Originally Posted by Sorsha

I had an '00 civic, and I had bought the extended warranty for the 100k mile warranty. Unfortunately my experience with honda and their fulfillment of warranties has made me wary of them. So, I did not buy it for the hybrid.
With my '00 civic I was having all sorts of transmission sounds including thuds and jerks and I was constantly taking it back in for $50 a time. After several times with them telling me "It won't do it when we test drive it" I gave up areminding myself that I could have had the system replaced.

Originally Posted by gumby

Can't argue with your points Noflash and MSantos!
I considered all those things and much more, and agree about 90%. I well know normal wear-n-tear items aren't covered (brakes, timing belts, etc).

Here are some of my reasons for buying the 8yr/120,000 mile extended warranty.

(1) I live in TX, so I get the 8yr/ 80,000 miles version of the standard "hybrid bits" warranty. I will drive 80,000 miles in 4-5 years. My extended warranty covers another 2-3 years and 40,000 more miles - much deeper into the car's life. I've owned several cars deep into their lives, and THAT's when an extended warranty often pays off.
(2) In TX, a hot state, there have been HCH1 premature hybrid battery failure issues. Honda is even reported to have quietly replaced batteries in the past and have an unspoken extension on them in sertain hot states (TX, AZ, NM, others I can't remember). This issue may well exist in the HCH2 batteries, since Honda owned up to this issue just recently. And it's possible Honda will NOT stand up & do the right thing on the HCH2, if so. Only time will tell.
(3) 2006 HCH2 - first year. Japanese or otherwise. They always have more issues than subsequent years. Usually these are early-on kinks (like the odometer-bug, and the side window issue, the spoiler paint-rubbing issue), but nevertheless...
(4) We just don't have overwhelming evidence yet of the hybrid longevity. Early Insights had some hybrid component issues, usually showing up around 85-100,000 miles. 6-8 years is not a lot of history to judge very-long-term reliability.
(5) I worry a little about the CVT. All CVTs are iffy, and Honda HAS already had some issues with them in the HCH1. The CVT is covered by the standard Honda warranty, not for 8/80K miles.
(6) Catalytic Converter. Some HCH1's have had this isue as well. Enough, that is IS a concern.
(7) After 90,000 miles, many of my past cars became "needy". I could often get by until changing to a new car, but this time I want to have the (inexpensive) option to "keep her" longer.
(7) I've found (in the past) that having an extended warranty made me MORE inclined to keep excellent maintenance on the vehicle.
(8) Hybrid components could easily cost $2K or more. A new CVT could cost even more. I figure $980 is a fair price to pay for the extra assurance (insurance).
(9) Since I am paying for the extended warranty with a 0%/12month loan, I can plan better (upfront) for an unexpected failure down the road. With my shaky job future, I can see being in a position to not be able to afford some future expensive repair, so I'm paying for it now. I *know* I could sock that same money away now, instead - and self-insure.
(10) For me, it helped sway me to buy a HYBRID in the first place, and that's the best reason

I know very well how typically well-built and long-lasting the Hondas and Toyotas are. If it had been for the Civic EX, with 5-spd (or even traditional AUTO), I would not have bought the extended warranty.

Having made my decision, I cannot fault anyone for deciding not to purchase an extended warranty. It gives me more peace of mind. I'm willing to pay a little more for that than many.

If Honda makes money on my extended warranty purchase, I can only hope it fuels them to build even better cars!