| rossdm |
I'm evaluating using an extended Honda Care warranty as a negotiating tool on a new '07 Pilot.
My question is - how does the dealer "pay" for the Honda Care Warranty they sell you? Does it have a cost to them up front, like any other Honda accessory (i.e. do they buy it from Honda and resell it to you), or do they pay only if/when you bring your covered car in for service, i.e. they eat the repair charge?
Can someone tell me how that works? That will give me an idea of how much leverage I can get using that as a throw-in item.
Unfortunately I'm in Florida where we pay about twice as much as the rest of the country for our extended warranties, thanks to our fantastic state legislators!
Thanks,
Dave |
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| deparson |
Since it is a service contract with HondaCare and not your dealer the dealer is going to pay their cost for the policy when it is sold to you.
I don't know what their cost is but you can get a good idea by pricing them on-line and taking thoes numbers into the dealer. The on-line sellers are just normal dealers that offer these contracts for much less than most dealers do.
So, if it costs you $600 on-line you can figure there is some profit in that and go from there. Ask your dealer to 'make it worth your while to buy it from them' vs. online. If they won't beat it then just buy it online.
Make SURE you purchase a HondaCare policy no matter where you buy it; not a 3rd party service agreement.
-D |
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| rossdm |
I CAN'T buy it online. I live in Florida. Florida law treats extended car warranties as "insurance", thus is regulated by the Florida state legislature, which is a wholly-owned subsidiary of Florida's insurance lobbyists. :mad:
So I MUST buy my Honda Care warranty from my local dealer (or any Florida Honda dealer, which all charge the same ridiculous prices).
So I'm stuck trying to get the best price from my local dealer. That's why I'm asking about the cost to the dealer.
The online prices might be a good starting point in negotiations, though.
Thanks,
Dave |
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| deparson |
Oh, yeah that sucks.
Remeber that even at dealer cost a HondaCare plan will, on average, cost you more money* than it will save in repair costs. So, at the crazy dealer 'list' prices you stand to loose a lot of money.
If I could not get it at or below the online prices I would put that money in a CD and use it to pay any repair costs that might come up down the line.
*You are paying for overhead, HondaCare profit to Honda USA, and marketing/admin costs. |
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| rossdm |
I have to get some TREMENDOUS interest on a CD to cover the cost of my transmission replacement! :eek:
Dave,
only half-kidding |
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| plchan |
quote:
Originally posted by deparson
Since it is a service contract with HondaCare and not your dealer the dealer is going to pay their cost for the policy when it is sold to you.
I don't know what their cost is but you can get a good idea by pricing them on-line and taking thoes numbers into the dealer. The on-line sellers are just normal dealers that offer these contracts for much less than most dealers do.
So, if it costs you $600 on-line you can figure there is some profit in that and go from there. Ask your dealer to 'make it worth your while to buy it from them' vs. online. If they won't beat it then just buy it online.
Make SURE you purchase a HondaCare policy no matter where you buy it; not a 3rd party service agreement.
-D
That is true. I purchased a HC online for $1230 (8yrs with 120k miles - max term I could get). However, the local dealer wanted (and actually, they DID) to sell me 5yrs / 100k miles for $2300. I thought I got a deal! (how stupid I was!) Then I went to carspace.com and read that I could purchase online for so much less with much more coverage. I went back to the dealership to cancel the HC and GAP insurance. I, then, purchased one from online. I also verified the coverage with Honda mfg directly and they confirmed my new coverage is activated. |
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| plchan |
quote:
Originally posted by rossdm
My question is - how does the dealer "pay" for the Honda Care Warranty they sell you? Does it have a cost to them up front, like any other Honda accessory (i.e. do they buy it from Honda and resell it to you), or do they pay only if/when you bring your covered car in for service, i.e. they eat the repair charge?
From what I read and understand, dealer does not have to pay any of your repair charge. The claim is to Honda USA directly. Dealer jus files the paper work, correct the money, and pay back to Honda USA for whatever Honda sells to them in whole-sale price.
As my previous post mentioned, I called to Honda USA to verify my new coverage. The agent was amazed such as a good deal I could get (the new one). I asked them if Honda USA sells the contract to dealer for the same price. She did not answer me directly; however, she said Honda USA sells the HC to the dealers in a whole-sale price. Just like the car. She mentioned it is up to the dealer how much they would want to resell to the consumers.
Remember, you always can purchase a Honda care for your new Pilot within the first 6000 miles from any of the local dealerships in FL. You might want to check out the cost on HC from other dealerships in your area.
Plus, you might not have much power to put the HC as part of the price bargaining tool. It is because dealers know you can't purchase the HC online. |
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| jl_ss |
quote:
Originally posted by rossdm
I have to get some TREMENDOUS interest on a CD to cover the cost of my transmission replacement! :eek:
Dave,
only half-kidding
Pilots haven't experience the Honda V6 tranny failures that other models have. For the other models that did have a large number of failures, Honda usually picked up the cost of the tranny anyway. However, the Pilot now has Honda/Acuras redesigned tranny so it's even less of a concern.
I'm 50/50 with the last two Hondas we kept past 100K. I did not have the extended warranty for either. One would have been unused and the other would paid paid more than twice it's price in repair costs.
The Pilot hasn't really shown any significant cost problems. I bought my extended warranty at a time when the transmission issue was still unclear. I probably wouldn't buy it now. |
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| rossdm |
quote:
Pilots haven't experience the Honda V6 tranny failures that other models have.
Wanna drive mine? :eek: |
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| th10000 |
Quote from Rossdm: So I MUST buy my Honda Care warranty from my local dealer (or any Florida Honda dealer, which all charge the same ridiculous prices). So I'm stuck trying to get the best price from my local dealer. That's why I'm asking about the cost to the dealer.
Rossdm, there is NO negotiating in Florida. They are all required to charge full MSRP by the Florida law you already mentioned. In other words, every dealer will quote you the exasct same rediculously high price.
Just a thought though as I am writing this. A FL dealer must charge full MSRP for the HC warranty, but nothing would stop them from "throwing in some accessories" like side steps? I wonder if I can get my dealer to "negotiate" that way - probably not as there would be no incentive for them as where else are you going to get the HC warranty. |
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| rossdm |
No negotiating on warranty price in Florida?
Hmmm...that's funny - I've been quoted three different prices for the same 7/100 Honda Care warranty from three different dealers.
Dave |
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| switch |
quote:
Originally posted by rocky
Buy if from the site Sponsor. Its a Honda product and good within the USA.
http://www.hondacuraworld.com/Merch...egory_Code=WARR
From your link:
PLEASE NOTE: Your car must be in factory warranty
to qualify for one of these extended warranty policies.
These policies are not available to Florida residents. |
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| jl_ss |
quote:
Originally posted by rossdm
Wanna drive mine? :eek:
Perhaps I should have phrased that differently. Pilots haven't experience the HIGH Honda V6 tranny failure RATE that other models have. There have been a few tranny failures posted here but they are well within a normal rate. And people seek out internet forums to help solve their problems so problem rates usually appear inflated on forums. All manufacturers have a transmisison failure rate. The Honda problem vehicles have tranny failure rates as high as 25% (CR quotes this percent for the 2001 Acura CL). There have been no where near that number of tranny problems posted here. Consumer Reports gives the 2003/2004 Pilot tranny a better than average rating and the 2005/up gets a much better than average rating. The competing Ford Explorer gets a much worse than average for 2002-2004, worse than average for 2005, just average for 2006. |
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| rossdm |
quote:
Originally posted by jl_ss
Perhaps I should have phrased that differently. Pilots haven't experience the HIGH Honda V6 tranny failure RATE that other models have. There have been a few tranny failures posted here but they are well within a normal rate. And people seek out internet forums to help solve their problems so problem rates usually appear inflated on forums. All manufacturers have a transmisison failure rate. The Honda problem vehicles have tranny failure rates as high as 25% (CR quotes this percent for the 2001 Acura CL). There have been no where near that number of tranny problems posted here. Consumer Reports gives the 2003/2004 Pilot tranny a better than average rating and the 2005/up gets a much better than average rating. The competing Ford Explorer gets a much worse than average for 2002-2004, worse than average for 2005, just average for 2006.
You are correct - I was being a bit facetious.
:D |
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| th10000 |
Hmmm...that's funny - I've been quoted three different prices for the same 7/100 Honda Care warranty from three different dealers.
Rossdm,
What are the prices you have been quoted? The only FL dealer I have found to quote online is Delray Honda and they are charging $2,440 for 7yr/100K. :eek:
I'd like to buy a HC in FL but according to the state law, dealers are all supposed to charge the same. Our Florida legislators don't want anyone paying "more" than anyone else so they passed the law that we all have to pay the same full MSRP price. |
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| rossdm |
I was quoted $1304 from Crown Honda in Pinellas Park, $1695 from Brandon Honda and $1800 from Gateway Honda in New Port Richey.
These were all part of a quoted deal for a 2007 Pilot EX-L, so I'm not sure if these prices would apply to a stand-alone deal for just the warranty.
Dave |
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| TheEaglePilot |
quote:
Originally posted by th10000
What are the prices you have been quoted? The only FL dealer I have found to quote online is Delray Honda and they are charging $2,440 for 7yr/100K. :eek:
At that price, I would thank them for making my decision easy... my decision not to buy one.
Chris |
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| GreenMachine |
quote:
Originally posted by rossdm
I CAN'T buy it online. I live in Florida. Florida law treats extended car warranties as "insurance", thus is regulated by the Florida state legislature, which is a wholly-owned subsidiary of Florida's insurance lobbyists. :mad:
So I MUST buy my Honda Care warranty from my local dealer (or any Florida Honda dealer, which all charge the same ridiculous prices).
So I'm stuck trying to get the best price from my local dealer. That's why I'm asking about the cost to the dealer.
The online prices might be a good starting point in negotiations, though.
Thanks,
Dave
Like you, I live in Florida. I was a little torn on this issue when we bought our '06 Pilot because first, it's a Honda (zero problems with our '01 CR-V), and two, they increased the powertrain to 5yrs/60K miles. I knew about the better pricing available to those who didn't live in Florida, so I offered to buy the warranty if they would take the difference between the discounted price on the Internet and the ripoff price to Floridians off the price of the truck. They didn't, so that made my decision easy, no extended warranty.
The finance guy didn't like me because I didn't buy a thing from him. :D |
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| ctgrain |
First of all IMO, buying a Honda, you are wasting your money buying an extended warranty. You can make a LOT of repairs for the $2400+ it will cost you. These are typically not "bumper to bumper" and require a deductible every time you use it.
Put $50 a month in a money market account and when you are ready to buy a new Honda, it's a few grand towards the down payment. |
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| rossdm |
quote:
Originally posted by ctgrain
First of all IMO, buying a Honda, you are wasting your money buying an extended warranty. You can make a LOT of repairs for the $2400+ it will cost you. These are typically not "bumper to bumper" and require a deductible every time you use it.
Put $50 a month in a money market account and when you are ready to buy a new Honda, it's a few grand towards the down payment.
Not if my transmission fails, as it's doing in my '03 Pilot. |
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| jl_ss |
quote:
Originally posted by rossdm
Not if my transmission fails, as it's doing in my '03 Pilot.
Has Honda rejected paying for it? They are paying full to partial cost for most transmission replacements (outside of warranty) depending on the age/mileage these days. |
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| rossdm |
quote:
Originally posted by jl_ss
Has Honda rejected paying for it? They are paying full to partial cost for most transmission replacements (outside of warranty) depending on the age/mileage these days.
They won't pay for it. The '03 Pilot is not covered by any of their settlements to transmission issues on Honda/Acura vehicles. |
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| jl_ss |
quote:
Originally posted by rossdm
They won't pay for it. The '03 Pilot is not covered by any of their settlements to transmission issues on Honda/Acura vehicles.
Honda said they won't pay for it or you are assuming they won't pay for it? 2001/2002 MDX trannies are not covered under the warranty extension settlement either but Acura/Honda has been picking the full cost of out of warranty replacements up to 100K for a long time. They recently started picking up only partial costs on the 2001 because of the age. |
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| rossdm |
quote:
Originally posted by jl_ss
Honda said they won't pay for it or you are assuming they won't pay for it? 2001/2002 MDX trannies are not covered under the warranty extension settlement either but Acura/Honda has been picking the full cost of out of warranty replacements up to 100K for a long time. They recently started picking up only partial costs on the 2001 because of the age.
Honda said they won't pay for it - they said the failure rate on '03 Pilots is within a "normal" range.
It's actually not totally failing yet. It's start to slip with greater frequency. I had it checked out by a tranny shop who said "we can't find anything wrong - just live with it, you'll be fine".
However my experience is that transmission slippage doesn't fix itself. It will get worse, and based upon the history of this transmission, it's time to bail.
Besides, it gives me an excuse to get a new one. :-) And if I can get the HC warranty thrown in it a fairly low cost, it's just that much more peace of mind. If I can't get it at what I cansider to be a good price, I'll skip it... |
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| th10000 |
In deciding if the HC warranty is worth it, remember that Hondas now have a 5yr/60,000 mile powertrain waranty. In my case, I have an LX 2wd model so there is not a lot to go wrong that would not be covered by the 5yr warranty.
Also, if the Florida dealer is "negotiating" the HC price as part of a new purchase, then they are really just taking the difference off the vehicle price to arive at the lower HC price. If you skip the HC, you should be able to get the same amount as a reduction in the vehicle only purchase. |
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