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Financed Honda Care Cancellation

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Comments

  • 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: 611
    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.
  • dtownfbdtownfb Posts: 2,915
  • duke23duke23 Posts: 488
    mackeyiv wrote :
    " 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. "

    mackeyiv, you are freaking out, calm down. AHFC is not a fly by night operation. They will honor their word. Your cancellation of HCEW will be applied as a reduction of principle financed with your lender AHFC. They have to be paid, you financed, they lent. Anyway congratulations on not paying retail . Buy online or at least use their pricing to negotiate retail. HCEW will get back to you quickly. Relax.

    See :
    "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 . 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. "
    The worries were imaginary, Glad for your good outcome.
  • bolivarbolivar Posts: 2,316
    Mr. Duke, are you aware you responded to a posting over 3 years old?
  • duke23duke23 Posts: 488
    I am Senor Bolivar, but it was indeed fun. We can't get the participation as we can in the good old days. Look at poor stories from the frontlines.On a good day it posts 40. Sadness. We may have to start responding to defunct forums from '05. <-aware.
  • bolivarbolivar Posts: 2,316
    Or responding to our own posts.

    But actually, 40 posts in Frontlines still is too many. The days with 75 were horrible.

    One actual 'Story from the Frontline' per week makes it a good week.
  • duke23duke23 Posts: 488
    bolivar wrote :
    "
    One actual 'Story from the Frontline' per week makes it a good week. "
    New sadness, I can remember when plus 60 was a good day, bad times indeed when extended warranties or what I paid for my Accord is the front runner.
  • The posts about this subject are quite old. So, can anyone provide any tips and advice on canceling Honda Care purchased from a dealer? I bought a new Accord 4 days ago. I was assuming that it would be relatively easy to cancel since the new contracts clearly give 30 days to cancel with a full refund. If I request the refund, how will my refund be processed? Towards principal or recent car payments with Honda Finance? I wound up paying about $600 more than I could have if I bought elsewhere and would like to re-buy it at the lower price.
  • robr2robr2 BostonPosts: 7,595
    edited September 2012
    If you google "cancel honda care", the question about cancelling is answered. It's basically full refund for 60 days. I would presume they would send you a check.

    As for buying it elsewhere, I don't have an answer. But it sticks somewhere deep in my memory that once you cancel Honda Care, you can't buy it again.

    You may want to check with who you'd like to buy it from.
  • Thanks for your reply! My contract actually says 30 days so I think I'm stuck with that. I've already rec'd quotes from others on the same plan that I purchased. I'll probably go with Saccucci. You can re-buy but need to will pay a $100 re-buy fee. I've heard various things about how the refund is made, and I'm primarily trying to figure out if I can negotiate that successfully. The contract is silent on the issue.
  • If you financed the Honda Care in your car note, then the refund is going to the bank and will be applied against your principal...

    The money is yours, but you won't see it..

    Moderator - Prices Paid, Lease Questions, SUVs

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