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Honda is prohibiting dealers from selling Honda Care Warranties online beginning April 1, 2008
From the offices of American Honda:
In an effort to maintain and protect the Honda brand image, American Honda Motor Company (AHM) will be implementing a new internet policy as it related to the Honda Care and Acura Care Vehicle Service Contract (VSC) products. This new VSC Internet Policy will become effective April 1, 2008.
After careful consideration of the Honda National Dealer Advisory Board recommendations, AHM has determined that internet selling of Honda Care and Acura Care VSCs negatively impacts the Honda and Acura brands as well as the Honda and Acura automobile dealer network.
The only thing it negatively impacts is their bottom line.
Or am I looking to far into it and they really just don't want to lose the sale at the dealer? It just seems like something that isn't as necessary on a Honda. My brother-in-law bought a Kia Sorento a year ago (for way too much!) and he was bragging about their 10-year, 100,000 mile warranty compared to Honda's 3-year, 36,000 miles. I bet him cash who would have to use the warranty first. Probably should have also bet on the number of times he'll be in the shop during that inflated 10-year period.
Honda's success has been built on the selling quality and not programs. They build a good product and demand top dollar for it. When all of there competitors started selling rebates/rates instead of cars they held there ground.
They want to treat the VSC's the same way. Based off the fact that it is a quality contract and they don't have to discount it. The on line guys are taking away from the very thing that made there company succesfull, selling product and not price.
NOTICE
BernardiWarranty.com has learned that Honda may, as of April 1, 2008, prevent us offering Honda Warranties at ‘rock-bottom’ pricing through the economies of internet marketing. To take advantage of Bernardi's low internet prices we urge you to purchase before this deadline!
Probably dealers have been complaining that they can't rip off enough people, because people are buying their extended care contracts online.
One nice additional perk is that you get a $25 discount to HondaPartsDeals.com. They have a package for the Pilot that includes all season floor mats, cargo tray, and a cargo net as the "HondaPartsDeal Pilot Package" for only $$214.11. After discount and shipping it would only be around $205.
All and all, right around $1400 for the accessory package and an 8 year extended warranty. Sounds pretty nice to me. Thanks.
If you never ever buy an extended warranty on any car, you are almost guaranteed that you will save money compared to if you do the opposite and buy an extended warranty on every car,
You will just have to decide if the "peace of mind" of not having to worry about what might happen in the worse case scenario is worth around $1000 to you.
If you think of it as paying for peace of mind rather than paying for actual claims, then it is more likely to be worth it. That also assumes you are quite sure you are going to keep the car past when the factory warranty expires.
Jaxs is right about the peace of mind. Plus you get free roadside assistance for the life of the warranty. And if you sell the vehicle before the warranty is over you can sell the balance of the warranty to the new owner, or get a pro-rated refund from Honda Care. So it may not even cost you the full $1000 in the end.
By seeing the additional amounts you'd pay for a longer service agreement, you should be able to determine if the additional time is worth it to you.
Bought a 2008 CRV this week and got 3rd party extended warranty. Then found out online that it looks like I overpaid. Today called to inquire if my dealership would meet the online price for HondaCare warranty. Dealer responded no, and warned against buying because "people are having problems with places not honoring the hondacare warranties bought online."
Any truth to this before I consider canceling the dealership 3rd party warranty and buying online?
thanks,
A HondaCare service plan contract is sent straight from the Honda office in Chatsworth, CA no matter which dealership you buy it from. The corporate office enters it into Honda's nationwide computer system, so that any Honda dealership that you visit, your coverage will immediately pop up when they enter your VIN number.
There's really no way for a dealer to know how you bought it so there's no real way for them to not honor it. In addition, when you have the Honda Care, the service department gets paid so they are more than eager to do any covered work.
Basically what you were told was just somebody trying to protect their fat commission check. The only reason a dealer would be selling a 3rd party service contract instead of HondaCare is because they're getting a HIGHER commission than HondaCare gives them...
Thanks,
Mike
I don't know that Honda backs that guarantee. There are a few dealers that sell Honda Care with that kind of agreement.
Here's one:
http://www.buyhondacarewarranty.com/moneyback.php
Usually you pay a little more up front to get that agreement. So compare the prices with one of the other websites that is recommended like bernardiwarranty.com or myhondawarranty.com
For warranties sold before 6,000 miles, the amount of mileage in the service contract is for the total miles on the vehicle. So in your example 60,000 miles would only give you 24,000 additional miles past the 36,000.
However, if you buy a service contract and for a vehicle with 15,000 miles and it's for 60,000 miles then the 60,000 miles is added to the 15,000 miles---so coverage until 75,000.
They have two completely different price structures before and after 60,000 miles and completely different offerings.
You can go to bernardiwarranty.com and request a quote before and after 6,000 miles to see the differences.
Chances are you aren't going to get much of a break from your "business department" at your local dealer because they look at the extended warranties as a way to pad their profit.
Some people have found that if they take the online quote in, that the dealer will get close to matching it. Not many dealers do that however.
The only state that I know of where you can't buy warranties from out-of-state is Florida because it's prohibited by state law.
I just went to bernardiwarranty.com and was able to pull up quotes for California just fine.
It's easy to check any of the websites and see the warranty is available in CA.
My dealer tried to sell me the 7 year 100,000 mile warranty for $1599 plus these other warranties that made the total about $2500.
My main concerns are if this warranty covers the power doors on the Odyssey or the climate control. Looks like it covers most everything else. I can't get anyone to answer the phone at Bernardi.
Yes, this is the same Honda Care that many dealers sell. Here are some other recommended sites to buy them from---usually very close to the same price as Bernardi:
http://www.myhondawarranty.com/
http://www.hondacareextendedwarranty.com/
This site lists power doors as covered and also lists the parts of the air conditioning system as covered:
http://www.myhondawarranty.com/coverage.php
You could go there and buy the service contract and car in person from them if you want. Buying online is just a convenience.
Have the Honda dealer rep show you where it is written in the Hondacare contract that you will "have problems (such as emissions rules due to CA requirement) using HondaCare in California" rather than verbally saying so as a scare tactic to get you to buy from them.
If you get the Hondacare service contract, it is good at any US Honda dealer, not only the dealer you buy the car from.
Have them show you where the contract says otherwise.
Can any Californian let me know if you've been able to use your HondaCare purchased from Bernardi, myhondawarranty.com. at local Honda dealers with no issues.
'Course, most service contracts don't cover the rest of the emissions parts, either.
Your post indicated "looks like it covers most everything else." I'm not sure that is true. On this forum, at post 2050, I posted my observations about the actual exclusion language in the HondaCare Warranty. Take a look at that post, you may be surprised by what the warranty does NOT cover. . . . .
As I said, I decided to purchase one anyway. But, beware of the exclusions . . . .
You don't need HondaCare to cover expensive emissions items, because there is mandatory coverage required by law so people will get their polluting cars fixed without the excuse of saying they don't have the money to repair/replace their catalytic converter etc..
If you get a PZEV vehicle, you get the most coverage (150,000 miles)
Accord*, Civic, CR-V, Element, Odyssey, Pilot, Ridgeline, Fit, S2000
* Bumper-To-Bumper Warranty (years/miles) = 3/36,000
* Powertrain Warranty (years/miles) = 5/60,000
* Corrosion Warranty (years/miles) = 5/unlimited
* Emissions Warranty (years/miles) =
o Federal: 3/36,000 and:
+ 8/80,000 (specified major emission control components)
o California: 3/50,000 and:
+ 7 /70,000 (specified high cost emission control components)
+ 15/150,000 PZEV*(CA, NY, ME, VT, MA, CT
The licensing was a joke. I filled out a form and sent $55 a year to the state and they mailed me a license for to sell limited liability insurance products. :confuse: .
Also, based on previous posts, I found 2 sites (Bernardi and Saccucci). Any suggestions which to buy from? or have someone able to buy from local dealer at their price?
I am in Texas and recently purchased a 2008 Pilot EXL FWD. I appreciate your feedback. Thanks
.....I purchased a 6/80k online for circa 585 American. Two pax window power units went south. Between the factory warranty and the HC extended warranty, my Accord 6M coupe remains pristine without a big time hurt on my wallet................................
However, I understand the online option is under siege by the dealer efforts to maximize profit. (They wanted - first $2800, then 'today' for $1800 - really serious bread for the identical product). Let's be careful out there.
best, ez....
My brother buys and sells cars often . . . usually with 30-60k miles on them. He swears by extended warranties as a means of assuring a quick sale. Although he does not make money on the extended warranty, he believes it is a very good way to assure that he will be able to sell the vehicle for full blue book/n.a.d.a. value--or slightly more. Of course, Hondas are easier to dump than BMWs and Mazda Speeds (two of the vehicles he has sold in the last year). But, in any event, its something to consider -- particularly with a potential recession on the way and a market in which it will be tough to sell cars.
Despite my serious reservations about the HondaCare warranty coverage exclusions, I just purchased a HondaCare warranty through Saccucci - 7yr/120k miles w/ $100 deductible for $760. I figure, if I decide to keep my 08 Accord, I want the warranty. On the other hand, if I decide to sell it to buy a car with a manual transmission ( I've discovered that I hate automatic transmissions), I think the $760 will be good assurance that I will be able to sell the car -- what buyer wouldn't love a true Honda warranty for 120,000 miles!!
Many people end up trading their cars in because private party sales are such a hassle. It's difficult to find random people responding to your ad who are finanically capable and serious about buying your used car.
In a trade-in situation, the extended warranty is no benefit.
I can't speak to that issue myself. But, my brother's experience is the opposite. He is the one who suggested the $100 deductible and that is the deductible he chooses on all his transactions. . . .
1) High dealer incentives
2) It's not really insurance or a warranty, but rather an extended service contract. These service contract administrators are not subjected to the same close regulations as regular insurers.
3) The "major repairs" you might need probably won't cost more than the warranty unless you purchase an unreliable car (not a Honda), and even then you will most likely still lose money.
4) The coverage term begins at time of purchase on new cars. This confuses most people.
5) There is a ton of fine print to consider. Some people have either been screwed or had a hard time fighting for claim payments.
6) There is a slight chance that the administrator of the warranty might go bankrupt and you no longer have a valid contract.
Without going into each point, I recommend heading to the library or local book store for a quick read. They even have a little graph that outlines the average loss and percentage of usage of such plans based by car make. Honda owners are sitting right at a $300 loss and only 49% usage. It then goes on to show that only 19% of Honda owners actually saved money by purchasing such a product.
One could argue these figures, however, by assuming that the original warranty costs were calculated by regular dealer sales....not sites like www.myhondawarranty.com or www.bernardiwarranty.com that offer better deals. I'm still on the fence on whether to purchase or not on my '08 Pilot. Being AWD I would assume something costly could potentially go wrong in the first 6 years.
You will probably have better odds playing blackjack in a casino.
However, if you don't mind paying several hundred to $1000 or more for peace of mind, then it might be worth it to some people even if they "lose" on the gamble every time.
I just bought from Bernardi warranty two months ago for my new Civic. Everything was as promised. I even got a coupon for $25 off of an accessory at their online parts store.
They send you a letter confirming your purchase. The actual vehicle service contract is mailed from Honda corporate offices in Chatsworth, CA not from the dealer. So you're essentially getting the same thing no matter which dealer you're buying it from.
This is the second Honda Care I've purchased online. I purchased one 5 years ago from Curry Honda. Once you buy it it, your VIN number goes into the national Honda Service database, so when you take your car to the dealer they already know that you have Honda Care. If something comes up, they just fix it and you don't really deal with anything.
Also with the contract you receive your roadside assistance ID cards. I used that too and that works as promised. Very simple, no hassles.