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Discussion Starter #1
We bought a Honda Care warranty when we bought our 2000 EX. 5 year / 100K (we altered the length since we put at least 20K per year, the dealer knocked off a couple hundred dollars).

We were told emphatically by the business manager that, if we never invoked the extended warranty for the life of the contract, the purchase price was refundable. This means NO use of the warranty - no roadside assistance, no trip-planning services, nothing. Of course, we can use the original 36 month / 36K warranty, just not the extended warranty.

Does anybody have any firsthand experiance in this matter? Were we taken for a ride? A member of the Yahoo! club said that he once was a business manager at a car dealership (not Honda) and they used to tell this to everyone, but in 5 years they never actually refunded anything. The customers either used the extended warranties, sold the cars before the term was up, or forgot. He never actually said whether they INTENDED to pay up, if asked.

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I don't have an answer, but it seems that allowing a refund after the contract term had expired would be like an insurance company giving your money back if you never made a claim during the coverage period. The concept of insurance is some people will use a policy more and some will use it less. The net balances out. If insurance companies gave refunds if someone never made a claim, how would they have money to pay for large claims? I would be surprised if one could get a refund in this circumstance.

On a Honda Warranty Web site (http://acurawarranty.com/warranty_agreement.htm) it includes the following on cancellations:

<font face="Verdana, Arial" size="2">If you cancel this contract:
A. On or before sixty (60) days from the effective date, you will receive a full refund if no service have been rendered to or on behalf of you. If services have been
rendered, you will receive a pro-rata refund based on the lesser of the time expired or the number of miles driven; or
B. After sixty (60) days, you will receive a pro-rata refund based on the lesser of the time expired or the number of miles driven, or
C. For cancellation, return this contract to your dealer, and complete a Cancellation Request Form.</font>
Seems like option B could apply, but of course that's just a guess.


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2001 EX-NAVI, SS
1997 Accord EX-L, Forest Green
Previous Hondas:
1992 Accord EX, White
1982 Accord DX, Silver
 

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I only decided to buy the 7/100k warranty because the dealer made it fully refundable. If I don't use it I will get the full purchase price back. There are conditions:

1) I have to keep the van for 7 years.

2) I have to provide them with the original signed agreement.

3)I can't obviously use the warranty. (I don't have roadside assistance.)

Evidently they are hoping I sell the van early or loose the documentation. I fully intend on walking back in there in 2008 getting my refund and probably buy a new Odyssey.
Unless of course I have to invoke the warranty for a major problem...
 

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<font face="Verdana, Arial" size="2">Originally posted by Canodyssey:
I only decided to buy the 7/100k warranty because the dealer made it fully refundable. </font>
Did they put that in a formal, signed document or is it an oral agreement?

Regards,

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Maugham

"I plan to live forever. So far, so good"
'02 RP EX-L due 10/17
'85 Prelude that we'll keep!
'01 Ninja folding aluminum scooter
'00 New Balance Model 658 Shoes w/ Green grass stains and '01 White Laces
 

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Discussion Starter #5
I received some clarification from my selling dealer:

I will get a refund if, after 100K miles, I have not used the Honda Care extended warranty. BUT -- the refund will not be from Honda, Honda Care, or the dealer. It is from a 3rd party that issues what basically amounts to an insurance policy on the warranty itself. The selling dealer pays $100 to the 3rd party (Beacon Industries) for the coverage on my warranty. If I use the warranty, sell the van, or forget about it - no deal. But if I never use the warranty, I file paperwork with the 3rd party, and THEY issue the refund. Individual Honda dealers may or may not choose to do this, and dealers in different areas will use different 3rd party firms for coverage. For instance, my selling dealer is in Quincy Illinois, and Beacon Ind. is in Kansas City - just a few hours away. Apparently, just like insurance policies on everything else, the payoff rate is low enough to make it a viable practice.

My source for this information was Don Chapel, sales manager, and Rodney, the business manager, at Quincy Honda in Quincy, IL.

Oh, and then they tried to talk me into trading my 2000 EX on a 2002. Offered a trade with $5988 difference ($22000 for my 2000 EX with 30K miles, in-dash cassette, under-seat CD changer, tow package and the 100K warranty, $27988 sale price for the 2002 EX, before any options). I told him I already have a van that's practically new, and it's paid for. I don't know if I can justify paying $7000-8000 (after options, tax, etc.) to get into a new van, 240 hp and 5-speed notwithstanding. Besides, I'm not that comfortable with his prices. What do you think?
 

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chef1962 - why would the dealer buy an insurance policy on a warranty that if used doesn't cost them anything???

I tend to be skeptical. HondaCare is backed by Honda, not the dealer. If you use it, it costs Honda, not the the dealer.

Even if you bother to come back after 7 years, it still cost them $100 to insure you. I don't get it.
 

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Discussion Starter #7
It's like this. The dealer pays $100 to make the Honda Care warranty more attractive. I've never bought an extended warranty on any vehicle, especially a Honda. And I probably wouldn't have this time around, if not for the refund provision. So, for a $100 investment, the dealership scored several hundred dollars in profit by selling me the warranty (and, let's face it, that $100 is just passed on to the buyer anyway). The dealership was at no risk without the "insurance policy," but they also wouldn't have sold me a warranty. After the term of the warranty (5 years / 100K miles, in my case), I go to the insurance people, not the dealer, and not Honda. I send them the documentation and they refund my purchase price.

Apparently, the incidence of people actually going the entire term of the warranty without either selling their car, using the warranty for a repair, or forgetting about it is low enough to make it worthwhile.

The cost to me is that $100 (I'm sure they stuck it to me somewhere), and the interest I paid on the warranty purchase price before I paid off the loan (since it was included in the amount I borrowed).
 

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chef1962 - I get it. I was under the assumption that you had gotten the warranty at the discount prices many of us do which is usually around $100-200 over dealer cost. If that was the case, then they would be losing any profit on the warranty by doing this. I can see it as an incentive to buy it if you are paying a higher price.

Good Luck.
 

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Discussion Starter #9
Yeah, I paid through the nose. I didn't know that the warranty was negotiable until I began reading posts in these forums, which was too late. Not as bad as some prices I've seen, though. They wanted $1300 for the 7yr/100K warranty. Since I knew we would put 100K on in less than 5 years, I asked if they could alter the term to 5 years/100K. They did, taking off $200, leaving me with a slightly less exhorbitant price.

As I said before, the potential refund was a chief factor in deciding to buy the warranty. After reading posts from other owners with such widely varying stories, I began to get nervous, so I called the dealer. They filled me in on the specifics. I recall that they had actually gone over much of it at the time of purchase, but I was in such a state of nirvana over unloading, er,trading my Grand Cherokee that I didn't retain much.

I still have grains of doubt over this 3rd party involvement - like what kind of documentation will they demand of me when I try to claim my refund. But, I have the piece of mind of knowing that if, say, those power doors exhibit an unforseen design flaw that burns out the motors at 95000K, the warranty will have paid for itself (even at $1100).
 

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My refundable warranty was sponsered by the dealer. I get my refund directly from them.There is a signed document between the dealer and myself. This is not offered by Honda itself. I paid $1230 cad for the 7yr/160000km warranty. ($787 US).
 
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