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That puts you in the same quandary that most people have about making collision claims against their insurance company. They avoid making claims, because it will raise their rates.
I can't think of anything worse than paying extra for an extended warranty, and then not wanting to use it, when needed..
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kyfdx
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I don't understand what your concern is. If you paid $995 for your warranty and you have a repair that is needed that will cost you $3,000, then obviously you would use it. If the repair is $50 than perhaps you would pay that out of pocket and try to recapture the $995 by not using it.
Unlike insurance, using it won't make any rates go up as it's paid in full. When I buy an extended warranty, I assume it's spent money and I use every benefit from it as possible. That's just my personal preference. If someone else wants to try to recapture the money at the end, that's their choice.
Right, if you get a loaner car that would be true. If however, you're just getting coverage that is covered by the factory warranty in the first 3 year/36,000 that doesn't count against your extended warranty.
I too, would not think I would pay extra for a warranty that would discourage me from using it. If the first repair is $200, then you think "I will get back $1,085 if I pay for this myself" so you do - and now you are stuck. The next repair is $250 so you think "I already paid the $200 last time, so if I don't pay the $250 this time then I lose the $200 - so I will pay the $250 this time and hope I have nothing else to pay.
At some point you have to decide what is too much or too many claims - and if you do let them pay for ANYTHING then you just paid too much for your HC plan and got nothing for it.
The big gotcha for me is this statement about the refund:
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.
So if the car is stolen or wrecked - you get nothing*. You decide to sell or trade it before the policy is up - you get nothing*. You lifestyle/income/family situation changes before the policy is up and you want/need something - you get nothing*.
*Note that with any genuine HC plan you DO get a pro-rated refund based on the months and miles on the car at the time you cancel it and at the time it went into effect. So when I say you get "nothing" you still get the HC pro-rated refund, but you lose the 100% money back which includes the extra fee you paid over the price charged by other online HC dealers.
Checking for the longest term on maybe the most common car (Accord I4) shows $1,085.00 if you want the "100% refund deal" and $940 (plus a $25 parts/accessories coupon) from Saccucci. So not count the $25 the premium is $145 to try to get the money back, $170 if you need some add ons for your new car you were going to get anyway.
I guess they figure how many folks buying today really will still be driving the same car 120,000 miles and/or 8 years from now and will not have used the policy at all? Not very many, I would bet (and they are too).
Dennis
Goes back to the whole just forget the gimmicks and sell the product.
Thank You!!
One interesting thing about honda-care.com is they include "free" oil changes. of course, if you use this perk, you will not get your money back. Consider this though:
It is an extra $145 for the full refund option. If you were to purchase the 100,000 miles warranty, that would be roughly 13 oil changes (being conservative). 13 * $25/oil change = $325. Looks like a good deal for most people over the other plan. Personally, I do my own oil change, so it is not worth it for me, but maybe for others.
Last thing, the comparison of choosing not to use the extended warranty vs not using car insurance is not quite apples to apples. If one does not use extended warranty, they get their money back. if on does not use their car insurance coverage, you do NOT get your money back. It is true though, you have to decide at what point WOULD you use it. I like control and options (control freak here), so getting to choose is good for me.
http://www.honda-care.com/
This is where they offer the full refund for an unused warranty. However, I couldn't find anything where free oil changes are a part of what they offer.
If you are a Florida resident you can not buy your warranty from an out of state dealer per Florida law.
The web-sites for the two dealers you're talking about are:
http://www.myhondawarranty.com/
http://www.hondawarrantyinfo.com/
http://www.honda-care.com/pdfs/HondaCareContract.pdf
Section E. Oil Changes. It describes paying for regular oil changes according to the "Factory Recommended Maintenance Schedule". Maximum of $25 per change, customer to pay any difference.
Just want to clarify. If I purchased a 7yr/100,000 mile extended Honda Care warranty from either of these 2 sites it will be the same warranty that is on my vehicle now but just longer.
Don't want to get stuck with a bogus offer.
Here are the 2 sites (same ones everyone else is talking about.)
http://www.myhondawarranty.com/
http://www.hondawarrantyinfo.com/
Also, I'm in Wisconsin so if you are purchasing from the Madison dealer they won't match or beat these prices. Not polite about it either.
thanks in advance
Right. I've purchased a Honda Care Warranty like this before online and once it's entered into the system, it works at my local Honda dealer with no problems. They just put my VIN number in their computer and it tells them that I have Honda Care. I don't have to do a thing.
Both of the dealers you listed are actual Honda dealers with actual locations. You can search for them on the HondaCars.com web-site to see that they are legit.
But, it's as close as you're going to get.
Read. The. Fine. Print.
All. Of. It.
http://www.myhondawarranty.com/
http://www.hondawarrantyinfo.com/
I've never heard of New Jersey having a problem buying out of state warranties. If these sites can sell it to you (like they can't sell to Florida) they'll tell you.
I don't know exactly what the cancellation policy and procedure is. Read your paperwork. I have heard people say that they sometimes make you wait weeks until "you're in the system" before they will give you a cancellation confirmation. Don't expect the dealership to be too helpful because they'll get backcharged their commission.
The dealer cannot verbally edit the contract.
So, just cancel it.
Thanks
When I got home, I talked to a Geico rep. They now sell extended warranties on cars for about $25-50/6 months. And you have up to 12 months on the car to buy. Sounds like a good deal, though I don't know many more specifics.
Well I went back to the dealer to cancel my extended warranty. He tried hard for me to keep it, finally dropping the price down to $900. I have no idea what his "cost" really is and out of principle I refused to buy.
So if you going to get one of the policies, don't pay that much for them.
It's my understanding that you can get some sort of extended warranty up until 36,000 miles.
Just go to either of the following web-sites, type in your vehicle information, and they'll give you your warranty options.
http://www.hondawarrantyinfo.com/
http://www.myhondawarranty.com/
There were several things I didn't like. I just re-checked their web-site to refresh my memory:
http://www.geico.com/auto/safety/mbi.htm
1. The $250 deductible. My Honda Care has a $0 deductible. I had my cruise control repaired the other day and it needed a part. It was less than $250 but I didn't pay anything with my $0 deduct.
2. Geico claims it covers more than the "typical dealer extended warranty. However, looking over Honda Care's list it is pretty extensive. I'd like to find some instances where Geico covers something that wouldn't be covered by Honda Care.
3. Like most third party warranties you have to get prior approval before repairs need to be done. This always slows the process, and is a pain for your repair shop. Currently, I just go to Honda, they find out what is wrong and they fix it---no hassles.
I didn't quite understand how you said their warranty was priced. You said, "They now sell extended warranties on cars for about $25-50/6 months. And you have up to 12 months on the car to buy. " Please clarify what the total cost would be over the entire time of the warranty.
Yes, you rarely get the best deal possible on a Honda Care from the dealer you buy the car from. They can make a lot of money on it by marking it up.
As I just told the previous poster, please go to either of these two dealers for the lowest known price on Honda Care warranties and see if that's more in the ballpark of what you're looking for:
http://www.myhondawarranty.com/
http://www.hondawarrantyinfo.com/
Honda Care explicitly limits its warranty coverage to problems caused by mechanical breakdowns. From the Honda Care warranty booklet: "Mechanical Breakdown does not mean the gradual reduction in operating performance due to wear and tear."
Other extended warranty providers, such as Warranty Direct, say that they cover problems caused by wear and tear. However, there seem to be plenty of other problems associated with companies like Warranty Direct, such as getting the repair pre-approved, agreeing on a price for the repair, etc.
So, does anyone have any experience with actually getting claims paid on these different types of warranties? How do they compare?
By the way, I bought my Honda Care warranty online for about half what my dealer wanted for similar coverage.
Thanks in advance for your thoughts.
I had a Hertz extended warranty on a car purchased at Hertz Car Sales and pre-approval was a simple phone call before you have the dealer look at it. It was not slow or painful. 2 minutes.
They paid the Ford dealer directly and it had $0 deductible.
Even with the manufacturers factory warranty the dealer has to work with the warranty administrator. The dealer does not have carte blanche to do "whatever" without approval or there will be abuse.
I took a look at the wording on one of Warranty Direct contracts to see if I could understand exactly what their wear and tear coverage was:
http://www.warrantydirect.com/luxury_care_contract.asp
This Vehicle Service Contract Provides NO Coverage or Benefits for the following:
G. ANY REPAIR OR REPLACEMENT OF A COVERED PART IF A FAILURE HAS NOT OCCURRED OR IF THE WEAR ON THAT PART HAS NOT EXCEEDED THE FIELD TOLERANCES PERMITTED BY THE MANUFACTURER.
I take that to mean that they'll compare how much wear is on the part compared to how much wear the manufacturer would expect on the part after a certain amount of time and a certain amount of miles. It sounds like something that is not very black and white as I don't know that a manufacturer issues time ranges for all of its parts. Maybe Warranty Direct has all of that info and will cover a lot more than a Honda Care.
It would be helpful if they provided some real examples. I couldn't find any on the Warranty Direct site.
I can see that this might cause trouble if the part that failed was surrounded by parts that were only worn. To do the repair right, the garage might need to replace all the parts, but would Warranty Direct only pay for the part that had actually failed?
But I'm just speculating. Does anyone have any actual experience with these different types of warranties, that is, with warranties that only cover mechanical breakdown (Honda Care) versus those that cover wear and tear?
However, my research into this model uncovers some interesting things: despite the low sticker price, it appears to be actually quite a reliable car...I've noticed high reviews in Edmunds and Consumer Reports and I'm actually seeing used Hyundai Accents two or three years old that are being sold today for the same price as roughly what we'll be paying for this new car...so we're this depreciation? We're also thinking: does it really make such good sense to buy a used car when a new one will cost the same and we'll have the warrantee to boot? And there's also the peace of mind that would come from having a new car as both of us are impossibly busy with work and school and really need a car that doesn't
surprise us some random morning with sudden mechanical failure.
Please show us where our thinking has gone astray... or has it?
And does anyone know why the Accents are so _)&9-_&( *cheap
when consumers seem fairly satisfied with them? I don't get it. I'd love to hear any insights you may have.
Nick
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This discussion includes Accents!
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2014 Malibu 2LT, 2015 Cruze 2LT,
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SUVs and Smart Shopper
Thanks
http://www.myhondawarranty.com/
There are different warranties for 100K depending on what time frame you want as well. This will quote all of the options.
If so, their profit margins probably went up quite a bit.
I have a 2006 Accord EX-L w/ Navi. contemplating on whether I should take the HC before it touches 1yr/6000 mark or before the 3yr/36,000 mark. It's less likely that I'd keep this car for 4+years, but would like to be on the safer side esp w.r.t to Transmission and like. Just wondering the money wouldn't be a dead investment till the car hits 3yr mark.?
It looks like with less than 1yr/6000 miles, plan starts from in service date, where as for contracts after 3 yr, plan starts from date of purchase. does that mean
7yr/80k plan@ 1yr/6000mi mark takes you till 7yr/80k miles
4yr/48k plan@ 3yr/36,000mi also takes you till 7yr/84k miles
Please share your thoughts.
Yes, see:
https://www.myhondawarranty.com/coverage.php
7yr/80k plan 1yr/6000mi mark takes you till 7yr/80k miles
4yr/48k plan 3yr/36,000mi also takes you till 7yr/84k miles
Yes, but there is a big difference in the prices of the plans before and after the 6,000 mile mark.
I went to myhondawarranty.com and ran a price for a 2004 Accord with 35,500 miles for a 4 year 48K plan and it was $900.
I ran a price for a 2006 Accord with 5,500 miles and you could get a 7 year 80k plan for only $580. If you wanted more miles a 7 year 100k was $755 which is still less than the 4 year 48K would eventually cost you.
Not only that, but if you get the plan before 6,000 miles you get free roadside assistance during that whole time period which is worth maybe $60 per year that AAA charges.
I think the deals are always better getting a warranty up front.
For anyone who has had a Honda Care Warranty in the past - has it been worth it and for what type of repairs (or was it worth it just for piece of mind)?
I got a 7 year 100K for my 2003 Civic and I'm very pleased with it. I don't think I've used the full value of it, but I have taken it in to have repairs done to electronic items like a power window stopped working and later the cruise control stopped working.
At the low prices they sell the warranties for at myhondawarranty.com or hondawarrantyinfo.com, I would get one with every new Honda I buy. Knowing that I won't have any major repair bills for 7 years provides me with a great peace of mind.
And it comes with free roadside assistance for the duration of the warranty so that's worth a decent amount of money as well.
It's not a lot figured by the year, especially with the roadside assistance, etc. But, frankly, I wouldn't buy it for any other reason than peace of mind. I don't expect to use it.
Don't buy it from the dealer unless they offer you at least as good a deal as online, which they probably won't.
You'll just have to shop around the Florida dealers for the best price.
So $17 over the course of 72 months plus interest and it still costs @ $1308. I may not even keep the car that long. My dealership tried to tell me that there is no such dealer that offers a lower price (bernardiwarranty.com) and that they are trying to sell me an after market warranty.
So, I called Honda Cares and the rep told me is is definitely the same product and that each dealer sets their own price. When I called Bernardi Honda to inquire about it, they said that they sell it at cost and don't take a comission on it.
I'd like to have it for peace of mind, but I don't want to get ripped off.
Over the course of writing this post, the dealership is now offering it to me for $10 per month or $720, this is now over $1000 less then the $1765 (or so) original offer.
So, at this point, I think I am just sharing my experience here.
I've decided to stop obsessing over it and go for the $10 extra for peace of mind. According to the dealership, if I trade the car in or sell it and transfer the warranty, Honda will pro-rate what haven't used and send a check back to me. He said somehow the check I would receive would even be more than the $720. I'm not sure exactly how I'll wind up making money in this deal, but for now my head hurts after dealing with all of this.
Hopefully I'm not making a mistake.
Buying a car is so frustrating. :sick:
I'm not sure either. But you can definitely get a proration of what you haven't used if you sell and cancel. Here's a sample Honda Care contract.
See Section V CANCELLATION OF CONTRACT.
http://www.myhondawarranty.com/hondaSampleContract.pdf
Now, I don't think you receive anything from HondaCare if you transfer the contract. But you could receive more money from the person you sell the car too. Basically you pay $50 and can transfer the contract to someone who is a private party buyer.
See Section VII TRANSFER OF CONTRACT
Hopefully I'm not making a mistake.
Well, now that you have them down to $720 for the Honda Care, you should be fine. It's a good warranty, I use it all the time as well as the free road side assistance.