Service Contract Warranty

Discussion in 'Clarity' started by cyberteen, May 26, 2020.

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  1. cyberteen

    cyberteen Member

    So, I bought my new honda clarity base 2020 today. I got convinced to buy a additional warranty called Service Contract Warranty from a provider "The Mechanic" for 2900$, 72 month - 75000 miles. Includes roadside assistance and rental service

    From what I understand, this warranty covers more parts right from my purchase date, which are not included in the bumper-bumper or power train. i.e. more internal parts such as - steering, front suspension, brakes, electrical parts(switches, relays, motors etc.), air conditioner, electronic parts(power windows, power locks.

    Since I was indeed buying a costly vehicle and I could cancel it for full refund within 60 days and could include it in my financing (about 55$ per month additional), I took it so that I can think over and see if it makes sense and get some additional inputs.

    Has anyone bought something similar? pls share your comments. thanks
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  3. JFon101231

    JFon101231 Active Member

    My opinion only - I passed on one, as I do for generally all such things. They are huge profit makers for the dealer, likely more than they made on the car itself. The stock powertrain coverage is adequate (I put on 20-25k miles a yr) and I expect the rest of the car to last without requiring anywhere near $2900 in repairs... Plus I'm a shadetree mechanic anyway.

    You could always put $55/mo into a separate savings account.
  4. rodeknyt

    rodeknyt Active Member

    The Honda factory 3-year bumper-to-bumper warranty covers EVERYTHING. No third-party plan is going to cover "more parts." You can get a Honda extended warranty that lasts longer and costs less. What you bought is just icing on the dealer's money cake.
  5. Skynosaur

    Skynosaur Member

    First off roadside assistant is part of the car. You will see a sticker on the driver side window on every car so that's bs. Second their dealer offers loaners so telling you they giving you something sounds more of a bargain.
    As second guy mention. Yes the dealer made over $2000+ profit just selling warranty. And no it isn't 7 years additional. It's factory warranty plus dealer warranty total 7 years. On top of that, you will get a lot of run around when it's time to fix the issue because service dept has to eat also.
    Ask yourself a simple question. Your last car you own. How much you spent on repairs and how long you own it for. The total usualy isn't $55 per month for 60 months right $3300?
    If you have any questions. Feel free to contact me. And congratulations on your purchase. The car is super quiet and great on gas.

    Sent from my G8142 using Tapatalk
    cyberteen likes this.
  6. Skynosaur

    Skynosaur Member

    Keep in mind if you do cancel warranty. The finance guy isn't going to like you anymore. You might not get a complete full refund after a certain time.
    But if you feel uneasy and want to keep it. Call them and cancel it. When they ask why. Say that it's not necessary. If question again follow up with 'a friend of mine paid thousands less'. They will force to give you a heavy discount. They make a lot less but still want to keep you on it. Because like I said before. Somehow their service dept will get you.
    Depend when they sent out the contact. You wouldn't be able to get your credit back immediately. They might mention it will go be subtract from the terms.

    Sent from my G8142 using Tapatalk
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  8. Sandroad

    Sandroad Well-Known Member

    Run a search on this forum using the term "extended warranty". You'll get pages of threads, some many pages long themselves, with a variety of info on what others think. My opinion on your specific case is that you paid WAY too much for WAY too little and there are WAY better deals out there on Honda Care, which is the only one any good. YMMV.
    cyberteen and insightman like this.
  9. RickSE

    RickSE Active Member

    Go to the Hyannis Honda website and get a quote for HondaCare. Then call your dealer and get your money back. Don’t let them talk you into an off brand warranty. HondaCare includes roadside assistance for the car plus up to five other Honda’s you might own.
    insightman, craze1cars and cyberteen like this.
  10. RickSE

    RickSE Active Member

    When they ask why tell then that they scr@wed you big time!
    craze1cars and cyberteen like this.
  11. Skynosaur

    Skynosaur Member

    Well I use to work for Honda so I know the operation of the business. Being an a$$ just show your level of education and doesn't help with the problem. I understand everyone has to eat but he way overpay so I want to offer my assistance.

    Sent from my G8142 using Tapatalk
    cyberteen likes this.
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  13. DucRider

    DucRider Well-Known Member

    As stated above, I also think what you purchased was not a very good deal.

    I seem to recall from other postings that this was your very first car purchase, and what you experienced is what turns so many people off from the whole dealer experience. Many, many buyers relax after they think the negotiations are done, not realizing that the F&I department is where the highest paid salespeople work. They very likely made many times more on the warranty than they did on the sale of the car. If I had to guess, you probably also wound up with a bunch of "junk fees" in your contract. YouTube or a google search will show you how they do this.

    Not being critical of you personally. The average buyer - particularly first time - is at a huge disadvantage when put up against skilled salespeople that do the negotiation dance multiple times a day. Sometimes education is expensive. Hopefully you can get a refund for some of what you signed for.
  14. cyberteen

    cyberteen Member

    True. My last car was a 4000$ used Toyota Camry '05 bought privately. This was my first dealer experience. Although I have been researching a lot about this car for past few months, hearing about dealer horror stories, I lost. I tried saying no initially to this warranty, but lost to the Finance guy. I was at the dealer for almost 4h then when talking to him, and he played the game right. Although I confirmed with him several times whether this warranty could be canceled or not. He said yes. I couldn't bear more at one stage and thought "screw this, will come back later and cancel it.".

    Honestly, when he kept saying that "Clarity is an expensive vehicle, has lot of parts, blah blah", I caved in. I was making a huge purchase for the first time in my life. So yeah.. :(
  15. cyberteen

    cyberteen Member

    Hyannis doesn't have support for California. Know any other good ones? Thanks

    Edit: How is Saccuci honda care?
    Last edited: May 27, 2020
  16. cyberteen

    cyberteen Member

    Thanks for the info!
    I am mainly worried about the electronic stuff.
    So, with the 3 year new vehicle warranty, all parts and accessories like infotainment, the radar sensors in front of them are also covered? Under what category do these come? Can't find them explicitly in the warranty booklet.

    Also, I understand correctly, these extended warranties come into play only after 3yr/36k warranty, and there is nothing extra they can provide/cover me now that my original warranty doesn't ?
  17. craze1cars

    craze1cars Well-Known Member

    All correct.

    I’m just gonna bluntly say you got ripped off. But it’s not over. Go back immediately and demand full refund of this warranty you purchased. Huge waste of money.

    I don’t know where you live, but almost all states give you like a 3 day cooling off period to actually return the car and get 100% out of the purchase.

    So if they won’t simply give you a 100% refund for the warranty you purchased, then tell them you just want to return the entire car and cancel the entire purchase. That will generally get them to scramble and cancel the warranty only.

    Start politely. Give them a chance to make it right.

    And then any resistance is met with loss of politeness. You sitting in their showroom while you are calling the BBB, your State’s Attorney General office, a local “call for help” customer advocate news station or whatever. Maybe call local police and report a $2900 theft and ask an officer to stop by to help you file a theft report at the location of the crime.

    I’m not kidding. They played nasty hardball with you, and you need to be prepared to pull out the stops and smash it right back in their face.

    After it is resolved, and no matter how it is resolved, I’d still give negative reviews online because of what they did, the amount of time you have wasted in a simple car purchase, and their high pressure sales tactics. And I would encourage you to never work with this dealer again. Go elsewhere for your service so they don’t get any more profit from you. I have really no patience for this kind of BS being pulled on rookie car buyers.
    Last edited: May 27, 2020
    cyberteen likes this.
  18. craze1cars

    craze1cars Well-Known Member

    Good God. Just noticed you're in the fine state of CA. It looks like California's cooling off period might not exist at all unless you PURCHASE a 2 day cancellation contract at time of sale, which I find completely insane. Seems that CA offers very few consumer protections for California car buyers like most other states do. So get in there get this resolved. Do not suffer analysis/paralysis. You have 3 years to think about whether buying an extended warranty is a good idea or not AFTER you cancel this one. Take the time and do your research while enjoying the car. It has absolutely free bumper to bumper repairs for the first 3 years/36K miles direct from Honda, including all electronics.

    Here is a CA website with some helpful phone numbers at the bottom to help you resolve a dispute. I'd start immediately with Attorney General if I were you, or maybe the Dept of Consumer Affairs...the first and last phone numbers at the bottom of the list. And again I would make those calls directly from the dealer showroom if they start resisting your request for warranty refund. Most likely that action alone will get this handled pretty quickly, even if you feel like a jerk doing it:
    Last edited: May 27, 2020
  19. Skynosaur

    Skynosaur Member

    Yes to all. Like what craze1car mentioned is correct. There is a 72 hr cool off period for a full refund but there is going to be a lot of fight in between.
    As much as I want to agree but strongly disagree is giving your business elsewhere. Remember the amount of time given to the dealership. The salesman gave as much to complete the sale to meet each end. So don't point fingers because the ending sucks. Just fix the ending and enjoy the car.

    Sent from my G8142 using Tapatalk
    JFon101231 likes this.
  20. DucRider

    DucRider Well-Known Member

    Automatic 3 day cooling off period is a myth. While certain contracts under certain circumstances may have that provision, it is usually restricted to in home sales from solicitors (FTC rules). Some States define other periods where specific types of contracts can be cancelled.

    Good news is that in California, you have 60 days to cancel a new car warranty (used cars are 30 days).

    Unfortunately things like a higher than market interest rate (the dealer gets $$ for this), loan application fees, documentation fees, electronic filing fees, VIN etching fees, or other items that added hundreds (or thousands) of dollars to your purchase cannot be cancelled.

    If anyone spends 4 hours at a dealership to purchase a car, it is almost certain they paid too much. It is a sure sign that you really want that car, and the dealer will take full advantage of that. They often turn it around so it feels like you should feel grateful that they are willing to sell you the car at all (one way to put you in a loan with a higher interest rate loan - "Your credit is borderline, but luckily our Finance Manage has good relationships with multiple sources and she was able to call in a favor and to secure something for you. Sign here.). I would have been out the door within about 2 hours. They will call you later if you walk out - and not with a higher price than when you left (unless some manufacturer incentives are truly expiring).

    I think buying services like Costco Auto prohibit the addition of many junk fees, and can be a very good deal for buyers unfamiliar with the game or that are unwilling (or just don't have the personality or experience to drive a hard bargain). Sometimes you can get a lower price than these contracted services, but not by magnitudes and it takes some work/experience (and a certain enjoyment of "the game")
    JFon101231 likes this.
  21. cyberteen

    cyberteen Member

    I didn't realize I was in the dealer almost for 4 hours until I was speaking to the F&I guy. My credit, employment were all good and secure enough to not waste time. But yes, they dragged it. He went missing several times for me to just sit simply.

    I knew this was a mistake even when buying the warranty. I just bought myself an additional headache knowing that I'd cancel it. I just wanted to get done and go home. In fact, I asked the F&I guy several times whether I could cancel this in the future, that at one point, he said "if you wanted to cancel it anyway, please do it now, I can save time sending this again to the bank". I should have done it then. Well, let's say all this was a first-time experience. Nothing too bad I guess. Now I need to go and cancel this which I knowingly signed up for.
  22. Skynosaur

    Skynosaur Member

    I agree with you on finance games.
    The reason it takes hours could be the deal isn't making much money as they want. At the same time managers want the customer to feel they need this car and things will sink it. Now on the other hand say the car will making $2k+ they will get you out fast. Given you time to rethink and do your research just to find out isn't helping the dealers. There is always two or more sides to a story.

    Sent from my G8142 using Tapatalk
  23. cyberteen

    cyberteen Member

    Thanks for the confirmation. I don't think I will go return the car. I got a good price for the car, around 31.5K OTD. I understand that I have upto 60 days for a full refund(Edit: for the warranty). So I will go cancel it asap. But just worried about the fight I'd have to deal with :(

    And yes, once the dust settles, my business with them is over.
    craze1cars likes this.

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