$100 deductible, But that IS the REAL pricing! I don't think any dealer is allowed to sell it for more!!

What they did on my invoice is add the extra to the price of the car and the bottom line price was the same (So i didn't notice it) Signed for it and found out later when the Warranty info came from Honda WITH THE PRICE ON IT!!

 

With $100 deductible, that sounds about comparable to what I paid for 7yrs/100k. I don't think I was way overcharged.

The Honda warranty will list whatever it is you paid the dealership, not the actual price (I think). And I think they can charge whatever they want, I don't think there are any rules for the dealerships in terms of charging for their products.

 

But they TOLD me the car was $15,670 and the warranty was $975 before i signed.

When i looked at my copy of the warranty booklet, it says $595

and then i look at my copy of the invoice that i actually signed,

it then stated!! (car $16,050 and the warranty $595) Which is as you stated, the price may be what the dealership told honda they sold it for, but my point is even if $595 isn't the best price, what i paid $975 definately was a rip off!

 

Yes, it sounds like you were ripped off somewhere in the pricing. To me it looks like they tried to appease you by saying you were paying MSRP (or whatever) for the car and then overcharging you for the ext. warranty when in truth they pocketed the extra fees on the price of the vehicle and paid the minimal amount to Honda for the ext. warranty.

And now it also sounds like if you tried to go back and cancel the warranty you'd only be getting $595 back because of their underhandedness. Sorry to hear that.

 

Sounds like they pulled a fast one on you, or maybe lack of communication.

 

Which is probably their intention, which leaves me to believe they pulled a fast one on you.

 

you are a real fast one aren't you

 

understanding things rapidly

 

Basically DO NOT GO TO NORTH SHORE HONDA in GLEN COVE, NY (long Island)

 

hehehehehe

Anyway, i understand that dealerships need to make money and would try to maximize. But whatever they agree on the selling price of anything specially cars, they will make money in one way or another. A great example would be Manufacturer to dealer incentives which comes in many ways. So whatever you can get out of a deal take it without feeling sorry for your sales rep or dealership. They will make money regardless of the price they "AGREE" to sell, if not, then it's not their #'s to "AGREE".

 

Getting this thread back on track!

I just picked up my new fit! I did a ton of research on the extended service contracts and pricing, shopping around all over the net, then brought it with me to the dealer, Pauly Honda in Libertyville IL.

These guys are great to deal with! They had no problem matching the lowest price I found on the service contract. I purchased the 8 year 120,000 mile Honda Care contract with $0 deductable for $905

Did they make money on it? I am sure they did. They would not be in business if they did not make money. Did they make the amount that they originally wanted, $1850? No they didn't.

As the car is covered for 8 years and 120K miles, even if it is a Honda, I am sure that it will need some repairs. A bad strut, A/C repair, something. In the worst case, it may need and engine or transmission work. Honda has to charge the dealer enough to cover the repairs.

If the car goes that long without needing anything at all, then I will tip my hat to Honda for building a great car and buy another one!

 

My dealer offered to sell the HondaCare at about that price with a "full money back if I didn't use it" but only if I bought it right then and there. Since I usually don't buy that sort of extended repair coverage - never has worked well for me when I actually needed it - I didn't take the HondaCare this time either. It may be that HondaCare is really good and a valuable thing to have but that would be the exception to the rule...

 

$905 for 8/120 is a great price. I also agree that no matter which manufacturer, all isn't guaranteed to be 100% problem free. A very few bad ones will find their way into someone's garage even with a very reliable carmaker like Honda.

Just an FYI, everyone probably knows this already, the powertrain warranty on every new 07 honda's had been raised to 5/60. If you take care of your car's maintenance and nothing goes wrong before that warranty expires, it'll be likely that nothing ever will long after 100,000 miles.

 

 

Where did you find that?! That's the best deal I've ever come across. And yes Hondacura has some great prices, but brdss beats them all.

 

The prices are pretty good. They are about $25 cheaper than college hills honda. the 8 year 120,000 that I got for $905 at my dealer was $975 through your suggestion.

Would any Honda dealer or ex Honda dealer like to help everyone here out and fill us in on what the actual dealer cost is on the Hondacare contracts? It is weird how you can find out the precise cost of the cars but no information on the cost of these.

 

brdss where did you find that warranty? I'm going to try and extend mine w/what you found. Time is running out for me though so please let me know, PM if you prefer.

 

what do you think is a fair profit a 8/120 warranty?

then i'll tell you if the 905 you paid is too much.

 

Well, there are several ways of looking at what a fair profit. I am sure that some people here would say that since it only takes the dealer about 5 minutes to fill out and submit the paperwork, then they should make no more than $30-$40, Others will say that the dealer should make as much as humanly possible on this type of item due to the fact that everyone DOES know what the dealer price of the cars are, and they don't make as much as they used to. I feel that they do need to make more than the low end, as I beleive that repairs made under the service contract are paid at the warrantee repair times and not the retail book times, so there is a possability that they will not make as much later on from doing the repairs. On the other hand, for repairs done after the normal warrantee time is up, there is a good chance that the car will be taken to an independant repair shop instead of the dealer.


I think a 25-30% markup is a fair profit for an item that does not tie up any $$$ in inventory and takes very little man hours to complete the transaction.


Saying that, I think if people knew the real wholesale costs, then they would not leave the dealer wondering if they got ripped off. It might even cause more people to purchase a service contract! Knowing how much profit dealers are making is not slowing down the sales of new cars, is it? Even releasing information on incentives paid to the dealership for selling contracts should be public knowledge.

Sure, you might get the guy that finds out that the contract costs the dealer $500, then demands that he should get it for $520, but there is no reason the dealer has to sell it to him for that. That type of guy probably would not be buying one anyway. At the same time, it would prevent the dealers from trying to sell that same $500 contract to some unsuspecting little old lady for $2500. You know as well as I do that this happens all the time.

The auto industry has came a long way in the last 20 years as far as some of the slimey tricks that they used to pull, but I think it still has a way to go before it stops being placed in the least respected industry catagory.


Do I THINK I did OK on what I paid? Yes I do, or I would not have purchased it. Do I KNOW that I did OK on it? No I do not. They could have been telling me the truth when they said they sold it to me for below cost. Somehow, I do not think they would have sold it to me if that was the case! I do know that I did not make a payment on the winter condo of the owner or a boat payment for the finance director like I would have if I had paid the $1800+ that they originally wanted!


Again, asking if any dealer or ex dealer want to give us the straight scoop on what it actually cost for the contracts for a given year/milage length? even a number in the general ball park would be helpful!

 

if you are okay with 25-30% as reasonable amount of profit, then you paid much less.