Was able to get in touch today with the finance manager that did all my financing paperwork, and sure enough just as Vanguard warned, he tried hard to talk me out of canceling the warranty. Unfortunately, the paperwork had already gone through so he told me that even though the warranty could get cancelled, my monthly payment would stay the same and not decrease.

Looks like my next step is going to have to be to refinance with my credit union as you suggested to lower my monthly payment. The question I have now is what the difference is between canceling first so that the warranty company can apply the refund directly to my loan vs refinancing first and then applying the whole refund I receive to my loan. Will the principal decrease equally between these two routes?

 

Yeah, they sure did..... trust me I want to kick myself several times for being so dumb. I spent so much time researching how to get a good price that I didn't research anything on warranties. Costly mistakes of a noob first time car buyer

 

I got mine cancelled within weeks of purchased. Was a stupid decision in first place to buy it. It was around $100. I have had hmm - no repairs so far beyond wty.0

 

Keep in mind on an extended warranty that you are paying for it across the 7 years but the coverage does not kick in until year 4. In years 1-3 the warranty is covered by Honda.

 

Either way will reduce your principle. With refinancing comes a lien release which will enable you to receive a refund directly, but still owe the money, but have it in a savings account to self-fund future repairs. If you just cancel the warranty, it all comes off the back end of the loan, and you keep the payments you have, but your load gets paid off earlier.

 

I usually get the extended warranty because around year 4 or so, I've always had a couple of minor issues pop up on my Hondas. On my 2006 Acura, I had 2 door lock actuators fail along with the entire bluetooth module and several dash lightbulbs. The online price I paid for the extended warranty isn't too bad and will pay for these repairs just in case they happen to arise.

 

I didn't know that! Interesting... I didn't opt for the extended warranty because I felt I could just save that money and hope any repairs cost less than the warranty would have. I always get the impression that there will be some clause buried in the fine print that makes it worthless when you'd need it anyway.

With some buena suerte de Mexico, hopefully it will just cruise to 120k with just tires and routine maintenance

 

Its time to talk to a knowledgeable attorney. Dealers will viciously defend the preditory financing portions of sales because it provides enormous profits. That $2300 extended wattanty cost them about $400. But a knowledgeable attorney can, and will, counter those dealers. The publicity alone is a killer to a dealer. Armed with the reports just to Consumer Reports is enough to raise fear in dealership public reputation. The statement of maintaining monthly payments is false because the loan value can be changed; they don't want to. want, not can't.

 

I got my extended warranty through honda care, cost be 980$ for 6 years and 80,000 miles worth of coverage, includes the road side assistance for my fit and up to 5 other honda vehicles i own or may own. I figured being a new model and in a new factory the extended protection wouldn’t be bad to have. Often honda will release a tsb for a cars problem vs a recall. Tsb issues are fixed under warranty. I also financed through american honda finance, and gap insurance is included free of charge.

 

Buy, buy, buy and pay, pay, pay. That's what retailers wish we all could do in the business office once the papers are being finalized.


On the bright side, at least for our Northern neighbors who have bought GK's, they're getting a FREE 6yr. 60,000 miles (100k km.) Honda factory warranty if they register and sign a deal before Oct. 31.

Very lucky guys!!!

 

Not really. Canadians have to pay an across the board $1400 delivery fee/pre-delivery inspection fee for the Fit. This is a mandatory pre-tax delivery fee that all new car buyers have to pay. Some luxury cars have these fees up to $2000. So I guess the extra warranty is already being paid for



Comment: Really ???? To be exact, you Canadians pay a Freight/Destination charge of Cnd$1,495. We pay US$790. That's still a diff. of US$539 (using an Exchange rate of 1.125). Looking at it via the aforementioned published mfg'rs figures, its around a 50% discount of our charge for a similar additional 3 yr. Honda OEM extended warranty. Using your premise, still a decent deal for Cannuck buyers!
However, Freight/PDI is a cost all have to pay, irregardless what country in NA. Everybody has to cough it up. It's non-negotiable and is part of the purchase price. Canadians who buy GK's after Oct. 31 still have to shell out these funds so they miss out on getting any "FREE" extended warranty. - rttby

 

By buying an extended warranty, you are betting the cost of the warranty that the car will fail you and you have no faith in the vehicle's reliability. If that is the case buy something else!

JMHO....

 

I got a 6 year 100,000km warranty for free, however I did purchase at the end of the month when dealerships had to hit their numbers.

 

You're right if you factor in the free extended warranty, we're getting the better end of the stick. But that's only for those who get in on a Fit last month. But for most buyers up here this is not the case. Factor in higher MSRP's and less dealerships meaning less competition, the cost to buy a vehicle up north is generally more then in the states.


COMMENT: Who knows the Canadian market better than a Canadian. Your most probably right for most cars.
However, when comparing our US LX GK to the Cnd LX, based on retail price (MSRP): US$15,525 (US MSRP) vs. Cnd$17,295 (Cnd MSRP = US$15,373) - with the added features you get up north, Canadians have a better "deal". - rttby

 

Any "mandatory charge" is simply part of the price and should be added to it. The only reason for it is so that the manufacturer can advertise an artificially low MSRP. I guess Honda thinks that Canadians are more gullible then Americans so they have a bigger hidden charge.

I note that the destination charge has gone up to $820 for the US.

 

One of the little benefits of the extended warranty is the call might go your way because the
service department knows they will be paid. .. I've had really, really good luck with the Dodge SRT 10 truck I had. But I had the zero deduceable 7/70 Vip .MSRP in 2008 was $ 7,999.00 ..It was transferable once.The original owner made sure to get all the paperwork done so I wouldn't have any problems on the trip home to Florida from Louisiana. I think the total amount it paid to dealerships in Florida was just over $8,000.00 over a 3 year period. When the front brake calibers locked up I sweated it out till it came back as a covered claim. .I brought a 8/120k zero deduceable on my EX CVT and would not considered buying the car without getting it. I wanted it to be there problem if something went wrong with all the electronics.

 

So even if he cancels it his monthly stays the same?

 

In situations like this I believe they will apply the refund to the principal. So your $15K loan will be $13K after they apply the $2K warranty refund. Assuming no prepayment penalty, your monthly payment stays the same but your term changes; the total amount you pay drops (because of the $2K refund plus the interest you would have paid on that) so the loan gets paid off earlier.

 

Not worth the hassle to cancel imo if thats the case.

 

A few emails, a few phone calls, perhaps a snail mail and you shave maybe six months off your four-year loan. I'd do it if only to screw over the guys who sold me the warranty and take back a chunk of cash they figured on making.