HI Dennis, Thank you for your helpful information I sure will go for the online warranty. I know dealers offer a better price if they think I will also buy their warranty so I have found it best to just say I will buy it until I get into the finance dept than tell them sorry but I don't want it.
Thanks for the info. I plan to just walk into the dealership to talk with the "F&I" guy whom I bought my policy from. I don't want to call them a head and talk and tip them off
I wonder if they would give me some run-around saying Honda Care office is closed after 5 (or whatever) so they could not do the paper work now.. blah...
Anyhow, as you said, I will stick firm. I will request them to give me any WRITTEN documentation that they already submitted the cancellation request form.
I also plan to ask them to change the loan amount, but I would not put too much hope on that. As long as I get the full refund back to my loan, I would be ok with that.
My dealer just replied (email) to me the 5 yrs power-train only covers the engine, transmission and differential. However, would the 3yrs mfg warranty covers everything (including steering, brake system, climate control system, electronics and lectrical system, timing belt, CV joints, water pump, etc etc) except the wear and tear items?
We just went through this with the Hyundai my son drives. At 93k miles it is still "covered" by the powertrain warranty, but the dealer would not fix a bad idle control valve for free. They don't spell it out, but they cover the "internally lubricated parts" of the engine but NOT all the sensors (MAF, idle, etc) that the engine needs to run properly. The dealer wanted $85 to check it out and close to $300 for the part plus labor to install it. I picked up one from a junk yard for $20 and put it on myself. Good thing for my son I know a little about cars. Shame on Hyundai (and other manufactures) for not spelling out what is included/excluded up front and for not covering what it takes to make the car run. I can understand not covering the AC compressor under powertrain, but a sensor that causes the car to fail to start and run should be covered.
As to your question, any wear items or items that need to be replaced due to age would not be covered under the longer powertrain warranty. Some would not even been covered under the extended warranty, but there are some things that you need to make the car go that are NOT covered under the powertrain warranty from Honda.
About all of the online discount HC dealers have the list, but here is one example of a coverage list. Brake system (but not pads), timing belt (for a failure), CV joints, water pump, etc are all covered. If Honda requires to you change the timing belt at 60k miles, for example, that is on you. If you don't and it fails, that is on you. If you do, and it fails after that and before your HC expires then that is covered.
Most people ASSUME a powertrain warranty means the dealer will make their car start and run and drive for free if it needs a repair. There are WHOLE LOT of things not covered that would render your car unfit to drive that would require you to pay to repair even if you are under a powertrain warranty.
With a Honda, the odds of needing more repairs than the HC plan costs you are low - otherwise they could not sell you the plan for that price. It must mean that the average pay out for folks with your car and your mileage/year plan will be less than what you are asked to pay for the plan. So if you are at the average or above, buying a plan is a waste of money. But if you are one of the unlucky with a higher repair cost, then having the plan saves you money. Also factored in to the cost is all the folks that buy the plan, then sell or trade the car and never cash out a refund or transfer it to the new owner. Clearly that is pure profit for the HC folks. I guess people like that keep the rates low
Hyundai powertrain coverage is little different than other companies' powertrain coverages. It does not mean they fix anything to do with the car starting and running. Engine and transmission failure etc., not everything attached or plugged into the engine. You have to read this things and not make guesses as to what it means.
I just went to my Honda dealership to cancel the GAP protection and Honda Care. The fin guy said the costs of getting 8yrs/120K miles online is unreal, and that would be way under the "actual cost" of the plan. I am not sure if he told the true or not. However, what I believe is no one wants to lose money. Someone might want to make a big profile. Someone might want to make a little profile BUT make more sales to cover the differences.
I submitted the 2 cancellation requests. He said he would need to get someone from business office to sign and they would submit to the xxxx (I don't want to disclose the name who provides the GAP coverage) and Honda Care; and it would take them around 6 business days to do that.
I will see if he gives me some run-around; or "misplace" my documents. My 60 days will be up by 4/17. I really need to follow up and make sure they submitted all documents to the companies in March in order.
I don't want my Honda Care and GAP coverage get pro-rata because of they try to play game on me.
However, if they do play game on me, what can I do? I got a copy of the cancellation request, but since no one signed yet.
I wonder if Honda Care would help out if they try to play game on me thou.
Last year I had the same problem. The dealer was reluctant to cancel EW. I called Honda Care directly and explained everything, they were so helpful. I faxed my request for canceling along side with other documents. They arranged everything and canceled the EW. Yes, you can bypass the dealer, don't worry, Good luck
I cancelled the gap insurance on my car that I had purchased thru the dealership. I had no problems. Depending on how long you had the gap insurance is how much you will get back. Up to certain point (I am not sure how long) you get a full refund, then it is prorated. I went back to the finance dept. and told them to cancel. They did not ask why, they were very nice and said no problem. About a month or a little less I received a refund check. Good Luck. Gap Insurance is cheaper getting it thru your regular car insurance
That is the problem - in the owner's manual they don't list anything include or excluded, nor do they on their web page. So you say "You have to read this things and not make guesses as to what it means" and I say they don't list it. I think their intent is to deceive, they want your money from the sale THEN when something goes wrong the dealer TELLS you that the problem is not covered.
"Limited powertrain warranty" is a meaningless phrase when the limits are secret. No wonder Honda can now offer a longer powertrain warranty as well. The odds of something failing that they actually cover seem pretty slim.
In any case, back on topic, the powertrain components that they do not cover and mostly all covered under the HC contract.
I would follow up with HC directly and be sure they get the info to cancel, if not then time to make a stir.
GAP coverage to me is always a waste of money. Why do I think so? For one thing I am always paying a really low price for a new car, otherwise I don't buy. That means I am always thousands ahead of most folks (except those on the forums here). I also have a low lease or loan rate, again that can put you ahead. I don't get upside down on a deal and would never roll negative equity into a new deal. Finally, on a lease most insurance companies (like mine) include GAP for free if you tell them it is a lease car. Also, you can insist your insurance company replace the totalled/stolen vehicle. If they offer you less than you (and the bank) think it is worth, then insist that they replace it with the exact year, model, and mileage vehicle. With the bank's approval, you then finish paying off this car in place of the other.
Now if you are paying MSRP or over, stuck with a whopper rate, doing a 6 or more year term, and/or rolling negative equity from prior deals into the new one - that GAP rip-off price might come in handy if something goes wrong.
Dennis, thanks for the suggestion. I will follow up with HC this week. I said I would follow up with the dealership on next Monday but I plan to contact the finance guy by this Friday (because he is off 2 days during the weekdays). I just want to have a peace of mind knowing the HC gets the info to cancel.
I might still contact my insurance company to check the cost of the GAP insurance.
The one I got from the dealership was 60 months - $599. It "sounds" ok since it is $100 per yr. However, I would believe I could get a better deal from my insurance company. Or else, I might just consider to have the finance guy to "cancel" the cancellation request
No, it is not, it's a total rip-off. It's about what it is going to cost you for the whole term if you finance trough your Ins Co AND carry it for the whole term of the finance contract. And since it's a Honda Pilot, you're not even going to need it after the first year; if you put more money down, and your rate is low, as well as you don't have a term longer that five years, you might need it at all. Do not second guess yourself, cancel that dog.
I did cancel it last night when I was in the dealership. Yes, you are correct. The whole GAP and Honda Care were added into my loan so I still would have to pay the same amt of the payment.
What it is done is done. I just want to get the refund back and I will remember NOT to purchase those kind of options from Honda finance in the future (if I would purchase my next car from Honda).
:confuse: For some reason, I declined the dealer offered extended warranty for our new Accord EX-L V6. Well, perhaps the $2,200 for 5 years may have been a little discouraging.
When possible, I do think I'd prefer taking our new baby to a real Honda dealer/garage. Does that automatically make Honda Care the best choice?
I wonder what the real cost of the Honda Care plan 8yrs / 120k miles should be.
It is because when I was in the dealership last night to cancel my Honda Care plan, the Finance guy told me the price I got online was unreal and it could be way lower than the "actual cost". He wanted me to send him the info about which online company I would buy it from, so he would call Honda Care to "discuss".
Did he give me some sales pitch or he was telling truth?
These are all $0 deductible, genuine HC plans. so to say your dealer was trying to rip you off could be classified as "an understatement".
You want a company that will be there when and if you need them, just ask any of the folks who purchased warranties from one of the companies now out of business. HC can be used at any Honda dealership as well, which is a plus.
You will likely not need a warranty on your new Honda, and if you do the odds are good that the cost of repairs will not exceed the cost of the (discounted) plan. If you do have a problem, however, the cost of repairs can quickly exceed the cost (discounted) of the plan.
So either decide to do without the coverage, or get "real" HC from a discount dealer.
The cheapest online companies are said to be selling for just over cost. I purchased one one that was supposed to be $1 over. Like car sales, I think they have promotions and incentives at times for dealers who sell a lot of HC. Maybe they get additional discounts for every xx they sell.
Most dealers try to be so greedy and make hundreds if not thousands on each HC plan, so they don't sell many - and would not qualify for any rewards for volume so they CAN'T sell them as cheap. Of course there are high volume Honda dealers that price way down into the holdback, and others (like some of my local dealers) that still have last year's models on the lot along with the current model since they refuse to deal low.
When my daughter purchased her Civic last year we took along the online quotes for HC. I told her if they pressured her to buy, hand them the prices and tell them she would at that price. They took one look, checked their cost, and just gave up. They either didn't want to bother with the paperwork for such little profit or could not sell them that low.
When I purchased an extended warranty for one of my Honda Motorcycles (also called HondaCare) I showed the local dealer my online price. He said "that is close to my cost", but he too didn't offer to sell it to me - he would rather not make anything that to hassle with it and make a little.
Thank goodness their are dealers that don't need to make the whole rent check on each deal, and do seem to make it up in volume
That is what I was telling my wife. No dealers are here to loss money buy selling HC. It is just either they make little money; or they want to make big $.
I just called HC this morning. I am sure I am too worrying about if the dealership would play game on me about the cancellation. HC said I called them yesterday to get the "instruction of cancellation", and said since then, they have not received the cancellation request yet. I might have to rest my mind of few days, and try to talk to the finance guy again this Friday.
Additionally, HC said they could back-dated if the dealership "was too busy" to send the document, or sent it "after the first 60 days". However, HC told me I would have to talk to the dealership first then call them.
It is our first new car and I already made a big mistake by purchasing it from the dealership. It is hassle to get them cancel.
Ask them to explain to you what they would do if your new Honda was a total loss (accident, theft, etc) - do they pay off what you owe or not? If not, then they pay "book" value. Ask them if they would provide a replacement Honda - same model, year, and miles as the one you lost. In the real world, if you are NOT at fault the insurance of the person the is at fault is going to bend over backwards to make and keep you happy. They are so scared you will sue them for big bucks and cost them at least lawyer fees that they prefer to keep you happy. When someone hit and totalled my wife's car years ago the insurance could not have been nicer and paid use full retail for her car - they found a nearly identical car on a local dealer's lot and paid us what that dealer had it LISTED for (and you know they would take a lot less). They also covered ambulance, medical bills, etc.
No way is Gap worth the $599 the dealer wanted you to pay. If you DID pay $2k plus for HC, $600 for Gap, on top of the price of the Honda - then you WOULD need Gap coverage since you might spend the first year of your loan just paying for those things and interest.
I am checking with other insurance companies to determine if they provide GAP or not. No idea why my insurance company does not provide this option but I will ask them if they would do a replacement or just pay me the book value.
I requested to cancel the HC and GAP. however, the interest would have been already built-in the total loan I asked for. I hope the HC would be credited to the lender as part of my loan payment so I might pay it off sooner. I think they might cut me a check for the GAP refund.
Just curious, are all you people who are telling these people to cancel there GAP insurance going to be standing there with your check books ope to take care of them if there vehichle is ever stolen?
I have read through several of the threads on GAP insurance on this site and never seen so much bad information given by people who's only expierience in the auto business is the fact they buy a car every few years.
Folks, if a Professional Finance MGR explained the product to you and you felt that it is something that may benifit you then please don't cancel it, or at least before you do go back and ask the F&I guy "Tell me again why I bought this" Also, the cheapest price is not always the best product.
One other quick question, I guess for the Admin. I posted contact info for pricing Extended Service Plans in another forum and it got deleted quicker then heck, but the first few pages of this thread are basically an infomercial for some guy at a Honda store. What gives???
I want (and already did) to cancel the GAP which I purchased from the Honda dealership.
However, it does not mean I do not need the GAP insurance. I am going to purchase the GAP insurance thru my insurance company. To me, the GAP insurance is needed.
The GAP insurance from dealership pays up to $5000 if the car is totaled. It is $599 for the term of 60 months.
I have not yet checked the coverage from my insurance company yet. However, Progressive quoted additional $25 for the "Loan/Lease Payoff" for 6 months term (it must be purchased with a full coverage).
True, the Progressive would pay no more than 25% of the actual cash value of the car for the gap, but you pay only $25 for 6 months. It is about 3 times less what the dealership asks for.
Anyhow, I am going to do some more researches and get more quotes from other insurance companies.
The details from Progressive is..
Loan/Lease Payoff coverage requires Comprehensive and Collision coverage and a lien holder. Loan/Lease Payoff coverage protects you if your vehicle sustains a total loss, and will pay you the difference between (1) the actual cash value (ACV) of your vehicle at the time of the loss, less the applicable deductible and the vehicle's salvage value (if retained by the owner or insured), and (2) any greater amount owed on the vehicle at the time of the loss, less any unpaid finance charges, excess mileage or wear and tear charges, any other charges or expenses associated with the loan or lease, and by the vehicle's salvage value (if retained by the owner or insured). However, any payment under this coverage will not exceed 25% of the ACV of the vehicle at the time of the loss. This coverage protects you if your vehicle is a total loss.
Folks, if a Professional Finance MGR explained the product to you and you felt that it is something that may benifit you then please don't cancel it, or at least before you do go back and ask the F&I guy "Tell me again why I bought this" Also, the cheapest price is not always the best product.
What a laugh!
*YOU* may be a "professional finance manager" but I can assure you that nearly every one of the hacks I have faced in the F&I offices were not. They are just trying to scare customers in to buying service plans and tremendous mark ups and scaring them into buying way too expensive GAP coverage as well. Nothing "professional" about them other than the proficiency with which they separated the customer from his/her money
In this case, the cost of GAP plus the extra profit on the service plan would exceed $2,000. Unless the customer grossly overpaid for the new Honda or rolled in negative equity then they should be fine with the money in their bank "just in case" and not in the dealer's pocket.
The only reason to have GAP coverage is if:
1) You paid too much - MSRP or over. If you paid invoice or below, in this case a good price would be more than $1,000 under invoice. 2) You purchased something with poor resale value (like my RX-8). Even getting it WAY below invoice it books about what the buyout is 2 years later. 3) You do a LONG finance deal or at a really high rate. 4) You roll negative equity into the new deal - this is probably the #1 reason folks need GAP. 5) You let the dealer add "packs" onto the deal - "rust proofing" or "paint sealant" or other crapola that drives up your borrowed amount. In this case it was over $2k in extended warranty - to put them upside down where they NEEDED the GAP! 6) You let the dealer add on a lot of accessories to the deal - at typical inflated prices. Many of these are worthless to the book value of the car and purchasing at inflated prices puts up more upside down on the loan.
So if one or more of these are true, then you may SHOULD get GAP protection from some source. You also have to look at the cost of the protection VS the risk.
I can't speak for the person who purchased the GAP plan, but I can state that they are not for me. I try not to violate any of the conditions that would require it. If THEY did on this deal, then they probably should have coverage - but probably not at the inflated price offered by the dealer. For what the dealer wanted to charge I could insure the car for most of the year, so I could even change insurance companies to one that provided GAP free or for a modest fee and pay MORE and still come out ahead. Finally, Googling up shows many online plays to buy a GAP plan from, like this one for a $299 one time fee. Now, you would have to research who is offering and backing these plans before spending any money on them. Of course, you have no idea who the dealer is selling to you either - but you can be sure if the GAP plan you buy fails to pay off your loan the dealer will not stand behind it and pony up the money.
It would be better to get it through your car insurance company, if you have to have it.
By checking book value and loan balance you could decide when you are no longer upside down and then be free to drop the GAP option or switch to a different insurance company.
As I said in an earlier post. Cheaper is not always better. here is the fine print from the link Dennis posted.
I will adress several of them Disclosure: Maximum Limit of Loss: $50,000
On our Ford Gap its $100,000
NOTE: The claim settlement may not cover the entire Gap due, when your loan's Original Amount Financed exceeds 120% of MSRP (new vehicle) or NADA Retail Value (used vehicles), plus 30% of Value allowable for Additional Financed Items like Credit Life or Service Contracts. The claim settlement does not cover late charges or other penalties due to your lender.
Ford GAP 150% 120 % is a joke There claim about 30% for ESP and CL is a joke also, those are refundable products. If the vehichle is totaled they refunded at a pro-rated amount and creditied to the balanced owed Your loan amount financed must be less than or equal to $100,000.
Same
Your loan term must not be greater than 84 months.
same
Gap is not available on an auto lease or a balloon loan with a balloon payment due at end of lease.
Ford's covers baloon notes for any one dumb enough to enter into one i have been doing this for 15 years and never contracted some one on a baloon. There is always a better option
The maximum APR is 12.5%
Ford has no rate cap, available for all credit profiles
I am not trying to be a horses rear end here just wanting to point out that none of us me included are qualified to sit here and tell who does and does not need GAP insurance because none of us have all the facts. Dennis you failed to mentioned one of the biggest reason people need it and that is there driving habits. If I drive high miles and hand to finance the whole loan or even if I put $3000 down I may still need gap. A 1 year old car with 50 or 60K on it will have definitley out run its equity. Or if you have bought a higher milage car and financed it.
There is allot of things that go into it and I just hate to see folks making decisions with other peoples money. You might be able to afford to put $2K in the bank as a nest egg just incase, average Joe Q Customer can't.
If I drive high miles and hand to finance the whole loan or even if I put $3000 down I may still need gap
Yep, I missed that one - but I am not a high mileage guy (lots of cars = fewer miles on each ).
I gave that link as an example and did state they needed to be checked out. All we know about what was offered the customer in this case in the price, which sounds like a rip off amount to me - and could even more restrictions and worse coverage than the online company.
I applaud your honesty, but I feel you are (unfortunately) in the minority. I hear ads on the radio or TV and see them in the paper for some cheap car payment that seems impossible and "this is not a lease". Then check the fine print, sure enough, another balloon note "scam". 59 payments of $119 then one of $12,000 or something.
Does Ford charge you a flat fee for GAP or does it vary with the amount of risk (amount borrowed and/or amount borrowed over value, loan term, APR, etc) ? What would you charge for GAP on something like a $30,000 SUV? Maybe $600 is the going rate for GAP from a dealer - but I would think a whole lot of the $600 is just extra profit.
It depends on the state you live in and weather you are buy a "Waiver Addendum" or "Gap Insurance" (listen up because you all can benefit from this) here in Tennessee (may be nation wide I don't know) Ford Motor Credit requires you to sell Gap Insurance. The deal on Insurance is that the price is regulated so as an insurance product you have to sell it for the same price to every one. I sell Ford Gap Insurance and it sells for $515 up to 60 months $520 for contracts greater then 60 months.
If you live some place that they are dealing with "Waiver Addendum's then the gap can be sold for any price most lenders Cap your max price at $600 or $700 depending on the bank.
When GAP first hit the market years ago I was selling it for $395 and making around $250 per contract, as the product got more popular and more were sold the claims increased, with increased claims the cost escalated.
Just like all aftermarket stuff, Service Contracts, Road Hazard, GAP I have seen a million fly by night companies swoop in on the scene and claim they are the best thing since sliced bread and there prices are to good to be true. The old saying about if it is to good to be true it probably isn't applies here. I have never had a legitimate Ford Service Contract or Gap claim denied. Heck I have never even had to argue one. Also, if you have a problem with any of the contracts I SOLD YOU not some guy in a cubicle 800 miles away that knows he will never meet you face to face) I am here to help, if you need a cancellation I am sitting right here, if the service department questions something, I am just across the street, got one of my Ford Service Plans, you are never stranded, I will get you a car to drive.
I think you all see my point here, its not all about the cheapest price. The worth of a product is seen when you have to use it and you get the level of support and service you were promised when you bought it. I have people come and complain to me every week about a Service Contract they bought through the mail and the service department won't fix there car till they get prior approval. Prior approval comes from that guy I mentioned earlier that is 800 miles away or if the repair is more then $1500 the rep will check it out when he comes through town a week from next Thursday.
Why are they complaining to me? Because some slick company sent an offer to good to be true dressed up to look like a Ford backed contract.
I need to jump off this soap box for awhile, I could write 5 pages on the subject but my fingers are tired
Never purchased a vehicle there (either didn't have what I wanted or wanted to much for it ), but I have purchased parts and had service work done over the years. Though when I had my Contour SVT and took it in for an oil change and warranty work, they did manage to ding my door and leave the dipstick out of the motor, but those things can happen anywhere I guess. Heck, I caught (literally) the "runner" joy riding in my Civic Si after I dropped it off for work one morning - different dealership, of course.
You can go to this web page and see the prices from a bunch of online dealers at once.
Last time I checked, this dealer and this dealer had the best prices. You can also check places like College Hills, Honda Acura World, etc. Normally when I spot check, I go for the longest term/most miles with $0 deductible and usually just check the Accord I4 price. So you should always check all sources for the coverage you want to buy to make sure you get the best price.
Just make sure you buy "real" HondaCare from a franchised Honda dealer and you should be OK.
I am ready to purchase a Honda Care (8yrs/120K miles) from Bernardi.
My question(s) is:
What kind of stuff do I have to watch out with?
I called the finance guy from bernardi yesterday but he was gone for the day, and off today (Friday).
I intent to take the interest free financing option.
Per your experience,
1) is Bernardi easy to deal with? 2) Would they charge your cc and take their sweet time to process? 3) What is the turn around time to get your Honda Care application processed, and affected by America Honda from the day you submitted your form? 4) least but not last, and it is the most important thing, How long would it take to get your contract in mail from America Honda?
(Everything is based on the assumption of "It is a legal contract and backed by America Honda". True?)
the dealers you mentioned are selling the "real" HondaCare, ain't they? (sorry for being stupid, but I just want to make sure before I fax them my form and let them take my blood-sweat money).
I was shopping for a warranty I was given the run around from most places like aaauto warranty and continental. I found one place that I was very pleased with. In my opinion, this is the best place to go for a warranty.
I'll bet this companies won't be in business as soon as they collect lots of money for warranties like lots of the others that aren't from the auto manufacturers.
Those are the only ones to buy. The others are like Enrons and MCIs; they'll be gone with the bag of money and bankrupt the company. They'll be living in Brazil and you'll be holding the empty warranty bag!
Just leased an Accord EXL, selling price: $21,921 w/ free iPod music link. Had offer on the table for 36 months/12K miles, $2200 due at signing and 35 payments of $205 + Tax. Ended up going for a 36 month/15k miles deal, 0 down (which ends up being $1200 all said and done), and 35 payments of $245 + tax. Then, in my one moment of weakness, they talked me into extending the warranty 9k miles including 4 free oil changes and 3 inspection stickers. I decided to do it because I am most likely going to buy the car at the end plus I talked them down from $600 to $450. All said and done this is how it breaks down:
36 Months/15k miles $1267 due at signing $257/month (inc. 5% tax) $450 Sentinal Warranty
Let me know what you guys think about the lease as well as the Honda Sentinal Warrenty.
I was wondering if anyone has recently purchased Honda Care Extended Warranty. If so, from where and how much was it. I was reading through the recent posts and went through couple recommended sites, however the quotes are much higher...any help is greatly appreciated.
What a surprise! A sarcastic jerk down playing someone's having something good to say on the forum. If they pushed Warranty Direct which pays Edmunds tens of thousands a month to buy their way on, and that would be okay? I did buy my Warranty from http://www.warranties4wheels.comlink title
Comments
I wonder if they would give me some run-around saying Honda Care office is closed after 5 (or whatever) so they could not do the paper work now.. blah...
Anyhow, as you said, I will stick firm. I will request them to give me any WRITTEN documentation that they already submitted the cancellation request form.
I also plan to ask them to change the loan amount, but I would not put too much hope on that. As long as I get the full refund back to my loan, I would be ok with that.
Thanks for your tips again.
As to your question, any wear items or items that need to be replaced due to age would not be covered under the longer powertrain warranty. Some would not even been covered under the extended warranty, but there are some things that you need to make the car go that are NOT covered under the powertrain warranty from Honda.
About all of the online discount HC dealers have the list, but here is one example of a coverage list. Brake system (but not pads), timing belt (for a failure), CV joints, water pump, etc are all covered. If Honda requires to you change the timing belt at 60k miles, for example, that is on you. If you don't and it fails, that is on you. If you do, and it fails after that and before your HC expires then that is covered.
Most people ASSUME a powertrain warranty means the dealer will make their car start and run and drive for free if it needs a repair. There are WHOLE LOT of things not covered that would render your car unfit to drive that would require you to pay to repair even if you are under a powertrain warranty.
With a Honda, the odds of needing more repairs than the HC plan costs you are low - otherwise they could not sell you the plan for that price. It must mean that the average pay out for folks with your car and your mileage/year plan will be less than what you are asked to pay for the plan. So if you are at the average or above, buying a plan is a waste of money. But if you are one of the unlucky with a higher repair cost, then having the plan saves you money. Also factored in to the cost is all the folks that buy the plan, then sell or trade the car and never cash out a refund or transfer it to the new owner. Clearly that is pure profit for the HC folks. I guess people like that keep the rates low
Dennis
It does not mean they fix anything to do with the car starting and running. Engine and transmission failure etc., not everything attached or plugged into the engine.
You have to read this things and not make guesses as to what it means.
I submitted the 2 cancellation requests. He said he would need to get someone from business office to sign and they would submit to the xxxx (I don't want to disclose the name who provides the GAP coverage) and Honda Care; and it would take them around 6 business days to do that.
I will see if he gives me some run-around; or "misplace" my documents. My 60 days will be up by 4/17. I really need to follow up and make sure they submitted all documents to the companies in March in order.
I don't want my Honda Care and GAP coverage get pro-rata because of they try to play game on me.
However, if they do play game on me, what can I do? I got a copy of the cancellation request, but since no one signed yet.
I wonder if Honda Care would help out if they try to play game on me thou.
I am glad I requested a copy of the original sales copy of the EW. I forgot to make a photocopy before I went to the dealership tonight.
"Limited powertrain warranty" is a meaningless phrase when the limits are secret. No wonder Honda can now offer a longer powertrain warranty as well. The odds of something failing that they actually cover seem pretty slim.
In any case, back on topic, the powertrain components that they do not cover and mostly all covered under the HC contract.
Dennis
GAP coverage to me is always a waste of money. Why do I think so? For one thing I am always paying a really low price for a new car, otherwise I don't buy. That means I am always thousands ahead of most folks (except those on the forums here). I also have a low lease or loan rate, again that can put you ahead. I don't get upside down on a deal and would never roll negative equity into a new deal. Finally, on a lease most insurance companies (like mine) include GAP for free if you tell them it is a lease car. Also, you can insist your insurance company replace the totalled/stolen vehicle. If they offer you less than you (and the bank) think it is worth, then insist that they replace it with the exact year, model, and mileage vehicle. With the bank's approval, you then finish paying off this car in place of the other.
Now if you are paying MSRP or over, stuck with a whopper rate, doing a 6 or more year term, and/or rolling negative equity from prior deals into the new one - that GAP rip-off price might come in handy if something goes wrong.
Dennis
I might still contact my insurance company to check the cost of the GAP insurance.
The one I got from the dealership was 60 months - $599. It "sounds" ok since it is $100 per yr. However, I would believe I could get a better deal from my insurance company. Or else, I might just consider to have the finance guy to "cancel" the cancellation request
No, it is not, it's a total rip-off. It's about what it is going to cost you for the whole term if you finance trough your Ins Co AND carry it for the whole term of the finance contract. And since it's a Honda Pilot, you're not even going to need it after the first year; if you put more money down, and your rate is low, as well as you don't have a term longer that five years, you might need it at all.
Do not second guess yourself, cancel that dog.
I did cancel it last night when I was in the dealership. Yes, you are correct. The whole GAP and Honda Care were added into my loan so I still would have to pay the same amt of the payment.
What it is done is done. I just want to get the refund back and I will remember NOT to purchase those kind of options from Honda finance in the future (if I would purchase my next car from Honda).
When possible, I do think I'd prefer taking our new baby to a real Honda dealer/garage. Does that automatically make Honda Care the best choice?
Any suggestions would be greatly appreciated.
Thanks, Bob
It is because when I was in the dealership last night to cancel my Honda Care plan, the Finance guy told me the price I got online was unreal and it could be way lower than the "actual cost". He wanted me to send him the info about which online company I would buy it from, so he would call Honda Care to "discuss".
Did he give me some sales pitch or he was telling truth?
8 years/120,000 $995.00
8 years/100,000 $895.00
7 years/120,000 $915.00
7 years/100,000 $810.00
7 years/80,000 $635.00
These are all $0 deductible, genuine HC plans. so to say your dealer was trying to rip you off could be classified as "an understatement".
You want a company that will be there when and if you need them, just ask any of the folks who purchased warranties from one of the companies now out of business. HC can be used at any Honda dealership as well, which is a plus.
You will likely not need a warranty on your new Honda, and if you do the odds are good that the cost of repairs will not exceed the cost of the (discounted) plan. If you do have a problem, however, the cost of repairs can quickly exceed the cost (discounted) of the plan.
So either decide to do without the coverage, or get "real" HC from a discount dealer.
Dennis
Most dealers try to be so greedy and make hundreds if not thousands on each HC plan, so they don't sell many - and would not qualify for any rewards for volume so they CAN'T sell them as cheap. Of course there are high volume Honda dealers that price way down into the holdback, and others (like some of my local dealers) that still have last year's models on the lot along with the current model since they refuse to deal low.
When my daughter purchased her Civic last year we took along the online quotes for HC. I told her if they pressured her to buy, hand them the prices and tell them she would at that price. They took one look, checked their cost, and just gave up. They either didn't want to bother with the paperwork for such little profit or could not sell them that low.
When I purchased an extended warranty for one of my Honda Motorcycles (also called HondaCare) I showed the local dealer my online price. He said "that is close to my cost", but he too didn't offer to sell it to me - he would rather not make anything that to hassle with it and make a little.
Thank goodness their are dealers that don't need to make the whole rent check on each deal, and do seem to make it up in volume
Dennis
I just called HC this morning. I am sure I am too worrying about if the dealership would play game on me about the cancellation. HC said I called them yesterday to get the "instruction of cancellation", and said since then, they have not received the cancellation request yet.
I might have to rest my mind of few days, and try to talk to the finance guy again this Friday.
Additionally, HC said they could back-dated if the dealership "was too busy" to send the document, or sent it "after the first 60 days". However, HC told me I would have to talk to the dealership first then call them.
It is our first new car and I already made a big mistake by purchasing it from the dealership. It is hassle to get them cancel.
No way is Gap worth the $599 the dealer wanted you to pay. If you DID pay $2k plus for HC, $600 for Gap, on top of the price of the Honda - then you WOULD need Gap coverage since you might spend the first year of your loan just paying for those things and interest.
Dennis
I requested to cancel the HC and GAP. however, the interest would have been already built-in the total loan I asked for. I hope the HC would be credited to the lender as part of my loan payment so I might pay it off sooner. I think they might cut me a check for the GAP refund.
I have read through several of the threads on GAP insurance on this site and never seen so much bad information given by people who's only expierience in the auto business is the fact they buy a car every few years.
Folks, if a Professional Finance MGR explained the product to you and you felt that it is something that may benifit you then please don't cancel it, or at least before you do go back and ask the F&I guy "Tell me again why I bought this" Also, the cheapest price is not always the best product.
One other quick question, I guess for the Admin. I posted contact info for pricing Extended Service Plans in another forum and it got deleted quicker then heck, but the first few pages of this thread are basically an infomercial for some guy at a Honda store. What gives???
However, it does not mean I do not need the GAP insurance. I am going to purchase the GAP insurance thru my insurance company. To me, the GAP insurance is needed.
The GAP insurance from dealership pays up to $5000 if the car is totaled. It is $599 for the term of 60 months.
I have not yet checked the coverage from my insurance company yet. However, Progressive quoted additional $25 for the "Loan/Lease Payoff" for 6 months term (it must be purchased with a full coverage).
True, the Progressive would pay no more than 25% of the actual cash value of the car for the gap, but you pay only $25 for 6 months. It is about 3 times less what the dealership asks for.
Anyhow, I am going to do some more researches and get more quotes from other insurance companies.
The details from Progressive is..
Loan/Lease Payoff coverage requires Comprehensive and Collision coverage and a lien holder. Loan/Lease Payoff coverage protects you if your vehicle sustains a total loss, and will pay you the difference between (1) the actual cash value (ACV) of your vehicle at the time of the loss, less the applicable deductible and the vehicle's salvage value (if retained by the owner or insured), and (2) any greater amount owed on the vehicle at the time of the loss, less any unpaid finance charges, excess mileage or wear and tear charges, any other charges or expenses associated with the loan or lease, and by the vehicle's salvage value (if retained by the owner or insured). However, any payment under this coverage will not exceed 25% of the ACV of the vehicle at the time of the loss. This coverage protects you if your vehicle is a total loss.
What a laugh!
*YOU* may be a "professional finance manager" but I can assure you that nearly every one of the hacks I have faced in the F&I offices were not. They are just trying to scare customers in to buying service plans and tremendous mark ups and scaring them into buying way too expensive GAP coverage as well. Nothing "professional" about them other than the proficiency with which they separated the customer from his/her money
In this case, the cost of GAP plus the extra profit on the service plan would exceed $2,000. Unless the customer grossly overpaid for the new Honda or rolled in negative equity then they should be fine with the money in their bank "just in case" and not in the dealer's pocket.
The only reason to have GAP coverage is if:
1) You paid too much - MSRP or over. If you paid invoice or below, in this case a good price would be more than $1,000 under invoice.
2) You purchased something with poor resale value (like my RX-8). Even getting it WAY below invoice it books about what the buyout is 2 years later.
3) You do a LONG finance deal or at a really high rate.
4) You roll negative equity into the new deal - this is probably the #1 reason folks need GAP.
5) You let the dealer add "packs" onto the deal - "rust proofing" or "paint sealant" or other crapola that drives up your borrowed amount. In this case it was over $2k in extended warranty - to put them upside down where they NEEDED the GAP!
6) You let the dealer add on a lot of accessories to the deal - at typical inflated prices. Many of these are worthless to the book value of the car and purchasing at inflated prices puts up more upside down on the loan.
So if one or more of these are true, then you may SHOULD get GAP protection from some source. You also have to look at the cost of the protection VS the risk.
I can't speak for the person who purchased the GAP plan, but I can state that they are not for me. I try not to violate any of the conditions that would require it. If THEY did on this deal, then they probably should have coverage - but probably not at the inflated price offered by the dealer. For what the dealer wanted to charge I could insure the car for most of the year, so I could even change insurance companies to one that provided GAP free or for a modest fee and pay MORE and still come out ahead. Finally, Googling up shows many online plays to buy a GAP plan from, like this one for a $299 one time fee. Now, you would have to research who is offering and backing these plans before spending any money on them. Of course, you have no idea who the dealer is selling to you either - but you can be sure if the GAP plan you buy fails to pay off your loan the dealer will not stand behind it and pony up the money.
It would be better to get it through your car insurance company, if you have to have it.
By checking book value and loan balance you could decide when you are no longer upside down and then be free to drop the GAP option or switch to a different insurance company.
Dennis
I will adress several of them
Disclosure:
Maximum Limit of Loss: $50,000
On our Ford Gap its $100,000
NOTE: The claim settlement may not cover the entire Gap due, when your loan's Original Amount Financed exceeds 120% of MSRP (new vehicle) or NADA Retail Value (used vehicles), plus 30% of Value allowable for Additional Financed Items like Credit Life or Service Contracts. The claim settlement does not cover late charges or other penalties due to your lender.
Ford GAP 150% 120 % is a joke There claim about 30% for ESP and CL is a joke also, those are refundable products. If the vehichle is totaled they refunded at a pro-rated amount and creditied to the balanced owed
Your loan amount financed must be less than or equal to $100,000.
Same
Your loan term must not be greater than 84 months.
same
Gap is not available on an auto lease or a balloon loan with a balloon payment due at end of lease.
Ford's covers baloon notes for any one dumb enough to enter into one i have been doing this for 15 years and never contracted some one on a baloon. There is always a better option
The maximum APR is 12.5%
Ford has no rate cap, available for all credit profiles
I am not trying to be a horses rear end here just wanting to point out that none of us me included are qualified to sit here and tell who does and does not need GAP insurance because none of us have all the facts. Dennis you failed to mentioned one of the biggest reason people need it and that is there driving habits. If I drive high miles and hand to finance the whole loan or even if I put $3000 down I may still need gap. A 1 year old car with 50 or 60K on it will have definitley out run its equity. Or if you have bought a higher milage car and financed it.
There is allot of things that go into it and I just hate to see folks making decisions with other peoples money. You might be able to afford to put $2K in the bank as a nest egg just incase, average Joe Q Customer can't.
Yep, I missed that one - but I am not a high mileage guy (lots of cars = fewer miles on each
I gave that link as an example and did state they needed to be checked out. All we know about what was offered the customer in this case in the price, which sounds like a rip off amount to me - and could even more restrictions and worse coverage than the online company.
I applaud your honesty, but I feel you are (unfortunately) in the minority. I hear ads on the radio or TV and see them in the paper for some cheap car payment that seems impossible and "this is not a lease". Then check the fine print, sure enough, another balloon note "scam". 59 payments of $119 then one of $12,000 or something.
Does Ford charge you a flat fee for GAP or does it vary with the amount of risk (amount borrowed and/or amount borrowed over value, loan term, APR, etc) ? What would you charge for GAP on something like a $30,000 SUV? Maybe $600 is the going rate for GAP from a dealer - but I would think a whole lot of the $600 is just extra profit.
Dennis
If you live some place that they are dealing with "Waiver Addendum's then the gap can be sold for any price most lenders Cap your max price at $600 or $700 depending on the bank.
When GAP first hit the market years ago I was selling it for $395 and making around $250 per contract, as the product got more popular and more were sold the claims increased, with increased claims the cost escalated.
Just like all aftermarket stuff, Service Contracts, Road Hazard, GAP I have seen a million fly by night companies swoop in on the scene and claim they are the best thing since sliced bread and there prices are to good to be true. The old saying about if it is to good to be true it probably isn't applies here. I have never had a legitimate Ford Service Contract or Gap claim denied. Heck I have never even had to argue one. Also, if you have a problem with any of the contracts I SOLD YOU not some guy in a cubicle 800 miles away that knows he will never meet you face to face) I am here to help, if you need a cancellation I am sitting right here, if the service department questions something, I am just across the street, got one of my Ford Service Plans, you are never stranded, I will get you a car to drive.
I think you all see my point here, its not all about the cheapest price. The worth of a product is seen when you have to use it and you get the level of support and service you were promised when you bought it. I have people come and complain to me every week about a Service Contract they bought through the mail and the service department won't fix there car till they get prior approval. Prior approval comes from that guy I mentioned earlier that is 800 miles away or if the repair is more then $1500 the rep will check it out when he comes through town a week from next Thursday.
Why are they complaining to me? Because some slick company sent an offer to good to be true dressed up to look like a Ford backed contract.
I need to jump off this soap box for awhile, I could write 5 pages on the subject but my fingers are tired
That sounds like a certain Ford dealership I know that has "River" in the name.....
Dennis
Dennis
Kris
Last time I checked, this dealer and this dealer had the best prices. You can also check places like College Hills, Honda Acura World, etc. Normally when I spot check, I go for the longest term/most miles with $0 deductible and usually just check the Accord I4 price. So you should always check all sources for the coverage you want to buy to make sure you get the best price.
Just make sure you buy "real" HondaCare from a franchised Honda dealer and you should be OK.
Dennis
I am ready to purchase a Honda Care (8yrs/120K miles) from Bernardi.
My question(s) is:
What kind of stuff do I have to watch out with?
I called the finance guy from bernardi yesterday but he was gone for the day, and off today (Friday).
I intent to take the interest free financing option.
Per your experience,
1) is Bernardi easy to deal with?
2) Would they charge your cc and take their sweet time to process?
3) What is the turn around time to get your Honda Care application processed, and affected by America Honda from the day you submitted your form?
4) least but not last, and it is the most important thing, How long would it take to get your contract in mail from America Honda?
(Everything is based on the assumption of "It is a legal contract and backed by America Honda". True?)
Thanks in advance
the dealers you mentioned are selling the "real" HondaCare, ain't they? (sorry for being stupid, but I just want to make sure before I fax them my form and let them take my blood-sweat money).
I found one place that I was very pleased with. In my opinion, this is the best place to go for a warranty.
http://www.warranties4wheels.com
Why didn't I think of that
Those are the only ones to buy. The others are like Enrons and MCIs; they'll be gone with the bag of money and bankrupt the company. They'll be living in Brazil and you'll be holding the empty warranty bag!
2014 Malibu 2LT, 2015 Cruze 2LT,
36 Months/15k miles
$1267 due at signing
$257/month (inc. 5% tax)
$450 Sentinal Warranty
Let me know what you guys think about the lease as well as the Honda Sentinal Warrenty.
So how can I validate if a dealer is a "real", franchised Honda dealer?
I was wondering if anyone has recently purchased Honda Care Extended Warranty. If so, from where and how much was it. I was reading through the recent posts and went through couple recommended sites, however the quotes are much higher...any help is greatly appreciated.
Thank you.
What a surprise! A sarcastic jerk down playing someone's having something good to say on the forum. If they pushed Warranty Direct which pays Edmunds tens of thousands a month to buy their way on, and that would be okay? I did buy my Warranty from http://www.warranties4wheels.com link title
I suggest we all avoid talking about each other and stick to the designated topic.
tidester, host
SUVs and Smart Shopper