My Dealer is offering me an EXL for an OTD of 28000 in NC. However he is asking me $2546 for Bumper to Bumper Extended Warranty ((((Platinum for 72 months/100,000 miles ($0 deductible plan) )))) and Basic Maintenance((((3/35000 Plus every 5000 miles Selected ))))for a charge of $549. The Extended Warranty mentions : Pays Parts & Labor for covered repairs, rental car,towing,trip interruptions benefits , helps budget repairs , helps to protect your investment and the Basic Maintenance mentions : Pays for OIL/FILTER changes , lube,safetyinspections, and discount coupons, cross country roadside assistance, upto $5000 towards yor next purchase .
1. First of all i want to know is it worth buying the both the extended warranty and Basic Maintenance ON TOP OF MY DEFAULT 3YR/36000 MILES BUMPER TO BUMPER WARRANTY & POWER TRAIN 5YR/60K MILES from the dealer ?
2. Do i have any other option of buying it directly from Honda or somewhere else at a good price as compared to the total price of $3140 over my OTD of $28000 ?
3. People have bought the extended warranty for 8yr/120k miles for $1200 , which is eating up my mind ?
4. Can some help me in deciding whether that i should just buy the van at the OTD price or look for the warranties too ? Just confused with my decision as this is my first experience in buying a NEW CAR. Thanks to all those people supporting this FORUM.
1. First of all i want to know is it worth buying the both the extended warranty and Basic Maintenance ON TOP OF MY DEFAULT 3YR/36000 MILES BUMPER TO BUMPER WARRANTY & POWER TRAIN 5YR/60K MILES from the dealer ?
Is the warranty your deal offering a Honda Care warranty. You said it was platinum and to my knowledge Honda Care doesn't offer platinum.
You can go to myhondawarranty.com and compare the price they have Honda Care for to the price the dealer is selling it for.
As for the maintenace plan, you have to see what it is in it and do a little math to see if it is worth what they're charging you. If you pay $30 for an oil change and you do it every 5,000 miles that's 7 in the first 35,000 miles. 7 x $30 would be $210. What else do you get for the $549.
The Cross Country roadside assistance is included if you buy a Honda Care from any dealer.
The odds are the service contract is NOT going to pay more out to the dealer than what the premium is. HondaCare knows what the average claims are and may be in the future (yes, they are aware of all the electronics in the car and other things the dealer says may go wrong to scare and pressure people into buying a service contract) and have already calculated their rates to be much higher than that so they'll have a nice margin of profit. Then the selling dealer ads their own markup on top of that when they sell it to the car buyer.
However, if you find HondaCare at the lowest additional dealer markup, it could still be "worth it" to you if it makes you feel better to pre-pay about $900-$1000 now for repairs you may never need so that you don't have to worry about paying any more than that later for repairs needed within the window of time after the factory warranty expires but also before the HondaCare service contract would have expired.
yes - you can still call- but my guess is that the dealer that you call will be much less aggressive with pricing. The knowledge that a dealer is advertising a "low" price is a strong incentive to stay competitive. That information will disappear once sites are shut down.
It still makes sense for them to remain aggressive if they want to try to keep their sales volume as close to what it has been online as they possibly can. Their HC sales would plummet with a big price jump. The sales will drop anyway because ordering by phone or mail or fax is more hassle than many want to bother with. With a major price increase, there would be no incentive at all to bother with ordering through them when it would be that much easier to get a local dealer to match their new higher prices. Buying the service contract at higher prices would make it even harder to justify the purchase. For some people, it would even make buying the car at all less desirable if one of the reasons they chose a Honda is because they could get an 8 year service contract for "only" an extra $1000.
It looks like progress is being made. I have it on good authority that Honda's first policy is being suspended, and possibly a new less restrictive policy will be put forth. This only further reaffirms my belief in the Honda brand, and prooves that they really do listen to their customers.
Thank you all for the e-mails of support! We couldn't have done it without your letters. -Saccucci Honda
Reply to little sunny. I just bought an 08 Honda Accord EX-L in Omaha for 26,800 and probably could have done better. The dealer offered an extended warranty, Honda's best, for $1,395, but said he could go to 1,095. Negotiate! Negotiate! Warranties are huge profit centers for dealers.
I was just about to purchase a warranty from myhondawarranty.com when it said something about california customers are restricted from buying? What's going on?
I've been to that site earlier this year and that message wasn't there then I haven't heard of any new "state law" that took effect in the last few weeks, so I don't know what that's about.
Florida was the only state I've heard of with a law like that.
Honda brought up our warranty sales to California in court as a problem online dealers create. Apparently California has an insurance law that says only the dealer that sold the car can sell the customer an extended warranty(Nov. 2007). While we believe that law does not apply to us, as we are outside California there are some legal precedences in California which state otherwise. Washington State has a similar law.
We are currently researching these laws, but in the mean time have temporarily suspended sales to California and Washington State. We are working with Honda and our lawyers to get a final answer. -Saccucci Honda
I was able to get California Honda Care and Toyota Extra Care quotes from Bernardi after I saw the message on your site saying state law prevents the sale to California buyers.
I was also able to get a California quote for GM Protection Plan today from a GM dealer online, so I guess they not aware of this law.
I was aware of Bernardi EW being available to California but I was apprehensive in buying one due to the message from Sacucci's site. If what Sacucci is saying is true where California consumers must buy EW from the dealership they bought it from (enacted 11/2007?), that doesn't make much sense. Why are we still able to go to any local dealership and buy an EW from them where we didn't purchase the car from?
I live in CA and I have a 2007 Odyssey with all the options I have been meaning to buy the Honda Care extended warranty for a while, and now that this vehicle has has just over 5K miles on it I figured I'd buy now because and I know the prices go up after 6K miles on the clock.
So yesterday I placed my order with a Honda dealer (who happens to be on the east coast) for an 8 year 120K warranty. I entered all my info an received a confirmation.
This morning I received the following email from the dealer:
Thank you for your order. Unfortunately, we have just been made aware that Ca. law prohibits us from selling these contracts to residents of California. I don't have any further details as to which law as of yet but we have stopped our sale to CA at least until we have full details.
I will be destroying your information
I subsequently discovered this thread and read about the new legislation in CA.
If this "legislation" is Honda's way to alienate their customer base, they are doing a good job.
When I entered my information I was taken to a screen with this message:
Sorry - customers having addresses in the states of California, Florida, and Washington must purchase their warranty agreements from an in-state dealer
So California Honda Dealers: which one of you is going to step up to the plate and accept my business -- and presumably the business of many like me?
It would be interesting to know just how many CA residents have bought on-line HondaCare contracts. I'd imagine it's a significant number, and therefore a good business opportunity for someone.
Looks like Bernardi just changed this. The message wasn't there yesterday. At least it doesn't say you must buy at the dealer you purchase the car and there are tons of Honda dealers in California. You can still look at the pricing and know what they one of the dealers in your state should be able to sell for by entering another state on those web sites.
Does anyone have a link to this law that's preventing out of state dealers from selling service contracts for cars in California?
I searched around and can't find it.
I know a California Honda dealer (or several) can still sell HondaCare at a fixed discount price similar to the two well known out of state dealers even if there is such a law, but have chosen not to so far or are not marketing it very well if they are.
I'm wondering if it's possible to buy it out of state and have a one time transfer to a car in CA?
I'm not quite sure what you're asking because the Honda Care that you buy is connected to the VIN number of the vehicle at the time of the purchase, so there's no way to "transfer" it.
If one bought the Honda Care using an address outside of California, one could certainly use it at any California Honda dealer after the purchase has been made.
This should have been a separate question since you totally changed the subject of what I was asking about finding a link to the law.
You don't need to go through the all that hassle and the fraud of saying you live in another state when you don't. If you are buying a new car, you have a lot of leverage and any dealer you are purchasing the car from can match or even beat the prices from the online sellers if you make them. You can let them know, not only will you not buy the HondaCare at a higher price, but you will cancel the entire sale of the car and shop around for a better price if they don't match it. There is already some profit built-into the online seller's prices, so a smaller markup than your local dealer would prefer to have on the HondaCare sale is still much better for them than losing the entire sale of the car.
If you try to buy HondaCare after you have already purchased the car, you will have much less leverage, but you may still eventually find a Honda dealer in California that will be willing to take a few minutes filling out and submitting the HondaCare order form for about the same markup as Bernardi gets on their fixed advertised price. It's still an extra sale netting them a few dollars going towards their bottom line that they wouldn't have had otherwise.
I thought you could pass it from seller to buyer but I forgot about the VIN number. I was not advocating fraud or lying to get it around it but just trying to think outside of the box.
Looked through that very long section and didn't see anything that said service contracts for cars registered in California cannot be purchased in another state.
There is a pretty good article in the Pittsburgh Post Gazette summarizing whether a car buyer should buy an extended warranty. If interested, the article can be found at the following address:
Yes, odds are it will pay out less than the cost of the extended warranty. Over your lifetime, you will spend much less money paying for repairs on Hondas than you will spend on the cost of buying service contracts. However, many people will feel that paying $950 on HondaCare to not worry about expensive repairs (other than the exclusions) for 120,000 miles instead of 36/60K miles will be worth it to reduce their stress even if few or even no repairs got covered in that time.
We are working hard on restoring sales to California. I am hopeful it will be back up by the end of the week. -Gardiner @ Saccucci Honda
In other news.............
Here is an interesting article from AutoNews.com
Honda plans to ban online contract sales ? maybe
Urged on by its national dealer council, American Honda had decided to prohibit dealers from selling Honda-backed extended service contracts online -- starting Tuesday, April 1. But the company hadn't counted on a small Rhode Island dealer taking it to court.
Autonews got the tip-off that this was a "story" from your posts in these Forums. People are interested in what you folks talk about on these boards!
MODERATOR /ADMINISTRATOR Find me at kirstie_h@edmunds.com - or send a private message by clicking on my name. 2015 Kia Soul, 2021 Subaru Forester (kirstie_h), 2024 GMC Sierra 1500 (mr. kirstie_h) Review your vehicle
I've been waiting for a little while now to see what happens with the east coast warranty sellers (Saccucci, etc.) but it seems like the process is stalemated at the moment. Has anyone found a good price at a dealership in California, besides buying from the dealer that sold you the vehicle? -Brian C
So my wifes car for the last 2 years was a Jaguar X-type and it was a maintenance disaster. So I traded it in on Tuesday for a 2006 Honda Certified Pilot EX-L with nav tht has 51K. She absolutely LOVES the Pilot. Being certified, it comes with a HC bumper to bumper until 63K and a powertrain warranty until 100K. I paid an add'l $550 to extend the full HC all the way to 100K, was it worth the cost?
Congrats on the Pilot! We're in the middle of closing a deal ourselves on a 2008 Pilot for my wife. I'm sorry to hear that your Jaguar experiences were not great. Did she have the Jaguar selection edition warranty on it? In my experience Jaguar selection edition is one of the better manufacturer warranties out there. We had a '03 X sedan (leased new) for 3 yrs. Now, I'm currently in an '05 X Sportwagon (bought used as a select edition). Though they were/been good to us, we figured it was good to hedge ourselves with a reliable Honda. Good luck with yours!
We only had the manufacturer warranty on the Jag. Used it 7 times in 2 years. Way too much time in the shop. As soon as that ran out we bought the Pilot. My wife LOVES her Pilot. Although the dealer still hasnt gotten us the DVD for the nav.
I found a great deal online with Saccucci Honda. I had a 2001 Odyssey that I purchase Honda Care when I bought it. I had close to $15,000 in claims. I now have a 2007 Ody and I did not buy a warranty when I purchased it new. I thought at that time I would only keep it 3 years. After reading on this forum I found out the over the Internet purchase ability was ending. With the economy being the way it is today, I figured I might not be able to trade in 2010. Also with less than 6000 miles on the 2007 I have had too many problems it would be stupid to be without a extended warranty. So, I recommend getting the D82, $0 deductible, 8yrs, 120,000 miles, if you plan on keeping the vehicle for 5-6 years.
Strange to not try another brand after $15,000 of repairs. I think most people would not reward the manufacturer with another sale after that experience. That would be too much hassle even if it was all covered by a warranty.
I had a 2001 Odyssey that I purchase Honda Care when I bought it. I had close to $15,000 in claims.
Well, that's great that you got plenty of value in your first Honda Care. Some people have posted on this board that extended warranties aren't that valuable--that people don't get their money's worth.
Your example is a great testament to show that when there are problems with a vehicle, it's well worth it to have this kind of coverage.
I haven't seen anyone post that out of all the thousands of people who have purchased HondaCare, not one person ever gets their money's worth out of it. Your odds are probably better on a blackjack table in Las Vegas.
Obviously, if his experience happened with any significant regularity, HondaCare would have been bankrupted long ago.
HondaCare is not an investment it is a peace of mind.... sort of like full coverage insurance on a new car versus liability.. People will always have different views on things and each person can make a good argument for their point.
HondaCare or not? Full coverage or just liability? OTD price or no OTD price?
I personaly would go HondaCare, full coverage and OTD price.
"But the salesperson hooked me when he said that the way Honda's are built now (being so computerized), they're much costlier to fix."
these are fear based sales :shades: tactics designed to separate you from your hard earned cash! Try reading consumer reports including the reliability data on the Civic, which is excellent, and you will realize that you are making a ill advised bet.
It is such a paradox to go from the car salesman selling you on reliability and then after closing the deal you get mr. doom and gloom warning you about expensive repair bills. Give me a break! I tell them if they want their customer report card to read 'A' then spare me the after market sales shenanigans. I'm out the door faster and have more money left in my account.
At the very least, you should walk away and say you will think about it and get a competitive bid.
Roadside assistance is not included. However, if you purchase the Hondacare warranty, you will get the roadside assistance for the duration of your warranty period.
buying a membership with AAA will give you the most comprehensive roadside assistance program in the US. $50 per year - and you get access to all their maps too!
many car manufacturers include roadside assistance along with the factory warranty - I'm surprised Honda doesn't.
Comments
1. First of all i want to know is it worth buying the both the extended warranty and Basic Maintenance ON TOP OF MY DEFAULT 3YR/36000 MILES BUMPER TO BUMPER WARRANTY & POWER TRAIN 5YR/60K MILES from the dealer ?
2. Do i have any other option of buying it directly from Honda or somewhere else at a good price as compared to the total price of $3140 over my OTD of $28000 ?
3. People have bought the extended warranty for 8yr/120k miles for $1200 , which is eating up my mind ?
4. Can some help me in deciding whether that i should just buy the van at the OTD price or look for the warranties too ? Just confused with my decision as this is my first experience in buying a NEW CAR. Thanks to all those people supporting this FORUM.
Is the warranty your deal offering a Honda Care warranty. You said it was platinum and to my knowledge Honda Care doesn't offer platinum.
You can go to myhondawarranty.com and compare the price they have Honda Care for to the price the dealer is selling it for.
As for the maintenace plan, you have to see what it is in it and do a little math to see if it is worth what they're charging you. If you pay $30 for an oil change and you do it every 5,000 miles that's 7 in the first 35,000 miles. 7 x $30 would be $210. What else do you get for the $549.
The Cross Country roadside assistance is included if you buy a Honda Care from any dealer.
However, if you find HondaCare at the lowest additional dealer markup, it could still be "worth it" to you if it makes you feel better to pre-pay about $900-$1000 now for repairs you may never need so that you don't have to worry about paying any more than that later for repairs needed within the window of time after the factory warranty expires but also before the HondaCare service contract would have expired.
The sales will drop anyway because ordering by phone or mail or fax is more hassle than many want to bother with. With a major price increase, there would be no incentive at all to bother with ordering through them when it would be that much easier to get a local dealer to match their new higher prices.
Buying the service contract at higher prices would make it even harder to justify the purchase. For some people, it would even make buying the car at all less desirable if one of the reasons they chose a Honda is because they could get an 8 year service contract for "only" an extra $1000.
Thank you all for the e-mails of support! We couldn't have done it without your letters. -Saccucci Honda
)(*&*(%^ Opps -- sorry -- I just threw up in my mouth!
I haven't heard of any new "state law" that took effect in the last few weeks, so I don't know what that's about.
Florida was the only state I've heard of with a law like that.
We are currently researching these laws, but in the mean time have temporarily suspended sales to California and Washington State. We are working with Honda and our lawyers to get a final answer. -Saccucci Honda
I was also able to get a California quote for GM Protection Plan today from a GM dealer online, so I guess they not aware of this law.
So yesterday I placed my order with a Honda dealer (who happens to be on the east coast) for an 8 year 120K warranty. I entered all my info an received a confirmation.
This morning I received the following email from the dealer:
Thank you for your order. Unfortunately, we have just been made aware that Ca. law prohibits us from selling these contracts to residents of California. I don't have any further details as to which law as of yet but we have stopped our sale to CA at least until we have full details.
I will be destroying your information
I subsequently discovered this thread and read about the new legislation in CA.
If this "legislation" is Honda's way to alienate their customer base, they are doing a good job.
You didn't state which dealer you tried to purchase from. Obviously one dealer has mentioned they won't sell to CA at the moment.
Did you try
http://www.bernardiwarranty.com/
or
http://www.hondacareextendedwarranty.com/
?
If you haven't you might want to try those sites as well and see if they still sell to CA. Let us know what you find out.
When I saw your post I tried
www.bernardiwarranty.com
When I entered my information I was taken to a screen with this message:
Sorry - customers having addresses in the states of California, Florida, and Washington must purchase their warranty agreements from an in-state dealer
So California Honda Dealers: which one of you is going to step up to the plate and accept my business -- and presumably the business of many like me?
It would be interesting to know just how many CA residents have bought on-line HondaCare contracts. I'd imagine it's a significant number, and therefore a good business opportunity for someone.
At least it doesn't say you must buy at the dealer you purchase the car and there are tons of Honda dealers in California.
You can still look at the pricing and know what they one of the dealers in your state should be able to sell for by entering another state on those web sites.
I searched around and can't find it.
I know a California Honda dealer (or several) can still sell HondaCare at a fixed discount price similar to the two well known out of state dealers even if there is such a law, but have chosen not to so far or are not marketing it very well if they are.
I'm not quite sure what you're asking because the Honda Care that you buy is connected to the VIN number of the vehicle at the time of the purchase, so there's no way to "transfer" it.
If one bought the Honda Care using an address outside of California, one could certainly use it at any California Honda dealer after the purchase has been made.
You don't need to go through the all that hassle and the fraud of saying you live in another state when you don't. If you are buying a new car, you have a lot of leverage and any dealer you are purchasing the car from can match or even beat the prices from the online sellers if you make them.
You can let them know, not only will you not buy the HondaCare at a higher price, but you will cancel the entire sale of the car and shop around for a better price if they don't match it.
There is already some profit built-into the online seller's prices, so a smaller markup than your local dealer would prefer to have on the HondaCare sale is still much better for them than losing the entire sale of the car.
If you try to buy HondaCare after you have already purchased the car, you will have much less leverage, but you may still eventually find a Honda dealer in California that will be willing to take a few minutes filling out and submitting the HondaCare order form for about the same markup as Bernardi gets on their fixed advertised price.
It's still an extra sale netting them a few dollars going towards their bottom line that they wouldn't have had otherwise.
http://www.post-gazette.com/pg/08097/870686-185.stm
However, many people will feel that paying $950 on HondaCare to not worry about expensive repairs (other than the exclusions) for 120,000 miles instead of 36/60K miles will be worth it to reduce their stress even if few or even no repairs got covered in that time.
In other news.............
Here is an interesting article from AutoNews.com
Honda plans to ban online contract sales ? maybe
Urged on by its national dealer council, American Honda had decided to prohibit dealers from selling Honda-backed extended service contracts online -- starting Tuesday, April 1. But the company hadn't counted on a small Rhode Island dealer taking it to court.
Click here to read the full story
MODERATOR /ADMINISTRATOR
Find me at kirstie_h@edmunds.com - or send a private message by clicking on my name.
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Review your vehicle
-Brian C
Congrats on the Pilot! We're in the middle of closing a deal ourselves on a 2008 Pilot for my wife. I'm sorry to hear that your Jaguar experiences were not great. Did she have the Jaguar selection edition warranty on it? In my experience Jaguar selection edition is one of the better manufacturer warranties out there. We had a '03 X sedan (leased new) for 3 yrs. Now, I'm currently in an '05 X Sportwagon (bought used as a select edition). Though they were/been good to us, we figured it was good to hedge ourselves with a reliable Honda. Good luck with yours!
Jeremy
I had a 2001 Odyssey that I purchase Honda Care when I bought it. I had close to $15,000 in claims.
I now have a 2007 Ody and I did not buy a warranty when I purchased it new. I thought at that time I would only keep it 3 years. After reading on this forum I found out the over the Internet purchase ability was ending. With the economy being the way it is today, I figured I might not be able to trade in 2010. Also with less than 6000 miles on the 2007 I have had too many problems it would be stupid to be without a extended warranty.
So, I recommend getting the D82, $0 deductible, 8yrs, 120,000 miles, if you plan on keeping the vehicle for 5-6 years.
That would be too much hassle even if it was all covered by a warranty.
Well, that's great that you got plenty of value in your first Honda Care. Some people have posted on this board that extended warranties aren't that valuable--that people don't get their money's worth.
Your example is a great testament to show that when there are problems with a vehicle, it's well worth it to have this kind of coverage.
Your odds are probably better on a blackjack table in Las Vegas.
Obviously, if his experience happened with any significant regularity, HondaCare would have been bankrupted long ago.
People will always have different views on things and each person can make a good argument for their point.
HondaCare or not?
Full coverage or just liability?
OTD price or no OTD price?
I personaly would go HondaCare, full coverage and OTD price.
Does the current 08 Hondas come with roadside assistance, like GM has
these are fear based sales :shades: tactics designed to separate you from your hard earned cash! Try reading consumer reports including the reliability data on the Civic, which is excellent, and you will realize that you are making a ill advised bet.
It is such a paradox to go from the car salesman selling you on reliability and then after closing the deal you get mr. doom and gloom warning you about expensive repair bills. Give me a break! I tell them if they want their customer report card to read 'A' then spare me the after market sales shenanigans. I'm out the door faster and have more money left in my account.
At the very least, you should walk away and say you will think about it and get a competitive bid.
many car manufacturers include roadside assistance along with the factory warranty - I'm surprised Honda doesn't.