Service Contract Warranty

[Skynosaur]

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.

Salesman are puppets, managers are wolves and finance are lions. It's not always the company that failed you. It's the individual.
Keep us posted on the details. Let see how we have assist.

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[cyberteen]

Salesman are puppets, managers are wolves and finance are lions. It's not always the company that failed you. It's the individual.
Keep us posted on the details. Let see how we have assist.

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Sure. Thank you for the support. Will keep you guys posted.!
Also, might be another bad decision here, I opted for a 1000$ Gap insurance. Trying to know if I need to cancel this too.

My situation is: for selling price of 29K, I have already put a down payment of 5000$ + 500$ from grad incentive. I am realizing that I may not have any gap in case my car is totaled( god forbid, not) and the car could be valued by the insurance for an amount 2-3k$ more than I owe.

Since this car depreciates more than your regular honda sedans, I bought it. Do you think I will need it or could get from some other place for much cheaper rate?
What do you guys think.? Thanks

 

[craze1cars]

I recommend canceling the gap. With the $1k you get back from that, you have the equivalent of a $6500 down payment. You’ll never have a gap with a down payment that large, so coverage is a waste of money. Presumably you’ll be getting a $7500 rebate at the end of the year from Uncle Sam too? Not sure your tax or income situation...if you dont pay at least that much in taxes this year, you may get less.

If you’re getting $7500 in less than a year, you have the option of putting it into the car loan...or saving it so you can self insure for future repairs instead of buying an extended warranty.

 

[craze1cars]

When you go back to chat with them you owe them zero explanations. Every reword gives them ammo to twist your thinking. And they will. So Don’t reword. Don’t apologize. Don’t explain.

“I want to cancel my warranty and gap”.

why?

“Because I want to cancel my warranty and gap.”

But it will save you from xxxx situation and/or xxxx situation...

“l want to cancel my warranty and gap.”

But it will be a very time consuming headache to deal with financing, etc

“I want to cancel my warranty and gap.”

After 4 or 5 repeats their lack of respect for you will become apparent, and you can begin slowly raising your voice with each repeat. If they don’t respect you, they don’t deserve your respect. You don’t need to fight them, you need to inform them firmly and repeatedly until you get what you are there for.

 

[cyberteen]

I recommend canceling the gap. With the $1k you get back from that, you have the equivalent of a $6500 down payment. You’ll never have a gap with a down payment that large, so coverage is a waste of money. Presumably you’ll be getting a $7500 rebate at the end of the year from Uncle Sam too? Not sure your tax or income situation...if you don't pay at least that much in taxes this year, you may get less.

If you’re getting $7500 in less than a year, you have the option of putting it into the car loan...or saving it so you can self insure for future repairs instead of buying an extended warranty.

Thanks. Will cancel that too. I am most likely to get the entire 7500$ tax credit. That is one of the main reasons I bought this car. Otherwise would have settled with 16-17k$ used car.

 

[cyberteen]

When you go back to chat with them you owe them zero explanations. Every reword gives them ammo to twist your thinking. And they will. So Don’t reword. Don’t apologize. Don’t explain.

“I want to cancel my warranty and gap”.

why?

“Because I want to cancel my warranty and gap.”

But it will save you from xxxx situation and/or xxxx situation...

“l want to cancel my warranty and gap.”

But it will be a very time consuming headache to deal with financing, etc

“I want to cancel my warranty and gap.”

After 4 or 5 repeats their lack of respect for you will become apparent, and you can begin slowly raising your voice with each repeat. If they don’t respect you, they don’t deserve your respect. You don’t need to fight them, you need to inform them firmly and repeatedly until you get what you are there for.

Thanks. Really helpful. I guess one must really prepare their mind strong enough to not budge and fall to their tactics. Would probably practice it in front of a mirror too. Lol xD

Also, do you think I can deal all of this over phone? Or there are good chances that I would be called to come to the store so that they can convince me better.?

 

[JFon101231]

Agree on cancelling gap and the method above of saying flatly what you want, the reason is irrelevant.

BTW many car insurance companies offer added gap insurance coverage for pretty cheap. If you want the coverage go that route. Def MUCH less than 1k.

Go into the store. Its gonna suck and they are gonna drag it out and make you talk to 3 people. But be calm at first then escalate as needed. Wait in the showroom not in their office.. They won't want you sharing your experience with people in the showroom

 

[Skynosaur]

Craze and jfon have so much experience.
Yes it's very true they don't want a scene in the showroom. Imagine how this will impact new buyer's experience. But don't go bothering others. Just speak loudly.

This vehicle does lose a lot of value within the first 5 yrs. I don't plan to sell it anytime soon. Say the car is $30k. After 10 yrs it's worth $5k. It's only $2500 yearly not including maintenance. The additional $4k you giving them could be for maintenance. If that makes sense.

Best of luck getting everything back.





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[craze1cars]

I doubt this can be fully completed over phone, but an initial call to clearly state your goals is harmless. Ask them to prep cancellation paperwork on advance so you don’t have to sit for 4 hours again today.

But don’t let them stall. Advise them “I’m coming on today at x o’clock to handle this cancellation paperwork, please have documentation ready for me.”

I can actually think of one reason I would not hesitate to verbally provide, repeatedly over again, as to why you want to cancel warranty and gap...

“Because yesterday’s 4 hour buying experience was so stressful for me I felt coerced by your finance manager into bringing the experience to an end by purchasing these 2 products which I didn’t want.”

Memorize, repeat, and get it done.

 

[Landshark]

Please be sure to record the event if it gets terrifically dramatic. At the very least it will be an interesting watch for the rest of us. Or it could possibly be material for a Reality TV show.

Tune in next week to see if they’ll be able to cancel that Gap Policy before it’s too late.

 

[Insighter]

Sure. Thank you for the support. Will keep you guys posted.!
Also, might be another bad decision here, I opted for a 1000$ Gap insurance. Trying to know if I need to cancel this too.

My situation is: for selling price of 29K, I have already put a down payment of 5000$ + 500$ from grad incentive. I am realizing that I may not have any gap in case my car is totaled( god forbid, not) and the car could be valued by the insurance for an amount 2-3k$ more than I owe.

Since this car depreciates more than your regular honda sedans, I bought it. Do you think I will need it or could get from some other place for much cheaper rate?
What do you guys think.? Thanks

My friend and his wife purchased her first new car in many years, a Toyota Prius that cost around $30K, I believe. Three months after she bought it, a driver hit her and totaled the car. The other driver had no insurance, and my friend did not have gap insurance. They went to replace the car with the same one, but it was a new model year with none left. To get the new version, even with their insurance paying the full book value of the Prius that was wrecked with less than 5,000 miles on it, they had to add $10,000 cash. Just to pay the loan off, they would have had to come up with thousands of dollars. My friend is a shrewd negotiator, and he shopped around. I will always buy gap insurance.

 

[Insighter]

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

In the past, I would not have always purchased an extended warranty. I bought one in the 90s on a '93 Dodge Intrepid. There were electrical problems with the car, and it much more than paid for itself. It wasn't a Chrysler warranty, but I had no problems with it. That said, from now on I will only buy the extended warranty from the manufacturer. I bought Honda Care for my Clarity, and I will always buy extended warranties on any future cars I buy. The electronic systems in cars are too expensive now. Cars in general, especially technologically advanced ones, have any number of parts that would cost thousands of dollars to replace. The first new car I bought was a 1989 Honda Civic SI. I didn't need an extended warranty with it. It was a pretty basic car. With the Honda care plan I purchased for my Clarity, I know I will have no unexpected car repair expenses for 8 years or 120K miles. That's worth a lot to me.

 

[JFon101231]

I will always buy gap insurance.

I didn't say Gap coverage was bad - I said paying $1000 for it was. I had NEVER heard of the term when I was at dealer but before signing I asked my insurance company while getting the car added and I don't remember the amount but it was a pittance, like maybe $100/yr. (And you'd only need it for the first or two anyway.)

 

[Insighter]

I didn't say Gap coverage was bad - I said paying $1000 for it was. I had NEVER heard of the term when I was at dealer but before signing I asked my insurance company while getting the car added and I don't remember the amount but it was a pittance, like maybe $100/yr. (And you'd only need it for the first or two anyway.)

I didn't say you said it was bad. I don't know what the best source for it is. I believe whom you can buy it from may be limited in some states.

 

[Landshark]

Do we know for certain if the Gap insurance cost $1000 or was a policy to cover a $1000 gap?

With the $7500 Fed credit, a $5000 down payment, another $500 discount, $1500 state rebate and maybe $1000 from the power company, why be concerned about a Gap.

Maybe the value of a Clarity won’t tank like a Prius. I bought a new Subaru WRX for ~$26K that was totaled by an uninsured motorist after 2 years and 25K miles. Insurance payed $22,500. So I forked over $4K and bought another new one.

 

[Insighter]

Do we know for certain if the Gap insurance cost $1000 or was a policy to cover a $1000 gap?

With the $7500 Fed credit, a $5000 down payment, another $500 discount, $1500 state rebate and maybe $1000 from the power company, why be concerned about a Gap.

Maybe the value of a Clarity won’t tank like a Prius. I bought a new Subaru WRX for ~$26K that was totaled by an uninsured motorist after 2 years and 25K miles. Insurance payed $22,500. So I forked over $4K and bought another new one.

The worst drop in value of a car occurs right when you buy it and drive it off the lot. As the months pass and you continue to make payments, the book value of the car comes more into line with what you owe on it. At three months, my friends took a horrible hit. You'd be much better off at two years (especially if you have a low-interest loan).

 

[Skynosaur]

Base on my knowledge. This will apply to all hybrid and electric vehicles.
They don't hold value at all. You can think of it as a new mobile phone. First few years is great. Than it starts slowing down and the battery doesn't last as long.
Now I know I won't want to get into a 5 year plus car just to drive 3 more years and the battery warranty expires. Unless gas vehicles. Battery replacement is under $100. I can't tell you how much it cost to replace the clarity battery cause I don't know exactly. But guess in the thousands at this point. But the point is. The market demand on these cars isn't high due to that issue alone. In the end this is only my point of view and some market research.
If you were to lease a clarity. It includes Gap insurance.

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[Landshark]

Last I checked, people were getting on a waiting list to buy a Tesla. And they only have batteries to make them go zoom.

How much will it cost to replace the battery in a Clarity? I can tell you. Exactly zero, for the first 8-10 years, depending on where you live. What if capacity falls below the warranty threshold after the warranty expires? Well, the car won’t be useless. It will just have less EV range. I can’t tell you what battery technology will be available in 10 years or what the cost will be for such a battery. But it really won’t be necessary to replace the battery simply because it’s capacity has crossed some arbitrary threshold.

Like it or not, these cars will be forced on us for years to come. There will be little market demand with gas below $2/gal and electricity at $.20/kWh.

 

[Landshark]

The worst drop in value of a car occurs right when you buy it and drive it off the lot. As the months pass and you continue to make payments, the book value of the car comes more into line with what you owe on it. At three months, my friends took a horrible hit. You'd be much better off at two years (especially if you have a low-interest loan).

I understand depreciation. Many more 3-5 year old cars have been introduced to my garage then new ones.

There are too many variables to suggest that Gap insurance is necessary when buying a new car. I know, you didn’t suggest that. Your friends probably put down little or nothing for a down payment. And an insurance company that valued a $30K car at $20K after 3 months, is an insurance company we should all avoid. Or maybe your friends overpaid for the car.

Given the circumstances for cyberteen, down payment, tax credits, rebates, discounts, etc. Gap insurance is completely unnecessary.

 

[ab13]

When you go back to chat with them you owe them zero explanations. Every reword gives them ammo to twist your thinking. And they will. So Don’t reword. Don’t apologize. Don’t explain.

“I want to cancel my warranty and gap”.

why?

“Because I want to cancel my warranty and gap.”

But it will save you from xxxx situation and/or xxxx situation...

“l want to cancel my warranty and gap.”

But it will be a very time consuming headache to deal with financing, etc

“I want to cancel my warranty and gap.”

After 4 or 5 repeats their lack of respect for you will become apparent, and you can begin slowly raising your voice with each repeat. If they don’t respect you, they don’t deserve your respect. You don’t need to fight them, you need to inform them firmly and repeatedly until you get what you are there for.

Not to mention it wasn't even an official Honda Care warranty.

I know someone who recently cancelled a 3rd party vehicle warranty. They insuring company released the warranty, but in his case the funds go to the dealer, which then needed to be sent back to him. It was a used car lot though, so it was more challenging than a dealer might be, hopefully. He called them and said he filed a small claims court case, which got them moving on the refund.