Last post on Sep 04, 2012 at 3:13 PM
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Honda, Car Financing, Car Warranties
#1 of 41 Financed Honda Care Cancellation
Dec 15, 2003 (9:20 am)
Hi. I recently got a 2004 Honda Civic EX with finance. We decided to get the Honda Care Warranty, because according to the F&I guy, it would only cost an 'additional $10 per month' with it. So I assumed that the total cost of this program was $10x60(5 years in months) = $600. He also said that our initial IR of 9.44% would be lowered to 9.0% if we took the Honda Care program. So overall, it sounded good at the moment. But what I hadn't realized until we got home (the car is under my dad's name) is that an amount of $1495 was added into the finance amount for the Honda Care, not $600. And when we were there, the paper that showed this price was hidden and folded. Plus, it was under his grip at all times. Since the dealership was closing down in less than 15 minutes, and they were supposedly all getting ready for a regional Honda dealership party, they wanted to speed things up. I should've have snatched the papers from him, no matter what. That was my mistake and I regret it immensly, to the point where it's the only thing I'm thinking about.
So anyway, is it possible and likely that I could cancel my financed Honda Care amount of $1495 withing the cancellation period? I want to get an idea of how easy or hard it might be for me to go ahead with the cancellation process, and also get some pointers from more experienced car buyers who went through similar situations. Thanks.
#2 of 41 Yes, you can cancel it
Dec 15, 2003 (9:27 am)
but you've been lied to - your F&I person lied when he said that by buying a service contract you'd get a better rate - he sold you the contract and lowered your rate by .44% to make it a smaller hit on your payments.
I hate it when people do this - arrange a meeting with the dealership GM and explain that you've been lied to - I'm a dealership manager - I'd want to know if my F&I guy was so weak that he had to lie in order to sell a warranty.
What he's done is commit fraud. Where you take it from there is your business.
#3 of 41 Thanks for replying...
Dec 15, 2003 (9:40 am)
but say I didn't want to go through the hassle of going to the dealer and speaking with the GM, what would be the fastest way of getting it cancelled? Or am I obligated to go back and make a complaint about the F&I in order to get this processed?
#4 of 41 You're not obligated to do anything,
Dec 15, 2003 (10:37 am)
but talking to the GM should get the price reduced to the $600 you agreed to, or have them redo the contract.
It's your money, please don't be lazy about it.
The thing is, your finance contract has a "buy" rate lower than 9% - they already dropped it .44%. It would make sense to me to go in, ask to see the financing approval sheet and see what your "buy" rate is - have them recontract at THAT rate - the Honda Care warranty, if you're still interested, could be added at the price you thought was right.
You need to do this quickly, though, because once the contract is gone from the dealer, all that can be done is a refund against your loan balance - you're still stuck at yor rate, too.
#5 of 41 About the 'buy' rate...
Dec 15, 2003 (10:47 am)
Are they obligated to give me the actual buy rate if I ask for it? If so, I can then assume that they would tell me the truth and give a lower rate than the 9.0% that was given to me? My (dad's) credit score is dangerously low, about 540, according to the F&I guy. Wouldn't revealing the true 'buy' rate make them look bad and con'ish? I just don't see how they would be willing to show that they inflated my rate, if it was inflated at all.
Oh, and they're still processing the finance...we gave $7000 down payment, if that is relevant.
#6 of 41 Since the finance deal
Dec 15, 2003 (10:59 am)
is not funded, you have a bargaining position - you were lied to. It that doesn't bother you, I can't help you.
If it bothers you, arrange a meeting and get all the facts.
As a former F&I guy, I can say that dealers hold some rate in many cases, but if fronted with either showing the approval sheet or losing a car deal - the position they should be put in - they'll decide what is best.
You can buy a car anywhere, especially with $7K down - you don't need to be lied to.
Dec 15, 2003 (11:10 am)
Thanks for all of your replies. The information you've given thus far seem very helpful. Of course I am bothered about the lies and pricing, otherwise I wouldn't keep on posting and asking questions. But I didn't know that those things would be considered as 'lying' as opposed to 'dealer incentives'. Maybe they are synonymous.
So if they decide not to show the true 'buy rate', you suggest that I should cancel the deal? It's only the warranty cost that is bothering me, and possibly an inflated rate, if that is possible. We got a great deal on the car itself, $16,382 including destination ('04 Civic EX 2-Dr Auto). We 'fought' hard to get that deal. I guess getting an even lower rate than 9% and refinancing would be a huge 'icing on the cake'. But DEFINITELY that $1495 has to go.
#8 of 41 The F&I guy lied to you - period.
Dec 15, 2003 (11:37 am)
"He also said that our initial IR of 9.44% would be lowered to 9.0% if we took the Honda Care program."
When he indicated that if you took the warranty, you'd get a lower rate, that's a bold-faced lie. Lenders DO NOT offer rate discounts for buying aftermarket products, even if it's the manufacturer's product (Honda Care).
Dec 15, 2003 (4:17 pm)
Well, we decided to visit the Honda dealer to get things sorted out. We we got in we wanted to make sure that we could talk to the General Sales Manager. But unfortunately he was 'in a meeting' so after half an hour, he was finally out and I approaced to to discuss our issue. He then said that he couldn't handle any issues with financing and warrantys, so he called in the Finance Manager. So we spoke to him. To be concise, he was hard to deal with, and we mentioned that those prices that were shown in the statement was not mentioned at all, and that everything was rushed. We wanted to him to get us to recontract the deal without the $1500, but he said that the papers were already sent out. So we asked him to cancel it, by which he said he 'couldn't'. We then expressed our disappointemnt with statements like 'that's bad business' and 'we were decieved'. His excuse...'you signed the papers, sorry'. Then we talked about how the IR is independent of any warranty purchase, and suggested that we would contact Honda themselves and discuss about this. After that, he got the notion that we were serious, and that we were willing to go all the way. So to eat his own words, he said that he would try again to cancel the shipped papers which were sent to Honda Finance, which he initially said couldn't be done. Talk about BS. So, basically nothing was resolved at this point, and we're waiting for him to give us the update on the cancellation.
Oh, and I've seem to either lose the Honda Care contract paper, or it is under the possession of the dealership. Is that a big deal?
#10 of 41 I'd give them a day,
Dec 15, 2003 (5:01 pm)
close of business tomorrow, then I'd call Honda Customer Service and tell the whole story. It'll get ugly from there, but ugly in your favor - you gave them a chance to correct the lie, we'll see what happens - keep us posted.