Author Topic: Extended Warranties - worth it or not?  (Read 1050 times)

AlanTR

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Extended Warranties - worth it or not?
« on: March 14, 2019, 03:45:04 PM »
Our Mk3 Jazz is about to run out of warranty. I've never ever taken out an extended warranty and, considering its good reliability record, feel confident that the Jazz will survive another 3 years without too much expense. To date we've averaged 9000 miles/year.

Vertu Honda have just offered the following warranties: 1 year £299, 2 years £499 and 3 years £699. Full payment or option of 10 monthly payments. Monthly cost over the respective periods works out at £24.92, £20.79 & £19.42 per month (3 years). The back of the booklet I received shows original prices as £399, £707 and £940 which have been amended in biro. There may be less exclusions on the extended Honda warranty than a cost-comparable 3rd party warranty - I haven't checked this out.

Internet research seems to indicate that the average cost of repairs might be less than the average warranty cost. This will vary according to what you drive I suppose?

The Jazz is a safer bet than most cars and I'm inclined to take the risk that I'll get another 3 years of trouble-free motoring...
« Last Edit: March 14, 2019, 03:47:11 PM by AlanTR »

trebor1652

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Re: Extended Warranties - worth it or not?
« Reply #1 on: March 14, 2019, 03:55:13 PM »
What I find strange is, if you buy a Honda in Australia you get a 7 year warranty.
Why do we only get 3 years?
Are the cars sold in the UK substandard?

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mikebore

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Re: Extended Warranties - worth it or not?
« Reply #2 on: March 14, 2019, 04:08:27 PM »
Thanks for the info which has come at a good time for me as the guarantee on my Mk3 Jazz expires in three months.... and I also bought mine from Honda Vertu....so I imagine I will be offered similar.

My attitude to extended warranties is similar to yours. BUT I bought this car because the CVT on my Mk2 Jazz died after 60,000 miles at five years old. It was going to cost £5,600 to repair which they reduced it to £4,000, which was still unacceptable to me. The resolution was that they gave me nearly the cost of the repair off the cost of a new car. So in the end the failure didn't cost me much except I had to buy a new car which I wouldn't otherwise have done. I really wish I had had extended cover on it.

"A burnt child fears the fire", but "lightning never strikes twice" etc etc so I am in a bit of a quandary. I do 14,000 miles a year in mine so the case for me is a bit stronger than for you.

I guess I will look at third party options and exclusions like you. My preference would be the cheapest possible cover that might have lots of exclusions, but which would protect me against the really big bills like CVT failing.

ColinS

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Re: Extended Warranties - worth it or not?
« Reply #3 on: March 14, 2019, 04:57:39 PM »
I had the central diff go on a CR-V several years back.  It was covered by the extended warranty, otherwise it would have cost me over £2K.  I would always go for it, especially with a CVT.

zzaj

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Re: Extended Warranties - worth it or not?
« Reply #4 on: March 14, 2019, 05:14:39 PM »
Same prices as offered to me recently coming out a 5 year Honda warranty.

I am not quite sure how I got a 5 year warranty (bought the car through Drivethedeal.com with cash and got 15% off list as well as £500 manufacturers discount, 5 years servicing for £500 (!) and 5 years Honda Assist). I don't haggle. They must have been short of sales that day. ;D


AlanTR

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Re: Extended Warranties - worth it or not?
« Reply #5 on: March 14, 2019, 07:32:26 PM »
From the plan documents on https://www.honda.co.uk/cars/owners/extended-guarantee.html

Compared with warrantydirect quote (Core & Core Plus cover to include electrics). Honda is approx. £50 more for 3 years but seems to be a more comprehensive cover.

MAIN EXCLUSIONS  The Guarantee does not cover: a) Tuning, adjustments or the cleaning of any assemblies including but not limited to the fuel and lubrication systems or the changing of the cam belt at the manufacturer’s specified interval. b) Any claim notified to a Honda Dealer more than 14 days after the relevant fault has become apparent. c) Damage caused by neglect, corrosion, intrusion of foreign or deleterious matter, lack of servicing, over-heating, rust, freezing or abuse or the continued use of the Vehicle after a fault has become evident or for consequential loss due to the failure of parts. d) Components that have been alterations/modifications from the Manufacturer’s specification.
EXCLUSIONS The following are not covered by this Agreement; a) Replacements of parts that have reached the end of their effective working Life because of age and/or usage are not covered. b) Items which can be expected to wear as part of their normal function (such as, but not limited to, brake friction surfaces, wiper blades, tyres, bulbs, fuses, headlight adjustment, auxiliary drive belts, wheel alignment or tracking when not required as part of an authorised repair).  c) Tuning, adjustments or the cleaning of any assemblies including the fuel and lubrication systems or the changing of the cambelt/chain at the manufacturer’s specified interval. d)  Any claim arising from the timing belt/chain not being replace according to the manufacturers recommended intervals. e) Damage caused to a covered part by neglect, corrosion, intrusion of foreign or deleterious matter, lack of servicing, over-heating, freezing or abuse. f) The continued use of the Vehicle after a fault has become evident or for consequential loss due to the failure of parts not covered by this Agreement. g) Batteries, LEDs, exhaust systems, airbags and wheels. h) The internal and external structure of the Vehicle, including the roof on convertible vehicles, and all paintwork.  i) Broken, chipped or scratched window glass. j) The upholstery or decorative facings of any part of the Vehicle’s interior or exterior including sunroof blinds. k) Water leaks into the vehicle. l) The cost of any Servicing including such service items as oil, spark plugs, filters etc. m) The Catalytic Converter unless it fails exhaust emission standards following a test of exhaust gas  n) Integrated Motor Assist Pack on a Vehicle which is more than 8 years or 80,000 miles from date of first registration, whichever is the sooner. o) Any losses covered under an accidental damage or road risk insurance policy or for any road hazard fire or accident damage.  p) Any liability in respect of third parties

peteo48

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Re: Extended Warranties - worth it or not?
« Reply #6 on: March 14, 2019, 10:00:50 PM »
I have used Warranty Direct in the past and found them to deliver on their promises despite all the bad publicity that extended warranty companies get. The situation related to a VW Gold that was terminally unreliable. At the time I wasn't prepared to take a big hit on depreciation so I got a Warranty Direct warranty independently. They paid out on 3 major repairs in a twelve month period with no quibble

I'd have one again but not on a car like the Jazz. Major problems are very few and far between unlike on German cars.

Downsizer

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Re: Extended Warranties - worth it or not?
« Reply #7 on: March 14, 2019, 10:20:35 PM »
It just depends on your attitude to risk.  The warranty companies make a profit, so overall, they are not worth the money.  Also, you should be able to get continuing Honda Assist free via your dealer if they do the services.

richardfrost

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Re: Extended Warranties - worth it or not?
« Reply #8 on: March 14, 2019, 10:50:35 PM »
Just save that amount every month and if you need it then all good. If you don’t, jolly dee, a lump sum towards your next car. Take back control!

AlanTR

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Re: Extended Warranties - worth it or not?
« Reply #9 on: March 15, 2019, 02:13:49 PM »
In the case of a CVT transmission you'd need to save a lot of cash! I'm keeping our Jazz for another three years so I've gone for the warranty - that's a guarantee that nothing will go wrong!

In three years time I anticipate going down to one car, then I'll buy new or nearly new. Will it be a Honda - I do not know. Having had two Hyundai cars with 5 year warranties and getting excellent reliability from both, I may go that way, or Kia. However, to date, I have to say that the Honda has been impressive...

eagle123

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Re: Extended Warranties - worth it or not?
« Reply #10 on: March 29, 2019, 08:13:08 PM »
I had two jazzes previously both gd1 1.4 coincidently both had the abs modulator failed. I had extended the warranty on both and a new modulator was 1400 pounds including fitting.
So by having a extended warranty i saved time and money.
I have a 2009 2 2 civic and again has a extended warranty.
 My experience in the civic has been faultless and have replaced wear and tear item.
The warranty would be good enough to cover electrical and mechanical items. My main guess would be the abs modulator to fail.


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mikebore

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Re: Extended Warranties - worth it or not?
« Reply #11 on: May 22, 2019, 09:59:30 AM »
Thanks for the info which has come at a good time for me as the guarantee on my Mk3 Jazz expires in three months.... and I also bought mine from Honda Vertu....so I imagine I will be offered similar.

My attitude to extended warranties is similar to yours. BUT I bought this car because the CVT on my Mk2 Jazz died after 60,000 miles at five years old. It was going to cost £5,600 to repair which they reduced it to £4,000, which was still unacceptable to me. The resolution was that they gave me nearly the cost of the repair off the cost of a new car. So in the end the failure didn't cost me much except I had to buy a new car which I wouldn't otherwise have done. I really wish I had had extended cover on it.

"A burnt child fears the fire", but "lightning never strikes twice" etc etc so I am in a bit of a quandary. I do 14,000 miles a year in mine so the case for me is a bit stronger than for you.

I guess I will look at third party options and exclusions like you. My preference would be the cheapest possible cover that might have lots of exclusions, but which would protect me against the really big bills like CVT failing.

I have just taken out Warranty Direct Core Cover (just the big things). Cost is £102 pa compared to Honda Vertu quote of £325. Obviously the Honda policy covers a lot more but I only want protection for the big things. Policy allows repair by Honda dealer with Honda parts.

I contacted MotorEasy as well. They have a slightly better rating on TrustPilot but are not as customisable as Warranty Direct and would have cost quite a lot more.

Jocko

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Re: Extended Warranties - worth it or not?
« Reply #12 on: May 22, 2019, 10:19:15 AM »
I was reading what car, in the dentists yesterday (the May and June editions, no less), and a guy was asking about the need to have his car serviced by Honda to qualify for the warranty. He was told that under the Block Exemption Regulations he didn't need to, but those don't cover extended warranties. Only the manufacturer's warranty on a new car. For extended warranties it advises you check the small print or you could lose out on a warranty claim.

mikebore

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Re: Extended Warranties - worth it or not?
« Reply #13 on: May 22, 2019, 10:57:45 AM »
I was reading what car, in the dentists yesterday (the May and June editions, no less), and a guy was asking about the need to have his car serviced by Honda to qualify for the warranty. He was told that under the Block Exemption Regulations he didn't need to, but those don't cover extended warranties. Only the manufacturer's warranty on a new car. For extended warranties it advises you check the small print or you could lose out on a warranty claim.

Thanks for the warning. Their FAQ says "You must have your vehicle serviced at a VAT registered garage in accordance with the manufacturer's recommendations. Please ensure that you retain the receipted invoice as this will be required should you make a claim." I intend to carry on having it serviced at Vertu anyway.

SuperCNJ

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Re: Extended Warranties - worth it or not?
« Reply #14 on: June 10, 2019, 11:50:37 AM »
It's probably too late to respond to this thread but it may help others later.

I went with Warranty Direct for my old Civic Type-R which had numerous mechanical problems fixed under warranty. It was the better option at the time as it covered more than the Honda extended warranty covered and they were less stringent on where you get the work done. At the time they covered some wear and tear items which I was surprised about and seemed more willing to authorise work providing you serviced the car on time. The warranty must have covered many thousands of pounds of work as there was so much that went wrong with it.

But in contrast, in the 10 years we had owned our 14 year old GD Sport we had never taken out warranty, instead putting faith in the build quality of the Japanese built Jazz. There has only ever been one issue requiring major work in this time and that was a worn bearing in the gearbox. But we used this opportunity to replace the clutch so saved the cost of taking out the gearbox again later.

So not taking out the warranty proved to be the right decision on this occasion, but we did set aside some money for such eventualities.





 


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