My 1 year factory warranty for my 2023 DCT model expires in the middle of April and I took the plunge and got the Honda Care extended plan. I find it interesting that you were offered a 4 year warranty - because Honda offers up to 5 years. I wonder if the warranty the dealer is trying to sell you is from Honda or a third party. Honda will send you an offer in the mail in a few months and several more as you get closer to the end of your warranty. To go with the Honda warranty you have time - as long as your current warranty is valid you can extend it.
You are correct; many people spends thousands on vehicle and home insurance. In my lifetime I can only think of 3 claims ever made, and they were small and trivial. Of all the products and services I buy, insurance surely gives me the least in return, monetarily.
I'm not being argumentative, and I don't disagree that the NC platform has proven to have exceptional reliability, and I do not have a warranty on my NC, Honda spends about 3% of its revenue on warranty claims, as do most other large motorcycle manufacturers. It's right in their balance sheets. Honda Powersports division has set aside about $1.2Bn for warranty claims this year. That is not an incident or two but rather represents an aggregate of minor to catastrophic covered events. Again, though the NC is generally reliable, repairs under warranty for this brand (not necessarily this model), though lower than many is not insignificant.
Thanks. That is good info. Put another way, would that mean that if a base warranty did not exist, new owners would, on average, incur a mere 3% additional cost, again on average, for things that could break? The other thing, too, is that manufacturing defects are, in my opinion, more likely to be revealed early on and in the standard warranty period. The extended warranty period would seem to be smooth sailing and hence the more profitable period for the extended warranty (service contract) seller.
No; not in the least bit accurate. I think it is well settled that Honda produces a very reliable product. If nothing else there are anecdotal references here that suggest defects are uncommon. What I think is a better conclusion to draw is that problems are uncommon; but when they are they are costly. I am making this next point with limited information but every motor vehicle manufacturer company that I own stock in exceeds their projected spend on warranty claims.
Could be. But I think your logic is fatally flawed on the 3% extrapolation.
I’m just chewing on some ideas and concepts, without access to real data, nor the skills to effectively interpret it. When you said Honda only pays out 3% in warranty claims, that indicates to me that warranty covered problems are indeed rare.
Agree with all. I’ve had good experiences with extended warranties. But you are 100% correct that on reliable products they often don’t return value. I have a Cadillac I bought used with an extended GM warranty. 2 months ago a thermostat went. I was one week out of warranty but they honored it with an administrative fee of 44.00. Sounds minor but the repair is close to $3,000.00 out of pocket on the vehicle (total pain to do the job, fuel rails have to be removed and replaced, etc.). Another replaced a transmission on a different vehicle. Like everything, it’s subjective. Extended warranties don’t have value, until they do, and it is up to the individual to decide on both points.
right, reliability is high and the likelihood of failure is low; yet when failure occurs is fairly pricy, and if I rack high mileage, it might make sense to get the extended warranty given the penitential for developing an issue become higher.
This is a sound advise, and in fact, I do rack up high mileage on my NC, and it might make sense getting the extended coverage!
Surprisingly, the dealership did not push hard on selling the coverage, and did not offer the maintenance service package. I do the oil change myself, but the business of chain care is new to me, my pervious bike was a shaft drive.
