Financed Extended Warranty

[AliLaPointe]

Alright guys, I am EXTREMELY happy with my new civic. Drives like a champ. I did, however, make the mistake of buying the extended warranty from the dealer for... you ready? 1500 big ones... right in the arse without vaseline huh? In any case, I didnt have any cash up front so i rolled it into financing. I want to know what you guys would recommend doing. I want to have the extended warranty, but I KNOW i can get it for 1/3 of the cost. I dont have the money to put up front though. Any ideas?

[cderalow]

up front cost on the warranty through an online retailer is about $980. What you can do, is cancel the one you bought through the dealer, they will refund you that amount, then take that refund check and apply it to your loan.

Then, save up the $$, and buy it online. as long as you buy it within the original 3 year, 36k warranty, it'll cover pretty far. if you do it within the first 6000 miles, I want to say you can get the full benefit of a 8 year 120k coverage.

please note, if you live in a couple of states, it is not legal or you to purchase a warranty from a dealer in another state (florida comes to mind for that one)

[Leonard1818]

I just did the EXACT same thing as the TS.

I bought the warranty from the dealership (but for $1600). And it wasn't even a Honda Care, it was a 3rd party.

I cancelled it. The $1600 should show up on my next bill as being credited toward the amount I owe on the car.

I then went to the following location:

https://www.myhondawarranty.com/coverage.php

And bought a hondacare for $825. The paperwork should be here in the next 4-6 weeks. Saved about 1/2 on the warranty. Let this be a lesson to anyone. Unless your dealership can give you a Honda Care warranty for $825, do not buy it from them. Buy it the same day as you buy your car if you want, just buy it online.

[HTX]

can u cancel anytime or is there a certain period u have to do it before its too late? I've had my car over a year already. Oh and i financed it as well. loan is with a credit union not honda.

[Carlito's Way]

Yeah same thing with me. Bought Honda Care from the dealer. Cancel it a few later after I found out I can buy online for half price.

[IceWindius]

I bought the Honda extended program from Honda directly which covers my car through the entire 6 year loan. Figured, hell if it pays for a major repair even once, its worth it. Got the GAP coverage also to make sure my ass was covered just in case.

[kgeier82]

Originally Posted by IceWindius

I bought the Honda extended program from Honda directly which covers my car through the entire 6 year loan. Figured, hell if it pays for a major repair even once, its worth it. Got the GAP coverage also to make sure my ass was covered just in case.

did you put down more than 40% on your new car? just curious.

GAP is highly subjective. Ive been in several sales where i was told flat out it was MANDATORY to purchase. Here in MD, its not, and its a big lawbreaker to say otherwise. One lady was actually fired for it. She had been doing it for years. Very shady, and ill never go to that toyo dealership (enter honda ) :)

[IceWindius]

Originally Posted by kgeier82

did you put down more than 40% on your new car? just curious.

GAP is highly subjective. Ive been in several sales where i was told flat out it was MANDATORY to purchase. Here in MD, its not, and its a big lawbreaker to say otherwise. One lady was actually fired for it. She had been doing it for years. Very shady, and ill never go to that toyo dealership (enter honda ) :)

No, I had no money to put down on it. I tried to sell my 04 Accord V6 Coupe but I wasn't having luck and was getting sick of all the BS in trying to sell my own car. The dealership was gonna give me extra for my trade in, so I went for it. With the negative equity from my Accord added to the Civic plus my options and accesories, im 28+ grand in the hole, so hence, I went with the GAP.

[tropic]

I bit on the $1600 extended warranty at the dealership as well and let them roll in into the financing through my credit union. Supposedly I'll get it back minus a $50 fee upon the completion of the extended warranty period.

I guess I paid a $50 fee to loan them $1600 for seven years... while paying interest on the loan myself. Meh. I suppose they make enough return on investing the $$$ to offset Average Joe's warranty claims during that period. But no harm, no foul. It gives me some peace of mind, so I guess it's all good.

[EXcoupe]

Originally Posted by HTX

can u cancel anytime or is there a certain period u have to do it before its too late? I've had my car over a year already. Oh and i financed it as well. loan is with a credit union not honda.

This depends on the state and the contract. I purchased a 7yr/100K mile extended warranty on a Jeep which was represented as a DaimlerChrysler contract that turned out to be a 3rd party contract. After 16 months/27K miles of Jeep hell, it had to go and went to cancel the contract. The dealer only wanted refund the unused proration (73%) of the premium. Eventually they agreed to refund the entire amount but only after reminding them they were lucky to not have been sued over the Jeep.

[IceWindius]

Originally Posted by EXcoupe

This depends on the state and the contract. I purchased a 7yr/100K mile extended warranty on a Jeep which was represented as a DaimlerChrysler contract that turned out to be a 3rd party contract. After 16 months/27K miles of Jeep hell, it had to go and went to cancel the contract. The dealer only wanted refund the unused proration (73%) of the premium. Eventually they agreed to refund the entire amount but only after reminding them they were lucky to not have been sued over the Jeep.

Why the hell did you buy a Jeep in the first place?

[0720Steve]

"Sales to California are temporarily on hold, while we research California laws and statutes. Please check back in a few days."

[08lxciviccoupe]

Did anyone catch grief when they canceled there extended warranty? I expect to when I get to the dealership today, the finance guy I had was a bit of a "bulldog" when I was there the first time. If I do have problems can any dealership or the good people at Hona Care cancel this and cut me a refund check? The car is 23 days old.

[hebertj0194]

How did everyone go about cancelling their contract? Also, how long had you had the extended contract before you cancelled? I bought my car 2-2.5 months ago. I can't think off the top of my head how much I paid for the contract, but if the same warranty is sold online at a cheaper price, then why not? you pay 1500 for it up front and then roll that into the loan, you obviously pay more. This can save money!!

The warranty sold at that site is the exact same as you get at the dealership? From their site it seems as though it is, just shocking. Who has purchased from that site?

[Leonard1818]

Just to give you guys a bit more detail on my situation and hopefully it will help you in yours:

I purchased my car Feb 20, 2008.

When I bought it, I really wanted an extended warranty so I knew I would get one. They offered, I bit.

Everything was dandy till one day I go to get my mail and get something from some company (I don't even remember the name) marked "Important warranty information enclosed". I opened up this envelope to find a warranty booklet with little warranty cards and everything in my name. I knew immediately this wasn't a HondaCare warranty (the extended warranty I WANTED to buy in the first place).

I started doing my research online, something I should have done before even going in... I found that not only did I get hosed with a 3rd party warranty, but It didn't go as long as a HondaCare and was 2X as expensive!

I read thru the warranty booklet about the extended warranty. The only thing this one had over the HC warranty was that at the end of the 100K miles, if I had not used it, it would be refunded. Big deal, I'm sure I'll use it at least once.

So I read the fine print and it says that it can be cancelled within 60 days of purchase. I contact the dealership and said WTF, what is this warranty, I want to cancel it. We played phone tag for about a week but I finally got the warranty cancellation sheet faxed to me, filled it out, faxed it back. I called to ensure it went thru and they told me it did and that since I have a loan out for my car, the warranty refund will go back to the lienholder (which is Honda finance). So my $1,595.00 should be credited to the total I owe on my car. I then went online and went to saccucci (sp?) honda and bought a HC warranty for $825.

In all fairness, I asked the finance guy what price he could get me a HC for and he said $925. I said no thanks... You have to be careful though cause the good HC warraties (mine's a D72 I think...) can only be applied to a "new" car. This means you have to have < 6000 miles on your car. I only had like 4K when I got my HC warranty purchased.

I have yet to get a new bill for my car to make sure that the $1,595 was credited to my payoff and I haven't received anything from Honda for my new HondaCare warranty.

But that should be pretty much the process. For those of you who purchased a 3rd party warranty like me, you should have received some information about the warranty and the cancellation process. Read it. There may be a section that says you can cancel for up to 60 or 90 days after purchase. It may go on to say if it's past that time period, you can cancel but will only get the balance of the warranty (kinda what the guy with the jeep was saying) meaning you've had the car for 25K miles, the warranty goes for 100K, they'll give you 75% of your money back... shitty, I know.

I hope this helps some of you. Here's some cliffs:

-Your warranty should have some info on it... A booklet or paper or something. Read it, call the dealer, ask questions.

[0720Steve]

just go in there and ask for a honda-care cancellation form. it is simple, quick and easy. you'll need some information though.....from what i remember you need some little pink square paper from when you bought the car, it's one of the millions of papers you filled out. call and ask what you need to bring, if anything, to show them. i'm not sure exactly what bit of information they need from you. just call the dealership, ask for someone in finance and then ask about that form and they can tell you what to do.

[IceWindius]

So you can actually cancel the extended warranty period, even if its directly through Honda?

[Leonard1818]

Originally Posted by IceWindius

So you can actually cancel the extended warranty period, even if its directly through Honda?

Read the HondaCare information. I would have read mine but don't have it yet. It should be in the literature somewhere.

[darna]

i had honda care and i cancel it within 60 days no questions ask. i went to dealership told them i dont want them anymore. guy went to his office came back with the cancellation order. i signed it and off i go, took me less than 5 minutes.

to people out there who thinks they're gonna get their money back will be dissapointed. the money will go direct to your loan not to your mail.

[AliLaPointe]

So yeah, i just went and canceled my 3rd party warranty. In any case, how long was it before you guys saw it appear on your statement?