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Honda Extended Warranties Pricing and Info

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    aspesisteveaspesisteve Member Posts: 833
    duke,

    having alot of equity in my CA home had alot to do with timing and hard work.

    saving my money by not purchasing an EW for a car as reliable as a Honda was just good sense.
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    timjenkinstimjenkins Member Posts: 1
    Hello all, I'm new here. I've read through most of the recent posts in this thread, but am not sure if it's still legal/legit to buy HondaCare online. So is the conclusion that, for now, it's still OK for residents of all states except FL, CA and WA to purchase their HondaCare warranty from online sources? I haven't been able to find any concrete info on whether Honda's lawsuit against the online dealers has had any progress. I'm due to take possession of a Civic EX on Thursday, and don't want to overpay for the warranty. Thanks!
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    jet10000jet10000 Member Posts: 656
    So is the conclusion that, for now, it's still OK for residents of all states except FL, CA and WA to purchase their HondaCare warranty from online sources?

    Oh sure. As long as you don't live in one of those 3 states, you're good to go. Saccucci Honda has this message posted on their website with the latest information on the case:

    On March 28th, Saccucci Honda won an injunction against Honda's Internet Service Contract Guidelines. These guidelines would have prevented customers from purchasing Honda Care over the internet.

    Honda is continuing to push to end online sales and have removed the case to Federal Court. A trial will be scheduled in the next few months. We can continue to provide you with our special internet Honda Care rates until we are ordered otherwise.

    So after you get your car, just go to one of the three dealers mentioned:

    http://www.myhondawarranty.com/
    http://www.bernardiwarranty.com/
    http://www.hondacareextendedwarranty.com/

    Select your coverage and place your order. You'll receive a receipt from the dealer and the Honda Care documents will be sent straight from the Honda corporate offices in California.
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    gregg8gregg8 Member Posts: 1
    I am getting ready to buy an '08 Odyssey in Alabama. I would like to get the 8 yr/120,000 mi extended warranty. I've read the posts that say that online Honda Care dealers cannot sell to CA, WA, FL residents. I move often and will most likely move to CA or FL soon. Does anyone know if you buy a Honda Care warranty from Hyannis, Saccucci... out of those states whether it will still be honored in CA or FL if you move there in a few years?
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    nortsr1nortsr1 Member Posts: 1,060
    As far as I know, once you purchase the warranty (Alabama) and then (later) move to Fla., Calif. or WA. the warranty WILL BE HONORED!!! You can always ask the selling dealer (Saccucci)(myhondawarranty.com) or whomever and I am certian they can enlighten you.
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    jet10000jet10000 Member Posts: 656
    Does anyone know if you buy a Honda Care warranty from Hyannis, Saccucci... out of those states whether it will still be honored in CA or FL if you move there in a few years?

    Oh sure, once you actually have the Honda Care, it is good at any dealership in the nation. Your car's VIN number goes into the Honda database, so whenever you need something, they already see in their computer that you are covered and they get you what you need. It's a great system.
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    aspesisteveaspesisteve Member Posts: 833
    if you can purchase an EW in one state and take it with you to another state ( It would seem reasonable ), then how can Honda prevent someone from California buying an EW from a dealer out of State?

    A factory warranty certainly wouldn't be restricted to the State you purchased the vehicle in. I can see Honda preventing people from going outside the country, but I think they will not be able to prevent people from shopping out of state for an EW after it is challenged through the court system.
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    duke23duke23 Member Posts: 488
    True enough if one had a legal mailing address outside of Ca, Fl and Wa. What is it with the Pac NW that they don't want their residents to get a deal? At least Oregon has some sense.Fl ,I can understand, they can hardly vote. Apologies to Floridians for the cheap shot taken, but there is no reason 47 states cut a deal for their residents.
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    maklufimaklufi Member Posts: 3
    Dwynne/Dennis, a quick question regarding your post at #2078 regarding refund of HC plans: You write "if you did use the roadside or rental, then those charges are deducted from the refund."

    I was looking at the sample contract at http://www.myhondawarranty.com/hondaSampleContract.pdf and didn't see anything to that effect in Section V. Instead, it says that if you've used the services within 60 days then time/mileage proration apply.

    Could you please let me know the basis for your statement? (I don't doubt you, but just don't know where it's written.)

    Thanks.

    Michael
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    duke23duke23 Member Posts: 488
    You are correct Michael.If you've used the services you only get prorated.But note that prorated is the vast majority of your premium . No gotcha for you , evil one. Next question?
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    maklufimaklufi Member Posts: 3
    Thanks, Duke 23, for your post.

    However, I was asking a slightly different question than the one I think you answered. Dwynne/Dennis wrote, "if you did use the roadside or rental, then those charges are deducted from the refund." This seems to mean that, if I cancel, then not only do I only get prorated but charges for roadside/rental are also deducted. E.g., if my car was towed and it cost Honda $100, then I'd get prorated minus $100.

    I'm inquiring for two reasons:
    (1) I want to understand what dwynne/Dennis meant when he wrote the above.
    (2) I'm thinking of purchasing a refundable plan. However, the refund is conditioned upon no "CLAIMS" having been made. "CLAIMS" is not defined; one dealer told me orally that a claim would not include use of roadside assistance, but I'm dubious about that (haven't asked for in writing, but I will if I go down that road).

    Thanks, all.
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    jet10000jet10000 Member Posts: 656
    if you can purchase an EW in one state and take it with you to another state ( It would seem reasonable ), then how can Honda prevent someone from California buying an EW from a dealer out of State?

    Florida does it by saying that extended warranties are insurance and therefore only licensed Florida insurance agents are permitted to sell it. That rules out the out of state dealers.

    California has only been enforcing their law within the year and somebody already posted a link to it in this forum. It was very long, and I couldn't find the part that stops people from selling the extended warranties as it talks about rules for companies that issue warranties in general. You're welcome to find the post and read it over and let me know what you think.
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    jet10000jet10000 Member Posts: 656
    I was looking at the sample contract at http://www.myhondawarranty.com/hondaSampleContract.pdf and didn't see anything to that effect in Section V. Instead, it says that if you've used the services within 60 days then time/mileage proration apply.

    Your interpretation of the contract is correct. Whomever wrote that post, knew that if you had used the service contract within the first 60 days, that you wouldn't still be entitled for 100% refund. They just had it wrong in regards to how the the percent would be calculated.

    But you are correct, there is nothing in that contract that says, they will additionally deduct the value of the services rendered. It just says within the first 60 days you will receive a pro-rated refund if services are used.
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    aspesisteveaspesisteve Member Posts: 833
    "Florida does it by saying that extended warranties are insurance and therefore only licensed Florida insurance agents are permitted to sell it. That rules out the out of state dealers. "

    That only says who in Fl can sell an EW. I doubt you would be prevented from moving to Fl with an EW bought out of state. So why not get one on a road trip or find a dealer who will mail you the forms - or use Uncle Bob's address in upstate New York....

    There's got to be a loophole around this stupid rule.
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    duke23duke23 Member Posts: 488
    I stand corrected maklufi, and I think jet10000 nailed it. The contract states only that with no claims in the 1st 60 days will you receive a full refund.I think the confusion was due to the fact that is not the HCEW offered by HCOA .That is a different animal than what you are considering.The refundable plans that you mention, are sub-underwritten by an outside insurance company and while wrapping the HCEW, offer a full refund at end of term if no services are ever rendered. Since I did not purchase this type, I cannot verily but would expect them to cost more than a standard HCEW with no outside insurance company underwriting. Why not email the outside insurance underwriter and ask them if roadside assistance assitance voids the full refund? The fact that it is a refundable plan is an important detail. Asking about HC's policies won't answer your question.
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    jet10000jet10000 Member Posts: 656

    That only says who in Fl can sell an EW. I doubt you would be prevented from moving to Fl with an EW bought out of state. So why not get one on a road trip or find a dealer who will mail you the forms - or use Uncle Bob's address in upstate New York....

    You are correct. If you move to Florida with an extended warranty, you can use it in Florida with as much as needed.

    Also, you are correct, if you have a second residence outside of Florida, you could also buy it from one of the low price dealers from that address.

    You'll have to elaborate some more about what you meant by the road trip and being mailed forms. The three low price dealers who are mentioned in this forum, generally sell the Honda Care by using a credit card on their website. The credit card would probably have to be outside of the state of Florida.

    In other words, if you tried to use your credit card with a Florida billing address and have the service agreement mailed to your Uncle Bob in a different state, you probably couldn't do that.
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    aspesisteveaspesisteve Member Posts: 833
    ways to avoid the squeeze;

    I mentioned buying the EW on the road trip, since you would be buying it in person as opposed to the internet. Or how about sending a cashiers check through the mail.

    Using the address of the hotel you're staying at (in any state other than FL, CA or ?) would suffice in my opinion.

    If fortune 500 companies can set up an office in some Carribean office to avoid paying millions in taxes, then surely a California resident can get an EW for their Honda from out of State.
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    gardinerrgardinerr Member Posts: 39
    The issue with CA is a confusing one. We hear different opinions from each lawyer we talk to. The CA insurance board that we have contacted numerous times, cannot give a definitive answer either.
    When we went for the injunction to continue online sales, Honda attempted to use our sales to California against us. That was the first time we were aware of a possible issue. While the suit continues we have decided to refrain from selling to CA. The case has been pushed back to the end of August.

    FYI: Honda Corporate watches these forums, and a few others very closely. They had a few of my posts ready for their lawyers.

    Gardiner from Saccucci Honda
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    maklufimaklufi Member Posts: 3
    Dear Honda Corporate--

    Please continue to allow internet sales of Honda Care warranties. All my life I've only owned Hondas (four of them to date, am in my mid-thirties with many purchasing years left) and am likely to purchase an HC warranty for my current vehicle (but not at the price my dealer wanted). If I find out that Honda Corporate continues to take actions that hurt their customers (like seeking to ban internet sales of HC warranties), I'll seriously consider purchasing Toyota next time.

    Thanks.

    Michael

    P.S.--Please come out with minivan hybrid ASAP.
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    aspesisteveaspesisteve Member Posts: 833
    do you have a link that describes the limitations of buying or selling to a resident of California?

    Is this just limiting to internet sales or sales to residents of certain states?

    Does the rule describe what a "resident" is? Does my contract have to match up with the address where my vehicle is registered? Or can it be for what ever addres I provide?

    You the seller, may have your hands tied, but me the buyer, I'm guessing I have a way of working around the system. We the people have the right to cross State lines and purchase almost anything and bring it home. An EW is not something that California will prohibit me from bringing accross state lines. i.e fireworks, certain fruits and vegtables.
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    gardinerrgardinerr Member Posts: 39
    I do not have a link, and I cannot find the specific law that bars online sales. Again in Honda's response to our filing for an injunction they tried to use sales to California against us. Before that we had never heard of any legal issues surrounding California from Honda.

    To answer your other question. Your name and the name on the contract must match to be able to use the Honda Care services.

    I stocked up on fireworks the last time I was in West Virginia. :P
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    mkielmmkielm Member Posts: 38
    This injunction business and internet sales is actually very interesting (and thanks to those sellers that are sticking up for low pricing), but I have a question about the coverage of Honda Care.

    After trying to sell me a 3rd party warranty with a $100 deductible for much more than the HC over the interent cost, my dealer described the difference between the 3 year/36,000 general warranty and the extended warranty as the following: (to paraphrase) "the 3/36 covers defects, while Honda Care covers defects AND failures." Now, as I read the language in both, the HCEW focuses more on "mechanical breakdown," but that is simply defined as a defect in material or workmanship. In my mind, a failure would include a part breaking down over time (and if that happens to be within the EW window then I would assume it covered - but that's not how I read the EW contract). I'm not splitting hairs here, because things wear out over a 7 or 8 year period.

    Any help interpreting the two warranties or providing past experience would be much appreciated (just purchased an Odyssey, so my 6000 mile clock is ticking).

    Thanks!
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    mathguy10mathguy10 Member Posts: 5
    I am new to this forum but have followed your discussion about extended warranties. I live in California and have just recently purchaced an EW (09 Pilot) from Curry Honda in MA through their website. I have not yet received the warranty kit from Honda but have been notified that the purchase of the EW has been completed. Their website does prohibit residents of Florida from purchasing the warranty but not California residents.
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    jet10000jet10000 Member Posts: 656
    I have not yet received the warranty kit from Honda but have been notified that the purchase of the EW has been completed. Their website does prohibit residents of Florida from purchasing the warranty but not California residents.

    That's good information. I purchased a Honda Care from Curry Honda about six years ago and the service they provided is very good.

    When I last purchased a Honda Care their rates weren't quite as good as other sites, but still better than most of the deals one finds at the dealerships. CA customers should definitely check Curry's site and compare it to what the CA offers.
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    duke23duke23 Member Posts: 488
    mkielm wrote:
    "Now, as I read the language in both, the HCEW focuses more on "mechanical breakdown," but that is simply defined as a defect in material or workmanship. In my mind, a failure would include a part breaking down over time (and if that happens to be within the EW window then I would assume it covered - but that's not how I read the EW contract). I'm not splitting hairs here, because things wear out over a 7 or 8 year period. "

    Having read the HC EW, Here's how I read it , a break down. The part does not function.Whether due to material defect or wear and tear or workmanship. If that wear and tear causes the part to not function, It is covered. If it still functions but not optimally, it would not be covered. Luckily, if something functions sub optimally but still functions, the fix is generally cheap.
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    thecitythecity Member Posts: 3
    I also live in CA and I am new to this forum. Can anyone assist with the following?

    1- mathguy10, can you please provide the Curry Honda in MA website address? Is their website: www.curryhondamass.com?

    2- Has anyone tried to mass-email different Honda dealerships to get the lowest HCEW price? If so, can you share the text from your email? Perhaps other members of this forum can benefit from your efforts (using your text as a form letter).

    3- Another member suggested that the $0 deductible HCEW was best. Their reasoning was that "if it takes the service dept. numerous times to actually fix a problem you won't be out the deductible for each of their attempts." Does everyone agree with this suggestion?

    4- The HCEW contract states "YOU must perform maintenance services, at the proper intervals...YOU must retain all MAINTENANCE RECORDS ..." (sample contract here: https://www.hondacareextendedwarranty.com/contract.php). Can anyone (who has used their HCEW) tell us if the service department actually asks to see your maintenance records?

    Other than that, I am glad that this forum exists for our benefit!
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    mathguy10mathguy10 Member Posts: 5
    The website that will get you to their warranty information is: http://www.curryhondacare.com/. I did buy the $0 deductible mainly because it is only $100 more than the $100 deductible.
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    jet10000jet10000 Member Posts: 656
    4- The HCEW contract states "YOU must perform maintenance services, at the proper intervals...YOU must retain all MAINTENANCE RECORDS ..." (sample contract here: https://www.hondacareextendedwarranty.com/contract.php). Can anyone (who has used their HCEW) tell us if the service department actually asks to see your maintenance records?

    No, they've never requested that from me. The things that my Honda Care has covered were not related to any standard maintenance actions so they really would have no reason to request it.

    I suppose if someone never changed their oil and had an engine failure, and when they opened it up it was pretty obvious that was the problem, they would probablly want to see your oil change receipts to process the claim.

    Keep in mind, it is in the interest of the servicing dealer to do the Honda Care work because they get paid by Honda Care to do it. There's really no incentive to sweat you too much if it is a legitimate repair that can be covered under the terms of the agreement.
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    thecitythecity Member Posts: 3
    mathguy10-

    I'm curious how you heard about Curry Honda? Did you do a google search for Honda dealerships that sold Honda Care? From reading through all of the posts I think you said you live in CA? I live in CA and the pricing from Curry seems a lot better than the dealerships I have contacted. So far, the lowest price I have been quoted has been:

    Honda Care Ext Warranty-
    8 yrs 120k, $0 deductible = $1795 (from Honda of Hayward)
    7 yrs 120k, $0 deductible = $1695 (from Honda of Hayward)

    vs.

    8 yrs 120k, $0 deductible = $1215 (Curry Honda)
    7 yrs 120k, $0 deductible = $1135 (Curry Honda)

    On top of that, I just got an email from Curry Honda that says if I act by July 31, I can get an add'l $105 discount by using an online code they sent me.

    That equates to a $685 savings for the 8 yr/120k HCEW and a $665 savings for the 7 yr/120k HCEW that Honda of Hayward was offering!!

    Is this too good to be true? Is Curry Honda reputable? If I can buy from Curry Honda, does that mean I could buy a Honda Care Ext Warranty from any Honda dealership in the United States (as long as the purchase is made from a dealership and not an online retailer?)

    By online retailer I mean websites such as:

    http://www.hondacareextendedwarranty.com/
    http://www.bernardiwarranty.com/
    http://www.myhondawarranty.com/

    Or, do those "online rules" talked about in this forum apply? If so, this would make my "online purchase" from Curry null and void, correct?

    The "online rule" I was referring to was that "residents of FL & Ca are prohibited from getting quotes or buying from online dealers" (other people in this forum have talked about this issue).

    Any help would be appreciated!
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    duke23duke23 Member Posts: 488
    thecity, I too will wait for mathguy10's comments since he has more " California " expertise but by way of needed information re: HCEW. Your vehicle? I'm guessing this may be a Honda Odyssey since Hyannis is at $1,195 for an 8 year/120 no deduductible. With your $105 online coupon from $1215, this would put you under. Please confirm your vehicle. No knowledge of Curry Honda,Ma but they seem to be ,based on what has been posted, bolder than their brethren. But my HC EW was bought from a dealer, not online, who was willing to match the online price to get the sale and it is good at any Honda dealer in the US for warranty work and would also have been had I purchased online from a non Texas dealer. In your case it seems you must purchase from a CA dealer per the primary online dealers, but good deal if Curry will play ball . But all of the same would still apply. A HC EW is a HC EW. I do notice that Curry Honda does not offer an online quote but asks for your email instead for a quote. In that case I do feel badly for bringing attention to Curry but the proverbial cat was of course already out of the bag with the first post.
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    jet10000jet10000 Member Posts: 656
    thecity

    There is nothing wrong with Curry Honda. I bought a Honda Care from them five years ago and they provided perfectly good service. I also took advantage of the extra discount they e-mailed to me after I got the quote online. I advise everyone who gets a quote from them to wait for the follow-up e-mail before buying.

    When I sold my last car last year and needed to get a pro-rated refund on my Honda Care, again Curry Honda was very helpful. They sent me the needed forms right away and the refund went through without a hitch. In fact, I dealt with the same guy that I dealt with when I purchased from Curry.

    I chose to buy my new Honda Care from Bernardi recently instead of Curry only because Bernardi offered a lower price. However, I do not live in California. If Curry is selling to California and Bernardi is not, I would definitely recommend buying from Curry if their prices are lower than local CA dealers.

    The CA law is not clear and vague (a link was posted to it earlier in this thread.) That's why some online Honda Care dealers may not choose to sell in CA whereas Curry may feel they can. Florida law is cut and dried.

    Once you buy a Honda Care, it does not matter what state you live in or move to. Your VIN number goes into the nationwide Honda database with the info on your Honda Care and any Honda dealer you take it to will happily provide work needed (after all, they get paid cash from Honda Care to do so.)

    Let me know if you have any other questions.
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    mathguy10mathguy10 Member Posts: 5
    thecity

    I spent quite a while googling around and found several dealers that up front would not sell to anyone in California. I also found a couple that did not specify but when asked said they do not. It is not illegal to sell to people in California (apparently Honda lost the first round of that battle but they are appealing) but since it is up in the air I guess some dealers don't want to get involved. However as of right now there is nothing that restricts it that I have found. I finally ran across Curry and noticed that their site only prohibited sales in Florida so requested a quote from them. If it were actually illegal I seriously doubt that Honda would let them sell to anyone living in California.

    I bought an EW for an 09 Pilot so the prices are probably different than for other vehicles but their advertised price was $1470 for an 8yr, 120k warranty. Their $105 discount made the price $1365 which is what I paid. The best offer I got from the dealer here was $1500 for a 6yr, 80k warranty which is why I declined it. I did not look much after I found Curry and there may be better deals around for Californians but I was satisfied with what they offered so ended my search with them. To be honest it is a crap shoot as far as buying from someone across the country that you don't know but I did not read anything negative about them and since it is Honda that is backing the warranty and not them I figured it was a safe bet.

    I would be interested to see if anyone else in California has purchased an EW from a dealer outside California and what the dealers here are telling them about whether you can do it or not. My dealer here did not even mention that it was possible to buy a warranty from anyone else but him. Probably pretty smart on his part considering what he offered.
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    mathguy10mathguy10 Member Posts: 5
    duke23,

    I did reply to thecity's post so you might want to take a look at it. I do want to point out that there are a few of dealers out there that require you to contact them for a quote as opposed to simply posting their rates on their website. I figured with all the places I send my e-mail address to these days one more place would not matter. Doing that just generated an auto-response telling you about their current discount which I was actually glad to get. I would advise, however, to not respond to any sites that require your phone number. I did that with one dealer and they called instead of e-mailing. Had I wanted to actually talk to them I would have called them in the first place. I have not received the warranty kit from Honda yet (they advertise two to three weeks) but did get a receipt for my payment and a copy of the Application for Coverage (approved) from Honda Care, signed by Curry.
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    dantzdantz Member Posts: 49
    Boy, that's nothing. When I bought my new Civic my dealer quoted me more than triple Saccucci's price for the exact same Honda Care contract, and he said I had to buy it on the spot in order to get the "special price". My guess is, the finance manager was having his swimming pool refinished that week and he needed to pick up a little extra dough.
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    thecitythecity Member Posts: 3
    there have been some great responses since my last post but here are my updates.

    1- I own a 2008 Honda Accord sedan EX-L (4-cyl) which is still considered new by Honda standards since it has 1500 miles on it. (I was told that "new" by Honda standards is any Honda vehicle that has less than 6000 miles on it).

    2- The quote I had listed from Curry Honda was for my vehicle listed above (not for an Odyssey).

    3- I just received another quote from Serramonte Honda for: 7YR/120,000 MILES IS $1210 AND 8YRS IS $1290 (not bad for dealership pricing).

    4- I called Honda Care (800-999-5901) and told them that I live in California and wanted to buy a HCEW from another Honda dealership in a different state (I was referring to Curry Honda). The rep told me that I could purchase a HCEW from any dealership in the USA as long as that dealership verified that they could sell to a customer in California. (I guess its Honda Care's way of putting the due diligence on the dealerships?) I then asked if I could purchase a HCEW from an online reseller of HCEW (that did not seem to be a dealership). The rep repeated that I should check with the online reseller and added that most of these online resellers are run by actual Honda dealerships.

    5- I just called Curry Honda in MA and confirmed that as a California resident I can purchase a HCEW from them without any problems. He said I could fill out their online form and be covered tomorrow. Again, for my 2008 Honda Accord the prices would be:

    8 yrs 120k, $0 deductible = $1215 (Curry Honda) - $105 (coupon code) = $1110
    7 yrs 120k, $0 deductible = $1135 (Curry Honda) - $105 (coupon code) = $1030

    jet10000, from talking to the Curry Honda rep, Dave Heffernan, at (877)227-8422, I would take your word that they seem like nice people who would provide good service w/out being shady about anything. I say this b/c Dave didn't try and "sell me" when I called him- he seemed upfront, courteous in answering my questions, and told me to review Curry's website for add'l details.

    6- After all of my research and from the great insight everyone has provided on this forum, I'm still on a fence regarding whether I should purchase a HCEW. After reading this consumer reports article-

    http://www.post-gazette.com/pg/08097/870686-185.stm

    I realized that the author made a good point in that buying a HCEW is the same as "the buyer betting against the house." If you don't have time to read this article it basically talks about how extended warranties are a poor deal b/c 1) buyers usually pay more for the EW than what they get back in terms of repairs 2) EW are a better deal for those buyers w/ more troublesome cars - we are all Honda owners so I'm not certain this logic applies 3) most parts covered by an EW usually don't fail- the parts that do fail are not covered by the EW.

    7- Can anyone comment as to why they purchased their HCEW? I'm starting to rethink whether I need make this purchase in the first place.

    Thanks for reading.
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    fordfoolfordfool Member Posts: 240
    You want to buy a new Honda (or other brand) with an extended warranty in Florida or California? Simply negotiate the best price for the car as you normally would. Then let the dealer know that the deal is contingent on his matching the best online warranty price that you can find.

    If the dealer says state law won't allow a price discount on the warranty, then offer to pay the asking price provided an equal discount is subtracted from the car price.

    The time to negotiate the warranty price is before you have purchased the car. That's your point of maximum leverage. After all, the dealer is still making a little more on your deal than he would on someone who doesn't purchase the extended warranty.
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    duke23duke23 Member Posts: 488
    I did indeed, great information thanks. Your kit with membership ID ( not needed as Jet10000 points out since you are listed in the national data banks) , your Cross Country Auto Club information and phone numbers and booklet outlining your HC EW membership will arrive in about two weeks per my experience. I totally agree with everything else you have posted.
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    duke23duke23 Member Posts: 488
    Hi, thecity. You wrote:
    "- I own a 2008 Honda Accord sedan EX-L (4-cyl) which is still considered new by Honda standards since it has 1500 miles on it. (I was told that "new" by Honda standards is any Honda vehicle that has less than 6000 miles on it). " Thanks for specifying your vehicle. It makes responding with helpful information so much easier.

    Then your quotes are on the high side. The general without special promo price is $940 for a new Accord with less than 6,000 miles. I'd suggest perhaps emailing California or all dealers that you'd care to and state that you are willing to buy a HC EW for $940 for 8 years 120 k and see who says yes first.

    "I realized that the author made a good point in that buying a HCEW is the same as "the buyer betting against the house." If you don't have time to read this article it basically talks about how extended warranties are a poor deal b/c 1) buyers usually pay more for the EW than what they get back in terms of repairs 2) EW are a better deal for those buyers w/ more troublesome cars - we are all Honda owners so I'm not certain this logic applies 3) most parts covered by an EW usually don't fail- the parts that do fail are not covered by the EW "

    Are you sure you are not related to apisisteve ? Maybe it's in the California water, rhetorical. I'm thinking you are not else you would have quoted Consumer reports, not the Philly Enquirer. Page back about 25-30 posts, perhaps 45-50 or even say 60-75 and scroll forward and read to your hearts content. Then either do or don't do, there is no... mis-paraphrasing Yoda. For me the economics made sense and it was cheap insurance.

    "7- Can anyone comment as to why they purchased their HCEW? I'm starting to rethink whether I need make this purchase in the first place. " Answered ad nauseum. Page back and ye shall find. Feel free to take my challenge.

    Too much of this forum was oriented toward you should , you shouldn't in the past that we decided to change the focus to information about the HC EW. After that it's a personal choice. If you have the slightest doubt in your mind now, then I urge you not to take the HC EW.
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    markrrmarkrr Member Posts: 7
    All I am in the middle of buying a new 08 EX0l with Nav or myabe a Touring and have been doing lots of research on all aspects through the forum. It does look like some very good buys for EW over the internet are available.

    Anyway I own a 2000 Odyssey EX that I bought with a 7 year 100K, $0 deductible EW for around $1K. I had very good luck with my Honda so the use was minor but worth every penny. No matter how little or great the issue was it was taken care of under warranty. Sticking doors, door rollers, hood latch, ... the doors are pretty sophisticated and delicate so over the 100K miles they were fixed a few times.

    Just before the 100K miles was up I brought the car in for the dealer to go over and make sure no other warranty work. They replaced a few minor items - I aksed them to check the tail gate rear pistons as they were not the same as when we 1st got the car and replaced under warranty. I learned about this based upon my 1993 Accord Station Wagon - so I pointed it out on the Oydssey and taken care of.

    I even then took the Oydssey to a seperate Machanic, paid him for an hour to go through the car - gave him all the extended warranty stuff to make sure if there was anything else that could/should be replaced under warranty. He came up with front stabilizer links.

    I then took back to Dealer who then looked, ordered front stabalizer and also new struts. Weird how they did not get this when I asked them to go over it 2 weeks before. So moral was it was worth it to also have the independent mechanic at my dime go over the car.

    All in all was $ for the EW worth it? I absolutely think so. It may or may not have been close to break even before the last warranty work, but just the fact I felt I could take it in and not pay for the silly stuff - latches, side door issues, pistons...

    Honda makes great cares but like anything you take to 100K miles something goes. I will say other than tires, brakes, battery (50% seperate warranty), which are normal wear and tear items nothing major. The car is 8 years old, 140K miles now. Had to do the A/C for $1500 ugh! but that is how it is.
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    mkielmmkielm Member Posts: 38
    markrr:
    Wow, thanks for providing that experience. I find it amazing that you could just bring your car in right before the EW expired and the dealership was willing to go over it all and fix things that were wrong (and then respond to your secondary request about the front stabilizer links). It would appear by your email that some of the things may have been wear and tear (though I'm getting the feeling that it's up to the dealership as to whether they make that decision - and many of them are loose with the term "mechanical breakdown"). Would you classify some of the repairs as such?

    Have you had any experience with a denial of a repair under the EW? Any disagreements over what is covered?

    Thanks,
    mkielm
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    mathguy10mathguy10 Member Posts: 5
    thecity,

    Thanks for sharing your experiences with the Honda Care folks. I too was happy with the way I was treated by Curry.

    I can tell you that I purchased the EW not because of the mechanics of the car, I think it will probably run for nearly forever, but mainly because of all the electronics. I have a Touring which includes a nav system and I am not all that confident that it can bounce around under my seat for the next eight years and still continue to operate . I looked into the replacement cost of the unit, which is basically a fancy dvd player, and found that it costs in the neighborhood of $1600 not including installation. Just the display unit would run at least $400. Things like seat memory, backup camera, power tailgate, power seats, ac system, parking sensors, and the radio system are not nearly as robust as the powertrain and suspension systems and I would certainly not bet that all of them will continue to function correctly for the next 8 years and 120k miles. And if everything does work perfectly? Good for me then. I have spent $1365 on much more foolish things than this.
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    aspesisteveaspesisteve Member Posts: 833
    thecity is not related to me, but I can only assume that great minds think alike and that is why he/she brings up the excellent recommendation from Consumer Reports;

    "1) buyers usually pay more for the EW than what they get back in terms of repairs 2) EW are a better deal for those buyers w/ more troublesome cars - we are all Honda owners so I'm not certain this logic applies 3) most parts covered by an EW usually don't fail- the parts that do fail are not covered by the EW "

    Other than the recommendation provided by Consumer Reports, the other reasons I choose not to buy the EW is due to the known reliability of most Honda Products and the way I drive and take care of my vehicle.

    Even if I have a breakdown that far exceeded the cost of the EW, I still have to average out that cost over all the Honda's I have owned over my lifetime - cars that have never made it worth buying an EW.

    With that said I believe most of the "value" in an EW is peace of mind for people who worry excessively about the future. Most people end up buying while on a purchase high with their check books open - they think to themselves another $1,500 is minor compared to the car purchase - it's an emotional buy.

    jmo
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    mattgg1mattgg1 Member Posts: 191
    Thank you for providing the link to the Consumer Reports study on Extended Warranties. I would suggest that everyone carefully read this article before spending money on an EW. It clearly proves the point that, on average, you will LOSE money on EW's.

    I'm not sure why everyone is so deathly afraid of the possibility of future vehicle repairs. If you can afford to buy a $25K-$35K vehicle, then you should be able to afford to maintain that car. If not, you have no business buying that car in the first place.

    I can only assume this fear is due to most people living paycheck to paycheck and being unable to cover any unexpected expense. Let me suggest this as an excellent alternative to EW's...

    Take the money you would spend on an EW, put it into an FDIC-insured high-yield money market account, and let it earn interest for the term of the extended warranty.

    If you have an issue that would have been covered by the EW, then pay for it with funds from this account. If you never have a claim, then you will end up with a nice pile of money to can spend any way you like!

    http://www.post-gazette.com/pg/08097/870686-185.stm
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    mitzijmitzij Member Posts: 613
    The sellers of these contracts are professionals, too. They know exactly what buttons to push to convince people that they neeeed a service contract. Being told that terrible things might happen and, for a small fee, "We will take care of you" is very attractive for some people. It's comforting. Kinda like a security blanket. It doesn't protect you from a real monster, but it helps with the imaginary ones under your bed. If big sis convinces you they're real-you neeeed that blanket!

    Ask you favorite Honda service department how many DVD players, radios, and other high-ticket items the F&I guy uses as examples of why you need a service contract he actually sees break down. The power-sliding door motors, maybe, but the rest of that is smoke-blowin'.
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    duke23duke23 Member Posts: 488
    Thanks Mattgg1,
    Most amusing, btw, you will most likely lose money on average on car insurance and home insurance but your lender requires it so there you go.Although the original Consumer Reports rebuke is better written and more logical. They don't seem to grasp that people can buy for half or less online.
    "Take the money you would spend on an EW, put it into an FDIC-insured high-yield money market account, and let it earn interest for the term of the extended warranty. "
    "If you have an issue that would have been covered by the EW, then pay for it with funds from this account. If you never have a claim, then you will end up with a nice pile of money to can spend any way you like! " High yield money market account?
    1.5 % ? You have the absolute right to your opinion, and good for you. But unless you will rise to the challenge, mitzi you too, better keep it as mho and not absolutes. But as written before,
    lest this forum turn into a format of why you shouldn't buy a HC EW then your value you have added is ? Like Mathguy10, I'm not worried about powertrain warranty. They threw in a free one( life time) on my purchase and I valued it at $75. Scroll back, much knowledge to be obtained.
    Mitzi, a Chevy Dealership service manager who somehow feels compelled to be knowledgeable on HC EW failed to respond to the challenge.

    A few other posts to keep in mind. Lord, why won't anybody scroll ? 2381, 2383, 2384. Like Jet 10000 and Mathguy10 , I saw value. If you don't, no skin off of my nose.

    I think this comes off as confrontational and if so I apologise, as it it meant only to deflate those that oppose insurance but are not willing to take the risk themselves. Uh, why we have insurance.

    link title The challenge.
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    tidestertidester Member Posts: 10,059
    you will most likely lose money on average on car insurance and home insurance

    I don't think it's quite so clear cut. Even if you never file a claim, you were covered and that coverage has value. The fact that you were willing to pay for that coverage knowing you may possibly never file a claim proves that it has value. And the precise value of that coverage is the premium you were willing to pay meaning it is a breakeven situation. Finally, if you do file a claim, you suffered a loss but are reimbursed by the coverage. Again, it's a breakeven situation. :)

    Could you have made (or lost) money by doing other things? Of course. But that does not make insurance in and of itself a losing proposition.

    tidester, host
    SUVs and Smart Shopper
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    doctorb98doctorb98 Member Posts: 4
    Hello, just helped my girlfriend purchase an 08 accord coupe...while sitting with the finance guy we started to discuss EW's...we were interested in the 7yr/80k...knowing that the lowest price online was $635 I delined his offer of $1095, however he offered to lower the APR from 3.9 to 2.9 which in essence lowered the price of the EW to $664 just $29 dollars higher than my lowest price and it would be rolled up in the financing and through the local dealer making it easier...my question is...if I was to cancel the EW before the 60 days would the APR stay at 2.9. Does anyone have any experience with a deal like this...
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    mkielmmkielm Member Posts: 38
    I don't see how they could raise your APR, but the EW refund could be paid to the finance company instead of being returned to you. Read the loan contract - most of them are pretty straight forward due to regulation and the squirrely business that went on in our parents generation.
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    mattgg1mattgg1 Member Posts: 191
    "you will most likely lose money on average on car insurance and home insurance but your lender requires it so there you go."

    A couple of points on your comment...
    #1 - As you mentioned, these items are required. Just like paying taxes, you can't get around having these types of insurance. Of course, a dealer would like you to beleive that an EW is required, but they are not, so I would recommend passing on the EW.
    #2 - Insurance is best used to cover catostrophic losses, not minor life expenses. Most people cannot afford to replace their house if it gets destroyed, or pay $100K in medical bills if they cause an auto accident. As a result, this insurance is mandatory and people buy it, for good reason. But insuring future car repairs is not the best financial decision.

    "High yield money market account? 1.5 % ?"

    Even in this down market, you can find a MM yielding 4% and CD's yielding 5% or more. Here is a good site for finding the highest rates. You may want to find another bank if you're only earning 1.5%!!!
    http://www.money-rates.com/

    I'm sure you see value, but like I said, you would be better off saving your money and not buying and EW. Just one example from the Salesperson forum from two dealership insiders...

    Car Dealer 1:
    “Most powertain problems will rear their head very early in a car's life. Just like electronics. If nothing go's wrong in the first 10,000 miles or so, it is unlikely something will happen at 55,000 miles. Things "can" happen but not too “likely.”

    Car Dealer 2:
    “That is generally true - that's why extended warranties are such profit makers. I was saying that long time ago, when Joel was arguing big benefits of them - machines tend to break early and late in their lifecycles, much more seldom in the middle of it, which is exactly above say 20K and 100K.”

    http://townhall-talk.edmunds.com/direct/view/.f09ff51

    " it meant only to deflate those that oppose insurance but are not willing to take the risk themselves."

    I'm not sure what is meant with this statement. I do oppose EW's, but I also took the risk myself by buying a new Honda and not getting the EW and paying for any potential repairs out of my pocket.
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    aspesisteveaspesisteve Member Posts: 833
    "...knowing that the lowest price online was $635 I delined his offer of $1095, however he offered to lower the APR from 3.9 to 2.9 which in essence lowered the price of the EW to $664 just $29 dollars higher than my lowest price "

    I hope some will see just how crooked this finance person really is. He's already made a point off you by selling you 3.9% financing when you had qualified for the lower 2.9% from Honda. He's playing a shell game with the deal to sweeten his commission. I would say NO to the EW and insist the financing be reduced to 2.9% or walk from the deal.

    how insulting this would of been to me.
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