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Financed Honda Care Cancellation

Hi. I recently got a 2004 Honda Civic EX with finance. We decided to get the Honda Care Warranty, because according to the F&I guy, it would only cost an 'additional $10 per month' with it. So I assumed that the total cost of this program was $10x60(5 years in months) = $600. He also said that our initial IR of 9.44% would be lowered to 9.0% if we took the Honda Care program. So overall, it sounded good at the moment. But what I hadn't realized until we got home (the car is under my dad's name) is that an amount of $1495 was added into the finance amount for the Honda Care, not $600. And when we were there, the paper that showed this price was hidden and folded. Plus, it was under his grip at all times. Since the dealership was closing down in less than 15 minutes, and they were supposedly all getting ready for a regional Honda dealership party, they wanted to speed things up. I should've have snatched the papers from him, no matter what. That was my mistake and I regret it immensly, to the point where it's the only thing I'm thinking about.

So anyway, is it possible and likely that I could cancel my financed Honda Care amount of $1495 withing the cancellation period? I want to get an idea of how easy or hard it might be for me to go ahead with the cancellation process, and also get some pointers from more experienced car buyers who went through similar situations. Thanks.
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Comments

  • driftracerdriftracer Posts: 2,692
    but you've been lied to - your F&I person lied when he said that by buying a service contract you'd get a better rate - he sold you the contract and lowered your rate by .44% to make it a smaller hit on your payments.

    I hate it when people do this - arrange a meeting with the dealership GM and explain that you've been lied to - I'm a dealership manager - I'd want to know if my F&I guy was so weak that he had to lie in order to sell a warranty.

    What he's done is commit fraud. Where you take it from there is your business.
  • but say I didn't want to go through the hassle of going to the dealer and speaking with the GM, what would be the fastest way of getting it cancelled? Or am I obligated to go back and make a complaint about the F&I in order to get this processed?
  • driftracerdriftracer Posts: 2,692
    but talking to the GM should get the price reduced to the $600 you agreed to, or have them redo the contract.

    It's your money, please don't be lazy about it.

    The thing is, your finance contract has a "buy" rate lower than 9% - they already dropped it .44%. It would make sense to me to go in, ask to see the financing approval sheet and see what your "buy" rate is - have them recontract at THAT rate - the Honda Care warranty, if you're still interested, could be added at the price you thought was right.

    You need to do this quickly, though, because once the contract is gone from the dealer, all that can be done is a refund against your loan balance - you're still stuck at yor rate, too.
  • Are they obligated to give me the actual buy rate if I ask for it? If so, I can then assume that they would tell me the truth and give a lower rate than the 9.0% that was given to me? My (dad's) credit score is dangerously low, about 540, according to the F&I guy. Wouldn't revealing the true 'buy' rate make them look bad and con'ish? I just don't see how they would be willing to show that they inflated my rate, if it was inflated at all.

    Oh, and they're still processing the finance...we gave $7000 down payment, if that is relevant.
  • driftracerdriftracer Posts: 2,692
    is not funded, you have a bargaining position - you were lied to. It that doesn't bother you, I can't help you.

    If it bothers you, arrange a meeting and get all the facts.

    As a former F&I guy, I can say that dealers hold some rate in many cases, but if fronted with either showing the approval sheet or losing a car deal - the position they should be put in - they'll decide what is best.

    You can buy a car anywhere, especially with $7K down - you don't need to be lied to.
  • Thanks for all of your replies. The information you've given thus far seem very helpful. Of course I am bothered about the lies and pricing, otherwise I wouldn't keep on posting and asking questions. But I didn't know that those things would be considered as 'lying' as opposed to 'dealer incentives'. Maybe they are synonymous.

    So if they decide not to show the true 'buy rate', you suggest that I should cancel the deal? It's only the warranty cost that is bothering me, and possibly an inflated rate, if that is possible. We got a great deal on the car itself, $16,382 including destination ('04 Civic EX 2-Dr Auto). We 'fought' hard to get that deal. I guess getting an even lower rate than 9% and refinancing would be a huge 'icing on the cake'. But DEFINITELY that $1495 has to go.
  • driftracerdriftracer Posts: 2,692
    "He also said that our initial IR of 9.44% would be lowered to 9.0% if we took the Honda Care program."

    When he indicated that if you took the warranty, you'd get a lower rate, that's a bold-faced lie. Lenders DO NOT offer rate discounts for buying aftermarket products, even if it's the manufacturer's product (Honda Care).
  • Well, we decided to visit the Honda dealer to get things sorted out. We we got in we wanted to make sure that we could talk to the General Sales Manager. But unfortunately he was 'in a meeting' so after half an hour, he was finally out and I approaced to to discuss our issue. He then said that he couldn't handle any issues with financing and warrantys, so he called in the Finance Manager. So we spoke to him. To be concise, he was hard to deal with, and we mentioned that those prices that were shown in the statement was not mentioned at all, and that everything was rushed. We wanted to him to get us to recontract the deal without the $1500, but he said that the papers were already sent out. So we asked him to cancel it, by which he said he 'couldn't'. We then expressed our disappointemnt with statements like 'that's bad business' and 'we were decieved'. His excuse...'you signed the papers, sorry'. Then we talked about how the IR is independent of any warranty purchase, and suggested that we would contact Honda themselves and discuss about this. After that, he got the notion that we were serious, and that we were willing to go all the way. So to eat his own words, he said that he would try again to cancel the shipped papers which were sent to Honda Finance, which he initially said couldn't be done. Talk about BS. So, basically nothing was resolved at this point, and we're waiting for him to give us the update on the cancellation.

    Oh, and I've seem to either lose the Honda Care contract paper, or it is under the possession of the dealership. Is that a big deal?
  • driftracerdriftracer Posts: 2,692
    close of business tomorrow, then I'd call Honda Customer Service and tell the whole story. It'll get ugly from there, but ugly in your favor - you gave them a chance to correct the lie, we'll see what happens - keep us posted.
  • landru2landru2 Posts: 638
    in the U.S. that specifically prohibit making interest rates contingent on purchases of warranties, etc.? Maybe it was in certain states but I seem to remember reading that somewhere.
  • Exactly how much harder is it going to get from this point on? So I should just tell the whole story to Honda Customer Service before I get the confirmation on the cancellation? Oh, and I forgot to mention that the Financial Manager was insistent that if after everything gets sorted out, that we would agree to put a positive statement on their Honda survery....? I don't exactly know what this survey is, or how important it might be to the dealers, but he sure seemed concerned that we don't give a negative feedback on it. He said something along the lines of,

    "If lets say I could cancel this contract for you and you get what you want, would you give a positive feedback on the survey?"

    And I answered back,

    "Well, even thought things didn't go out the way it was supposed to initially, I would give a positive feedback if things were resolved, nontheless"

    He sure seemed happy to hear that, and that's when suddenly he said that he would try once more to cancel the contract, which is already "on it's way to Honda Finance". I have a feeling that the papers are still sitting on his desk...but who really knows.
  • driftracerdriftracer Posts: 2,692
    it's not important. The point is, you were lied to and misled - straighten out the rate and warranty portions of the contract.
  • Yeah, I personally couldn't care less about the survey, but it seemed like that was the turning point for which he decided to try and cancel the contract. I dunno, it could've also been because we were willing to contact Honda Finance themselves. Either way, I hope he doesn't pull any more stunts. If that happens, I'll be *that* close to losing my cool, and my mind.

    Oh, and we are required to sign the papers once more if the recontracting does go foward, right? If so, I'll be damned sure to take as much time as I need. Lesson learned. But let's see what happens. *crosses finger*
  • driftracerdriftracer Posts: 2,692
    Keep us posted.
  • Here's the thing. The financial manager said that he would try to cancel the contract, but there would be no guarantee. However, we also had an issue with this extra charge of $199 for an option that was never discussed, the window etching. We expressed our displeasure of having paid for this, when it was again, hidden from our view and not mentioned. Again, we take partial responsibility for not being more aggressive with the inspection of the papers, but it was shoddy nontheless. So anyways, the manager said that he would give us a check of $200 to make up for that loss, even though that amount was put into the finance amount. But I'd rather not make too much of a fuss there. But we haven't heard from them yet, and it's been two business days. I've tried to call the guy, but he's never in his office.

    Just as a precaution, I called up Honda Customer Support yesterday to give a detailed account of just what happened with us in the dealership. Now, I'm not sure what else to do. Should I wait more, keep on calling, or visit them once again?
  • driftracerdriftracer Posts: 2,692
    Customer assistance - sounds like a very crooked F&I guy.

    And contact your state's attorney general's office.

    "He's never in his office" - I don't buy it. Go visit with him in person. He's guilty of fraud, and needs to be reminded of that. He can either deal with you on your terms, or deal with an AG inquiry - that is, unless you take the low road. Your call, your money.

    I just know how I'd handle it.
  • I know almost nothing about the law as far as car purchases go. Actually, even though I'm doing much of the talking, it is my dad who's responsible for all of the legal, and financial issues. He's just not that well spoken in English (not our native tongue). I doubt that I could handle the legal procedures or speak in legal terms. So I have basically no idea what would happen if I contact the AG. I'm just not sure.

    But we sure will go to the dealership if nothing happens.
  • driftracerdriftracer Posts: 2,692
    you can step back and enjoy the car, keeping the contract as is, or you can go have it out with the F&I guy, letting him know that you have sources who have explained the law to you and you know that he lied to you about the rate and warranty situation.

    Or, you can have Honda corporate contact the dealer's GM and see what happens there. Remind Honda that the F&I guy lied to you and you know it.
  • I'm having trouble with American Honda Finance Corp on getting my money back after canceling Honda Care on a Leased vehicle. Can you reactivate the discussion Financed Honda Care Cancellation - it said to post a message requesting this here.

    I bought the Honda Care 7 year 75K mile extended warrantee for $1145 at the dealership Anderson Honda in E. Palo Alto under the assurance written into the contract and confirmed by the finance guy that I could get my money back if I canceled within 60 days. He said the money would go to the leaseholder AHFC and this would cover the first few payments. When I got home I saw that I could get the identical Honda Care Warrantee at www.hondacuraworld.com for $845 (and I can wait 3 years to buy it), so I asked the dealer to refund me the $300 difference or I would cancel - no deal. I called Honda Care and AFHC (2 phone numbers but same company) and they the customer service rep assured me that Honda Care would send a check to AFHC and AHFC assured me this check would be applied to my payments. So I submitted the form and canceled it.

    Since that point I have spent many hours on the phone to make sure my payment from Honda Care to AHFC is credited to my account - the check hasn't arrived yet. But now AHFC says the payment will not be applied to my monthly payments but instead will become a security deposit which I won't get back for 3 years. The contract says they have a "security interest" in any refunded warranty money, but this does not mean it becomes a security deposit that they can keep for 3 years. Meanwhile I have to make payments on this $1145 higher financed amount. This certainly isn't a 60 day money-back cancellation policy.

    I've spent many hours calling customer service at AHFC and each person seems to have a different view of this policy. Now they say a supervisor can make an exception to apply the money to the account payments - but that this determination will be based on my payment history - but there isn't a payment history since I just bought the car. I keep calling and have been unable to talk to a supervisor. I leave messages and the customer service reps promise that the supervisor will call me but she does not. I'm willing to compromise, perhaps by pre-paying my account for 3 months if they will give me the Honda Care money back, but I can't get anyone who can make this determination to call me. Since I don't want to be in default, I mailed my 1st month's payment - even though my account should have a $1145 credit.

    By reactivating the "Financed Honda Care Cancellation" discussion and posting this message, I hope to get some advice on how to proceed. Small claims court? Perhaps find others with this issue for a Class Action certification? Consumer Affairs with TV or Newspaper? Contacting senior management or legal at AHFC? Complaining to the dealer seems a waste of time as it is AHFC's issue, and I'm sick of spending hours on the phone with "Customer Service". I just hate to get ripped-off - the contract says I get a 60 day full purchase price refund and I want it. What do you recommend?
  • kyfdxkyfdx Posts: 28,743
    ....but, I have a question..

    Why would you need an extended warranty on a leased car?

    regards,
    kyfdx
    Host-Prices Paid Forums

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • Well, I understand your frustation :mad: , but you aren't going to get anywhere with any of your options excepting playing ball with AHFC. This is common, industry-wide practice. What they are doing is perfectly legal, the cancellation language on the Honda Care is separate from your finance contract. The Honda Care IS giving you a 100% refund, but because you financed it, the refund must go to the leinholder (AHFC). AHFC will not refund to you because they will treat it as a principal payment (loan) or a payment on the end of the term (lease). They are not going to change the terms of your lease at this point, so your best option is to play nice and see if you can skip a few payments down the road..........but I wouldn't hold my breath.
  • I'll plan to buy the car at the end of the lease. With the discounted lease financing, my calculations showed Leasing to be the cheapest option for me at this point. The dealer convinced me to buy the extended warrantee now (at purchase) because he was giving me such a discount from the $1,700 List Price for the Extended Warrantee. . . HA HA HA! they got me on that one.

    Now I know I shouldn't have bought it till near the END of the Lease.
  • Perhaps, but since my Lease is not a "Loan" there is no "Principal", and there is no "Interest" - which would go down if principal were repaid. That's why they want to call this payment a "Security Deposit" because it can't be a payment of principal, since I haven't actually borrowed the money to buy the car, as a lease, I'm just paying money to "borrow" their car. But the lease contract I signed says the "refundable security deposit" is N/A.

    I read carefully how they've knitted together the 60 day cancellation language in one contract with the refund language in the other contract, but nowhere does it say that AHFC has the option of applying money paid to my account as either a "Principal" payment or a "Security Payment". In my opinion, a judge would find offering a 60 day refund then keeping my money for 3 years is not legal. Imagine charging then returning a wrong size shirt the next day and having the store say while it's 100% refundable, the credit won't go on to my Visa for 3 years.

    I got the supervisor to call me back today and I think they will "make an exception" in my case because (before I canceled the contract) their customer service rep told me - and luckily was honest in telling them that he told me - that if I canceled my Honda Care Warrantee, the money would be applied to my monthly payments.

    Honda Care says a check to AHFC is in the mail (it's now a month since the policy was canceled) and Honda Care and AHFC are actually the same company. ;) so the delay is in money going from one of their pockets to the other. I'm hoping this will get to resolution soon, so I'll give them another week before hauling them into small claims court.
    Are there any other Honda Care Cancellation customers who are facing this issue?
  • Just wanted to let everyone know that it looks like AHFC did come through with crediting my account for the canceled Honda Care - so I can skip the payments for the next 3 months :P . After I finally got to talk to a supervisor and explained that "policy" or not, this is not what the contract says. They agreed not to count this credit as a security deposit, and instead as a payment - which is what the first Customer Service Rep who I talked to had told me they would. They said he made a mistake in telling me this but I'm just happy I don't need to wait 3 years to get my money back. :D

    My advice, unless you want to spend about 20 hours talking to AHFC - DON'T BUY HONDA CARE UNTIL YOUR CAR IS ABOUT TO COME OFF WARRANTEE
  • skteoh20skteoh20 Posts: 1
    :sick: I own 3 Accord, latest being 2006 model. The engine is vibrating vey badly during idle. It gets worse when I engage automatic Drive and Reverse Mode. I have sent the car to authorized dealer but nothing is done to fix it except cleaning engine throttle control. The problem is still there. I wrote in to Honda through the official website, nobody seems to care. What is going on?

    :mad: :cry: :sick: :confuse:
  • mitzijmitzij Posts: 612
    You might have better luck posting in the Honda Accord problems and solutions thread.
    If the technician didn't fix it right, go back. Explain your trouble in detail. Sit in the car with a technician and point out your problem. If you don't like the first dealer, go to another one.
  • I bought a brand new MDX 2 weeks ago. I got a call from the dealership immediately right after I gave them good ratings on the survey. They told me that they messed up the paperwork and put the wrong vin# on the registration and financing paperwork. I think they knew but waited for me to respond to the phone survey. They now want me to go back to the dealership with the wife to correct their blunder. They claim that they cannot do it via Fedex or at my home.

    Does anyone know if signing the paperworks really has to be done at the dealership? How do dealerships claim that they'll deliver the car to your place? What's my recourse to avoid having to drive all the way back to the dealership?

    Thanks in advance
  • The same thing just happened to me. It is so frustrating that they play with numbers like that and spin words to make it sound like you are getting a deal and that they are doing right by their customer when that really isn't the case.

    I questioned it more than once and each person had a crafty response down pat. Never once did i get the same story, but the message was still the same. I was comfortable with the payment that worked out to be just $10 more than the original payment without the warranty. It made it sound like the warranty would only cost $10 a month or $720.

    They used the same tactics, lowered my rate to make it less of a hit, but still sold the contract to me at full price. I am so angry that they are able to do that.

    I've been assured that I won't lose on it and that if I sell the car or trade it in I can cancel the policy and Honda will send me a pro-rated check.

    They claim to "buy down" the cost of the contract by lowering the interest rate.

    The bank makes money on the loan via interest, not the dealership. The dealers make money by selling the warranty.

    I don't know whether to pursue this further or not. I will enjoy the vehicle and hope that I never need the warranty, but if I do, it had better pay off in the long run.

    :mad:
  • tidestertidester Posts: 10,110
    I don't see why the paper work has to be done at the dealership but it is unclear to me whether you have taken delivery of the vehicle when you ask "How do dealerships claim that they'll deliver the car to your place?"

    tidester, host
    SUVs and Smart Shopper
  • Does anyone know what dealers are selling Honda Care for at the lowest price.
    I have a 2007 Odyssey with 5623 miles and I am interested in the 0 deductible/8 years/120,000, plan code D82. The lowest I found is $1195.00.
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