Useless Non Honda Extended Warranty sold by Honda Dealer
Bought Honda CRV 2014 EXL in December mid with $27700 out of the door price in TX. I was good with that price but get trapped with extended warranty(Non Honda) of $2200. After 2 days from the date of purchase realized that this extended warranty is useless and approached Finance guy.
This guy didn't get ready to cancel extended warranty. According to him Honda Financing is not ready to give loan on 0.9% interest, so that they need to pay some money to lender to bring down the higher interest rate (Never did more than $10 grand transaction in past) to 0.9%.
At last honda agreed to finance CRV with 0.9%. After few days when reached him out again to cancel extended warranty, Whenever you pay off the loan policy can be cancelled at any time.
Paid 2 EMI and wanted to know from you guys, how to cancel this non honda warranty (ready to bare loss of $100 to $300 upon cancellation) now with out impacting my honda financing 0.9% interest and 3 years tenure.
Just wondering when honda dealer has sold this policy to me, how dealer can come into the picture when signed on agreed with third party to get extended warranty. Its obvious dealer must made $1000 to $1500 to sold out this warranty and may be bring down higher interest rate for me.
Please share your expert opinions to how to get out from useless warranty with out impacting loan terms.
Your advice is highly appreciated.
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Bought honda CRV 2014 EXL in December mid with $27700 out of the door price in TX. I was good with that price but get trapped with extended warranty(Non Honda) of $2200. After 2 days from the date of purchase realized that this extended warranty is useless and approached Finance guy.
This guy didn't get ready to cancel extended warranty. According to him Honda Financing is not ready to give loan on 0.9% interest, so that they need to pay some money to lender to bring down the higher interest rate (Never did more than $10 grand transaction in past) to 0.9%.
At last honda agreed to finance CRV with 0.9%. After few days when reached him out again to cancel extended warranty, Whenever you pay off the loan policy can be cancelled at any time.
Paid 2 EMI and wanted to know from you guys, how to cancel this non honda warranty (ready to bare loss of $100 to $300 upon cancellation) now with out impacting my honda financing 0.9% interest and 3 years tenure.
Just wondering when honda dealer has sold this policy to me, how dealer can come into the picture when signed on agreed with third party to get extended warranty. Its obvious dealer must made $1000 to $1500 to sold out this warranty and may be bring down higher interest rate for me.
Please share your expert opinions to how to get out from useless warranty with out impacting loan terms.
Your advice is highly appreciated.
1) I don't think they can change your loan terms, because you cancel the warranty.
2) Your warranty documents should include cancellation procedures, but now that it's over 60 days, I'd guess you will take a big, big hit.
3) If you do cancel, any refund will be put towards your financed amount, unless you specifically paid for the warranty, separately. You'll still benefit from the refund, but it won't lower your payment, your car will just be paid off earlier.
4) Your dealer is probably trying to delay you from doing this, so they don't get a chargeback on their commission or markup.
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Thanks for your reply. This warranty is supported by Ethos Group. Any advice will be appreciated.
This warranty is supported by Ethos Group. Any advice will be appreciated.
In addition to the advice you got from Kyfdx in your other discussion, you could try filing a complaint at the consumer protection agency or AG's office in Texas or maybe the insurance commissioner since extended warranties are often considered an insurance product. And you can write a Dealer Review here, and at Yelp and the other "gripe" sites. And if the dealer is on Facebook or Twitter, that's another way to express your complaint.
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I have paid $2200 for this extended warranty, usually how much money could be deducted out of paid money when extended warranty didn't leveraged so far...
kyfx@ - Please share your guess for this hit ( I'd guess you will take a big, big hit.)
FYI- I merged the two discussions so you don't have to jump back and forth.
I've got no idea... The only extended warranty I've purchased was HondaCare on a 2002 CR-V for 7yrs, 100K miles... and, I never had one claim (and, I took the car over 100K miles). So, that was $1000 gone, and I've never considered another one.
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Buying an extended warranty is like buying insurance. Very expensive insurance!
Had that been an European car the 1000.00 you spent would have probably been 5000.00 and for good reason!
Late to the discussion. An auto loan is never tied to an extended warranty. Whatever terms you agreed too on the loan was based on your ability to qualify. If the F&I person says otherwise, it is a lie.
Regarding the refund on the warranty. If the cost of the warranty was included in the financed amount, you will not receive a refund. You will receive a reduction on the principal of the loan. This will not reduce your monthly payment but will reduce the number of payments. If you request the exended warranty, which is really an extended service contract, e cancelled the F&I person must process the cancellation. Of course, the F&I person will be very reluctant as he or she likely made a lot of money.
If the F&I person refuses to comply with your wishes, you should contact the dealer GM or even owner. If they refuse, call Honda or your States Attorney General.