So when you mention getting a "better return", you simply meant that a buyer would get a smaller NEGATIVE return, right? If HondaCare is not an investment, and you can't expect positive returns, then why even discuss "returns"?
Some people will have positive returns and some people will not. Regardless, my original statement was entirely correct that if you get a better price when you buy it you will get a higher return. I have given examples of this as well. If at this point, you do not understand it, by all means, take a business course at your local community college so that they can instruct you on the appropriate calculations.
Even at the best price of $460, buyers are still very unlikely to "get their money's worth".
You state that because you have a very narrow definition for "money's worth" meaning only the money paid out by Honda Care for repairs. In regards to Honda Care, my definition of the phrase includes the following:
1) Direct payments by Honda Care for repairs to my vehicle. 2) Any roadside assistance paid by Honda Care during the term of my contract. 3) Any car rental paid by Honda Care during the term of my contract. 4) The value of Honda Care assuming the risks for repair costs which I would no longer be responsible for during the term of my contract.
I have determined that 1-4 added up, I do get my money's worth, have gotten my money's worth in the past and will continue to get my money's worth in the future.
As I have previously stated, this determination of value is dependent on an individual's personal evaluation and is not the same for every person.
You are trying to convince everyone that your evaluation is the evaluation that everyone should make. That is not the case.
At this point, I see you are just arguing semantics and I have been very clear and will not continue discussing these points with you at this time.
Even at the best price of $460, buyers are still very unlikely to "get their money's worth."
This is absolutely correct if you're talking about the most reliable cars. I'm willing to bet that my Honda Fit won't have a single breakdown during the EW period. And 99% of the time I guarantee you that I'm correct. This is the reason why an EW is not worth a single penny to me. The 8 year 120,000 miles 0 deductible HC EW is NOT WORTH a SINGLE PENNY because I don't bet on unlikely breakdowns. I bet on reliability.
Like where do things stand with the trial in federal court?
I get embarrased for some of you guys who keep prattling on. The internet is a wonderful thing, but it has really taken a toll on decency, humility, and tolerance.
Thanks to all those providing information on their HC EW experiences (once), pricing, and the state of internet sales. I'm not sold on the EW, but I appreciate the helpful posts.
Like where do things stand with the trial in federal court?
Our Automotive News & Views section would be a good place to raise the issue.
tidester, host SUVs and Smart Shopper
Let me be more specific - sorry about that. Where do things stand with the trial that Honda removed to Federal Court trying to stop the internet sellers of Honda Care Extended Warranty from selling to customers outside their states? This issue and trial have been extremely important and relevant to those of us reviewing this forum who are interested in purchasing an HCEW at the very reduced rates provided by dealerships such as Saccucci Honda.
This issue and trial have been extremely important and relevant...
I agree. My earlier comment was directed toward the protracted debate on whether one should or should not buy an EW which, of course, isn't the topic here. Thanks for the clarification.
Honda Care Extended Warranties are the WORST PRODUCTS EVER CREATED. You're throwing money into fire when you buy a HC EW. It is NOT insurance by definition and by law.
"Honda Care Extended Warranties are the WORST PRODUCTS EVER CREATED. You're throwing money into fire when you buy a HC EW. It is NOT insurance by definition and by law."
So? you gave us your opinion.... good...Let people make their own decision.
Offered quote of $1,880 for 7yr/120k Extented warranty at the Dealer yesterday on my Honda EX-L v6 w/Nav. Never bought an extended waaranty before but to me this seems to be a blatant highway robbery.
Is your car a Honda Accord EX-L V6 with less than 6000 miles? If so, that's more than double the price of a zero-deductible Honda Care contract offered by Saccucci Honda. Your dealer is merely offering you the sucker price to see if you will bite; this appears to be standard operating procedure at many dealerships.
Yes its 1 day old with 50 miles EX-L V6 with Nav. Im in South Florida and I Bought it at Coral Springs Honda. Can the Honda Care extended warranty be had for less from someone else?
Not in Florida...you can shop Honda dealers (in Florida) but no where else...The Fla. Insurance commission evidently believes this is INSURANCE. If you live in Florida...you are S>O>L>
You can still negotiate. Look at the prices offered by online Honda dealers to get a rough idea of your dealer's cost, and start from there.
It's too bad you have already purchased your vehicle, as this would have given you more leverage. However, if your dealer won't come down to a reasonable price then I recommend foregoing the service contract entirely, as it's hardly a necessity.
Thanks I think I pass on the warranty and take my chances after 3/36000. I have faith in the honda design. My 03 Pilot has 93k and all that ever went wrong was to replace the engine mounts so far. Now my next big decision is what type tint use, regular metallic or the high grade ceramic.
I PURCHASE A EXTENDED POWERTRAINPLUS WARRANTY 4 99DWN&99 A MONTH...BUT IF SOMETHING GOES WRONG WITH MY CAR I WOULD HAVE TO WAIT TILL 90 DAYS IS UP BE4 MY CAR CAN GET LOOKED AT WAS THAT A GOOD DEAL OR BAD DEAL?
How many months do you have to pay the 99.00 per month? If you are going to get a warranty, then get the honda care warranty. We got the 8 year 120,000 mile zero deductable on line at Bernardi for 890.00. Also comes with the roadside assistance, which my wife has used a couple of times on our CRV for flats. We also received a 30.00 coupon good on merchandise from the dealer online. Used it the other day to get an accessory for my wifes Fit.
OK, What is Honda's argument? Do they not approve of the special websites offering low prices? Do they want to force the buyer to purchase a warranty from the selling dealer?
If Honda prevails, does this mean simply that the websites and the related advertising goes away....or will dealers be prohibited from selling EWs to those who purchased the car elsewhere? Can one simply telephone the low price sellers and buy over the phone if Honda wins?
PURCHASE A EXTENDED POWERTRAINPLUS WARRANTY 4 99DWN&99 A MONTH...BUT IF SOMETHING GOES WRONG WITH MY CAR I WOULD HAVE TO WAIT TILL 90 DAYS IS UP BE4 MY CAR CAN GET LOOKED AT WAS THAT A GOOD DEAL OR BAD DEAL?
I PURCHASE A EXTENDED POWERTRAINPLUS WARRANTY 4 99DWN&99 A MONTH...BUT IF SOMETHING GOES WRONG WITH MY CAR I WOULD HAVE TO WAIT TILL 90 DAYS IS UP BE4 MY CAR CAN GET LOOKED AT WAS THAT A GOOD DEAL OR BAD DEAL?
Bought my Odyessy a couple days ago, got suckered into 8 yr/120 k @ $1700! Would like to cancel and then buy from one of the online dealers at about half cost, but I don't know if this is possible. If it is, how do I cancel....
Adding to jet10000 post, up to 60 and including days, 100% of premium paid. After 60 days pro -rata. aspesisteve, Yah he was kidding/ trolling with you. Mitzi, Personally I'll pass in favor of someone with actual experience with FCEW, but I hope you have a good day. Worrying about those Chevy sales, they might get the Arabs to buy Hummer but Fannie/Freddie getting nationalized might depress consumer confidence a bit more. 5.73 trillion of consumer mortgages. Yikes. Seriously hoping GM doesn't fold. Steve, which area would you recommend in sd? I'm seeing some bargains but don't know the best areas. Man, I'm desperate polling San Jose', think I know the way.
Tidester wrote : " I agree. It's getting a little stale. Let's stick to "pricing and info."
" And then further wrote "
tidester, host SUVs and Smart Shopper " I agree. My earlier comment was directed toward the protracted debate on whether one should or should not buy an EW which, of course, isn't the topic here. Thanks for the clarification. "
tidester, host SUVs and Smart Shopper
I could not agree more . Since this is the only Edmunds forum that allows those who have not purchased equal weight that those who have and have real experience, what is to be done ? My initial thought was to be grateful you would allow that much. My secondary thought was that you would champion a template akin to all other Edmund's forums and refuse to let your personal feelings interfere with the promulgation of real knowledge. I am so pleased that is the case. So future responses to should I buy a HC EW should be restricted to those that have actual knowledge. Thank you so much for your insight.
Thx for the info jet10000...cancelled the policy yesterday, will plan on buying online from bernadi in a week or two...had heard rumors that once you return you cannot buy the extended warranty plan again?
Somebody else a few months ago posted in this forum that they were able to successfully cancel and buy it again from someone else. If you do a search you can probably find it.
Honda's family squabble Using hints from Honda field reps, a small Rhode Island dealership began taking service contract business away from Honda stores around the country. Guess who got mad. Kathy Jackson Automotive News | September 8, 2008 - 12:01 am EST PROVIDENCE, R.I. — There was something about young, apple-cheeked Gardiner Reynolds that Honda field reps liked. A couple of them took the energetic, Gen Y computer whiz under their wings. In the process, they helped Reynolds save his grandmother's small, struggling Rhode Island auto dealership, Saccucci Honda. Reynolds, now 28, oversees one of the nation's top-selling retail Web sites for Honda parts and accessories. Another site he launched at Saccucci Honda may be the No. 1 retailer of Honda-backed extended warranties. These days, the little dealership can hold its own with much larger stores. It sells a huge number of service contracts at cost and rakes in factory bonus money based on volume. The Honda execs were so impressed with the kid's online operation — which has only two employees — that they brought executives from Japan to see for themselves. American Honda Finance Corp.'s finance and insurance zone manager once stood up at a dealer meeting and called Saccucci Honda's Internet business: "American capitalism at its best." But not everyone was thrilled. When several big Honda dealerships around the country began to complain about losing business to Saccucci's Web site, Honda got the message. The automaker put a stop to the online sales of Honda-backed warranties. Saccucci sued and now the dispute is in court. Monthly supplements Internet sales have provided a nice niche for Saccucci Auto Group. Here’s how the dollars are flowing from cyberspace. WEB SITE WHAT IT SELLS MONTHLY REVENUES hondapartsdeals.com Honda parts and accessories $200,000-300000 myhondawarranty.com Honda extended warranties $200,000 myfordwarranty.com Ford/Lincoln Mercury extended warranties $60,000 The answer: The Web Saccucci Honda hasn't had it easy this decade. Honda is having a good year, but the dealership's sales and profit margins on sales of new vehicles are dropping. The family-owned dealership has a tiny customer base on the island city of Middletown, R.I., with a population of 16,000. And right down the road, Boston-based Ernie Boch operates the largest Honda dealership in the country — famous throughout New England for ubiquitous TV commercials urging customers to "come on down" for the deals. Saccucci Honda's owners — 83-year-old Cora Saccucci and her two daughters, Barbara, 56, and Carol, 53 — are a conservative bunch. For years, they knew only one way to do business — the old-fashioned way. Then in 2006, Honda executives began applying pressure. In letters to the Saccuccis, they complained about the dealership's lack of working capital and the store's outdated facility, which also houses a Lincoln Mercury franchise. Automotive News http://www.autonews.com/apps/pbcs.dll/article?AID=/20080908/ANA0... 1 of 4 9/11/2008 14:55 The Saccucci women worried and began looking for an answer. It turned out to be right under their noses: Barbara's son Gardiner, a 2003 computer science graduate from Providence College. The field reps took an immediate liking to Reynolds. They had begun pushing dealers to turn to e-commerce — and the kid seemed to have the right stuff. "Honda would bring people in from Japan and say, 'Look what this kid has done,' " Barbara Saccucci said during court testimony here last month. "We make very little if any net profit on new and used-car sales. With Gardiner, I felt we were on the right track to enter the new millennium." ENLARGE Computer whiz Gardiner Reynolds, the son of one of the dealership owners, capitalized on Internet sales to expand the tiny store's customer base. Photo credit: NEAL HAMBERG Vital to bottom line But after complaints from Honda's National Dealer Advisory Board, the automaker decided that beginning April 1, it would prohibit Honda and Acura dealers from selling Honda-backed extended service contracts online. On March 28, Saccucci Honda won a temporary restraining order. The dealer council says Saccucci's low-priced online contracts were undercutting other dealers' in-house sales of service contracts and damaging the brand image. Barbara Saccucci says the online sales keep her in business. "Honda has a pump-in, pump-out list that shows where we have sold out of market and where others have sold in," she says. "We lose sales to other markets all of the time, so we have to work hard on the phone and the Internet to bring in sales. "This is an important part of our bottom line," she adds. "We may have to reconsider keeping the franchise if they take" away the online sales. Saccucci Auto Group was founded in the 1950s by Cora's husband, Michael Saccucci, who died in 1984. Michael was the general manager of a Lincoln Mercury store in nearby Newport, R.I. He acquired the franchise from the owner and in 1968, bought 5.5 acres in Middletown and moved the Lincoln Mercury store to the site. The Honda franchise was added in 1978. These days, the store sells about 80 to 100 new and used Hondas monthly and has 53 employees in the small, aging Automotive News http://www.autonews.com/apps/pbcs.dll/article?AID=/20080908/ANA0... 2 of 4 9/11/2008 14:55 dealership. Cora, working alongside her husband, handled jobs in all parts of the dealership and brought in the girls to keep it a family affair. Each of the women owns one-third of the business. "My husband always told me he would die before me," says Cora, an octogenarian who comes to the store every day. "He told me not to ever take on a partner and, if I do sell the franchise, to keep the land," which court records show is valued at nearly $3 million. The three women hope to pass the franchise on to Reynolds and his 23-year-old cousin, Michael Meyer, Carol's son and the store's sales manager. Building business "When Gardiner came to the business, he knew how to make the Internet work," Barbara said. "Everybody at Honda and at the dealership were happy because they knew this was a new revenue source." Reynolds started in sales when he joined the dealership out of college. According to court testimony, he soon came under the mentoring of Dan Enderley, the dealership's parts and service rep from American Honda. Enderley "felt the Internet was the future; he lit that fire in me," Reynolds said. "He came by often and would take me out to lunch. He knew we were small and thought we were too caught up in the family dealership. He thought the Internet could help us compete with bigger stores." Under Enderley's tutelage, Reynolds launched Hondapartsdeals.com in May 2004. The Web site initially sold only accessories. The next year, Reynolds added Honda's entire parts business, which brings in $200,000 to $300,000 a month. That's the same amount the dealership sells in parts a
This is a great story. Hopefully Saccucci Honda win this battle. Who knows what the court will decide. But Honda could've found a way to let them keep doing what they're doing. If the other dealers think that just because they stop internet sales, that people will pay double the price to buy from them, they're not very smart.
If people are smart enough to find Saccucci Honda's prices, then they're a consumer who is too smart to pay inflated dealer prices.
If people are smart enough to find Saccucci Honda's prices, then they're a consumer who is too smart to pay inflated dealer prices.
Amen. It is not Saccucci that is "damaging the brand" as the article states. It is American Honda trying to strong arm a small dealer who has found a way to expand their reach nationwide that leaves a bad taste in my mouth. I pray Honda looses and I hope someone at the corporate office is reading this. Shame on them.
It is looking more and more like a Maxima for me. Let American Honda keep their Accord.
late edit The end of the article is missing from the OP. The article goes on to state only 1% of contracts are sold online. The other 99% are still sold in dealerships. (and Honda is fighting this???) Some dealer in Highland Park, IL complains that if there are issues or misunderstandings, the local dealer's integrity is in question as they have to explain a sale that they never participated in. Other dealers say that online sales are damaging relations between dealers and customers who felt they were being ripped off by dealers who sold inhouse at a higher cost. (gee, I wonder why judging by the 100% markups some have reported in this forum. I'm all for a dealer making money, but good grief. A couple hundred is one thing, but a grand+ over cost --wow!)
if honda wants to make the price of an EW one big guessing game as it is buying anything through a car dealership, then there's no way they can stop people from shopping around - and the internet, imo, will prevail.
They could avoid this entire debocle by just fixing the price - but that would prevent unscrupulous dealers from taking advantage of ill informed buyers with their check books out on the table.
Re; Saccucci Honda vs Honda of America Latest News by joconnor
I concurr with jet10000, great post j . Our contributor gardinerr should be pleased as well. Not only free publicity but very informative. Apple cheeked ? Who knew? Glad to see this forum tilt once again to uniformity with other Edmunds forums and again provide a service for those who need helpful information. As always, to purchase or not a personal choice but never pay retail.
I like many bought the Honda Care warranty. Can anyone recommend a decent Auto Warranty. I have been looking into Warranty Direct...... Any ideas? Help!
You can't buy a warranty on anything. A warranty is a Manufacturer's promise to take care of manufacturing defects. You may buy a service contract, wherein a company promises to pay for repairs as outlined in the contract. The only contract I would ever recommend would be one that is backed by, even if only tangentally-as in HondaCare-by the manufacturer.
Mitzi wrote : " The only contract I would ever recommend would be one that is backed by, even if only tangentally-as in HondaCare-by the manufacturer. " I knew we could agree !, though financially sound Warranty Direct's product offers less protection and a higher price than the online sellers of HC EW. Go with the manufacturer product.
I would like to get a warranty that goes till 120,000 or 150,000. Dealer is quoting upward of $1600 for the 120k warranty, and 1099 for a 5/100k warranty.
I am new to this forum, so would appreciate tips on negotiating with the dealer. I would prefer to buy it from the dealer itself for various reasons.
I would like to get a warranty that goes till 120,000 or 150,000. Dealer is quoting upward of $1600 for the 120k warranty, and 1099 for a 5/100k warranty.
You're better off buying it online at a website like
tidester wrote: "Purchasing Strategies - Questions & Success Stories may be helpful. " I dunno T, granted that is a good forum, but hard to imagine you could do better than right here at home. Jet10000's post regarding online dealers is spot on. Advice to prospective HC EW purchasers. Never pay retail. Use the online if you must, as what HC Ew is worth.Pay not a penny more regardless of where you buy.
I think Honda should rethink their stance on this issue. The policy they have adopted is just Un-American.
LETTER TO THE EDITOR FROM AUTOMOTIVENEWS.COM
Saccucci: Let's hear it for free enterprise DALE FEIGLEY, MILFORD, MICH. THE WRITER IS A FORMER AUTO DEALER. SEPTEMBER 22, 2008 - 12:01 AM ET
To the Editor:
Boohoo for Honda and the Honda dealer group ("Honda's family squabble," Sept. 8).
Here comes an enterprising young man, Gardiner Reynolds, who builds a better mousetrap to help save a small family dealership. He is successful in selling Honda extended warranties over the Internet to help keep the small store afloat.
Initially, Honda loves it and uses him as a model of entrepreneurship in America. The big Honda dealers, however, are losing business to him and want Honda to shut him down.
Having had a small, family-owned dealership near a large metropolitan area, I know how difficult it is to compete with much larger dealerships and dealership groups. The big stores had no problem selling in our area with cut-rate pricing. However, when customers needed personal service or had a service problem they couldn't get handled, they came back to us.
Sound familiar? That is a fact of life in business. That is free enterprise. You big guys could do the same thing that this whiz, Gardiner Reynolds, is doing for Saccucci Honda. Quit crying and get back to work.
Comments
Some people will have positive returns and some people will not. Regardless, my original statement was entirely correct that if you get a better price when you buy it you will get a higher return. I have given examples of this as well. If at this point, you do not understand it, by all means, take a business course at your local community college so that they can instruct you on the appropriate calculations.
Even at the best price of $460, buyers are still very unlikely to "get their money's worth".
You state that because you have a very narrow definition for "money's worth" meaning only the money paid out by Honda Care for repairs. In regards to Honda Care, my definition of the phrase includes the following:
1) Direct payments by Honda Care for repairs to my vehicle.
2) Any roadside assistance paid by Honda Care during the term of my contract.
3) Any car rental paid by Honda Care during the term of my contract.
4) The value of Honda Care assuming the risks for repair costs which I would no longer be responsible for during the term of my contract.
I have determined that 1-4 added up, I do get my money's worth, have gotten my money's worth in the past and will continue to get my money's worth in the future.
As I have previously stated, this determination of value is dependent on an individual's personal evaluation and is not the same for every person.
You are trying to convince everyone that your evaluation is the evaluation that everyone should make. That is not the case.
At this point, I see you are just arguing semantics and I have been very clear and will not continue discussing these points with you at this time.
This is absolutely correct if you're talking about the most reliable cars. I'm willing to bet that my Honda Fit won't have a single breakdown during the EW period. And 99% of the time I guarantee you that I'm correct. This is the reason why an EW is not worth a single penny to me. The 8 year 120,000 miles 0 deductible HC EW is NOT WORTH a SINGLE PENNY because I don't bet on unlikely breakdowns. I bet on reliability.
tidester, host
SUVs and Smart Shopper
I get embarrased for some of you guys who keep prattling on. The internet is a wonderful thing, but it has really taken a toll on decency, humility, and tolerance.
Thanks to all those providing information on their HC EW experiences (once), pricing, and the state of internet sales. I'm not sold on the EW, but I appreciate the helpful posts.
Our Automotive News & Views section would be a good place to raise the issue.
tidester, host
SUVs and Smart Shopper
Our Automotive News & Views section would be a good place to raise the issue.
tidester, host
SUVs and Smart Shopper
Let me be more specific - sorry about that. Where do things stand with the trial that Honda removed to Federal Court trying to stop the internet sellers of Honda Care Extended Warranty from selling to customers outside their states? This issue and trial have been extremely important and relevant to those of us reviewing this forum who are interested in purchasing an HCEW at the very reduced rates provided by dealerships such as Saccucci Honda.
Thanks
I agree. My earlier comment was directed toward the protracted debate on whether one should or should not buy an EW which, of course, isn't the topic here. Thanks for the clarification.
tidester, host
SUVs and Smart Shopper
So? you gave us your opinion.... good...Let people make their own decision.
It's too bad you have already purchased your vehicle, as this would have given you more leverage. However, if your dealer won't come down to a reasonable price then I recommend foregoing the service contract entirely, as it's hardly a necessity.
What is Honda's argument? Do they not approve of the special websites offering low prices? Do they want to force the buyer to purchase a warranty from the selling dealer?
If Honda prevails, does this mean simply that the websites and the related advertising goes away....or will dealers be prohibited from selling EWs to those who purchased the car elsewhere? Can one simply telephone the low price sellers and buy over the phone if Honda wins?
Not sure I understand what is going on here...
are you kidding me? :confuse:
$99 per month? for how many months?
Thanks!
M
Oh sure. You can cancel Honda Care within the first 60 days.
" And then further wrote "
tidester, host
SUVs and Smart Shopper
" I agree. My earlier comment was directed toward the protracted debate on whether one should or should not buy an EW which, of course, isn't the topic here. Thanks for the clarification. "
tidester, host
SUVs and Smart Shopper
I could not agree more . Since this is the only Edmunds forum that allows those who have not purchased equal weight that those who have and have real experience, what is to be done ?
My initial thought was to be grateful you would allow that much. My secondary thought was that you would champion a template akin to all other Edmund's forums and refuse to let your personal feelings interfere with the promulgation of real knowledge. I am so pleased that is the case. So future responses to should I buy a HC EW should be restricted to those that have actual knowledge. Thank you so much for your insight.
http://www.hondacareextendedwarranty.com/
Using hints from Honda field reps, a small Rhode Island dealership began taking
service contract business away from Honda stores around the country. Guess
who got mad.
Kathy Jackson
Automotive News | September 8, 2008 - 12:01 am EST
PROVIDENCE, R.I. — There was something about young, apple-cheeked Gardiner Reynolds that Honda field reps liked.
A couple of them took the energetic, Gen Y computer whiz under their wings. In the process, they helped Reynolds save his
grandmother's small, struggling Rhode Island auto dealership, Saccucci Honda.
Reynolds, now 28, oversees one of the nation's top-selling retail Web sites for Honda parts and accessories. Another site he
launched at Saccucci Honda may be the No. 1 retailer of Honda-backed extended warranties. These days, the little dealership
can hold its own with much larger stores. It sells a huge number of service contracts at cost and rakes in factory bonus money
based on volume.
The Honda execs were so impressed with the kid's online operation — which has only two employees — that they brought
executives from Japan to see for themselves. American Honda Finance Corp.'s finance and insurance zone manager once stood
up at a dealer meeting and called Saccucci Honda's Internet business: "American capitalism at its best."
But not everyone was thrilled. When several big Honda dealerships around the country began to complain about losing business
to Saccucci's Web site, Honda got the message. The automaker put a stop to the online sales of Honda-backed warranties.
Saccucci sued and now the dispute is in court.
Monthly supplements
Internet sales have provided a nice niche for Saccucci Auto Group. Here’s how the dollars are flowing from cyberspace.
WEB SITE WHAT IT SELLS MONTHLY REVENUES
hondapartsdeals.com Honda parts and accessories $200,000-300000
myhondawarranty.com Honda extended warranties $200,000
myfordwarranty.com Ford/Lincoln Mercury extended warranties $60,000
The answer: The Web
Saccucci Honda hasn't had it easy this decade. Honda is having a good year, but the dealership's sales and profit margins on
sales of new vehicles are dropping. The family-owned dealership has a tiny customer base on the island city of Middletown, R.I.,
with a population of 16,000.
And right down the road, Boston-based Ernie Boch operates the largest Honda dealership in the country — famous throughout
New England for ubiquitous TV commercials urging customers to "come on down" for the deals.
Saccucci Honda's owners — 83-year-old Cora Saccucci and her two daughters, Barbara, 56, and Carol, 53 — are a
conservative bunch. For years, they knew only one way to do business — the old-fashioned way.
Then in 2006, Honda executives began applying pressure. In letters to the Saccuccis, they complained about the dealership's
lack of working capital and the store's outdated facility, which also houses a Lincoln Mercury franchise.
Automotive News http://www.autonews.com/apps/pbcs.dll/article?AID=/20080908/ANA0...
1 of 4 9/11/2008 14:55
The Saccucci women worried and began looking for an answer. It turned out to be right under their noses: Barbara's son
Gardiner, a 2003 computer science graduate from Providence College.
The field reps took an immediate liking to Reynolds. They had begun pushing dealers to turn to e-commerce — and the kid
seemed to have the right stuff.
"Honda would bring people in from Japan and say, 'Look what this kid has done,' " Barbara Saccucci said during court testimony
here last month. "We make very little if any net profit on new and used-car sales. With Gardiner, I felt we were on the right track
to enter the new millennium."
ENLARGE
Computer whiz Gardiner Reynolds,
the son of one of the dealership
owners, capitalized on Internet sales
to expand the tiny store's customer
base.
Photo credit: NEAL HAMBERG
Vital to bottom line
But after complaints from Honda's National Dealer Advisory Board, the automaker decided that beginning April 1, it would
prohibit Honda and Acura dealers from selling Honda-backed extended service contracts online. On March 28, Saccucci Honda
won a temporary restraining order.
The dealer council says Saccucci's low-priced online contracts were undercutting other dealers' in-house sales of service
contracts and damaging the brand image.
Barbara Saccucci says the online sales keep her in business.
"Honda has a pump-in, pump-out list that shows where we have sold out of market and where others have sold in," she says.
"We lose sales to other markets all of the time, so we have to work hard on the phone and the Internet to bring in sales.
"This is an important part of our bottom line," she adds. "We may have to reconsider keeping the franchise if they take" away the
online sales.
Saccucci Auto Group was founded in the 1950s by Cora's husband, Michael Saccucci, who died in 1984. Michael was the
general manager of a Lincoln Mercury store in nearby Newport, R.I. He acquired the franchise from the owner and in 1968,
bought 5.5 acres in Middletown and moved the Lincoln Mercury store to the site. The Honda franchise was added in 1978.
These days, the store sells about 80 to 100 new and used Hondas monthly and has 53 employees in the small, aging
Automotive News http://www.autonews.com/apps/pbcs.dll/article?AID=/20080908/ANA0...
2 of 4 9/11/2008 14:55
dealership.
Cora, working alongside her husband, handled jobs in all parts of the dealership and brought in the girls to keep it a family affair.
Each of the women owns one-third of the business.
"My husband always told me he would die before me," says Cora, an octogenarian who comes to the store every day. "He told
me not to ever take on a partner and, if I do sell the franchise, to keep the land," which court records show is valued at nearly $3
million.
The three women hope to pass the franchise on to Reynolds and his 23-year-old cousin, Michael Meyer, Carol's son and the
store's sales manager.
Building business
"When Gardiner came to the business, he knew how to make the Internet work," Barbara said. "Everybody at Honda and at the
dealership were happy because they knew this was a new revenue source."
Reynolds started in sales when he joined the dealership out of college. According to court testimony, he soon came under the
mentoring of Dan Enderley, the dealership's parts and service rep from American Honda.
Enderley "felt the Internet was the future; he lit that fire in me," Reynolds said. "He came by often and would take me out to
lunch. He knew we were small and thought we were too caught up in the family dealership. He thought the Internet could help us
compete with bigger stores."
Under Enderley's tutelage, Reynolds launched Hondapartsdeals.com in May 2004. The Web site initially sold only
accessories. The next year, Reynolds added Honda's entire parts business, which brings in $200,000 to $300,000 a month.
That's the same amount the dealership sells in parts a
If people are smart enough to find Saccucci Honda's prices, then they're a consumer who is too smart to pay inflated dealer prices.
Amen. It is not Saccucci that is "damaging the brand" as the article states. It is American Honda trying to strong arm a small dealer who has found a way to expand their reach nationwide that leaves a bad taste in my mouth. I pray Honda looses and I hope someone at the corporate office is reading this. Shame on them.
It is looking more and more like a Maxima for me. Let American Honda keep their Accord.
late edit The end of the article is missing from the OP. The article goes on to state only 1% of contracts are sold online. The other 99% are still sold in dealerships. (and Honda is fighting this???)
Some dealer in Highland Park, IL complains that if there are issues or misunderstandings, the local dealer's integrity is in question as they have to explain a sale that they never participated in. Other dealers say that online sales are damaging relations between dealers and customers who felt they were being ripped off by dealers who sold inhouse at a higher cost. (gee, I wonder why judging by the 100% markups some have reported in this forum. I'm all for a dealer making money, but good grief. A couple hundred is one thing, but a grand+ over cost --wow!)
They could avoid this entire debocle by just fixing the price - but that would prevent unscrupulous dealers from taking advantage of ill informed buyers with their check books out on the table.
Saccucci Honda vs Honda of America Latest News by joconnor
I concurr with jet10000, great post j . Our contributor gardinerr should be pleased as well. Not only free publicity but very informative. Apple cheeked ? Who knew? Glad to see this forum tilt once again to uniformity with other Edmunds forums and again provide a service for those who need helpful information. As always, to purchase or not a personal choice but never pay retail.
Any ideas? Help!
" The only contract I would ever recommend would be one that is backed by, even if only tangentally-as in HondaCare-by the manufacturer. "
I knew we could agree !, though financially sound Warranty Direct's product offers less protection and a higher price than the online sellers of HC EW. Go with the manufacturer product.
I
I want to cancel my EW wich I bought for my new 2008 EXL I bought last Saturday. Can you please give me the process to cancel the EW.
THX
upward of $1600 for the 120k warranty, and 1099 for a 5/100k warranty.
I am new to this forum, so would appreciate tips on negotiating with the dealer. I would prefer to buy it from the dealer itself for various reasons.
tidester, host
SUVs and Smart Shopper
upward of $1600 for the 120k warranty, and 1099 for a 5/100k warranty.
You're better off buying it online at a website like
http://www.myhondawarranty.com/
You'll get a much better price and you can still take your car to have repairs done at your local dealership.
"Purchasing Strategies - Questions & Success Stories may be helpful. "
I dunno T, granted that is a good forum, but hard to imagine you could do better than right here at home. Jet10000's post regarding online dealers is spot on. Advice to prospective HC EW purchasers. Never pay retail. Use the online if you must, as what HC Ew is worth.Pay not a penny more regardless of where you buy.
You're probably right but I offered the link just in case the OP meant negotiating more than just the EW.
tidester, host
SUVs and Smart Shopper
LETTER TO THE EDITOR FROM AUTOMOTIVENEWS.COM
Saccucci: Let's hear it for free enterprise
DALE FEIGLEY, MILFORD, MICH. THE WRITER IS A FORMER AUTO DEALER.
SEPTEMBER 22, 2008 - 12:01 AM ET
To the Editor:
Boohoo for Honda and the Honda dealer group ("Honda's family squabble," Sept. 8).
Here comes an enterprising young man, Gardiner Reynolds, who builds a better mousetrap to help save a small family dealership. He is successful in selling Honda extended warranties over the Internet to help keep the small store afloat.
Initially, Honda loves it and uses him as a model of entrepreneurship in America. The big Honda dealers, however, are losing business to him and want Honda to shut him down.
Having had a small, family-owned dealership near a large metropolitan area, I know how difficult it is to compete with much larger dealerships and dealership groups. The big stores had no problem selling in our area with cut-rate pricing. However, when customers needed personal service or had a service problem they couldn't get handled, they came back to us.
Sound familiar? That is a fact of life in business. That is free enterprise. You big guys could do the same thing that this whiz, Gardiner Reynolds, is doing for Saccucci Honda. Quit crying and get back to work.
Can you please give me a quick and easy wat to cancel my EW which I bought through the Dealer. I got 7yrs /75000 miles on 08 Odyssey for $1275.
Thanks