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Comments
J/K point taken
I THINK the Saccucci free finance deal may be a little better than the Bernardi free finance deal, but I would check both web pages as I am sure they change offers all the time.
Dennis
I just purchased the HC thru Bernardi. Both free finance deals requires "administrative" fee. Saccucci charges $25 and Bernardi charges $24. Not much different at all.
Since I plan on purchasing some accessories, so I also got the $30 coupon code from Bernardi.
I did it over the fax. I signed and faxed to them. They also faxed me back the "approval" result from HC. I will call HC to verify the contract coverage. Good thing I canceled the one from my local dealership. I could save more than 1000 dollars with 3 yrs / 20k extra.
I guess that is what we are here for
To me, it is AMAZING how much the dealers try to gouge on this. I would assume they all pay the same for the HC (just like the cars) so they think they get to make more than $1,000 just for filling out paperwork - maybe 5 minutes of their time? If they were reasonable about the price you might could see letting them get the business just for the convenience of doing it at the dealership, but for over $1,000 I am sure you didn't spend THAT much time or hassle getting a better price?
Dennis
Well, lesson learned. I love the Honda Pilot and would want to keep it well. In any events if I would purchase from Honda (Or upgrade myself to Acura. haha), I would not take any stuff through the financing guy. Additionally, worst comes to worst, I always can go back to the financing guy and purchase from him again (but it is down to 0.00001% of the chance)
The lady on the phone even said I got an excellent deal with the interest free financing option. I asked her how come some dealers charge more than others. She said American Honda sells the Honda Care to dealerships, just like they sell the cars with the whole sales price. It is up to the dealership how much they are going to charge the customer. WOW! She also noticed I got an excellent deal that since I got 8 yrs / 120K miles for $1230.
Thanks for Dennis and others pointed me to the website to get a better price.
dwynne, "Honda Extended Warranties: Pricing and Info" #1531, 2 Mar 2007 10:18 am
Just scroll up a couple of messages and there is a link to a message that has some online HC dealers so you can get prices. I think on a Pilot you could buy the longest term (8yr, 120k miles) for around $1,200 - if you don't need that many miles then 8yr 100k is around $1,100. These are both $0 deductible HC plans.
I have no idea how GE compares, but why would you pay $400-500 more for it?
Dennis
How does the rental car coverage work? Is it based on hours of labor or is there coverage if parts are backordered causing delays in repairs?
Is there anything covered by the standard factory warranty that loses coverage when factory warranty expires and the Hondacare extended warranty kicks in?
Your car rental question is answered in the sample contract:
If YOU require alternate transportation due to a covered MECHANICAL BREAKDOWN or FACTORY WARRANTY REPAIR SERVICE, this CONTRACT provides reimbursement for the expense of a rental vehicle up to $35 per day to a maximum of 6 days and $210 per MECHANICAL BREAKDOWN or FACTORY WARRANTY REPAIR SERVICE. This CONTRACT also provides for the reimbursement for rental expenses in the event YOUR VEHICLE is inoperable or unsafe to drive, and YOUR VEHICLE is at the dealership awaiting the delivery of parts for a covered MECHANICAL BREAKDOWN or FACTORY WARRANTY REPAIR SERVICE. Rental reimbursement for repair and parts waiting time cannot exceed the maximum number of days allowable under this CONTRACT.
So they use the flat rate book to determine if you get any rental reimbursement, but parts waiting time counts as well - as long as your car can't be driven as is. Note that this coverage is provided during the standard warranty period as well as the extended HC period.
There are TONS of things that will be no longer covered once the factory "bumper to bumper" warranty is over. From one page:
WHAT IS NOT COVERED by Honda Care
Parts other than genuine HONDA or AMERICAN HONDA authorized parts; wiper blades; battery (except for the nickelmetal hydride battery in hybrid VEHICLES); cables; steering wheel; belts; radiator hoses; heater hoses and vacuum hoses; spark plugs; plug wires; distributor cap and rotor; timing belt replacement when performed as routine maintenance: exhaust system, head pipes, tailpipes, catalytic converter; mufflers; hangars; heat shields; gaskets (except for the manifold block gaskand related fastening hardware); fuel system; fuel tank straps; fuel hoses; brake system wear items such as drums/rotors, shoes/pads; clutch disc, clutch pressure plate; throw out bearing, external shift linkages; pilot bearing/bushing; glass, mirror glass, body structure (except for hood hinges, trunk hinges, door hinges and sliding door rollers), hood fenders, doors, rear hatch, trunk lid, grille, panels; bright metal; sheet metal; paint (except for covered hinges painted to match the original VEHICLE color only); bumpers; moldings; lenses; bezels; bulbs (except for instrument panel illumination bulbs); HiIntensity Discharge (HID.) headlamps; sealed beams; fuses; body seals; weather-strips (except for window sash and windowrun channels); outside ornamentation; emblems; tires; valve stems; wheels; wheel covers/ornaments; rims; trim rings; caps; wheel studs; lug nuts; wheel locks; fastening/securing hardware for non-covered components; stripped or cross threaded fasteners (e.g., nuts, bolts, studs, screws, etc.); body seals; squeaks, rattles; buttons; carpet; dash pad; console; window handles; knobs; boots; pedals; pads; rearview mirror (except for electronic failure of the auto-dimming mirror); interior trim; upholstey; floor mats; electronic/audio accessories and cellular telephones other than AMERICAN HONDA AUTHORIZED ELECTRONIC/AUDIO ACCESSORIES/NAVIGATIONAL, DVD ENTERTAINMENT AND SECURITY SYSTEMS; Safety Restraint System fastening hardware; seat belts and airbag(s) deployed due to collision. If YOU believe there is a defect in these parts, please contact YOUR DEALER immediately.
Everyone has to decide for themselves if they think they need extended coverage or not. It IS a Honda we are talking about - so the odds favor not needing it. That said, if you DO want coverage you should buy factory-backed HC and from a discount dealer. So rather than the $2000 or more the finance guy tries to hit you up with, you get it for $900 or something. You may never need it, but at least you got a better price. I like to have it for peace of mind, it can also help you sell your used Honda down the road (since it can be transferred to the new owner for $50), and is pro-rated refundable. I have also have to pay $1,200 and up for a new A/C compressor for a car "just out" of warranty and been told the bad sensor that keeps the motor from running is not covered under the powertrain warranty.
The online dealers should take your HC order and mail you a contract to inspect, sign, and return. Be sure to read it to be sure it is the same as the online sample contracts - if not, you have to see if the changes/limitations make it no longer valuable to you (and be sure to let us know what has changed).
Dennis
Rental is based upon flat-rate hours needed to do repairs. To get more than 2 days, you'll need to have more than 8 billed hours. Rental pays $35 per day. I didn't find mention of them paying for parts delay in the sample contract I found.
Honda probably has a list of exclusions to it's warranty very similar to GM's: filters, brake pads/linings,clutch linings, remote batteries, audio system cleaning, coolants and fluids, wiper inserts, axle service, wheel alignment/balance, tire rotation, damage not related to manufacturer defect.
As you can see in Dwynne's post, HondaCare has many more exclusions than Honda Warranty.
I wanted to see if there was a more filtered list of things that would be covered at 36,000 miles under the factory bumper to bumper warranty, yet would be considered an exclusion under the Hondacare extended warranty.
Well, in more specific, would the standard warranty cover the audio speakers? I found out one of the audio speakers (not the subwoofer) plays some weird sound when the music has heavy base. I plan to bring the car back to the dealership to have them check it out. However, the weird sound does not come out all the time
If you want a list-take Dwynne's HondaCare exclusion list and cross out the parts that are on my list. You'll be in the ballpark.
http://www.honda-care.com/Default.aspx
For 8Year/120K miles for Honda Pilot price is 1375$. It is 145$ more than www.hondawarrantyinfo.com, but one thing different than other plans is that you get full refund if you never use it during the term period ? Any thoughts on this plan.
Is the Money Back Guarantee transferable?
No. Refunds will only be paid to the original purchaser on the Agreement and only if:
He/She is the registered owner of the vehicle at the expiration date of the Service Contract
Only if the vehicle is registered operational with the DMV.
How does my Service Contract qualify for the guaranteed price refund?
Signet Financial Group agrees to refund the full purchase price ($3,500 Maximum) of the service contract to the original purchaser named above only if the service contract runs the full months term and is never used.
Can I still use the Roadside Assistance Benefits and receive my refund?
No. If any benefit of the Extended Service Contract is used, the agreement for refundability is void.
Is it my responsibility to apply for the refund?
Yes. In order to qualify for a refund, purchaser must contact Signet Financial Group in writing within 30 days after your contract has expired by months term.
Does my refund come directly to me?
Yes. The refund comes directly to you within 60 days following all necessary verification and receipt of all required documentation
In the contract itself it says the coverage has to be at least 60 months on a new car to qualify.
Basically they are betting that the majority of the folks will not still have the Honda at the end of the warranty (note that it is by MONTHS only, not miles, which you could roll up quicker). In your example, will you still have the Pilot 8 years from now and have it currently titled and tagged? If you take out the ones that are wrecked, stolen, and those that are traded or sold that probably does not leave that many for them to have to POTENTIALLY pay out on. Then take away the ones that used the rental coverage or had any claims and it get smaller still, then there are those that will forget to file the claim (within 60 days of the MONTHS running out) and you get down to a very small number of folks (they bet) they will have to pay out to. Since they pocketed the $145 (or whatever) for all the other folks, they can afford to pay you back (you hope).
The trap for this kind of deal is that you might end up spending money out of pocket to avoid messing up the refund. So you pay $145 "too much" up front, then pay for your own rental car and perhaps some minor repairs - all so you can get the full amount back. But if your Honda is stolen, totalled, or you sell/trade it then you are out the $145 PLUS the money you spent out of pocket. Once you start paying out of pocket, where do you draw the line?
In this case, you could almost see going for it since it just $145 more than Saccucci or Bernardi, when this has been brought up before it was an inflated dealer price (maybe 2x the online price) so was a HUGE risk.
Worst case, you lose $145 on this deal - as long as you get a genuine HC policy out of the deal. If Signet goes out of business or refuses to pay, you have to use the coverage, you sell/trade, or whatever. A $145 gamble to return $1,230 or $1,375 (I assume you get back $1,375) is a much nicer number than folks have reported on local dealer deals for the same thing.
BTW, I don't know what the percentage is, but the HC folks tell me a whole lot of folks forget to ask for a HC refund when they sell/trade a car. Since the HC is tied to the VIN and the owner, it does the 2nd, 3rd, etc owners no good unless they get the HC buyer to transfer it to them ($50 fee). They said it is not unusual to see vehicles with 2, 3 or more HC policies on them all with different owners! So I am sure this plays into Signet's plan as well - folks just forget to ask for the money back, even if they meet the conditions to do so.
Dennis
Depending on which dealer you buy from online (I would assume any except for a NJ dealer) there will be no tax.
So you choice is to pay the dealer $180 too much for the same coverage, or to pay the dealer $35 too much (VS Signet) and not have the full refund?
I think your choice is $890 online or $1035 online. If the online dealers can make money (or not lose any) at these prices your dealer should be able to give you the same deal.
This is a business transaction, not a charity or buddy-buddy transaction - if you can get a better deal elsewhere then you should take it.
The only exception would be if you were planning on charging your HC to a high interest credit card and paying it off over time. Then you would have to consider financing it in with the car at a lower rate - or maybe look at the 0% deals offered by Bernardi and Saccucci (they do charge a fee for this, so it is not free). You would have to run the numbers and see if after all is paid off which is the true best deal for you.
Dennis
As far as where you buy the Service Contract from. All the points Dennis makes are great. But, if the Service Contract does not meet your expectations in any way, and you are told to talk to the people who sold it to you would you rather be chewing some ones butt over the phone/email, or face to face with the F&I guy who sold it to. Same goes if you ever want to transfer or cancel it. Face to face or email to email. If it makes no difference to you then it is an easy decision.
All they did is fill out the paperwork and collect payment. They do not back or guarantee the warranty personally.
That would kind of like me saying to you. Sir I don't build them i just fill out the paper work and collect your money.
That sounds good now but people don't want to here it when there car is broke down at 1:30pm on a Friday afternoon. If the guy who sold you the service contract is in the same building he can have it straightned out or at least OK the repairs in 5 minutes. Who knows how long the email/ phone route will take.
I personally don't give a crap where the guy buys the warranty from. He asked for advice on which to pay and i gave my opinion.
Heck I am still trying to figure out why the cars that supposedly never, ever, ever break down have the longest thread on Service Contract prices in the first place
What do you really expect them to do about any problem? It will be between the service department and Hondacare. The guy who sold it 5 years ago is not going to get involved in any problems.
5 years later, the car owner may have moved too far away from the dealer anyway.
What do you really expect them to do that can't be handled by the service department? It will be between the service department and Hondacare. The guy who sold it 5 years ago is not going to get involved in any problems.
5 years later, the car owner may have moved too far away from the dealer anyway and it would be moot.
What do you really expect them to do that can't be handled by the service department? It will be between the service department and Hondacare. The guy who sold it 5 years ago is not going to get involved in any problems.
Do you people just like to argue here. this has got to be the stupidest conversation in history, and i am even stupider for responding. But any how
The guy asked for opinions I gave mine. I didn't read yours, did you give an opinion or just comment on mine.
But anyhow FROM MY EXPERIENCE not what you are guessing or supposing may or might happen, but from my experience there is a heck of allot that I can do. I don't care when you bought it or if you bought it from me or my partner. We are the servicing dealer, it is our job to help you. how do you know where I was working in the past. I have been in the same store for 15 years. It is the only store I have ever worked at. I have the least time here of any managers. they all have at least 3 years on me. There are are 11 salespeople that have been here longer then me.
I don't care what your experience has been, the poster did not ask me "Joel, based on jaxis1 experience what contract should I buy" Heck its not even a Ford, if I wanted to give the guy advise to benefit me I would have told him not to buy a Service Contract and Drive to TN and let me sell him a Fusion. I was simply trying to help him with all the options he has.
But with the never ending I want to be right all the time mentality of this community a simple opinion turns into 14 post of drivel.
Whew I feel better
The poster did not ask for your exclusive opinion and is not buying from you.
Experiences at different dealerships are not all the same, so he cannot rely on any dealership finance guy to be of any help at all 5 years later on some Hondacare issue and there is little reason for them to be involved anyway since the service department would normally handle this, not pass it to "the guy who sold the warranty."
It is not necessary to be so condescending and dismissive with your "I don't care what your experience has been" comments.
You are probably right on that one
Gross exaggeration isn't a particularly compelling argument. And this one doesn't even come close. Just consider any cell phone conversation you couldn't avoid overhearing from the next table at your favorite restaurant.
tidester, host
SUVs and Smart Shopper
This tactic does not work for aftermarket service contract companies. I have argued many times with SCCs to no avail. Exclusionary plans where the part was not excluded-tough beans. It's a window motor-no, a regulator-no, a motor: whichever way makes it not covered, that's the way they think.
Are GAP coverage and Comprehensive coverage the same thing? Foe example, State Farm's comprehensive coverage seems to cover what GAP coverage would...unless I don't completely understand the meaning of GAP coverage which is entirely possible.
Can anyone clarify the difference between the two?
Thanks much.
GAP coverage pays only if your car is totaled-it pays the difference between what the car is worth and what you owe on the car. If your car is paid off or is worth more than you owe, GAP would pay zero.
Thanks for the clarification. I plan to get a 36 mo/2.99% loan so I don' think GAP Coverage will be necessary. I'll get the HondaCare but otherwise I think I might be wasting money on GAP.
If you were to pay full MSRP or over and/or roll in negative from your current ride, then you might need to think about GAP coverage since in the event of a total loss the insurance would not pay enough to settle the loan balance - most likely - in the early months of the loan.
Dennis
Then I remembered that next month our summer vacation cabin in Pennsylvania will be finished - I now have a Pennsylvania address as well. This summer when I'm up there I'll order the HC warranty online using that address. Then I get the better online price and I'm covered no matter which place I'm in!
Duh! :shades:
You only can be a resident to one state or the other.
Thanks
Thanks
Price protection. They probably have a slight price increase each year and there is also may be a surcharge for not buying in the first 12/12.
That said, HC is pro-rated refundable based on miles and months - whichever nets you LESS refund. So the later you buy the larger percentage you get back if you ever cancelled due to trading the Pilot or a total loss. What that offset the extra fee for buying later? I don't know.
If you are 100% sure you will keep the Pilot, give it to a relative, or sell it as a private party and perhaps need the rental car coverage then you might go ahead and buy. If you are the type that seldom keeps the same vehicle for more than 3yrs,always trades in, or has other cars to drive if the Pilot is in the shop - then you may be better off to see how things go. Gas hits $4-5 a gallon and you may want/need to get out of the Pilot and into a Fit
Dennis
Dennis,
Tell me about it. I bought a 2007 Pilot and the price is going up for everyday. I don't drive it often as I used to be (during the weekends only thou). However, I still love it but just wish the MPG would be better
In general, I was not happy about the process with the F&I guy, I almost got swindled on the terms of the loan until I voiced my displeasure with the intrest rate that was offered.
So I went down to Honda today and stated I wanted to cancel my warranty. Was told by the same F&I guy that they would not let me do that considering I was given a preferred rate due to me signing up for the warranty. I did not feel like going into it further with the guy because I felt like I had a lack of information.
From what I understand, it is illegal for car dealers to change intrest rates based on optional coverage. The two questions I have at this point are
a) does hondacare need to be cancelled through the dealer?b) If I do cancel the warranty if there anyway they could change the financing terms?
any input would be greatly appreciated.
I'd check through the documentation you signed and see if there is anything in there about cancelling it etc.
-mike
After a contract is signed and sent to the underwriting bank, the dealer has no option to change the rate. The agreement you have for the finance loan is with the bank, not the dealer. The dealer acts as merely a middleman.
You may cancel the contract with Honda Care directly. If you explain your problem, they will understand. I would also suggest speaking with upper management within the dealership. If it is larger corporate dealer, you should contact the corporate office.
What the F&I guy did is punishible by the federal government, however, I am sure that will not happen. This problem has become so frequent, manufacturers and banks are beginning to require the dealers to record all F&I transactions to protect both the dealer and the customers. If you do a little research online, you will find many articles about the warranty/rate scam.
I read this forum often, but I have never posted. I was an F&I manager for six years and these stories irritate me. (I has since moved on.) I am sure you can imagine the things that are told to customers that are just NOT TRUE.
Sorry for my rant.
Tom
plchan, here is what I would do if I was in your shoes. i would call the bank that you are financed with and tell them you bought a car 2 weeks ago, it is financed with them, and you want to get your account #. Don't get into the whole overcharge on the warranty and rate reduction deal, they really don't care. The purpose of your call is to find out if they have purchased your contract yet. if they have then the dealer has no control over it and cannot go back and change the rate.
Also, I know that here if someone cancels a warranty that is financed they do not get the money back, the money is sent to the bank who handled the financing and it is applied to your loan. Your payment does not change, but it does decrease the principal balance owed.
-mike
Did your car come with a "required maintanence schedule"? As long as that is documented then you are GTG.