Honda Extended Warranties Pricing and Info

jet10000 · February 2010

Yes, Honda gives the dealers the latitude to charge whatever they can. But it's the same Honda Care.

pilotguy2 · February 2010

When I took delivery of my new Pilot in Jan 2010, the business manager sold me on the extended warranty -- I thought it was a bit pricey, but I wanted the peace of mind after the factory warranty expires. I got the 7 yr / 120k mile warranty. The business mgr told me that this was the only opportunity I would have to buy the Honda Care (Lie #1), and that if I declined, I couldn't buy it later. This is a common pressure tactic they apply while you're at the dealership. He did tell me I had 60 days to cancel it. I was very disappointed to see when the paperwork arrived at my home that the warranty carried a $100 deductible.

I subsequently started reviewing this topic in this forum and found out that many dealers around the country will sell the HondaCare warranty up to the first 6,000 miles on the new vehicle. Someone posted a link to Bernardi Honda in Natick, MA. I contacted them through their website and got a quote for a 7 yr / 120k mile warranty with $0 deductible. They beat my dealer's price by about $400 (they quoted me $1,295). I've since cancelled the Honda Care I bought at the time of delivery and signed up for the HondaCare warranty through Bernardi -- it's the same coverage, but this time with $0 deductible, which is what I wanted.

Moral of the story -- don't trust those slimy business managers and shop around. This forum contains a wealth of information. Thanks to all who shared this valuable information with me!

polarcubz · February 2010

Ok... So I happened to come across your ranting about the honda extended warranties. I am a "slimy" business manager who happens to work for a honda dealership. Many years with honda. Your anger is only because you found you could save a few hundred dollars extra somewhere else, yet, I am sure you shop at walmart or food lion, P&C grocery.... every day in some cases. Does anyone ever complain about the shelf prices, no. You are forced to pay the price. Most people do. We have the lattitude to discount our prices or not. Just as when you buy the vehicle. Do you think dealers are in it to NOT make money? Hello genius... we have over 60 employees to feed here. So I think your $400 savings made you feel better in which case I say, dont complain about the economy or job loss when people of your caliber are worrying over the petty things in life. Oh, and you were not refunded the tax on your initial warranty purchase when you cancelled it. So you effectively paid the tax twice. This lowered your difference to a measely $200 or so dollars. Good job for all the headaches... I can honestly say, I am not a "slimy" business manager and I do try to help all my customers get into a honda warranty. I believe in them. To bad for you, you probably got screwed on the rate and the price pf the car. Feel what you want, your priorities are obveously screwed up. Have a good time with your second honda warranty ace.... good job.

accordexl · February 2010

We all know the economy hurts, and I'm sorry for the pressure you are feeling. But if you try to look at the whole picture objectively, you'll see pressure selling through incorrect representation of facts. If the salesman sells through falsification, the consumer will get back through reneging, after all, as you said everyone's trying to do the best they can for themselves. I feel for pilotguy2, since my dealer charged me $1750 for a 8 yr/100,000 miles HondaCare warranty, and I got another quote for $1040 from another dealer after I returned home. I'll call my local dealer to see if he can match it, but if not, I'm forced to balk.

jet10000 · February 2010

Your anger is only because you found you could save a few hundred dollars extra somewhere else,

No, it sounds like his anger was that he was told that if he didn't buy the warranty on the spot, he wouldn't have a chance to buy the warranty at all. As a business manager yourself, you should know that such a statement is false. Had he not been told such a lie, he would have had time to research the lowest price.

Oh, and you were not refunded the tax on your initial warranty purchase when you cancelled it. So you effectively paid the tax twice. This lowered your difference to a measely $200 or so dollars.

I have never paid sales tax for Honda Care that I have purchased from out of state dealers because sales tax laws don't require them to charge me tax. So unless he lived in MA, he didn't pay double tax as you claim.

Regardless, the dishonest dealership lost out on ill-gotten profits---which is how it should be. If someone can not make an honest living in the business, then they should find a different career.

happyaccord · February 2010

There is no Tax for Honda Care in California either. I do not know about MA or other states.
One of the main reasons I do not like to buy a car is I hate the car Sale persons. Most of them have terrible attitude.
Thanks GOD I do not have to deal with them too often.

pilotguy2 · February 2010

Wow -- looks like I touched a raw nerve. Yes, when business people lie, I consider them slimy. There's no need to lie to make a good living -- those who do are only hurting themselves in the long run. Fortunately, the internet has given car consumers a wealth of information, so it's more difficult for those in the car business to lie and swindle these days -- but in the long run, everyone wins. The consumer gets a fair deal and honest brokers make a good living by truly serving their clientele. One thing I didn't mention in my previous post was that the sales guy was completely honest when brokering the deal with me -- I would return to him in a heartbeat and have told several people about him already. I have also told several people about the business manager, and hopefully people will avoid him.

And no, I didn't pay the sales tax twice (the MA dealer didn't charge sales tax on the transaction) -- and I'm still hopeful that the sales tax on the original warranty will be refunded along with the principal, but based on your note, I guess I might be whistling into the wind on that one.

I like the concept of the Honda extended warranty and believe I've finally gotten a fair deal for the peace of mind it will provide. I hope to never use it -- kind of like my car insurance.

kipk · February 2010

"I am a "slimy" business manager who happens to work for a honda dealership. Many years with honda. Your anger is only because you found you could save a few hundred dollars extra somewhere else,"

Interesting comments! And they probably work on some people.

November 1 of '09 we traded our 03 Pilot for a new 09 RidgeLine.

First offer by the dealer was $10K for our trade against $29,995 for the RL. (NOTE: MSRP for the RLS was $31,995.) Salesman said the great offer was because they had not sold a car all day and "NEEDED" the sale.

I thanked him for his time, and said we would need to shop that offer around a bit, since they had a tag hanging from the RL window with a sale price of $27,995.(Note 2: Notice the sudden $2000 increase in price of their new car when I had a trade)

He takes the deal back to his New Car Sales Manager, and I followed him. They suddenly discover they had made a $2000 dollar mistake. Interesting the mistake was in their favor and not mine. Also interesting that the manager is the one that generated the "tag" on the RL. He knew exactly what he had it priced for.

So they adjusted the price to show me trading for $17,995 instead of $19,995.
"So lets get this thing completed". I told him I appreciated his correcting the mistake but their offer on my car was a bit low. I would try to sell it! He said he had talked with his used car manager (whom had already looked at my car) and it was the best they could do. I thanked him and turned to leave. He asked, where I got my numbers. I told him from Edmunds, Kelly Blue Book, NADA Black Book, and my finance manager son that works for a dealership. These were values for "TRADE" used car. The dealer retail was much higher.

He pulled the Pilot up on the internet and asked how the car was equipped. The salesman verified my answers. The resulting figure was almost exactly $12K. That figure compared almost to the dollar with the number my son gave me from looking in his NADA black book. Which is also the same book most all used car managers use. So they knew the true value of my car and were trying for an extra $2000 profit. I thanked him for verifying my thoughts and turned to leave again. "PLEASE WAIT, WHAT WILL IT TAKE TO DO THE DEAL TODAY."
I ended up trading for $16229. That is a savings to me of $3,775 from their original offer..

We then went into the finance manager (business manager) office. With my trade and $5000 check, and FICA score of 790, the 3 year note from Honda finance would be roughly $475 per month. The 96 month/ 100,000 mile ($100 deductible) Honda Care would be an additional $2300. I thanked him and said I would borrow from the credit union and bring him a check the next day for the trade difference and forget the Honda care for a while until I had time to check out prices.
Final deal in his office was $1100 for the Honda Care ($100 deductible) and $425 per month for Honda Credit Union. That is a savings of another $3000.

NET- NET is I saved $3775 on the trade and $3000 on the financing and Honda Care. That is a total of $6775 saved by doing my homework before visiting the dealer and being vigilant in the paper work. And the dealer still made money. They had the RL priced with a built in profit due to MFG to Dealer incentives and they would price my Pilot for approximately $14,995 and sell for $13K-$14K or more The finance man still made a profit on the Honda Care and Financing. .

In reality darn near everyone the customer comes in contact with, at a dealership, gets some type of commission. The salesman on dealer profit per deal, the new car manager and used car manager commissions on dealer profit for the month, The finance manager on what is called "Back End" " or "Rear Loaded" profits on finance charges, extended warranties, and certain "add on" items and accessories.

Service writers and managers get a salary plus small commission on the work they generate, and the technicians work on percentage of their work. Some of the Parts people also receive extra monies for the items they move. BUYER BEWARE!

"I am sure you shop at walmart or food lion, P&C grocery.... every day in some cases. Does anyone ever complain about the shelf prices, no. You are forced to pay the price."

No, I don't argue the price of items on Walmart Shelves. If I don't like them I can shop elsewhere. Unlike car dealerships, the Walmart prices will be near the same at every one of their stores in a given area.

As far as I am concerned the dealers should be required to sell the cars at MSRP (which would come down dramatically) and all their pricing on accessories, EWs, finance charges and so forth should be etched in stone. The price at all dealerships in an area should be exactly the same.

It is a shame that customers can be ripped a new one when shopping for furniture, RVs, cars, boats, airplanes, jewelry, and so forth. Depending in the slime-ness of those they deal with.

Moral: Use Edmund's buying guides, dealer incentive info, and buying hints before entering a dealer show room.

Kip

polarcubz · February 2010

Wow... looks like I touched a raw nerve.... lmao. How much tim did you waste on this response. lol

jet10000 · February 2010

How much tim did you waste on this response.

He probably didn't waste as much time as you did in trying to defend the actions of a business manager who lied to his customer.

Kirstie_H · February 2010

Please remember that our Membership Agreement requires that posters address the issue rather than other members. This particular response doesn't add anything to the conversation, apart from expressing disdain for other members.

It may surprise you to know that you're not the first F&I person to participate in our Forums, some of whom are among our most helpful members, and most of our consumer-members have a great deal of respect for those folks. I'm not in sales, but I highly doubt that slamming customers in general in a public forum is a recommended marketing technique.

accordexl · February 2010

Under pressure and lying from the finance manager (that we can only buy the Honda Care at the point of purchase), I ended up purchasing the Honda Care warranty for my 2010 Honda Accord for $1760; she promised to me that I could cancel within 90 days at no cost. Now, thanks to this forum, I emailed and got a quote for $1040 for the same 8yr/100,000 mile coverage. I contacted the finance manager who sold me the car again and asked her if she could match it. She claims that American Honda Corporation filed a lawsuit 60 days ago against dealers selling Honda Care warranties on the internet. Has anyone heard about this?

Now, I am wondering that if she cannot match the price, will I have to shell out the sales tax for the Honda Care? Is it possible for me to "transfer" the Honda Care to another dealership and be refunded the difference?

To add to the complexity, in the state of Nebraska, we pay sales tax directly to the DMV...so I did not pay any sales tax so far since I haven't registered my car yet. I am wondering if it is worth canceling my Honda Care and ask the dealer for new documentation that gives the sales price of the car (without including the Honda Care cost). Can the experts please weigh in on the feasibility of this option? If not, I will be resigned to taking the issue up with BBB since the manager assured us that we could cancel at no cost.

If anyone's interested, I will update the thread with my findings.

PS: My gut feeling is that this is a class action lawsuit/Congressional law in the making (preventing deceptive selling), but again, I'm not sure if we consumers will really benefit from either!

polarcubz · February 2010

"I ended up purchasing the Honda Care warranty for my 2010 Honda Accord for $1760; she promised to me that I could cancel within 90 days at no cost."
This is not true. You have 60 days to cancel and you will be fully reimbursed.

"She claims that American Honda Corporation filed a lawsuit 60 days ago against dealers selling Honda Care warranties on the internet. Has anyone heard about this?"
Yes, Honda has been fighting this for years. You see, dealers get bonus money from honda for selling more warranties each quarter. Their were large dealers selling warranties UNDER cost just to hit a bonus level and then t hey would get extra money from honda. Therefor making it nearly impossible for smaller honda dealers to sell warranties for an honest dollar. So honda heard the complaints and now it is illegal under the dealer principles honda agreement to sell warranties on the internet. They can still quote prices over the internet, just cant post them anymore. I agree with this as it varies from state to state.

"Now, I am wondering that if she cannot match the price, will I have to shell out the sales tax for the Honda Care? Is it possible for me to "transfer" the Honda Care to another dealership and be refunded the difference?"
First I would say, she will want to come close. That is a very aggressive price and depending on the size of the dealership, she may not be able to. If you are nice to her, she will definitely work with you on the price. That being said, everyone needs to make a living and feed their family. Maybe she was overaggressive initially, I agree. See if she will work with you. Secondly, sales tax is assessed by the state so it is non-refundable. You will pay taxes where you live no matter what. So yes, you will probably lose out on any taxes you may have already paid.

"PS: My gut feeling is that this is a class action lawsuit/Congressional law in the making (preventing deceptive selling), but again, I'm not sure if we consumers will really benefit from either!"
I don't feel there is any lawsuit here only because it is all negotiations. Dealers are allowed to mark up cars as much as they want. Some cars like the new chevy camaros were marked up $5000 over MSRP as demand was huge. People pay for perceived value. Just as something as simple as a box of cereal will cost much more at your local gas station than it will at a grocery store. Same applies to warranties. Just depends on your negotiating skills and the dealerships latitude within their finance office.

I am a finance manager at a honda store and I do believe that what you state has validity, its all how you talk to people in my opinion. If I believed that my honda was better with an 8yr warranty and maybe I paid a little more than the last guy, I would still sleep at night knowing I was covered. When a breakdown occurs and you save on the repair, it will be all worth it in the end. I truly believe in the honda warranties. Hope this helps.

kipk · February 2010

>"Wow... looks like I touched a raw nerve.... lmao. How much tim did you waste on this response. lol"

Probably spent an hour or more! Most of the time was spent re-writing , so as to address your post, without being personal.

Most people don't have a clue of the uphill battle they have when they go to buy a new car. So, If any of that time helped just one person, then the time was not wasted.

Here are some other tips for new car buyers :
When "negotiating" for a new car, people should understand they are actually dealing with 3 people. The new car manager, the used car manager, and the salesman. Those 3 people's income depend on the sale itself and the amount of profit for each one of them.

Generally not much negotiation is done until the "USED" car folks evaluate the trade and make an offer to the new car guy. Salesman's job is to entertain and gather information from the customer until the "trade" is evaluated.

Keeping in mind some of this is "Funny Money", here is an Example:

The used car Mgr (UCM) is willing to put $10K into your used car, he feels he can sell for $13K. He gives that "Bid" to the new car Mgr.(NCM). Salesman may or may not know that figure.

The NCM offers the deal to the customer, through the salesman. The offer for the trade may be, say, $8K. If the customer takes the offered deal, the trade will be sold to the UCM for the $10K. At that point, the NCM has a Funny Money earning of $2K from the traded-in car. Effectively he bought the car for $8K and sold it to the UCM for $10K. This is "In House" money, but still shows on the books as profit for the New Car department. This is "Profit" the NCM is paid commissions on.

If the customer has done his homework and will not accept the $8K or even the $10K, the NCM will go back to the UCM and try to get more money offered, or he may "Shop" the trade to other dealers.

Once the trade price is established by everyone, there is still negotiating room for the new car. All this can become overwhelming for the customer. Therefore dealers will find the customer's hot spot. Notice the first few words you will hear from the salesman is "Do you have a trade"? Also, early on, they will establish how you are going to pay. They will learn what is most important to you. The price they give for your trade, The discount off the new car, the trade difference, the monthly note.

All the above are potential money makers for the dealership. They are highly skilled at Moving the figures around to satisfy the customers "needs". The sales person is simply a messenger. They catch the wrath of the customer as well as the praise if the deal goes through. How they perform their job will reflect in referals from the customer as well as repeat business from that customer.

Edmunds offers some unique and helpful tools, if folks would use them.

1. Know the value of your trade. (be honest on the cars condition)
2. Know the True Market Value (TMV) of the new car. This is what the car is typically selling for.

The difference you pay should be the TMV less Trade Value. Of course the dealer adds in some fees. The largest being Doc fees of typically $495-$695. (PROFIT)

Now you go into the finance office. You should have already:

3. Checked with your credit union or bank for financing rates, before visiting the dealer.
(I've found that a dealer can often match or beat the finance we may have found.)
4. Use the Edmunds payment calculator , so you will know what the payments should be, based on the info you received from your research.

5. Know what others are paying for EWs and such.

6. Don't get worn down and summit to anything because you are tired. Often times getting tired is the best thing that can happen. Thank the person you are talking to for their time, tell them you are too tired to think logically and you need to go home and think about it. The next thing you are likely to hear is "OK, What do we have to do to earn your business tonight/today"? You answer, "I don't know if there is anything, because I'm tired now. I'm willing to take a deal on my original offer, to you, right now. Otherwise I need to think about it and get back to you in the next day or so."

If they can make a profit on the deal, they will take it. If not, you know they are "all In" and you can go home and think about it. Don't fall for the "That deal is for today only". If they can do it today, they can do it tomorrow.

Sometimes the best deals can be made the last day of the month. Some dealers allotments from the factory are based on the previous months sales. Go late in the day, while you are fresh on what you want to accomplish and they are tired from negotiating all day. Eat before entering the dealership. At best,They may be more willing to take a "close" deal. At worse you know what they will and won't do. Remember they are not going to lose money. They are professionals!

Kip

Kirstie_H · February 2010

1. Know the value of your trade. (be honest on the cars condition)

This is the TOP mistake I see people make - overrating their vehicle's value, often due to overrating the vehicle's condition. A majority of people I've helped have chosen "outstanding" or "excellent" when evaluating their own trade. A majority of those people are wrong.

Sometimes I question the worth of even having those options for, say, a 1995 Escort with 178K miles... at least they should put up a giant warning indicating that there's probably only one of that year/make/model in the world that qualifies for the "outstanding" rating, and yours is probably not that vehicle.

kipk · February 2010

>"This is the TOP mistake I see people make - overrating their vehicle's value, often due to overrating the vehicle's condition. A majority of people I've helped have chosen "outstanding" or "excellent" when evaluating their own trade. A majority of those people are wrong"

TRUE!

Excellent mean excellent. Period.

A '95 Escort with 20K miles, original flawless paint and interior, nearly new tires, battery,and windshield wipers, no door dings and everything working as original, and no fluid leaks might qualify as excellent! But to say one is excellent for a car with high mileage and the normal amount of dings, scratches, and needed repairs for it's age, is a pipe dream.

But often times a dealer realizes the love affair between the used car and the owner and will offer them the amount they want, if not too ridiculous. Dealer makes up the difference by not discounting the new car as much, higher finance charges, paint and interior protection, expensive EW and such. And the buyer is happy because all they focus on is what their trade brought.! :shades:

However, I've had a dealer say, "Even though your trade is in perfect condition, we can't count it as excellent because it's age dictates the banks will only loan money for 3 years and that will make the monthly notes too much for a lot of buyers".

I said, "I understand that, but that doesn't change the value of the car. Three year financing would be true with any dealer. I feel that Edmunds, KBB, NADA and so on have taken that into consideration and have posted what the dealers are allowing for the cars on trade, real world. Period!

That particular car was a '03 CR-V with 40K miles that we traded for an 09 RAV4.
We got the deal we wanted. The CR-V sat, and sat and sat on the dealers lot for something like 4 days before it sold.

Kip

pilotguy2 · February 2010

"Oh, and you were not refunded the tax on your initial warranty purchase when you cancelled it. So you effectively paid the tax twice."

I just received a letter from Honda today informing me of the refund amount from the Honda Care service contract cancellation -- they are indeed refunding the full purchase price, including the sales tax. This represents additional savings, since the MA dealer did not charge sales tax on the transaction.

jet10000 · February 2010

This represents additional savings, since the MA dealer did not charge sales tax on the transaction.

Another great reason to buy Honda Care from an out of state dealer. If you're comparing their prices to your local dealer, you would have to factor in the sales tax difference as well.

accordguy0325 · February 2010

""That particular car was a '03 CR-V with 40K miles that we traded for an 09 RAV4""

Do you regret the purchase of your Rav4 considering Toyota's massive safety defects and corresponding cover up for a period of years ?

happyaccord · February 2010

I do not know which state you are from, but for California, we do not pay tax for Honda Care.

kipk · February 2010

>"Do you regret the purchase of your Rav4 considering Toyota's massive safety defects and corresponding cover up for a period of years ?"

No! I don't regret the getting the RAV4. Although I wish this potential problem did not exist. . Do you actually believe Toyota or any other manufacturer would deliberately "cover up" a known defect of this nature and continue building cars with it? Especially when they could use throttle dampening systems from other manufacturers.

As far as the Toyota's massive safety defects you speak of, I'm only aware of the one concerning the RAV4. That being the throttle pedal sticking on a small percentage of the RAV4s. Do you know of other safety defects, concerning the 09 RAV4 that I should know about?

According to a piece I saw on Fox News, that throttle assembly is made in this country and is also used by other manufacturers as well as Toyota. Seems I saw that Ford has recalled the Focus, I think, for the same problem. Yet we have heard nothing concerning "RECALLS" from others that may be having the same problem or using the same pedal assemblies. .

On one of these Pilot forums there are complaints of the Brakes Activating, without any input from the driver, and bringing the Pilots to a complete abrupt stop while cruising down the road.

http://townhall-talk.edmunds.com/WebX/.f1e6c96/0

Here is another goodie: Seat catches on fire.
http://townhall-talk.edmunds.com/WebX/.f117d51/0

STUFF happens, doesn't it!

Has there been a world wide recall on the Pilots to solve these problem? Is Honda covering up something? And let's not forget the "FIT" window switches that are catching fire. There were a number of recalls on the 03 Pilot to do with the transmission, timing belt, Rear ends, EGR valves and so forth.

My next door neighbors 07 Ridgeline's break pedal will eventually go to the floor while sitting at a light and pressure on the pedal. To remain stopped he has to release the Pedal and press it again. Two different Honda dealers have checked it and said it is "Normal". What is Honda covering up?

OH...BTHW we traded our "Troublesome" Pilot for an '09 Ridgeline. Just hope that pedal doesn't go to the floor when we need it to stop the car.

The 03 CR-V destroyed the AC compressor at less than 40K miles. Seems that was a problem know to affect that model CR-V and well as Accord and something else, yet no recall. There were a number of problems with sensors, fuses and so forth with that car. When we traded it, it was sitting in the dealers shop, and had been there for nearly a week with a problem that eventually required a couple of sensors, 2 modules that had a value of $1100, and a new ECU. It was in the shop over a week before finished. My wife had become scared to death of it and wanted it gone. As she says, we traded a car that would not run for one that may not want to stop running! :shades:

To stay in the framework and topic of this forum. Our HONDA CARE paid the entire thing including the car rental. Don't leave home with one!

Interesting that according to Edmunds, KBB, and NAPA Black book, the 03 CR-V trade-in value with 49K+ miles about $1000 less than the Pilots value with 35K+ miles. although the Pilot cost $10K more when new! :sick:

Kip

denver5357 · February 2010

This whole exchange has gone off on the weeds. The initial comment about regreting your RAV4 discussion was inflammatory. And your response that most cars have issues is valid. The specific examples you use to counter the Toyota problem are weak. One thread with three posts of problems and another with a simiar amount is not the same as the well-documented Toyota situation. I like both Toyota and Honda, and agree issues pop up for all cars. People are trying to capitalize on this Toyota problem to support their own agendas.

Back to Honda Care, how long does it take to get your documents? I bought a Pilot on Dec. 31, 2009, and STILL don't have the documents. My 60-day cancel window closes soon. I asked the dealer about this two weeks ago and he said the docs should arrive any day. But they haven't.

pilotguy2 · February 2010

My Honda Care documents showed up about 3 weeks after I took delivery of my vehicle, which was Jan 16th. I've since cancelled that contract, as I noted previously, and am waiting for the new contract documents -- I'm only about 1.5 weeks into the process, however.

jet10000 · February 2010

Yes, three weeks sounds about the time it takes to receive mine as well. I'd place a call into the Honda Care corporate office to make sure they have the VIN in the system and see when they mailed out the paperwork. Maybe the dealer was slow in the submission from their end.

kipk · February 2010

"The specific examples you use to counter the Toyota problem are weak. One thread with three posts of problems and another with a simiar amount is not the same as the well-documented Toyota situation."

Yeah, I agree. I just used problems that were quick , at hand, easy to reference, and one source. .

There are and have been tons of problems out there, with all manufacturers, if one wishes to look into them. My mom just recently got a recall for an under the hood potential fire hazard on her '95 Explorer.

Transmissions in the early Oddessy were crapping out for a 2-3 year span. They didn't seem to get that problem completely solved until '04, because they had to recall my 03 Pilot to do some type of "Fix" to keep it's tranny from having problems.

No doubt that Toyota will solve this issue just as all manufactures have to from time to time.

As you said: "I like both Toyota and Honda, and agree issues pop up for all cars. People are trying to capitalize on this Toyota problem to support their own agendas."

Took about a month for my Honda Care papers to arrive. Came in a 5"x8" envelope. You can call and give them your vin number for an update.
The Claims and Service number is 1-800-999-5901

Kip

gsp408 · February 2010

Hi all!

I wish I found this forum a month ago. I bought the Honda Care EW 8YR/120K
$0 deductible for $2500 in the bay area, California. Did I over pay? I haven't read all the messages as far back but so far it seems I did.

Any advice is appreciated.
Thanks!

gsp408

accordguy0325 · February 2010

A simple yes or no would have been sufficient, thanks.

jet10000 · February 2010

I wish I found this forum a month ago. I bought the Honda Care EW 8YR/120K
$0 deductible for $2500 in the bay area, California. Did I over pay? I haven't read all the messages as far back but so far it seems I did.

Because of California laws, a lot of out of state dealers don't sell to California residents. For awhile, I think Curry Honda did.

Click the "do not" have Honda Care link on this page, and have them give you a quote.

http://www.curryhondacare.com/contact.cfm

You can compare it to what you paid. You should be able to cancel it out in the first 60 days and buy it somewhere else if you find a better price.

You may also call around to California dealers to see if anybody can do better.

kipk · February 2010

>"A simple yes or no would have been sufficient, thanks."

As denver5357 said: "This whole exchange has gone off on the weeds. The initial comment about regreting your RAV4 discussion was inflammatory. And your response that most cars have issues is valid."

Even when given the opportunity to use few words, I seldom have the ability to do such!

gsp408,

Price you paid must be pretty much MSRP for Extended warranties. My dealer wanted $2300 for 8/100/50. I ended up paying around $1300 for 8/100/0 which was still probably a bit too much. As others have said, you can most likely get a refund within 60 days. Call other dealers, inside and outside your state and find out how you can go about obtaining an EW at a better price.

Even if you have to do it in person out of state, the savings might be well worth the effort!

Kip

odysseyba · February 2010

Now moving from "price paid thread" to "honda care thread". Bought a Odyssey EX-L with NAV/RES last night for $33,500 + TTL. I also bought 8/120K 0 ded Honda Care for $1995. Two questions:
1. I know I paid a little bit too much, but how much did I over pay? Is it worth cancelling and looking around. How much are people typically paying in Bay Area?
2. Is it worth having HC at all? I have had Honda Civic for 15 yrs which I traded in and other car is a toyota highlander with no EC now. Its a 2003. So I am debating if is it worth the extra money at all?
Thanks in advance!
-OdysseyBA

accordexl · February 2010

odysseyba:
I am not in the bay area, but here is something you can try since it worked for me. Get the best quote you can from a dealer you can purchase the warranty from (whether in state or out of state). Then go back to your dealer and tell them about the best quote you got. They may ask you for proof. As polarcubz mentioned in his reply to my post (please refer to #3196), the finance manager at your dealer may work with you and try to match the price. In my case, the manager matched the price. If (s)he can't match the price, then you can always cancel (if within 60 days) and repurchase.

I think most managers will match the price since they will lose all the profit they made from your overpriced purchase if you cancel. By matching, their profit will not be as much, but better than $0!

I found that referring to Edmunds's forums and "expert advice" from here made the managers come straight to the point. It'll save both you and them a ton of time and energy!

accordexl · February 2010

polarcubz:
Thanks for the detailed explanation. It's much nicer if customers and managers try to work with each other understanding that the other also needs to get a good deal.

I tried sincerely to have the dealer's finance manager match the deal...I waited patiently for almost 10 days while worked things out with Honda. And she got back to me saying that she will match it.

It seemed as if she was surprised that there was that big a markup in the pricing of EC, but given her not-so-truthful tendencies (aka "overagressive" in your post), I wouldn't read too much into that. But in any case, the fact that I gave her the benefit of the doubt seemed to change her tactics a little. She said she'll try to see how we can work with the State of Nebraska to pay the right tax (I still haven't registered my car and state taxes here are collected at that point).

Bottom line: It's sad that people in the role of finance managers seem to think that they have to lie to make an extra buck, and I hope to never be in a position to have to do that. Being frank and truthful will lead to increased sales through referrals and definitely a more pleasant experience for all parties.

odysseyba · February 2010

AccordEXL:
Thanks for the response. Based on what I have read so far, I think 1K would be a decent price for 8/120K/0 ded HC. Now it is a matter of talking to various dealerships here in BA and see what quote they come up with. Whats up with the assinine CA law that I cannot buy online from other websites people here are talking about?
I AM a little pissed about the price he offered me. He said that the retail was $2650 but he would give me a discount and make it $1995 for me. I asked him if I could come back and buy this tomorrow and he lied and said that HC can be bought ONLY at the time of purchase and not later on. He also showed me some numbers on his screen and said that he was selling HC to me at cost, which I did not believe for a minute. I knew I was overpaying for HC but I was thinking more like $200-$300 not a grand! Anyways, tomorrow is Sunday, and I plan to call up the dealerships around me Sun and Monday and go into the dealership where I bought the car on Tue and see if he would agree to match it else cancel and buy it from the other place!

ezshift5 · February 2010

......if I've missed any guidance in prior posts, I plead guilty and plan restitution later.

My $590 6year/80,000 mile HCEW (Ray Laks Honda in upstate New York) purchased online/2005 is about done. My snappy Accord 6M coupe will roll past 80k soon.

Would it be a fair statement that - at the 80,001 point - it's the end of the trail (hence post title)?

No rebate for non-use, no extra coordination needed, no nothing. I now must rely on the inherent reliability/quality of Honda, right?

any feedback appreciated..........

ez...... (it's still a great car; I will miss the EW peace of mind though)

tidester · February 2010

I now must rely on the inherent reliability/quality of Honda, right?

Well, yeah! But you could trade in for a new vehicle with fresh coverage.

tidester, host
SUVs and Smart Shopper

gsp408 · February 2010

Thanks jet, kip,

Ill do some quote shopping for the EW from other dealers.

OdesseyBA,

I got the same or similar story that the HC had to be purchased right there and then and not later. Please share what quotes youre getting here in the bay area from local dealers.

Thanks,
gsp408

odysseyba · February 2010

gsp408:
I paid $1995 for 8yr/120K/0 ded HC coverage. I think I overpaid by 1K. So here are two questions I have now:
1. Do I want to keep HC, every time I google, I come up with some horror story as to something that was not covered by HC, granted that people dont go back and record their good experiences. I just traded in my 15 yr old Honda Civic, no problems. But yeah, it didnt have so many gadgets in the car plus it was made when mfg was still somewhat decent. So I am still debating if I want HC!
2. I am trying to talk to local dealers here and get a quote for HC. I think I am okay with 1k-$1200, not more than that. Once I have that I can go back to Autowest and ask them to match it, else I can cancel and buy from this guy. So far no beef!
let me know if you get a good quote from some dealership here in CA.

odysseyba · February 2010

Okay, so bernardi came back with $1295 for the same coverage. Can I go ahead and buy online even though I am in CA? Will I have problems when they see that I bought from someone outside the state and local dealers tell me to take a hike when I go in for claims!

jet10000 · February 2010

Will I have problems when they see that I bought from someone outside the state and local dealers tell me to take a hike when I go in for claims!

No once you own the Honda Care, all Honda dealers have to honor it. It's in their best interest to honor it because Honda pays the dealer you take your vehicle to for the repairs so it adds to their bottom line.

denver5357 · February 2010

Kip, thanks. I did call. HC says there is no record of my agreement in their system from the dealer (!) despite the fact i purchased the Pilot back on Dec. 31. They also said that the 60-day cancel period doesn't start until the dealer enters the info.

So I called the dealer (again) and now there is a big mystery over what happened. The only person who could answer it was already gone, so I should get an answer today.

kipk · February 2010

denver,
Might be beneficial to sit in that managers office while he calls HC. So there is no finger pointing between them, and you wondering what is going on.
Please keep us informed.

Kip

fm1381 · March 2010

I live in New York and I just finalized a deal on a Certified Pre-owned 2007 Honda Accord EX-L with Navigation. Since its CPO I get the 1yr/12,000 miles non-power train and 3yr power train, but the dealer also suggested the Honda Care Certified Additional Coverage which is for certified pre-owned cars and apparently MUST be purchased when the used car is purchased. I also checked on Hondas website and it seems true that for CPO vehicles this additional coverage must be purchased at the time of the vehicle purchase. The dealer said the price is $2300 for 5 years/60,000 miles. I understand that this warranty has zero deductible and that it covers mostly all of the main parts of the car including the navigation system, but it seems pretty pricey compared to the extended warranty offered to owners of NEW vehicles. I was wondering, is this more or less the price range other dealers charge for the additional coverage warranty for certified pre-owned cars?

jet10000 · March 2010

If your vehicle has less than 36,000 miles on it and has been in service for less than 3 years, then you can just go to a site like:

http://www.saccuccihondacare.com/

and get a quote on the 5 year, 60K.

If it has more than the 36,000 miles on it, then your only route is probably to get the Certified Additional Coverage.

ktd · March 2010

I thought when you buy a CPO honda that should comes with 7yrs/100K miles warranty. I've looked at used Odyssey and all said Certified and covered 7yrs/100K miles which ever comes first. The dealer may lies to you and want you to spend $2300 more on top what it's already covered. I would call and check around with other dealers to see if that is the case. I would not let the dealer get double pay.

fm1381 · March 2010

Well, the way the 7 year 100,000 powertrain warranty works for CPO cars is that the dealer covers you for the difference between 7yr/100,000 and the year of your car and miles (this is what the Honda dealer explained to me). So for example, my 2007 accord with 45,000 miles has 3 years left and 55,000 miles power train coverage. What they did extend was the non power train for 1 year 12,000 miles.

kipk · March 2010

>"The dealer said the price is $2300 for 5 years/60,000 miles. I understand that this warranty has zero deductible and that it covers mostly all of the main parts of the car including the navigation system, but it seems pretty pricey compared to the extended warranty offered to owners of NEW vehicles"

Seems a LOT PRICEY ! :sick:

I don't know why the EW on the CPO vehicle should be any more than on a new one.

Consider this: When a vehicle is purchased new, it is covered by the 36mo/36K mile factory warranty, and longer on the drive train. The EW kicks in when the factory warranty expires. So in reality, that EW covers the car when it is used.

In your case, if factory warranties are transferable, the 5/60 would be covering everything after the 3/36 factory warranty expires. OR actually covering for an additional 2years/24K miles, whichever comes first. Seems to me the dealer is trying to charge you as much as they try to charge a new car purchaser for an 8/100 EW. (We know now that those can be purchased for $1100-$1300).

You would do well to call Honda Care for the official "Rules" concerning their EW warranties on CPO vehicles, Also go the the link in Jet10000's post above and do some checking.

Kip

jet10000 · March 2010

In your case, if factory warranties are transferable, the 5/60 would be covering everything after the 3/36 factory warranty expires. OR actually covering for an additional 2years/24K miles,

This may not be fully accurate. Even with standard Honda Care that are sold after the vehicle reaches 6,000 miles, the time and mileage are ADDED on to the vehicle's current time in service and mileage at the time the Honda Care is purchased. I'm assuming that the 5/60 will be added on to the his current vehicle's mileage and time. Especially considering that his factory warranty is already over because his vehicle has 45,000. This service contract should be good until the 105K mark or for five additional years whichever comes first.

It may be a little on the pricey side, but choices are limited once the vehicle has that much mileage on it.

kipk · March 2010

>"I'm assuming that the 5/60 will be added on to the his current vehicle's mileage and time. Especially considering that his factory warranty is already over because his vehicle has 45,000. This service contract should be good until the 105K mark or for five additional years whichever comes first."

You may be right, but that isn't the way the good folks at Honda Care explained it to me. Maybe I got some Misinformation.

Still would be a good idea to check with them before making the purpose and ask them what the Honda Care card will have printed on it as to expiration date and mileage limit!

Kip

jet10000 · March 2010

You may be right, but that isn't the way the good folks at Honda Care explained it to me.

Well if they were explaining to you about a contract for a vehicle that had less than 6,000 miles, then what they said would be correct. The contract works differently after 6,000 miles.

See this from the saccucci website:

When does coverage for service contracts begin?

Coverage for a new auto begins when the vehicle is originally put into service and at zero miles. Coverage for a pre-owned plan(vehicles over 6,000 miles) begins on the service contract purchase date, and at the mileage on the odometer on that date.

http://www.saccuccihondacare.com/faq.php

If you do a quote on the same vehicle before and after 6,000 miles, you'll also get too completely different sets of times and durations that are available for purchase.

kipk · March 2010

Thanks!

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