There is nothing in my documents in regards to having the intrest rate raised if I were to cancel the honda care, I have still not received the actual honda care contact though. The loan is with American Honda Finance and they are showing the note on their web site so it looks like it has been purchased. What recourse would an F&I possibly have? I dont see him going to AHFC stating that I cancelled honda care and my intrest rate should be raised two points.
I was able to acquire a cancellation form and I am considering sending it to the GM of the dealer using Certified mail return receipt requested.
BEFORE you go car shopping you find out what a good price is for the car you want to buy. Check Edmunds, the "prices paid" forums here, carsdirect.com, etc. Then secure your own financing through your bank, credit union, or perhaps capitalone online. If you can't get financing pre-approved, then you are now at the dealer's mercy - and should really be asking yourself if you should be buying a new car with shaky credit. You also research what your trade in is worth (Edmunds, KBB, NADA, etc). In this forum we talk about how cheap (compared to dealer prices) you can get Honda Care coverage so you know what to pay.
Then armed with all this knowledge, you are ready to car shop. You get a good price, you already have financing so if the dealer can't offer a better, simple interest (and no strings) rate you use yours, you know a fair price for your trade - if any. You don't get snookered in the F&I office with overblown HC prices or loan gimmicks since you did all your homework.
I would call HondaCare right away and cancel the coverage right away (you have 60 days from purchase to get a full refund, assuming you have not used it). Get something faxed to you confirming this, if possible. The dealer can't prevent you from cancelling the contract - that will not fly. It is possible they are going to hose you on the rate too, no paperwork, no contract, what rate? Maybe they are dragging their feet until the 60 days runs out?
As was mentioned, if you finance the HC warranty then the refund will be sent to the bank and not to you and will be used to reduce the amount borrowed, but not (likely) your payment. I suppose if the loan has not funded and they get the HC refund, they could reduce the payment on the loan.
Worst case, they screw up your rate - but then you could always refinance the loan and if you have paperwork showing a different rate, then you can seek a fix via a lawsuit.
The best thing might be to try to unwind the deal, but I would get the dealer would not go for that at all and they probably had you sign some paperwork that says if the financing falls through you have to return the car and pay $x.xx per mile and $xx.xx per day that you had it. Some (rip-off) dealers make these charges so steep no one would try to ever bring the car back.
You must have missed it in my previous post but that was the whole reason for checking to see if honda had your loan papers yet. Because if they did then the dealer cannot change them.
what exactly do you mean by no paperwork, no contract, what rate?
I do not really care how the refund gets applied to the loan, as long as I get it back. The loan has already been funded by AHFC and they are showing my balance on their online account center.
Even if they were to raise the rate from 6.74 to 8.99 I would still save about 200 dollars by picking up the warranty from an online dealer. None of my documents say anything about raising the rate if I do cancel the Hondacare.
I am not intrested in unwinding the deal because I am very happy with the car, if it came down to it then I would leave things as is.
If so, it should show you the total amount financed and the payment. Use a loan calculator like this one or maybe this one - plug in the amount borrowed, payment, and term - leave the rate blank - and see what comes up. Did you get your promised rate? If so, then you are good to go. If not, the F&I guy hosed you on the rate AND the HC plan.
If you rate and stuff looks fine, I would call the HC folks back and say the dealer is telling you that you can't cancel and will not accept your cancel form. They should be able to take care of it from their end without you having to visit or mail the dealer anything further. Just request confirmation by fax and/or mail of the cancellation ASAP. Once that has had time to filter through the system, call HC back again to make sure they processed the cancel properly. Then visit ownerlink again and check your account, the amount borrowed should be reduced by the cost of the HC, but the payment will likely still be the same. Or perhaps they will show the refund as a single payment?
You seemed to be saying you had no contract and paperwork on the loan for the car - nothing that indicated the loan rate. In that case, you don't know that they did not over charge you for the rate AND the HC plan.
As I said, you can go online and find the payment and loan amounts via ownerlink and then work backwards for the rate. It should be what the dealer promised.
sorry for the confusion dennis. I do have the financing agreement and it definetly states 6.74%, what I meant to say is that I do not see a clause in the paperwork stating that they would raise my intrest rate if honda care was cancelled. thanks for everybodies help on the issue. I feel like I am ready to tackle the problem. I will give hondacare a call and tell them my dealer gave me the run around.
Cool, do the numbers shown online for the amount borrowed and payment match up with that rate? If so, that part is a done deal.
I would have been shocked for the dealer to put in writing the deal they outlined to you. I not sure if this is legal or not but it for sure is not "right".
You should post the name and location of the dealership (but no employee names) so others can avoid the same problems. I would guess this dealership is owned by one of the large companies and is not just a local owned, single dealership. The "chain store" dealers have to make enough money to pay the employees at the dealership and keep the lights on AND send profits back to HQ. These F&I guys can be under tremendous pressure to make money on every deal and will mark up loans, money factors on leases, acquistion fees, and do the hard sell on warranties. I had a BMW F&I guy refuse to give me the lease buy rate (dealer cost, in effect) saying "But then I would not make any money". He meant in his department, since the dealership would be getting rid of a car. In the end, I used a 3rd party lease broker to lease the car so he made NOTHING - heck, we didn't even pay the inflated "doc fee" just a cashier's check for the price I negotiated.
Once you get the HC cancelled, you can re-buy at the lower rate online. Note that the price will go up a bit after 6k miles - not will never be as much as the dealer charged
Can anyone tell me if the Honda Care Service contract that can be purchased on line is the same thing as the Honda Dealer extended warranty they are trying to sell me at the dealership where I bought my CR-V? Also, is this Honda Care thing as good as the GE extended warranty they are also offering me? I am aware of the price differences.
If they are pushing an outside warranty, all that means is that they are getting extra large commissions on it. Hondacare is Hondacare. The dealer wants you to buy a GE warranty. GE and Hondacare are not the same thing. If you feel very compelled to buy an extended warranty at all, why would you be looking at a third part warranty?
You probably shouldn't buy any warranty at all from that dealer. They sound like they could be one of the ones where they verbally tell you one thing and give you something else in writing.
All of that makes sense after reading all I could find on the internet about extended warranties, but my main question remains---is Hondacare actually part of Honda Motor co, or is it a separate and independent company? Am I getting the assurance of Honda? Also, is it the general concensus that purchasing a Hondacare service policy over the internet is an ok thing to do given that it is cheaper than my dealer? Sorry to be a pain but somebody must have experience that I don't have.
Your local dealer probably "could" sell it to you for any price you could get online, but they just choose not to. Just like all Honda dealers do not discount their cars to the same price and you have to then shop around to find the best price. Unless you live in Florida, you can buy it from any Honda dealership in the next town or in another state in person or by mail. Buying online is really just mail order from another Honda dealership. They just have to send you the paperwork by mail if it's too far for you to go there in person.
After spending nearly 30 years in this business, I can answer the question. No, the GE Capital service contract is not the same as the Honda Care plan. Dealers generally don't like factory plans because they generally have a very small profit margin; non factory plans like GE have a larger margin of profit... Having said that, if it comes down to coverage, then, it maybe a different matter. You need to read each contract carefully to make sure you understand what is covered and what is not. Routine maintenance items are not covered, however, you maybe surprised to learn that Honda Care won't cover the door roller for the sliding door on an Odessy van.. I know, I've had to explain that to customers for several years.
The aftermarket plans generally will let you take the vehicle to almost anywhere for repairs, not just the dealer; the Honda Care plan requires you take the vehicle to the Honda dealer for covered repairs. Depending on the location of the dealer to your work or home, this may or may not be a concern for you.
After spending years with Honda's ( I left working the car business in Dec 06, at a Honda Dealer in California), I can tell you that generally speaking they are very dependable vehicles. The only word of caution I'd have for you is that I would service the automatic transmission every 2 years or 30,000 whichever is first, especially if you had a v6 engined Honda.
If you not sure about a contract, take it home and study it; get a second opinion and perhaps get someone to give you a legal opinion on what is covered and what is not.
As far as I can tell, HondaCare is a separate company. Honda has a stake in it, but is not actually the owner of HondaCare. It's not as clear a connection as GM's with GMPP, but it is certainly better than buying a different service contract for your Honda. I've not dealt with HondaCare, but I would bet that if you have problems with your contract, you could complain to Honda and they would lean on HondaCare to help get you taken care of.
If you're buying HondaCare over the internet or via the dealer, it's the same contract. Be sure it says HondaCare on it, not just 'Vehicle Service Contract' or 'Motor Vehicle Protection'. There are many dealers online who will sell you HondaCare.
None of the warranty companies associated with manufacturers are the same company. They all separate their warranty, finance and manufacturing divisions for corporate benefits. On the GM site it state GMPP, the only product ENDORSED by GM. It is the same of Honda Care. Honda Care is administered by Honda Financial Services, Honda's finance division. It is 100% backed by Honda Corporation.
I know I've read something that puts Honda's relationship to HondaCare more distant than that of GM to GMPP. I can't remember details, but it was something...
I just purchased a honda accord. The F&I guy was relentless on me purchasing the Hone Care Warranty. I probalby said NO over a dozen times. THanks to all you posters, I knew that I could get it cheaper elsewhere! So I'm wondering if its even worth it at all?? I have the 3 year 36K warranty that comes with the purchase. Honda is a GREAT name/car why should I buy it??
Don't bother buying if you don't feel the need to. Many people who buy new cars only keep their car 3 or 4 years then trade them in to a dealer anyway.
Well, step 1 is to decide if you need it or not. If you decide you do, then step 2 is to buy it cheap .
You do get rental car coverage, if your Honda should be in the shop for a certain amount of time (over x "book hour" repair) - this coverage is good from the time you buy HC. HC covers a number of things that are covered under the base warranty, which will run out at 3/36 - but it also does NOT cover everything that is covered under the base warranty. You can get lists of what is/is not covered from the various HC web pages.
HC is pro-rated refundable, so if you do buy and trade or total the car you get a portion of your money back. It can also be a great sales tool if you usually sell your used cars yourself - with a $50 transfer fee the new owner gets the coverage. If your car is out of base warranty, it would be too old for the buyer to get HC on their own - making your used car with HC worth much more than most of the others Hondas on the market.
Hondas are reliable, very much above average as a whole - but they do break, as least some do .
You have to just decide how long you plan on keeping the car and what you normally do with a car when you are done with it. If you trade cars every few years, then you probably would be wasting your money on HC. If you buy a new car only when you have to and drive the wheels off of it, then you might be more inclined to buy HC. If you usually sell you used cars rather than get ripped off on trade or plan on passing the used Honda on to one of your relatives then the HC makes more sense.
Everyone is different, some like the security of having the warranty other have the discipline (or fat bank accounts) so sock away money for future needed repairs, some folks trade cars when the ashtray gets full or the tires low on air, whichever comes first.
Clearly, Honda does not lose money on HC policies - they would just raise the price. So if your car could be covered for 8yrs/120k for $900 then the average person would have claims during that time that total less that that amount. Of course, there are folks that forget to cancel and get a refund when the sell/trade/lose the car and that is pure profit. But basically, the odds of you needing more than the cost of the HC policy in the term of the policy would be less than 50/50 - otherwise they could not offer the plan at that price. Of course, if you are one of the unlucky ones then you would wish you had HC.
Hi, my husband and I just purchased a new 4WD EX-L. Based on the quick quotes I had seen on the hondacare site, I knew the dealer's offer was not a good deal. My question is, how do I now go about purchasing an extended warranty? Do I just contact the dealers whose quotes I see on the hondacare site?
Hi folks! I am a newbie here and am benefitted by the informative posts on this site. I am thinking of buying a certified used 2006 pilot EX-L with less than 10K miles. I have following questions: 1. Is the 48K/48mo warranty on certified honda pilot really bumper to bumber and is the 7yr/100K warranty same as Honda care? 2. If I install aftermarker overhead DVD player, running boards and tow hitch from a non-honda dealer shop, would it void any warranties? Thanks :confuse:
Having some remaining HC coverage would be a selling point that might lead to a faster sale if you are trying to sell to a private party, but it would not make the car worth "much more" than other cars on the market. If you pay a lot more for the used Honda, it is kind of defeating any potential savings you are likely to have on future repairs that fall within the HC coverage. On top of that most people end up trading the car in to a dealer where the HC policy means nothing.
1. Is the 48K/48mo warranty on certified honda pilot really bumper to bumper and is the 7yr/100K warranty same as Honda care? No service contract is bumper to bumper-read all exclusions and conditions before buying. Not sure what 'the 7yr/100k warranty' you mean, but if it doesn't say 'HondaCare' on it, it's not the same as HondaCare. HondaCare is the most inclusive service contract you can buy for a Honda. Refer to the Warranty Gold thread on this site for information about aftermarket contracts.
2. If I install aftermarket overhead DVD player, running boards and tow hitch from a non-honda dealer shop, would it void any warranties? The only things I can think of are: If you screw up the wiring for the DVD player and something goes wrong-it's on your dime. If you tow more weight than the vehicle can handle, you could damage parts (like transmission/transfer case, etc) that would not be covered.
Yes, just visit the Bernardi or Saccucci Honda Care web pages (these are the cheapest last time I checked). You can get the quote and apply online or they have a toll free you can call. In either case they will send you the Honda Care contract to sign and return, then in a few weeks you will get the HC package with a card, etc.
1. Is the 48K/48mo warranty on certified honda pilot really bumper to bumper and is the 7yr/100K warranty same as Honda care?
The CPO is 7yr/100k powertrain - this is the same as if you purchased a $0 deductible HC warranty for 7/100k - FOR THE POWERTRAIN
The CPO non powertrain warranty is for 12/12k past the base warranty, which would be to 48/48k. Note that this extension is NOT bumper to bumper (nor is HondaCare).
You can purchase HC for a CPO car to get all the HC benefits and extend the non powertrain longer. It should be available at a substantial discount over what HC would cost for a non CPO Honda. You may not can get an online quote for this, but the online discount dealers could probably give you a quote.
2. If I install aftermarket overhead DVD player, running boards and tow hitch from a non-honda dealer shop, would it void any warranties?
The Magnuson-Moss Warranty Act says that a warranty can't be voided just because you used a non-Honda person to install something and/or used non-Honda parts. If the person that installs the aftermarket stuff screws up your Honda, then they can void that part of your warranty - but can't if the stuff is properly installed.
Unless you are getting a smoking hot deal on the CPO 06, I would look at getting a new Pilot. Honda has cheap financing on them now (0.9% APR for 36 months and 3.9% APR for 60 months) and you should be get to buy one under invoice. Carsdirect is showing about $1,500 UNDER invoice for most any Pilot trim line. If you compare the discounted price ($30,442 for 4x4 EX-L with DVD) AND factor in the cheap money, the new one may be the way to go. You could even get one with the factory entertainment package
Having some remaining HC coverage would be a selling point that might lead to a faster sale if you are trying to sell to a private party, but it would not make the car worth "much more" than other cars on the market
Sure it would. If we both had a used Accord for sale, both with 44k miles (pre 06 Accord) and no factory warranty. Mine does have HC out to 8 years and 120k miles, yours has no warranty nor can the buyer purchased HC since the warranty has expired. Which would a buyer be more likely to buy? Which would they be willing to pay more for? My car, with the warranty for years and gobs more miles. Neither is LIKELY to break, but even at a higher price mine is a better deal.
You are correct in the most folks just trade in and get ripped. As I said, if you are one of those kind of folks and don't keep cars for a long time after the warranty is up, then you probably should not buy HC at all. The real losers are the ones that pay too much for HC at the dealership, finance it in with the car, then trade the car and forget to cancel the HC for a refund. They pay too much at every step.
It might sell for a little more and sell faster, but not "A LOT" more since paying a lot more erases the whole purpose of getting the extended warranty in the first place(hoping you are saving money vs banking the extra money and paying for likely repairs yourself if ever). Paying a lot more is like prepaying for the repairs you think the extended warranty might have covered for "free." I would rather just buy a new or at least "newer" car than pay alot more for a used car that is still going to have wear items that aren't covered by warranty that will need to be dealt with sooner than a newer car would.
Thank You dwynne and mitsij for the info on the warranty. Reading about the towing package, I would say that, if at all, one should go for dealer installed tow hitch, transmission cooler etc. for maintaing the warranty and avoiding the hassles of fighting the validity of the warranty. Keeping this issue aside, isn't the 0.9% financing advertised for new 2006 Pilots, which are not to be found at least in 100 miles of central VA and will the Cardirect price of ~ $30.5K be supported by the special financing in this case? Please allow me to pitch a comparative scenario: 1. I'll try if the dealer can break the price of a CPO. If I fight my way down to $29K OTD for a CPO 2006 EX-L AWD with <6k mi and push the dealer to throw in a dealer installed DVD player combined with a 4.9%/36mo AHFC financing, would it make a decent deal? With 20% down, the final 'cost' would be ~31K that includes 7yr/100K limited warranty. 2. Alternately, if I meet the car direct target ($30.5K), the OTD price on a new pilot ex-l w/RES would be around 32.5K. If I put 20% down (required for special financing if you don't have a trade; my current car is worth donating only) and get 0.9% financing (which I am skeptical about) and buy 7yr/100K HC for about $1000 would make the total cost of car to be 34K. Is expecting a saving of $3K <b>realistic and worth or do I have a hole in my thinking? Of course, I haven't started negotiating yet, but this would help me (and probably others) decide what to aim for. I used the calculators at carbuyingtips.com to do the analyses. Thanks again. It's a wonderful forum with great advice and I don't feel alone
You are correct, I completely missed that when I checked for special deals - that only applies to the MY2006 Pilots and not to a new 2007. Sorry
In my zip code, some Honda dealer will do $30,442 for a Pilot EX-L 4x4 with entertainment - so says the web page. They may toss a dealer doc fee on top of that - but still not a bad price. I put in a Lynchburg zip code (24501) and it comes up $30,442 as well.
What I would do - is go spec out the Pilot you want on the carsdirect.com site and have a dealer contact you about it. "In theory" you should be able to buy at the price they show plus maybe a dealer fee. There is no cost or obligation - so give it a shot.
I would go check out the Honda Pilot Prices Paid forum for more pricing info and tips. See what others are paying and maybe ask for a dealer referral for a good deal in your are.
I will ask the folks in KY I have done biz with in the past and the place in GA that gives good prices and let you know what they say. Either one would be less than 500 miles (one way) from central VA.
You should weigh the cost of new VS used and be sure to factor in the cost of financing - which is typically lower for a new vehicle. Also consider future value, the MY2007 would be worth maybe $2k more at any time, maybe more since you could get the OEM entertainment system with a new one.
Thanks Dennis, Good news ! The special financing rates are available for MY2007 Pilots in VA. I'd start cracking the dealer numbers for a new one now. What do you think OTD price should be for a 2007 EX-L w/RES (MSRP 35440). I am moving to the prices paid forum as suggested by you and I saw somene getting 27500+TTL for an EX/L (no add-ons). That should be ~29K OTD. Looks sweet to me. Hope I can get something like that for what I want. I am excited now . Regards, Rahul
I heard back from the guy in KY (Louisville area) and he said he would do:
$32242=invoice- 2000=30242+doc=399.25=30641.25. they pay own tax.lic, reg
This would be for a purchase on an in-stock 07 Pilot EX-L 4x4 with the entertainment system. That is $2,000 under invoice plus their $399.55 doc fee. Note that his invoice number is $100 higher than I see online, but that is probably a mid-year price change - your price would be the actual invoice on the one you choose less $2,000 + the fee.
I am sure they would do a similar deal on other Pilot trim lines, but you may not get quite as much discount on a lower priced model.
I have done business with these folks before, as has my daughter, and I have sent them several folks. All worked out just fine, no BS, and the price they said was what was paid.
I did not ask about loan rates, etc. But I am sure if a discounted rate is offered they can do it if you qualify (and it does not cost them money). Often the promo rates are in place of dealer money, so you may find that no dealer will give a price this low AND do cheap money.
If you can't get a similar deal close to home, let me know and I can get you the contact info.
I will post the price from the GA dealer when I get it - it will probably be a little bit cheaper.
Either would a good bit of a drive, but may be worth it to save some money.
As expected, the GA dealer has a better price - $29,910 including the Pilot, destination, and dealer fees (you add tax/title/license). Discounted financing is available for 07 Pilots
The bad news is they do not get many 4x4 Pilots (not much snow in GA).
More bad news, the $2k dealer incentive can't be combined with the cheap money.
I would bet if you compared loan deal from someplace like Capital One (current new car rates 6.09% 6.35% 6.79% for 30-36 months, 36-60 months, and 61-72 months) with the discounted Honda rate (with a $2k higher price) it would be best to take the $2k and pay the higher rate. No 20% down needed as well.
I checked, if you financed $29,910 for 60 months at Capital One at 6.35% the payments would be $583.12. If you financed $31,910 (adding in the $2k) at 3.9% for 60 months it would be $586.23 per month.
Dennis, Sorry for replying late. I was stuck in meetings all day. Aarrrrghghgh... Thanks a ton for your help with quotes from KY & GA. I work almost 7 days a week which won't allow me to travel at least for a couple of weeks. However, I got a new quote at this evening for $31260 OTD as follows. Price $ 29336 destination $595 Dealer fees $289 Tax $980 Tag/Title $50 The dealer also included appearance package (which as everyone knows on this forum is an eyewash). I need to make sure if the quote is with 0.9% financing. In that case it won't be worth (difference of ~330)going all the way to GA ($29910+1030 for TTL = 30940). I guess I should be able to shave a couple of hundreds and match the GA price. Anything below $31K OTD should be OK. I'll give him a call tomorrow and see if I can settle it by the weekend. Regards
Did some one bought the extended warranty plan with the new car purchased?is it neccesery?how to get this quote from different dealer?any suggetion may help!!thank!!
Hi Dennis, I got my pilot today EX-L AWD RES from Hendrick Honda in Woodbridge, VA. Took the $2K rebate and paid $31,325 OTD with the appearance package and running boards installed. I am happy.... . The dealership people were nice and straightforward. Overall a good experience. They tried to sell me the rust proofing etc, but I denied and they didn't push it. Though, one salesman said that honda no longer covers rust or paint damage in their warranty if it's not inside to out ??? Any suggestions if it is important and what would be a decent price to be paid. I'll buy the Honda care from saccuchi or Bernardi's. Both quoted it for $1230. Any thoughts. Regards, Rahul
Did some one bought the extended warranty plan with the new car purchased? many people do
is it necessary? no. most people don't see a return of their money
how to get this quote from different dealer? Google honda care service contract-email dealers for quotes.
any suggestion may help! you're better off parking money in an interest-bearing account in case of auto-emergency than buying a service contract. It is not a warranty. It is not 'just like the factory warranty'. Read the contract (available many places online) before you buy it. Understand what it entails, what it pays for, and what it doesn't.
Your OTD means nothing me, since I don't know your tax situation over there. If they got close to the prices I quoted from KY and GA (which included the dealer fees) with the fees included, then you did fine.
The "rust" guarantee on all new cars is just about always limited to a full perforation. Modern cars just don't need added rust-proofing, and it is likely to do more harm than good - so avoid that like the plague
You have until 6k miles to get the best price, or you could just wait until just before you hit 36/36k and buy then and pay a bit more (you may also have fewer / shorter options at that time).
We assume they price HC to make money. So they know the average new Pilot owner will not cost them more than $1,200 in repairs over the life of the policy. A lot of folks will trade, wreck, or sell their cars and never use the HC they purchase (many will even forget to cash them out if they do). If you are one of the minority that will keep it throughout the term of the HC you buy, the odds say you may never have more problems in $$$ than what you paid. If you DO have a problem, then just about anything will pay for the HC plan. A guy I know lost their Accord compressor after the 36/36k was up and it cost more to repair than the HC would have. As others say, if you socked the $1,230 away where it could draw interest and you never touched it, then once the factory warranty is up or whenever you might need it, you may find you have enough to cover the problems.
Hondas are reliable and the odds are you will not need the HC at all. You did get the entertainment system, didn't you? That IS covered by HC as is the NAV system - either of which would be more likely to fail and would cost a bit to fix.
So decide if you need it or not, many think they do not - but it is your choice. A lot of folks just like the peace of mind. If you do buy, remember it can be transferred to a new owner for $50 and is pro-rated refundable. So if down the road things change, don't forget to cash it out or transfer it on. You did the right thing by not over-paying at the dealer - and by getting a NEW Pilot for not much more than the CPO one you started looking at.
Be glad you have a Honda, though. Coverage to 7 yrs and 60k miles for my RX-8 (which has a powertrain warranty to 5 yrs/60k miles already) would cost me close to $2,000 at the best price I have found for a factory backed plan. Ouch. Clearly, they figure they WILL be paying more claims on that car than Honda does.
Dennis, call Al in the finance office at Nelson Mazda in Hickory Hollow. I just got off the phone with him he said he would hook you up for $1650 + tax. 84/60K 100 Ded.
I had forgotten that a friend of mine sells there now and he hooked me up with him. Tell him Joel from (you know where I work) told you to call
Even with a rock-bottom price I may have to skip it. It might be worth $700-800 on an Accord or S2000, but $1,800 with tax and up I might just take a chance on it - that is a lot of bucks. I also make not keep the car, and get something else.
Our youngest son was in a wreck last night - he seems OK but his '99 Escort may be toast. So I may be having to get him a new car rather than keep mine
Hi Dennis, Thank you for insightful suggestions. As you mentioned I am one of those that are pro-active and think that peace of mind is important, especially, when I know that I can claim the HC money back didn't if I didn't use it. I haven't bought the HC yet, but I'll do it today. Another myth busted (at least in my mind) was that an expensive SUV will cost arm and leg in insurance. On the contrary I found that it is going to cost almost the same as my wife's 01 nissan sentra and about 50% more than my ancient 95 nissan altima. Here's how I paid for for my 07 Pilot EX-L with RES. Price - 29935 Tax - 910 Title - 45 License tax - 36 Processing fees - 399 ______________________ Total - 31325 (Dealer installed Appearance package and running boards
I could have broken the price by 1 to 2 hundred dollars more, but it was a hassle going to other dealerships and the agony of driving back ~100 mi one way to finalize the deal. I am enjoying the ride and the nicities are loved by my family. Thank you again and best wishes to everyone on this forum. Will keep posting my experiences. Rahul
when I know that I can claim the HC money back didn't if I didn't use it.
HC is pro-rated refundable, not 100% money back. If you buy it today and never use it, then ask for a refund 1/2 way to the life of HC policy (in miles or years) you would get back 1/2 the money you paid less a fee ($25?).
There ARE dealers that will sell you a money back HC plan, but you have to pay a good bit more for it - maybe $200-300, more if the dealer does not deal low on the HC price. Under those plans you have to keep the Honda until the HC runs out (years or miles, whichever comes first) and still own it and have current registration - and have never filed any HC claims on it. If you were to sell/trade/total the Honda before then you get back nothing and you are out the extra you paid for the money back deal.
Just bought a new accord (07) EX-L, for 22,500, in upstate NY. They want to extend the 3yr-36000mi to 5yr-100,000mi for $900 w/zero deductible is that a good deal?
not true - www.honda-care.com offers their service contracts at $145 over cost - which probably is the cost of the money back program that they offer on each plan- if it was $300 for m/b then they would be $150 UNDER cost...
I said $200-300 more, so it looks like $145 more in this case - so shoot me
It seems you only post anything to any thread when it involves the money back HC scheme. Do you work for Holtz Honda / hoda-care.com ?
I don't have a problem with someone paying more for this kind of coverage - as long as they understand all the limits on it - and there are a lot of them. The reason Signet/Holtz can do this is they realize that few folks will make it the term of the contract without wrecking the car, needing or wanting something else, needing to use one of the benefits, or just plain old forgetting to cash this out 7 or 8 years down the road. For folks that do not stick around to cash it out, then they are wasting their money ($145 in this case). The few that do stick around and never use the benefits can get their money back, less anything they had to pay out of pocket to rent a car or to fix a "minor" repair so they could get the refund.
Did you all know that on most of those money back deals that if you take a loaner car for the day from the dealer that is considered a claim against the contract and you don't get your money back? Just FYI, it could turn out to be an expensive oil change/loaner car.
Comments
I was able to acquire a cancellation form and I am considering sending it to the GM of the dealer using Certified mail return receipt requested.
BEFORE you go car shopping you find out what a good price is for the car you want to buy. Check Edmunds, the "prices paid" forums here, carsdirect.com, etc. Then secure your own financing through your bank, credit union, or perhaps capitalone online. If you can't get financing pre-approved, then you are now at the dealer's mercy - and should really be asking yourself if you should be buying a new car with shaky credit. You also research what your trade in is worth (Edmunds, KBB, NADA, etc). In this forum we talk about how cheap (compared to dealer prices) you can get Honda Care coverage so you know what to pay.
Then armed with all this knowledge, you are ready to car shop. You get a good price, you already have financing so if the dealer can't offer a better, simple interest (and no strings) rate you use yours, you know a fair price for your trade - if any. You don't get snookered in the F&I office with overblown HC prices or loan gimmicks since you did all your homework.
I would call HondaCare right away and cancel the coverage right away (you have 60 days from purchase to get a full refund, assuming you have not used it). Get something faxed to you confirming this, if possible. The dealer can't prevent you from cancelling the contract - that will not fly. It is possible they are going to hose you on the rate too, no paperwork, no contract, what rate? Maybe they are dragging their feet until the 60 days runs out?
As was mentioned, if you finance the HC warranty then the refund will be sent to the bank and not to you and will be used to reduce the amount borrowed, but not (likely) your payment. I suppose if the loan has not funded and they get the HC refund, they could reduce the payment on the loan.
Worst case, they screw up your rate - but then you could always refinance the loan and if you have paperwork showing a different rate, then you can seek a fix via a lawsuit.
The best thing might be to try to unwind the deal, but I would get the dealer would not go for that at all and they probably had you sign some paperwork that says if the financing falls through you have to return the car and pay $x.xx per mile and $xx.xx per day that you had it. Some (rip-off) dealers make these charges so steep no one would try to ever bring the car back.
Dennis
You must have missed it in my previous post but that was the whole reason for checking to see if honda had your loan papers yet. Because if they did then the dealer cannot change them.
I do not really care how the refund gets applied to the loan, as long as I get it back. The loan has already been funded by AHFC and they are showing my balance on their online account center.
Even if they were to raise the rate from 6.74 to 8.99 I would still save about 200 dollars by picking up the warranty from an online dealer. None of my documents say anything about raising the rate if I do cancel the Hondacare.
I am not intrested in unwinding the deal because I am very happy with the car, if it came down to it then I would leave things as is.
If so, it should show you the total amount financed and the payment. Use a loan calculator like this one or maybe this one - plug in the amount borrowed, payment, and term - leave the rate blank - and see what comes up. Did you get your promised rate? If so, then you are good to go. If not, the F&I guy hosed you on the rate AND the HC plan.
If you rate and stuff looks fine, I would call the HC folks back and say the dealer is telling you that you can't cancel and will not accept your cancel form. They should be able to take care of it from their end without you having to visit or mail the dealer anything further. Just request confirmation by fax and/or mail of the cancellation ASAP. Once that has had time to filter through the system, call HC back again to make sure they processed the cancel properly. Then visit ownerlink again and check your account, the amount borrowed should be reduced by the cost of the HC, but the payment will likely still be the same. Or perhaps they will show the refund as a single payment?
Dennis
As I said, you can go online and find the payment and loan amounts via ownerlink and then work backwards for the rate. It should be what the dealer promised.
Dennis
I would have been shocked for the dealer to put in writing the deal they outlined to you. I not sure if this is legal or not but it for sure is not "right".
You should post the name and location of the dealership (but no employee names) so others can avoid the same problems. I would guess this dealership is owned by one of the large companies and is not just a local owned, single dealership. The "chain store" dealers have to make enough money to pay the employees at the dealership and keep the lights on AND send profits back to HQ. These F&I guys can be under tremendous pressure to make money on every deal and will mark up loans, money factors on leases, acquistion fees, and do the hard sell on warranties. I had a BMW F&I guy refuse to give me the lease buy rate (dealer cost, in effect) saying "But then I would not make any money". He meant in his department, since the dealership would be getting rid of a car. In the end, I used a 3rd party lease broker to lease the car so he made NOTHING - heck, we didn't even pay the inflated "doc fee" just a cashier's check for the price I negotiated.
Once you get the HC cancelled, you can re-buy at the lower rate online. Note that the price will go up a bit after 6k miles - not will never be as much as the dealer charged
Let us know how you make out.
Dennis
I hear all sort of deals 1200,1400 2000 ...
Please help
Thanks
http://www.hondacaresource.com/index.php
Hondacare is Hondacare. The dealer wants you to buy a GE warranty.
GE and Hondacare are not the same thing.
If you feel very compelled to buy an extended warranty at all, why would you be looking at a third part warranty?
You probably shouldn't buy any warranty at all from that dealer. They sound like they could be one of the ones where they verbally tell you one thing and give you something else in writing.
http://www.hondafinancialservices.com/Planning/Honda.asp
Your local dealer probably "could" sell it to you for any price you could get online, but they just choose not to. Just like all Honda dealers do not discount their cars to the same price and you have to then shop around to find the best price.
Unless you live in Florida, you can buy it from any Honda dealership in the next town or in another state in person or by mail. Buying online is really just mail order from another Honda dealership. They just have to send you the paperwork by mail if it's too far for you to go there in person.
The aftermarket plans generally will let you take the vehicle to almost anywhere for repairs, not just the dealer; the Honda Care plan requires you take the vehicle to the Honda dealer for covered repairs. Depending on the location of the dealer to your work or home, this may or may not be a concern for you.
After spending years with Honda's ( I left working the car business in Dec 06, at a Honda Dealer in California), I can tell you that generally speaking they are very dependable vehicles. The only word of caution I'd have for you is that I would service the automatic transmission every 2 years or 30,000 whichever is first, especially if you had a v6 engined Honda.
If you not sure about a contract, take it home and study it; get a second opinion and perhaps get someone to give you a legal opinion on what is covered and what is not.
Hope this helps, best wishes always, D.
If you're buying HondaCare over the internet or via the dealer, it's the same contract. Be sure it says HondaCare on it, not just 'Vehicle Service Contract' or 'Motor Vehicle Protection'. There are many dealers online who will sell you HondaCare.
You do get rental car coverage, if your Honda should be in the shop for a certain amount of time (over x "book hour" repair) - this coverage is good from the time you buy HC. HC covers a number of things that are covered under the base warranty, which will run out at 3/36 - but it also does NOT cover everything that is covered under the base warranty. You can get lists of what is/is not covered from the various HC web pages.
HC is pro-rated refundable, so if you do buy and trade or total the car you get a portion of your money back. It can also be a great sales tool if you usually sell your used cars yourself - with a $50 transfer fee the new owner gets the coverage. If your car is out of base warranty, it would be too old for the buyer to get HC on their own - making your used car with HC worth much more than most of the others Hondas on the market.
Hondas are reliable, very much above average as a whole - but they do break, as least some do
You have to just decide how long you plan on keeping the car and what you normally do with a car when you are done with it. If you trade cars every few years, then you probably would be wasting your money on HC. If you buy a new car only when you have to and drive the wheels off of it, then you might be more inclined to buy HC. If you usually sell you used cars rather than get ripped off on trade or plan on passing the used Honda on to one of your relatives then the HC makes more sense.
Everyone is different, some like the security of having the warranty other have the discipline (or fat bank accounts) so sock away money for future needed repairs, some folks trade cars when the ashtray gets full or the tires low on air, whichever comes first.
Clearly, Honda does not lose money on HC policies - they would just raise the price. So if your car could be covered for 8yrs/120k for $900 then the average person would have claims during that time that total less that that amount. Of course, there are folks that forget to cancel and get a refund when the sell/trade/lose the car and that is pure profit. But basically, the odds of you needing more than the cost of the HC policy in the term of the policy would be less than 50/50 - otherwise they could not offer the plan at that price. Of course, if you are one of the unlucky ones then you would wish you had HC.
Dennis
1. Is the 48K/48mo warranty on certified honda pilot really bumper to bumber and is the 7yr/100K warranty same as Honda care?
2. If I install aftermarker overhead DVD player, running boards and tow hitch from a non-honda dealer shop, would it void any warranties?
Thanks :confuse:
If you pay a lot more for the used Honda, it is kind of defeating any potential savings you are likely to have on future repairs that fall within the HC coverage. On top of that most people end up trading the car in to a dealer where the HC policy means nothing.
No service contract is bumper to bumper-read all exclusions and conditions before buying. Not sure what 'the 7yr/100k warranty' you mean, but if it doesn't say 'HondaCare' on it, it's not the same as HondaCare. HondaCare is the most inclusive service contract you can buy for a Honda. Refer to the Warranty Gold thread on this site for information about aftermarket contracts.
2. If I install aftermarket overhead DVD player, running boards and tow hitch from a non-honda dealer shop, would it void any warranties?
The only things I can think of are:
If you screw up the wiring for the DVD player and something goes wrong-it's on your dime.
If you tow more weight than the vehicle can handle, you could damage parts (like transmission/transfer case, etc) that would not be covered.
Dennis
The CPO is 7yr/100k powertrain - this is the same as if you purchased a $0 deductible HC warranty for 7/100k - FOR THE POWERTRAIN
The CPO non powertrain warranty is for 12/12k past the base warranty, which would be to 48/48k. Note that this extension is NOT bumper to bumper (nor is HondaCare).
See the chart here
You can purchase HC for a CPO car to get all the HC benefits and extend the non powertrain longer. It should be available at a substantial discount over what HC would cost for a non CPO Honda. You may not can get an online quote for this, but the online discount dealers could probably give you a quote.
2. If I install aftermarket overhead DVD player, running boards and tow hitch from a non-honda dealer shop, would it void any warranties?
The Magnuson-Moss Warranty Act says that a warranty can't be voided just because you used a non-Honda person to install something and/or used non-Honda parts. If the person that installs the aftermarket stuff screws up your Honda, then they can void that part of your warranty - but can't if the stuff is properly installed.
Unless you are getting a smoking hot deal on the CPO 06, I would look at getting a new Pilot. Honda has cheap financing on them now (0.9% APR for 36 months and 3.9% APR for 60 months) and you should be get to buy one under invoice. Carsdirect is showing about $1,500 UNDER invoice for most any Pilot trim line. If you compare the discounted price ($30,442 for 4x4 EX-L with DVD) AND factor in the cheap money, the new one may be the way to go. You could even get one with the factory entertainment package
Dennis
Sure it would. If we both had a used Accord for sale, both with 44k miles (pre 06 Accord) and no factory warranty. Mine does have HC out to 8 years and 120k miles, yours has no warranty nor can the buyer purchased HC since the warranty has expired. Which would a buyer be more likely to buy? Which would they be willing to pay more for? My car, with the warranty for years and gobs more miles. Neither is LIKELY to break, but even at a higher price mine is a better deal.
You are correct in the most folks just trade in and get ripped. As I said, if you are one of those kind of folks and don't keep cars for a long time after the warranty is up, then you probably should not buy HC at all. The real losers are the ones that pay too much for HC at the dealership, finance it in with the car, then trade the car and forget to cancel the HC for a refund. They pay too much at every step.
Dennis
I would rather just buy a new or at least "newer" car than pay alot more for a used car that is still going to have wear items that aren't covered by warranty that will need to be dealt with sooner than a newer car would.
Keeping this issue aside, isn't the 0.9% financing advertised for new 2006 Pilots, which are not to be found at least in 100 miles of central VA and will the Cardirect price of ~ $30.5K be supported by the special financing in this case?
Please allow me to pitch a comparative scenario:
1. I'll try if the dealer can break the price of a CPO. If I fight my way down to $29K OTD for a CPO 2006 EX-L AWD with <6k mi and push the dealer to throw in a dealer installed DVD player combined with a 4.9%/36mo AHFC financing, would it make a decent deal? With 20% down, the final 'cost' would be ~31K that includes 7yr/100K limited warranty.
2. Alternately, if I meet the car direct target ($30.5K), the OTD price on a new pilot ex-l w/RES would be around 32.5K. If I put 20% down (required for special financing if you don't have a trade; my current car is worth donating only) and get 0.9% financing (which I am skeptical about) and buy 7yr/100K HC for about $1000 would make the total cost of car to be 34K.
Is expecting a saving of $3K <b>realistic and worth or do I have a hole in my thinking? Of course, I haven't started negotiating yet, but this would help me (and probably others) decide what to aim for. I used the calculators at carbuyingtips.com to do the analyses.
Thanks again. It's a wonderful forum with great advice and I don't feel alone
In my zip code, some Honda dealer will do $30,442 for a Pilot EX-L 4x4 with entertainment - so says the web page. They may toss a dealer doc fee on top of that - but still not a bad price. I put in a Lynchburg zip code (24501) and it comes up $30,442 as well.
What I would do - is go spec out the Pilot you want on the carsdirect.com site and have a dealer contact you about it. "In theory" you should be able to buy at the price they show plus maybe a dealer fee. There is no cost or obligation - so give it a shot.
I would go check out the Honda Pilot Prices Paid forum for more pricing info and tips. See what others are paying and maybe ask for a dealer referral for a good deal in your are.
I will ask the folks in KY I have done biz with in the past and the place in GA that gives good prices and let you know what they say. Either one would be less than 500 miles (one way) from central VA.
You should weigh the cost of new VS used and be sure to factor in the cost of financing - which is typically lower for a new vehicle. Also consider future value, the MY2007 would be worth maybe $2k more at any time, maybe more since you could get the OEM entertainment system with a new one.
Dennis
Good news ! The special financing rates are available for MY2007 Pilots in VA. I'd start cracking the dealer numbers for a new one now.
What do you think OTD price should be for a 2007 EX-L w/RES (MSRP 35440). I am moving to the prices paid forum as suggested by you and I saw somene getting 27500+TTL for an EX/L (no add-ons). That should be ~29K OTD. Looks sweet to me. Hope I can get something like that for what I want.
I am excited now
Regards,
Rahul
$32242=invoice- 2000=30242+doc=399.25=30641.25. they pay own tax.lic, reg
This would be for a purchase on an in-stock 07 Pilot EX-L 4x4 with the entertainment system. That is $2,000 under invoice plus their $399.55 doc fee. Note that his invoice number is $100 higher than I see online, but that is probably a mid-year price change - your price would be the actual invoice on the one you choose less $2,000 + the fee.
I am sure they would do a similar deal on other Pilot trim lines, but you may not get quite as much discount on a lower priced model.
I have done business with these folks before, as has my daughter, and I have sent them several folks. All worked out just fine, no BS, and the price they said was what was paid.
I did not ask about loan rates, etc. But I am sure if a discounted rate is offered they can do it if you qualify (and it does not cost them money). Often the promo rates are in place of dealer money, so you may find that no dealer will give a price this low AND do cheap money.
If you can't get a similar deal close to home, let me know and I can get you the contact info.
I will post the price from the GA dealer when I get it - it will probably be a little bit cheaper.
Either would a good bit of a drive, but may be worth it to save some money.
Dennis
As expected, the GA dealer has a better price - $29,910 including the Pilot, destination, and dealer fees (you add tax/title/license). Discounted financing is available for 07 Pilots
The bad news is they do not get many 4x4 Pilots (not much snow in GA).
More bad news, the $2k dealer incentive can't be combined with the cheap money.
I would bet if you compared loan deal from someplace like Capital One (current new car rates 6.09% 6.35% 6.79% for 30-36 months, 36-60 months, and 61-72 months) with the discounted Honda rate (with a $2k higher price) it would be best to take the $2k and pay the higher rate. No 20% down needed as well.
I checked, if you financed $29,910 for 60 months at Capital One at 6.35% the payments would be $583.12. If you financed $31,910 (adding in the $2k) at 3.9% for 60 months it would be $586.23 per month.
Let me know if you need their contract info.
Dennis
Sorry for replying late. I was stuck in meetings all day. Aarrrrghghgh...
Thanks a ton for your help with quotes from KY & GA. I work almost 7 days a week which won't allow me to travel at least for a couple of weeks. However, I got a new quote at this evening for $31260 OTD as follows.
Price $ 29336
destination $595
Dealer fees $289
Tax $980
Tag/Title $50
The dealer also included appearance package (which as everyone knows on this forum is an eyewash). I need to make sure if the quote is with 0.9% financing. In that case it won't be worth (difference of ~330)going all the way to GA ($29910+1030 for TTL = 30940). I guess I should be able to shave a couple of hundreds and match the GA price. Anything below $31K OTD should be OK.
I'll give him a call tomorrow and see if I can settle it by the weekend.
Regards
I got my pilot today EX-L AWD RES from Hendrick Honda in Woodbridge, VA. Took the $2K rebate and paid $31,325 OTD with the appearance package and running boards installed. I am happy.... . The dealership people were nice and straightforward. Overall a good experience.
They tried to sell me the rust proofing etc, but I denied and they didn't push it. Though, one salesman said that honda no longer covers rust or paint damage in their warranty if it's not inside to out ??? Any suggestions if it is important and what would be a decent price to be paid.
I'll buy the Honda care from saccuchi or Bernardi's. Both quoted it for $1230. Any thoughts.
Regards,
Rahul
is it necessary? no. most people don't see a return of their money
how to get this quote from different dealer? Google honda care service contract-email dealers for quotes.
any suggestion may help! you're better off parking money in an interest-bearing account in case of auto-emergency than buying a service contract. It is not a warranty. It is not 'just like the factory warranty'. Read the contract (available many places online) before you buy it. Understand what it entails, what it pays for, and what it doesn't.
The "rust" guarantee on all new cars is just about always limited to a full perforation. Modern cars just don't need added rust-proofing, and it is likely to do more harm than good - so avoid that like the plague
You have until 6k miles to get the best price, or you could just wait until just before you hit 36/36k and buy then and pay a bit more (you may also have fewer / shorter options at that time).
We assume they price HC to make money. So they know the average new Pilot owner will not cost them more than $1,200 in repairs over the life of the policy. A lot of folks will trade, wreck, or sell their cars and never use the HC they purchase (many will even forget to cash them out if they do). If you are one of the minority that will keep it throughout the term of the HC you buy, the odds say you may never have more problems in $$$ than what you paid. If you DO have a problem, then just about anything will pay for the HC plan. A guy I know lost their Accord compressor after the 36/36k was up and it cost more to repair than the HC would have. As others say, if you socked the $1,230 away where it could draw interest and you never touched it, then once the factory warranty is up or whenever you might need it, you may find you have enough to cover the problems.
Hondas are reliable and the odds are you will not need the HC at all. You did get the entertainment system, didn't you? That IS covered by HC as is the NAV system - either of which would be more likely to fail and would cost a bit to fix.
So decide if you need it or not, many think they do not - but it is your choice. A lot of folks just like the peace of mind. If you do buy, remember it can be transferred to a new owner for $50 and is pro-rated refundable. So if down the road things change, don't forget to cash it out or transfer it on. You did the right thing by not over-paying at the dealer - and by getting a NEW Pilot for not much more than the CPO one you started looking at.
Be glad you have a Honda, though. Coverage to 7 yrs and 60k miles for my RX-8 (which has a powertrain warranty to 5 yrs/60k miles already) would cost me close to $2,000 at the best price I have found for a factory backed plan. Ouch. Clearly, they figure they WILL be paying more claims on that car than Honda does.
Dennis
I had forgotten that a friend of mine sells there now and he hooked me up with him. Tell him Joel from (you know where I work) told you to call
Even with a rock-bottom price I may have to skip it. It might be worth $700-800 on an Accord or S2000, but $1,800 with tax and up I might just take a chance on it - that is a lot of bucks. I also make not keep the car, and get something else.
Our youngest son was in a wreck last night - he seems OK but his '99 Escort may be toast. So I may be having to get him a new car rather than keep mine
Dennis
Thank you for insightful suggestions. As you mentioned I am one of those that are pro-active and think that peace of mind is important, especially, when I know that I can claim the HC money back didn't if I didn't use it. I haven't bought the HC yet, but I'll do it today.
Another myth busted (at least in my mind) was that an expensive SUV will cost arm and leg in insurance. On the contrary I found that it is going to cost almost the same as my wife's 01 nissan sentra and about 50% more than my ancient 95 nissan altima.
Here's how I paid for for my 07 Pilot EX-L with RES.
Price - 29935
Tax - 910
Title - 45
License tax - 36
Processing fees - 399
______________________
Total - 31325 (Dealer installed Appearance package and running boards
I could have broken the price by 1 to 2 hundred dollars more, but it was a hassle going to other dealerships and the agony of driving back ~100 mi one way to finalize the deal.
I am enjoying the ride and the nicities are loved by my family. Thank you again and best wishes to everyone on this forum. Will keep posting my experiences.
Rahul
HC is pro-rated refundable, not 100% money back. If you buy it today and never use it, then ask for a refund 1/2 way to the life of HC policy (in miles or years) you would get back 1/2 the money you paid less a fee ($25?).
There ARE dealers that will sell you a money back HC plan, but you have to pay a good bit more for it - maybe $200-300, more if the dealer does not deal low on the HC price. Under those plans you have to keep the Honda until the HC runs out (years or miles, whichever comes first) and still own it and have current registration - and have never filed any HC claims on it. If you were to sell/trade/total the Honda before then you get back nothing and you are out the extra you paid for the money back deal.
Dennis
Sorry, I didn't mean to put it that way. I understand it is prorated. Glad you caught it. Thanks.
Rahul
http://www.hondacaresource.com/index.php
They offer a price comparison of all on-line places offering Honda care
It seems you only post anything to any thread when it involves the money back HC scheme. Do you work for Holtz Honda / hoda-care.com ?
I don't have a problem with someone paying more for this kind of coverage - as long as they understand all the limits on it - and there are a lot of them. The reason Signet/Holtz can do this is they realize that few folks will make it the term of the contract without wrecking the car, needing or wanting something else, needing to use one of the benefits, or just plain old forgetting to cash this out 7 or 8 years down the road. For folks that do not stick around to cash it out, then they are wasting their money ($145 in this case). The few that do stick around and never use the benefits can get their money back, less anything they had to pay out of pocket to rent a car or to fix a "minor" repair so they could get the refund.
Dennis