchback is fantastic by the way, if anyone is thinking of buying one. Before I went to the dealer i did some research on average civic repair costs and decided that if I could get a 7-8 year warranty for ~$1000 I would go ahead and buy it. After haggling with the finance guy i ended up buying a 7yr/70k mile warranty for $1200 with a 50$ deductible (he initially quoted $2,500). The warranty is cancel-able within 30 days for a full refund, so I am now trying to decide whether it is worth the money, or not. It seems to have a lot of excluded items, but the most important parts (engine, trans, infotainment, etc) appears to be covered.
I'll post some more detailed information about the warranty below, but in general I am looking for advice on whether I should keep it or cancel it, and why. I dont know alot about the mechanics of newer cars, so I am not sure if what is actually covered is worth it. Any help is much appreciated.
The company is called Ethos Administrative Services
Supposedly any certified Honda dealer will honor the warranty, not just the place I bought it.
My obligations (per the contract) are to do regular maintenance, check fluid levels, etc.
Their obligations are to "pay me or the repairer, for repair or replacement of covered parts.The replacement parts can be new, used, or remanufactured parts."
I was torn between choosing the warranty or not but I opted not to.
The 1.5T isn't anything to fret. The L-series engine has been around so I'm sure its rock solid as far as reliability goes. But 7 years / 70k is a pretty good stretch of time. For me personally, for me, I would pocket the extra cash and just keep up with the maintenance as you go along and you should EASILY hit the 70,000 mark without any issues.
For me personally, for me, I would pocket the extra cash and just keep up with the maintenance as you go along and you should EASILY hit the 70,000 mark without any issues.
I agree.
Remember too, unless you paid the $1200 up front in cash, you'll be paying interest on that amount as well.
Sorry to be so blunt, but this is a nobrainer. Of course you should cancel it.
Extended warrantee's are almost never a good idea. They have to be, otherwise the they wouldn't sell them. They only make money on a warrantee if it is not used.
So here you are, buying one of the most reliable cars on the planet, and paying $1200 to make the warrantee last an extra 4ys/34,000 miles.
So you are in fact saying that you expect a repair to happen that will cost at the least $1250. The chances of needing ANY repair before 70,000 miles are very, very, very small, and then the chances of it costing at least $1250 are almost nothing. Even if it does happen, then you'd only break even! And, throw in that many of the things that are covered under the regular warrentee are not covered with the extended warrantee.
Looking at it that way, you can see that it is a total waste of money.
Are you more likely to hit 70k miles or the 7 years first? I drive a ton, so I always run out of miles. If thats the case, you will probably never use the warranty. On the other hand, if you drive 5k miles a year, things might get old and break just from sitting. But on any japanese car, I have never felt the need to buy a warranty and I would definitely cancel it. Plus, it doesn't cover any wear items anyway. Furthermore, the ambiguous language around "do regular maintenance" is just ripe for ripping you off. Come in 5 miles late on an oil change and they will say that that caused the engine failure and not pay out on the warranty. Happened to my friend on a leased car. Blew the motor with 15k miles on it due to a spun bearing (infiniti) and took him a year to get the dealer to warranty the car. In the meantime, he was walking and paying the lease.
They sold you a third party warranty on a new Honda? That's the most ridiculous thing I've every heard.
They hustled you.
Get your money back.
If you want an extended warranty buy an extended 'factory warranty' from Honda instead.
Factory Honda warranties are refundable at any time within the term for a prorated amount.
If you decide to sell the car in a few years and haven't even gotten into the extended warranty yet, you can cash it in for damn near the full amount you paid.
They sold you a third party warranty on a new Honda? That's the most ridiculous thing I've every heard.
They hustled you.
Get your money back.
If you want an extended warranty buy an extended 'factory warranty' from Honda instead.
Factory Honda warranties are refundable at any time within the term for a prorated amount.
If you decide to sell the car in a few years and haven't even gotten into the extended warranty yet, you can cash it in for damn near the full amount you paid.
Good point on getting the manufacturer extended warranty if you want to get a 3rd party warranty. I have a feeling since we haven't seen a turbo Civic before they are going to sell a lot of these warranties.
I'll second Hondacare. The actual coverage is much better than any of the 3rd party warranties we've dealt with. Also, if you don't use it at all they will buy it back.
11-30-2016, 10:50 AM
Civic Hatchback '17 - Warranty Worth it?
