Friend of mine had this happen to him just last month. He went in to buy brand new 2020 Honda Passport Elite and they sold him the Honda Care for obscene amount. They told him if he takes the warranty, they'll lower his interest rate by 2 points. Not only that's a lie but it's illegal to make claims like that. He went from 5.49% with CapOne to 3.49%. Chances are he was already approved for 3.49% and the F&I lowlife lied to him. I wish I knew he was going to buy it right there and then on first test drive, I would have gone with him. Another thing that they cheated him on, he has 800+ credit rating (US). Honda offers 1.9% on 60 month loans. Luckily, he went to his Fire/Police credit union and got it knocked down to just 0.9%. He tried for days to get the warranty cancelled by the dealership and they wouldn't return his calls or emails. He finally called Honda directly and got in touch with someone from the warranty/service contract department. They emailed him the form and he filled it out and then faxed it to them. They cancelled it and applied the amount he paid to his principal (no refunds). Dealership took advantage of him and lost a customer for good.Just a quick update on this.
I overpaid on the Honda Care by a lot! Next to this the dealer said that I could only could get a good rate if I purchased the Honda Care Warranty. In any case I was dismayed by this when I found out that you could purchase the Honda Care online for half of what it cost at the dealer. Next to this making the warranty purchase a condition of your finance rate is a scam!
I called Honda Care what the procedure was for cancelling. They emailed me a form and I emailed it back even though it tells you to fax it. There were questions I could not answer but that was all fine, no reason to go back to the dealer to get anything done. Also no questions on why I wanted to cancel. In any case I just received my refund deducted on the principal of the loan amount. My rate, payments everything will stay the same. It just means I pay the car of earlier.
I am still planning on purchasing the Honda Care warranty online using one of the three listed for best price.