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Financed Honda Care Cancellation
Hi. I recently got a 2004 Honda Civic EX with finance. We decided to get the Honda Care Warranty, because according to the F&I guy, it would only cost an 'additional $10 per month' with it. So I assumed that the total cost of this program was $10x60(5 years in months) = $600. He also said that our initial IR of 9.44% would be lowered to 9.0% if we took the Honda Care program. So overall, it sounded good at the moment. But what I hadn't realized until we got home (the car is under my dad's name) is that an amount of $1495 was added into the finance amount for the Honda Care, not $600. And when we were there, the paper that showed this price was hidden and folded. Plus, it was under his grip at all times. Since the dealership was closing down in less than 15 minutes, and they were supposedly all getting ready for a regional Honda dealership party, they wanted to speed things up. I should've have snatched the papers from him, no matter what. That was my mistake and I regret it immensly, to the point where it's the only thing I'm thinking about.
So anyway, is it possible and likely that I could cancel my financed Honda Care amount of $1495 withing the cancellation period? I want to get an idea of how easy or hard it might be for me to go ahead with the cancellation process, and also get some pointers from more experienced car buyers who went through similar situations. Thanks.
So anyway, is it possible and likely that I could cancel my financed Honda Care amount of $1495 withing the cancellation period? I want to get an idea of how easy or hard it might be for me to go ahead with the cancellation process, and also get some pointers from more experienced car buyers who went through similar situations. Thanks.
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I hate it when people do this - arrange a meeting with the dealership GM and explain that you've been lied to - I'm a dealership manager - I'd want to know if my F&I guy was so weak that he had to lie in order to sell a warranty.
What he's done is commit fraud. Where you take it from there is your business.
It's your money, please don't be lazy about it.
The thing is, your finance contract has a "buy" rate lower than 9% - they already dropped it .44%. It would make sense to me to go in, ask to see the financing approval sheet and see what your "buy" rate is - have them recontract at THAT rate - the Honda Care warranty, if you're still interested, could be added at the price you thought was right.
You need to do this quickly, though, because once the contract is gone from the dealer, all that can be done is a refund against your loan balance - you're still stuck at yor rate, too.
Oh, and they're still processing the finance...we gave $7000 down payment, if that is relevant.
If it bothers you, arrange a meeting and get all the facts.
As a former F&I guy, I can say that dealers hold some rate in many cases, but if fronted with either showing the approval sheet or losing a car deal - the position they should be put in - they'll decide what is best.
You can buy a car anywhere, especially with $7K down - you don't need to be lied to.
So if they decide not to show the true 'buy rate', you suggest that I should cancel the deal? It's only the warranty cost that is bothering me, and possibly an inflated rate, if that is possible. We got a great deal on the car itself, $16,382 including destination ('04 Civic EX 2-Dr Auto). We 'fought' hard to get that deal. I guess getting an even lower rate than 9% and refinancing would be a huge 'icing on the cake'. But DEFINITELY that $1495 has to go.
When he indicated that if you took the warranty, you'd get a lower rate, that's a bold-faced lie. Lenders DO NOT offer rate discounts for buying aftermarket products, even if it's the manufacturer's product (Honda Care).
Oh, and I've seem to either lose the Honda Care contract paper, or it is under the possession of the dealership. Is that a big deal?
"If lets say I could cancel this contract for you and you get what you want, would you give a positive feedback on the survey?"
And I answered back,
"Well, even thought things didn't go out the way it was supposed to initially, I would give a positive feedback if things were resolved, nontheless"
He sure seemed happy to hear that, and that's when suddenly he said that he would try once more to cancel the contract, which is already "on it's way to Honda Finance". I have a feeling that the papers are still sitting on his desk...but who really knows.
Oh, and we are required to sign the papers once more if the recontracting does go foward, right? If so, I'll be damned sure to take as much time as I need. Lesson learned. But let's see what happens. *crosses finger*
Just as a precaution, I called up Honda Customer Support yesterday to give a detailed account of just what happened with us in the dealership. Now, I'm not sure what else to do. Should I wait more, keep on calling, or visit them once again?
And contact your state's attorney general's office.
"He's never in his office" - I don't buy it. Go visit with him in person. He's guilty of fraud, and needs to be reminded of that. He can either deal with you on your terms, or deal with an AG inquiry - that is, unless you take the low road. Your call, your money.
I just know how I'd handle it.
But we sure will go to the dealership if nothing happens.
Or, you can have Honda corporate contact the dealer's GM and see what happens there. Remind Honda that the F&I guy lied to you and you know it.
I bought the Honda Care 7 year 75K mile extended warrantee for $1145 at the dealership Anderson Honda in E. Palo Alto under the assurance written into the contract and confirmed by the finance guy that I could get my money back if I canceled within 60 days. He said the money would go to the leaseholder AHFC and this would cover the first few payments. When I got home I saw that I could get the identical Honda Care Warrantee at www.hondacuraworld.com for $845 (and I can wait 3 years to buy it), so I asked the dealer to refund me the $300 difference or I would cancel - no deal. I called Honda Care and AFHC (2 phone numbers but same company) and they the customer service rep assured me that Honda Care would send a check to AFHC and AHFC assured me this check would be applied to my payments. So I submitted the form and canceled it.
Since that point I have spent many hours on the phone to make sure my payment from Honda Care to AHFC is credited to my account - the check hasn't arrived yet. But now AHFC says the payment will not be applied to my monthly payments but instead will become a security deposit which I won't get back for 3 years. The contract says they have a "security interest" in any refunded warranty money, but this does not mean it becomes a security deposit that they can keep for 3 years. Meanwhile I have to make payments on this $1145 higher financed amount. This certainly isn't a 60 day money-back cancellation policy.
I've spent many hours calling customer service at AHFC and each person seems to have a different view of this policy. Now they say a supervisor can make an exception to apply the money to the account payments - but that this determination will be based on my payment history - but there isn't a payment history since I just bought the car. I keep calling and have been unable to talk to a supervisor. I leave messages and the customer service reps promise that the supervisor will call me but she does not. I'm willing to compromise, perhaps by pre-paying my account for 3 months if they will give me the Honda Care money back, but I can't get anyone who can make this determination to call me. Since I don't want to be in default, I mailed my 1st month's payment - even though my account should have a $1145 credit.
By reactivating the "Financed Honda Care Cancellation" discussion and posting this message, I hope to get some advice on how to proceed. Small claims court? Perhaps find others with this issue for a Class Action certification? Consumer Affairs with TV or Newspaper? Contacting senior management or legal at AHFC? Complaining to the dealer seems a waste of time as it is AHFC's issue, and I'm sick of spending hours on the phone with "Customer Service". I just hate to get ripped-off - the contract says I get a 60 day full purchase price refund and I want it. What do you recommend?
Why would you need an extended warranty on a leased car?
regards,
kyfdx
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Now I know I shouldn't have bought it till near the END of the Lease.
I read carefully how they've knitted together the 60 day cancellation language in one contract with the refund language in the other contract, but nowhere does it say that AHFC has the option of applying money paid to my account as either a "Principal" payment or a "Security Payment". In my opinion, a judge would find offering a 60 day refund then keeping my money for 3 years is not legal. Imagine charging then returning a wrong size shirt the next day and having the store say while it's 100% refundable, the credit won't go on to my Visa for 3 years.
I got the supervisor to call me back today and I think they will "make an exception" in my case because (before I canceled the contract) their customer service rep told me - and luckily was honest in telling them that he told me - that if I canceled my Honda Care Warrantee, the money would be applied to my monthly payments.
Honda Care says a check to AHFC is in the mail (it's now a month since the policy was canceled) and Honda Care and AHFC are actually the same company.
Are there any other Honda Care Cancellation customers who are facing this issue?
My advice, unless you want to spend about 20 hours talking to AHFC - DON'T BUY HONDA CARE UNTIL YOUR CAR IS ABOUT TO COME OFF WARRANTEE
:mad:
If the technician didn't fix it right, go back. Explain your trouble in detail. Sit in the car with a technician and point out your problem. If you don't like the first dealer, go to another one.
Does anyone know if signing the paperworks really has to be done at the dealership? How do dealerships claim that they'll deliver the car to your place? What's my recourse to avoid having to drive all the way back to the dealership?
Thanks in advance
I questioned it more than once and each person had a crafty response down pat. Never once did i get the same story, but the message was still the same. I was comfortable with the payment that worked out to be just $10 more than the original payment without the warranty. It made it sound like the warranty would only cost $10 a month or $720.
They used the same tactics, lowered my rate to make it less of a hit, but still sold the contract to me at full price. I am so angry that they are able to do that.
I've been assured that I won't lose on it and that if I sell the car or trade it in I can cancel the policy and Honda will send me a pro-rated check.
They claim to "buy down" the cost of the contract by lowering the interest rate.
The bank makes money on the loan via interest, not the dealership. The dealers make money by selling the warranty.
I don't know whether to pursue this further or not. I will enjoy the vehicle and hope that I never need the warranty, but if I do, it had better pay off in the long run.
:mad:
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I have a 2007 Odyssey with 5623 miles and I am interested in the 0 deductible/8 years/120,000, plan code D82. The lowest I found is $1195.00.
jet10000, "Honda Extended Warranties Pricing and Info" #2254, 29 Mar 2008 10:46 pm
" bought the Honda Care 7 year 75K mile extended warrantee for $1145 at the dealership Anderson Honda in E. Palo Alto under the assurance written into the contract and confirmed by the finance guy that I could get my money back if I canceled within 60 days. He said the money would go to the leaseholder AHFC and this would cover the first few payments. When I got home I saw that I could get the identical Honda Care Warrantee at www.hondacuraworld.com for $845 (and I can wait 3 years to buy it), so I asked the dealer to refund me the $300 difference or I would cancel - no deal. I called Honda Care and AFHC (2 phone numbers but same company) and they the customer service rep assured me that Honda Care would send a check to AFHC and AHFC assured me this check would be applied to my payments. So I submitted the form and canceled it. "
mackeyiv, you are freaking out, calm down. AHFC is not a fly by night operation. They will honor their word. Your cancellation of HCEW will be applied as a reduction of principle financed with your lender AHFC. They have to be paid, you financed, they lent. Anyway congratulations on not paying retail . Buy online or at least use their pricing to negotiate retail. HCEW will get back to you quickly. Relax.
See :
"wanted to let everyone know that it looks like AHFC did come through with crediting my account for the canceled Honda Care - so I can skip the payments for the next 3 months . After I finally got to talk to a supervisor and explained that "policy" or not, this is not what the contract says. They agreed not to count this credit as a security deposit, and instead as a payment - which is what the first Customer Service Rep who I talked to had told me they would. They said he made a mistake in telling me this but I'm just happy I don't need to wait 3 years to get my money back. "
The worries were imaginary, Glad for your good outcome.
But actually, 40 posts in Frontlines still is too many. The days with 75 were horrible.
One actual 'Story from the Frontline' per week makes it a good week.
"
One actual 'Story from the Frontline' per week makes it a good week. "
New sadness, I can remember when plus 60 was a good day, bad times indeed when extended warranties or what I paid for my Accord is the front runner.
As for buying it elsewhere, I don't have an answer. But it sticks somewhere deep in my memory that once you cancel Honda Care, you can't buy it again.
You may want to check with who you'd like to buy it from.
The money is yours, but you won't see it..
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I have a similar situation, I decided to buy Honda Care maintenance whenever I was buying my car to be able to get the best deal on it.
so after a negotiation with sales guy, he said I will be able to get it for 640$ which was great, BUT after a month I received the Honda Care vehicle service contract (only has oil changes), so I was able to talk to my sale guy using the live chat and he said that Finance did my paper.
I called the finance guy and according to him everything is correct because I signed on the VCS contract and if I want the maintenance one I need to pay an extra 200$.
any ideas