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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.
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.
 

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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.
Your friend went to this dealership and bought a $43,000 SUV without doing researching into financing, interest rates, and warranty prices beforehand?

It's ultimately up to the consumer to be informed and research things before they head into the dealership. Most dealers will try to sell you a car at the highest price with the highest-cost financing and most expensive warranty possible. That's how they make money these days.

Anyone wanting to buy a vehicle should check their credit score and investigate competitive interest rates before going into the dealership. If your friend had looked into Honda's incentives before heading into the dealer- he would have noticed the low interest rate for people with top-level credit scores. That's again up to the consumer to look into before walking into the dealership.

It does seem shady that they promised him a lower interest rate if he opted for an extended warranty. That said- he wasn't forced into anything and as a consumer- he was free to get up and leave at any time and ultimately your friend agreed to the terms when he was at the dealership. Dealerships tend to take advantage of people who aren't informed or don't take the time to research things. In today's world of 'everything online', there's really no excuse for people not to research these things before heading into a dealer and buying a new vehicle. I couldn't imagine agreeing to finance a $43,000 SUV at the interest rates that he was offered by the dealer with his credit score. I would have laughed and left the dealership and taken my money elsewhere.
 

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Your friend went to this dealership and bought a $43,000 SUV without doing researching into financing, interest rates, and warranty prices beforehand?

It's ultimately up to the consumer to be informed and research things before they head into the dealership. Most dealers will try to sell you a car at the highest price with the highest-cost financing and most expensive warranty possible. That's how they make money these days.

Anyone wanting to buy a vehicle should check their credit score and investigate competitive interest rates before going into the dealership. If your friend had looked into Honda's incentives before heading into the dealer- he would have noticed the low interest rate for people with top-level credit scores. That's again up to the consumer to look into before walking into the dealership.

It does seem shady that they promised him a lower interest rate if he opted for an extended warranty. That said- he wasn't forced into anything and as a consumer- he was free to get up and leave at any time and ultimately your friend agreed to the terms when he was at the dealership. Dealerships tend to take advantage of people who aren't informed or don't take the time to research things. In today's world of 'everything online', there's really no excuse for people not to research these things before heading into a dealer and buying a new vehicle. I couldn't imagine agreeing to finance a $43,000 SUV at the interest rates that he was offered by the dealer with his credit score. I would have laughed and left the dealership and taken my money elsewhere.
He's a great guy but naive in nature and has no experience buying cars. He had 3 cars in the last 20 years (this being the 3rd one). Putting the blame on the unsuspecting consumer is not fair. Just because someone doesn't know something due to lack of experience and not knowing better is not an invitation for the dealership or any business to rob that person and take advantage of them. Just because something doesn't constitute fraud, doesn't make it OK.
 

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He's a great guy but naive in nature and has no experience buying cars. He had 3 cars in the last 20 years (this being the 3rd one). Putting the blame on the unsuspecting consumer is not fair. Just because someone doesn't know something due to lack of experience and not knowing better is not an invitation for the dealership or any business to rob that person and take advantage of them. Just because something doesn't constitute fraud, doesn't make it OK.
I agree that the dealer that your friend used was far from kind... but what you call a 'unsuspecting consumer' I call an 'uninformed consumer'. Uninformed consumers get taken advantage of in almost all areas of retail. People who don't take the time to look for coupons pay more for stuff at the grocery store compared to those who do look for coupons. People who shop around for a new stove will likely pay less for the same store compared to the consumers who just go and buy the same stove from the first place they shop and haven't taken the time to research/compare delivery and installation prices. People who buy Legos from the actual Lego store usually pay a little more than people who buy the same sets on Amazon or at Walmart- which usually sell many sets for less than full retail price.

Unsuspecting and uninformed are two very different things.

Hopefully your friend learned his lesson and the next time they buy a car they will do some research before walking into the car dealership.
 
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I agree that the dealer that your friend used was far from kind... but what you call a 'unsuspecting consumer' I call an 'uninformed consumer'. Uninformed consumers get taken advantage of in almost all areas of retail. People who don't take the time to look for coupons pay more for stuff at the grocery store compared to those who do look for coupons. People who shop around for a new stove will likely pay less for the same store compared to the consumers who just go and buy the same stove from the first place they shop and haven't taken the time to research/compare delivery and installation prices. People who buy Legos from the actual Lego store usually pay a little more than people who buy the same sets on Amazon or at Walmart- which usually sell many sets for less than full retail price.

Unsuspecting and uninformed are two very different things.

Hopefully your friend learned his lesson and the next time they buy a car they will do some research before walking into the car dealership.
I agree, I'm not saying you're not right. Maybe I'm biased because I have aversion towards dealerships to begin with and this kind of stuff just fuels my total and utter disgust with them. Their whole business model is based on 50 year old system. Car companies need to get rid of franchises and go Tesla route where the stores are corporate. Or half and half, like cell carries do. I won't go near franchise T-Mobile store. When I need something, I drive out of my way to go to the one that's run by T-Mobile directly. CarMax is another example where things are transparent. Their prices are higher but you go in, the person gets same cut whether he sells you $15K or $50K car, you get to see finance rates right there at his desk, no back offices where you go after being worked for 4-5 hours to "just sign the paperwork" to get your guard down yet another whole high-pressure sales process starts, etc. He learned his lesson the hard way but luckily both the APR and warranty were correctable.
 

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I agree, I'm not saying you're not right. Maybe I'm biased because I have aversion towards dealerships to begin with and this kind of stuff just fuels my total and utter disgust with them. Their whole business model is based on 50 year old system. Car companies need to get rid of franchises and go Tesla route where the stores are corporate. Or half and half, like cell carries do. I won't go near franchise T-Mobile store. When I need something, I drive out of my way to go to the one that's run by T-Mobile directly. CarMax is another example where things are transparent. Their prices are higher but you go in, the person gets same cut whether he sells you $15K or $50K car, you get to see finance rates right there at his desk, no back offices where you go after being worked for 4-5 hours to "just sign the paperwork" to get your guard down yet another whole high-pressure sales process starts, etc. He learned his lesson the hard way but luckily both the APR and warranty were correctable.
I think that your 'aversion' towards dealerships is very common. I think the only people that enjoy going to the dealership are the people who actually own and profit off the dealership... maybe a few employees. Most people dislike the vehicle buying process. I don't mind it at all. I consider it like any business transaction that involve a larger purchase. As a consumer, I research the models I am interested in before I arrive at the dealership(s). I narrow it down to a specific car or two on the lot and then spend a few days investigating prices, insurance rates, interest rates, finance options, and other things. I know exactly what I want and am willing to pay before I step foot on the dealer's lot. I make it clear to them immediately that have done my research and more often than not- that will prevent 95% of the BS that most people despise. Going in prepared and informed has always saved me lots of time, energy, frustration, and ultimately money. I know people that do have 4-6 hour car buying experiences. I think I'd walk out long before I sat in a dealership that long.

Once all the research is done- then I step foot on the lot- do some test drives- and then start the transaction on the car I decide on. I'm not a jerk to the dealer- I just make sure to communicate to them that I understand that the dealer is entitled to make a profit, the salesman is entitled to a commission based on the time they spend with me, and I as the consumer am entitled to a fair deal. As soon as this is understood among all parties- most of the time it results in a quick and painless transaction.
 
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There is no federal law regarding interest rates when it comes to car purchases. Some states do have rate caps. Barring a cap, a dealer can offer you any rate they please. It does not have to be the lowest rate possible. If you agree to it, that is on you.
 

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There is no federal law regarding interest rates when it comes to car purchases. Some states do have rate caps. Barring a cap, a dealer can offer you any rate they please. It does not have to be the lowest rate possible. If you agree to it, that is on you.
Correct. It is however illegal to say you HAVE to buy warranty in order to get lower interest rate. If they said we'll give you a deal on your interest rate if you buy this warranty, that's another thing and it's fine. APR is just another thing that is up for sale and negotiation.
 

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British jurist Lord Moulton said, "Law requires obedience to the enforceable, while ethics requires obedience to the "unenforceable."

It's ultimately up to the consumer to be informed and research things before they head into the dealership.
Same with maintenance work.

It is however illegal to say you HAVE to buy warranty in order to get lower interest rate.
Actually, it is not illegal to say that. They lie. A lie is not "illegal".

"We can get a black 2.0 with auto trans on our lot in three days because we tell Honda how we want them, but we need a deposit of $1,000 now."
"I just checked our Honda network, and this 2020 white Honda 1.5T EX with CVT is the last one in the USA. So, no price break for you, pal."
"If you want that car you have to buy pinstripes and our 3 year full oil change plan."
"Yeah, KBB says your 2019 Camry Sport with 12,000 miles has a trade-in value of $3,000 so that's the best we can do."

 

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So I looked into the Honda care a little closer.
It states they cover the Nickel Metal Hydride battery, The accord has a Lithium battery as far as I know. I called the Honda care line and their answer was "...well if that's what it says...I guess its not covered" So if the battery gives up, do you then just kind of have a regular accord? or does it stop running altogether?
 

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So I looked into the Honda care a little closer.
It states they cover the Nickel Metal Hydride battery, The accord has a Lithium battery as far as I know. I called the Honda care line and their answer was "...well if that's what it says...I guess its not covered" So if the battery gives up, do you then just kind of have a regular accord? or does it stop running altogether?
I thought that Honda provides an 8 year/100,000 mile warranty on hybrid components- including the battery- on all Accord Hybrids? Would buying Hondacare even get you additional coverage on the hybrid components?

That said- I wasn't able to find it on Honda's website... but I didn't spend a lot of time looking.
 

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I thought that Honda provides an 8 year/100,000 mile warranty on hybrid components- including the battery- on all Accord Hybrids? Would buying Hondacare even get you additional coverage on the hybrid components?

That said- I wasn't able to find it on Honda's website... but I didn't spend a lot of time looking.
Correct, it's 8 years 100k for the battery. I wouldn't be surprised though if they match Toyota's hybrid battery warranty of 10 years 150k in the near future.

 

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So I looked into the Honda care a little closer.
It states they cover the Nickel Metal Hydride battery, The accord has a Lithium battery as far as I know. I called the Honda care line and their answer was "...well if that's what it says...I guess its not covered" So if the battery gives up, do you then just kind of have a regular accord? or does it stop running altogether?
Please see the included excerpt from my Honda Care Contract on my 2020 Honda CR-V Hybrid Touring.

I've wondered about this too.... Sounds like the previously used nickel-metal hydride battery was covered under HondaCare, so I would assume that the Lithium Ion battery now used is covered too. But if not, Honda already puts an 8 year/100,000 mile warranty on their hybrid batteries from the factory which is about as long as any HondaCare plan that you can purchase.

523031
 

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I called Honda Care and asked them about the NMh batter vs Li. The reply I got: "Well ..if that's what it says...then I guess yours would not be covered" I was unable to get any further information.
Like others have said it has an 80% life coverage to 100k so that give me 2.5 - 3 years. I did call CNA about their coverage. They do cover the LI battery BUT: It is a 70% life, and it has to be tested and proven to only have 70% left. IF it is tested (three tests) and DOES have 70% or more the car owner pays for the tests as well.
 

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I called Honda Care and asked them about the NMh batter vs Li. The reply I got: "Well ..if that's what it says...then I guess yours would not be covered" I was unable to get any further information.
Like others have said it has an 80% life coverage to 100k so that give me 2.5 - 3 years. I did call CNA about their coverage. They do cover the LI battery BUT: It is a 70% life, and it has to be tested and proven to only have 70% left. IF it is tested (three tests) and DOES have 70% or more the car owner pays for the tests as well.
Can you please cite a source for this and to your previous post? Thank you.
 

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I called COAF to inquire. Person I spoke to told me there are only 4 factors that are used to determine APR: Credit history, size of down payment, age of the car and length of the loan. I asked specific question “Can dealer offer to lower APR if I buy warranty from them?” – Answer was simple and short no. My next question required to be transferred to another department where I asked, “Is it legal?” – The person told me it is scam. I wasn’t lazy, and I asked lawyer on Avvo – (website where you can get free legal advice direct from experienced lawyers). IF the scam involves financial benefit to the person doing it (knowingly), then yes, it is illegal as it, I quote: “Constitutes fraud in service of committing a felony”.
Take it for what it's worth but it sounds like if someone gets manipulated into warranty by being told it's necessary in order to get better interest rate; the person has legal recourse. What happens at the court may be one or the other but the grounds are there. How many people will actually go through with it, probably very few because lawyers and court costs are most likely more than what the person paid for the warranty. Not to mention lost time. Which is probably the very thing dealerships who take part in scams like that are counting on.
 

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