Extended WarrantiesJan 28th, 2021
Part of the new car purchase process typically involves deciding what options you want to equip your car with. They might include something cosmetic that enhances your vehicle’s appearance, like a spoiler. They might be more functional items like running boards or a heated steering wheel. They could also include applications designed to protect your investment, things such as 3M. Warranties, standard and extended, provide another type of protection, safeguarding your bank account from major hits due to unexpected vehicle repairs.
Every new Honda purchased in Canada comes standard with two manufacturer’s warranties: comprehensive and powertrain. The comprehensive warranty is sometimes called bumper to bumper but this isn’t quite accurate. It does cover most vehicle components for manufacturer defect but not wear and tire items like tires, brake pads, and wiper blades. The comprehensive warranty is good for three years or 60,000 km, whichever comes first. It is paired with a powertrain warranty which covers the parts and systems which make your car go: the engine, transmission, and drive system. The powertrain warranty expires after 5 years or 100,000 km, again, whichever comes first. Though these warranties accompany every new Honda sold in Canada, keep in mind that warranties will vary from manufacturer to manufacturer.
New Hondas also come with three years Honda Plus Roadside Assistance. Coverage is limited to the three year term but not by the number of km you put on your Honda. Honda Plus Roadside Assistance includes a wide range of services battery boosts, towing, emergency transportation, and much more. It’s a good idea to get familiar with Roadside Assistance coverage so that you don’t spend what you don’t need to, should you find yourself stranded. Roadside Assistance protects you anywhere in Canada or the USA. Also, it is attached to the vehicle, not the driver, so should a friend or family member be driving your Honda they also have access to these services.
Honda Certified Used Vehicles (HCUVs) carry whatever portion of the original new car warranty still remains but certification also increases the powertrain warranty to 7 years/160,000 km. You can upgrade the warranty on your HCUV to increase the comprehensive portion of the coverage under some conditions
It should be noted that warranties are not a substitute for regular maintenance. Warranties are intended to cover manufacturer defects. The expectation is that Honda owner/drivers will maintain their vehicles in accordance with Honda Canada’ recommendations. The cost of that service is also the customer’s responsibility. Neglect may invalidate a warranty.
Extended warranties operate just like the standard warranties but with longer terms and larger kilometre limits. Roadside assistance is matched to the length of the term rather than the number of kilometres, as it is with the standard warranty. The price of warranty will with model, term, and kilometres, maxing out at eight years and 200,000 km. For example, bumping up the comprehensive warranty on a Civic to 4 years/80,000 km currently costs $748 while extending the warranty to 8 years/200,000 km on a Pilot costs $3,902. There is also some degree of mixing and matching of term and kilometres available. For example, you can purchase 7 year warranties with kilometre limits that range from 130,000 to 200,000 km. This allows you to tailor your warranty to your particular circumstances.
Honda Canada generously allows you a 60 day cooling off period after following the purchase of your extended warranty. You can cancel during that period should you have second thoughts. Additionally, should your car be written off before the warranty expires you can be refunded a pro-rated portion of the cost. You will have to apply for that refund, though. We can walk you through that.
One of the reasons that Hondas are so popular is their well-earned reputation for reliability and durability. However, they are mechanical devices and issues can crop up as the years and the km pile on. Extended warranties make the most sense for those Honda owners who tend to keep their vehicles for a long time or put on a lot km or both.
It’s like buying insurance. It’s all about assessing risk and how important it is to you to minimize that risk. Choosing the amount of extended warranty involves weighing the cost of that warranty against the projected cost of potential issues. Buying an extended warranty is buying extra peace of mind. The warranty is also transferrable so you also increase the resale value of your car.
If equipping your new car with an extended warranty sounds right for you, don’t hesitate to get in touch with us. Our team of financial managers know all the ins and outs of warranties and are here to help.