HondaCare/3rd party warranty

ImUrDaddy84

I leased a Honda Civic Sport Hatchback today. I was waved past HondaCare like it didnt exist. He said "you already have termcare so you dont need this HondaCare so I'll click no, ok?" then clicked past before I could comprehend what was going on. I didnt even realize I had "termcare", but he was talking so fast and moving on I didnt take a second to realize what was happening.
Later going over numbers i saw a charge of $1775 and asked what it was. He said It was a vehicle maintenance service and blabbered on about what it covers. I asked if I could not have that and he said if I didnt, the money factor would go way up on the lease and basically said Honda requires it, So I guess I just assumed it was required and standard. Same with a $200 oil change package. He said I get 4 free oil changes, but saw this charge and he said it was paired with the maintenance package. I again asked if I could not have to pay for the oil changes and he said money factor goes up...blah blah...Accepted without knowing it wasnt a standard Honda lease requirement.

After doing some research tonight, It feels like I got railroaded and dont HAVE to have it?
Its Term Care Select thru Fidelity Warranty Services Inc 3yr/36k miles. They told me everything covered it here https://p.widencdn.net/f2a61d/T6298

So I guess my question is, can I cancel it and get my money back? Will it effect my lease agreement and payments like he said? And If I CAN get a refund, will the applicable taxes also be taken out of my lease agreement or am I just screwed on that part and only get a refund for the $1775?

kyfdx

@ImUrDaddy84

Third party warrantys are notorious for being poor investments.

Go right back to the dealer today and ask for the sales manager or general manager.

Tell them you don't want the warranty, and the only reason you agreed to it, is because they told you Honda required it.
He said It was a vehicle maintenance service and blabbered on about what it covers. I asked if I could not have that and he said if I didnt, the money factor would go way up on the lease and basically said Honda requires it,

Make them re-write the lease. Trying to cancel those warranties on a leased car is complicated, and you may not get any money back.

Expect a lot of pushback.

ImUrDaddy84

@kyfdx

I contacted them and they are willing to re-write the lease agreement and take the charge off. Is there anything else I should be on the lookout for? Obviously make sure all Doc fees and stuff are the same, but how do I know the money factor hasnt changed or they try to "add" something that isnt itemized so they dont take such a big hit.

This is what the lease was before
MSRP: $24605
Ammount due at lease signing : $1725.82
Advanved monthly payment : $274.18

Gross Capatilized cost: (agreeed car price $22,000) $25421.01
Capitalized cost reduction: $1725.82
Adjusted Capatilized cost: $23695.19
Residual Value: $15009.05
Deperec and amortized: $8686.14
Rent charge: $1184.34
Total of Base Payments: $9870.48

Sales/upfront/other tax: 438.51
License title reg fees: 113.50
Doc fee: 299
Aquisition Fee: 595
Optional maintenance contract: $200 and $1775
Total: 25421.01

On another sheet he had, I saw money factor as 0.000

kyfdx

ImUrDaddy84 said:

@kyfdx

I contacted them and they are willing to re-write the lease agreement and take the charge off. Is there anything else I should be on the lookout for? Obviously make sure all Doc fees and stuff are the same, but how do I know the money factor hasnt changed or they try to "add" something that isnt itemized so they dont take such a big hit.

This is what the lease was before
MSRP: $24605
Ammount due at lease signing : $1725.82
Advanved monthly payment : $274.18

Gross Capatilized cost: (agreeed car price $22,000) $25421.01
Capitalized cost reduction: $1725.82
Adjusted Capatilized cost: $23695.19
Residual Value: $15009.05
Deperec and amortized: $8686.14
Rent charge: $1184.34
Total of Base Payments: $9870.48

Sales/upfront/other tax: 438.51
License title reg fees: 113.50
Doc fee: 299
Aquisition Fee: 595
Optional maintenance contract: $200 and $1775
Total: 25421.01

On another sheet he had, I saw money factor as 0.000

What is your location?
What term and mileage allowance?

ImUrDaddy84

kyfdx said:

@ImUrDaddy84

Third party warrantys are notorious for being poor investments.

Go right back to the dealer today and ask for the sales manager or general manager.

Tell them you don't want the warranty, and the only reason you agreed to it, is because they told you Honda required it.
He said It was a vehicle maintenance service and blabbered on about what it covers. I asked if I could not have that and he said if I didnt, the money factor would go way up on the lease and basically said Honda requires it,

Make them re-write the lease. Trying to cancel those warranties on a leased car is complicated, and you may not get any money back.

Expect a lot of pushback.

kyfdx said:

ImUrDaddy84 said:

@kyfdx

I contacted them and they are willing to re-write the lease agreement and take the charge off. Is there anything else I should be on the lookout for? Obviously make sure all Doc fees and stuff are the same, but how do I know the money factor hasnt changed or they try to "add" something that isnt itemized so they dont take such a big hit.

This is what the lease was before
MSRP: $24605
Ammount due at lease signing : $1725.82
Advanved monthly payment : $274.18

Gross Capatilized cost: (agreeed car price $22,000) $25421.01
Capitalized cost reduction: $1725.82
Adjusted Capatilized cost: $23695.19
Residual Value: $15009.05
Deperec and amortized: $8686.14
Rent charge: $1184.34
Total of Base Payments: $9870.48

Sales/upfront/other tax: 438.51
License title reg fees: 113.50
Doc fee: 299
Aquisition Fee: 595
Optional maintenance contract: $200 and $1775
Total: 25421.01

On another sheet he had, I saw money factor as 0.000

What is your location?
What term and mileage allowance?

58103 North Dakota
36 months 12k miles

kyfdx

ImUrDaddy84 said:

kyfdx said:

@ImUrDaddy84

Third party warrantys are notorious for being poor investments.

Go right back to the dealer today and ask for the sales manager or general manager.

Tell them you don't want the warranty, and the only reason you agreed to it, is because they told you Honda required it.
He said It was a vehicle maintenance service and blabbered on about what it covers. I asked if I could not have that and he said if I didnt, the money factor would go way up on the lease and basically said Honda requires it,

Make them re-write the lease. Trying to cancel those warranties on a leased car is complicated, and you may not get any money back.

Expect a lot of pushback.

kyfdx said:

ImUrDaddy84 said:

@kyfdx

I contacted them and they are willing to re-write the lease agreement and take the charge off. Is there anything else I should be on the lookout for? Obviously make sure all Doc fees and stuff are the same, but how do I know the money factor hasnt changed or they try to "add" something that isnt itemized so they dont take such a big hit.

This is what the lease was before
MSRP: $24605
Ammount due at lease signing : $1725.82
Advanved monthly payment : $274.18

Gross Capatilized cost: (agreeed car price $22,000) $25421.01
Capitalized cost reduction: $1725.82
Adjusted Capatilized cost: $23695.19
Residual Value: $15009.05
Deperec and amortized: $8686.14
Rent charge: $1184.34
Total of Base Payments: $9870.48

Sales/upfront/other tax: 438.51
License title reg fees: 113.50
Doc fee: 299
Aquisition Fee: 595
Optional maintenance contract: $200 and $1775
Total: 25421.01

On another sheet he had, I saw money factor as 0.000

What is your location?
What term and mileage allowance?

58103 North Dakota
36 months 12k miles

.00085 MF and 61% residual
$500 dealer incentive

As Honda requires, they are using the base MF.

$2000 Due at Signing, right?

Things to look for in the new deal:

Optional maintenance contract: If removing the $1775, this should just be $200 (oil change package?)

Agreed price: Should stay the same.

Gross CAP: Should drop by at least $1775 from above. Maybe more, due to tax on the $1775.

Net CAP: Ditto the Gross CAP. $1775+ lower

Depreciation and amortized amounts: Again, about the same amount lower

Rent Charge: Should drop to $1130 or lower. (lower CAP cost, but with the same .00085 MF)

Payment: $224/mo or lower (that's the big one)


Your Due at Signing, will either remain at $2000, or they might lower it by the payment difference, which would make it about $1950.

ImUrDaddy84

Thanks. I thought they told me it would be basically .9% financing on it, which would make MF .00038? Not sure whats standard. They didnt say anything about a $500 incentive.
Sorry I get anxiety and am not good at this kind of stuff. Thnx for the help. Going in now, cross fingers

kyfdx

ImUrDaddy84 said:

Thanks. I thought they told me it would be basically .9% financing on it, which would make MF .00038? Not sure whats standard. They didnt say anything about a $500 incentive.
Sorry I get anxiety and am not good at this kind of stuff. Thnx for the help. Going in now, cross fingers

If you are still leasing, the money factor won’t change. There is no APR.

The $500 is Honda to dealer money.

Are you still leasing? If so, pay attention to the items I listed.