re: Bought my wife a new Honda Pilot Friday...extended warranty sales pitch.

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Bought an extended warranty on my new 2013 F-150- ended up being in the shop at least once a year for A/C problems, and I needed a turbo replaced in 2018-2019. Definitely paid off for me- sold that truck as soon as the warranty expired.

Bought the extended warranty for wife's 2008 Escalade, purchased in 2010, which ended up needing new $1,700 shocks, among other smaller repairs. It probably ended up being 'prepaid maintenance', but with as many electronics and small motors, etc on some cars, I usually get them, but I probably would not get one on a Honda/Toyota.

ETA: You never know if paying for the warranty pays off until you need it, or the warranty expires.

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american cars.... you need the warranty for those......

I bought one on a 2016 pilot. Felt like a dumb thing to do and I almost didn’t. But it was fanciest car I had ever bought at that time with keyless push button start, and the big touchpad. Just a lot of things to break. The transmission went out and was 12,000. They covered all of it along with rental car that was needed. Also got 5 tires replaced and a new set of keys. It def paid off. In fact I’m about to bring it in again bc of an issue with the auto start/stop and I have like 20K miles left before policy runs out. I’ll be getting rid of car as soon as it’s out of warranty bc just too many issues. I know it’s not normal for a Honda but this one was sort of a lemon.

The standard extended warranty don't make a ton but the others make insane bank. The touch screen protection, paint protection, bug shield bs is where they make their 200k a year salaries in a lot of these lots.

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I think I read the dealer gets a 40% commission on every extended warranty.

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Incorrect.

Only two states require dealers to sell warranty at a price set by the provider.

In other states, the dealer is basically given 20% of the value of the vehicle and adds to sell as backend.

On a 60k vehicle: that's 12k worth of shite. They spread that out over all products. You say you don't want one, they shift money to the others. You say you don't want another... Boom. Moved it to another.

The idea being they will hit the lenders maximum allowed sale price for whatever products they do sell you.

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I bought one on a 2016 pilot. Felt like a dumb thing to do and I almost didn’t. But it was fanciest car I had ever bought at that time with keyless push button start, and the big touchpad. Just a lot of things to break.

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We just bought a car a few weeks ago and got the extended warranty because of this. We did talk them down to $1,000 for it though. I think it was originally $2,500. I was Googling like crazy on my phone reviews of the warranty company, and all the reviews were pretty solid. My fear was they wouldn't cover if you didn't go to a specific shop, but that didn't seem to be the case. Just 2 modest repair costs and we get our money back on it.

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ne thing to consider is people still think of extended warranties in terms of engine and transmission repairs which are rare on today’s cars. But most vehicles today are loaded with electronics. Navigation systems , complex sound systems, multiple cameras, lane change sensors, even autopilot/ self parking technology.

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This is how Honda tried to sell me on the extended warranty. Like others have mentioned, I told the finance guy that the salesman just sold me on a great car so why do I need to buy your extended warranty.

I get that it may make some sense, but I don't see the value.

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Are there cases where the extended warranties are worth it?

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Hondas are not what they used to be. I bought a 120k mile warranty for a new 2017 Pilot AWD because there were known issues with the fuel injectors and carbon build up due to the high pressure direct fuel injection, plus the rear bank cylinder deactivation system causing further issues. I bought an extended warranty from an out of state Honda dealer way cheaper than the local dealer was trying to sell. Like clock work, fuel injectors and fuel rails crapped out less than 500 miles past the 36k standard warranty, local dealer would not get it covered under warranty although they knew it was an ongoing issue, and I got quoted $2400 for repair and paid $50 deductible to have it fixed with the extended warranty. I haven't had other issues yet but my take on Honda isn't good due to the dealership and won't buy another one.

About 3 weeks ago I received documentation from corporate that the fuel injectors would be covered for entire length of ownership up to 150k miles, and one could file a claim to recover past repair cost but they basically would be re-paying themselves.

Yes, sometimes extended warranties are worth well more than they cost. The new CR-Vs had significant oil dilution issues with the new direct injection 4-cylinder engine they came out with a few years ago, Honda has work to do to improve it's reputation.

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fuel injectors and fuel rails crapped out less than 500 miles past the 36k standard warranty,

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I got fuel injector errors on mine twice since 70k miles, both times I disconnected both battery terminals for 10 minutes and since then the error hasn’t returned for a third instance.

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Are there cases where the extended warranties are worth it?

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I think it's always worth it if you plan to keep the car for many years.

I've bought it every time & it's always paid off having it. We keep cars at least 8-10 years, so it doesn't take but a couple minor things to need repair before the warranty more than pays for itself.

Was this at Honda of Covington? If so, I dealt with the same a-hole. He was pissed when I told him not to waste his time giving his sales pitch. He was pissed and pretty much said I was a fool for taking such a risk. I had a few choice words for him as we went back and forth.