Just buy a new RDX, about the Warranty
09-07-2010, 12:52 PM
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Just buy a new RDX, about the Warranty
After I bought the car, the dealer sold me a warranty acura care, 8 years 10,0000 miles for $1500
It has a 60 days cancel permission. The strange thing about this warranty is after 8 years if I never used the warranty, they will give me $2040 back, I don't know if this car usually needs warranty service. Any chance for me to get $2040 back? Thanks.
It has a 60 days cancel permission. The strange thing about this warranty is after 8 years if I never used the warranty, they will give me $2040 back, I don't know if this car usually needs warranty service. Any chance for me to get $2040 back? Thanks.
09-07-2010, 01:11 PM
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wow, never heard of that before. if true, then i might even pay for out of my own pocket for service work that needs to get done so long as it's <$2040 from years 5-8. then again, hard to say what will break down from yrs 5-8 and how much they would cost (eg. rattles vs. turbo failure). no one prolly knows the real answer yet as the rdx was initially intro'd in mid 06...
09-07-2010, 01:23 PM
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The also astonished with this new thing yesterday.
The problem is not 5-8 years. Even 1-4 years I used the warranty, the money will not back. The money is from the dealer, not acura.
But the man said this dealer existed more than 40 years,
The problem is not 5-8 years. Even 1-4 years I used the warranty, the money will not back. The money is from the dealer, not acura.
But the man said this dealer existed more than 40 years,
wow, never heard of that before. if true, then i might even pay for out of my own pocket for service work that needs to get done so long as it's <$2040 from years 5-8. then again, hard to say what will break down from yrs 5-8 and how much they would cost (eg. rattles vs. turbo failure). no one prolly knows the real answer yet as the rdx was initially intro'd in mid 06...
09-07-2010, 11:20 PM
#4
I have an even better deal for you. You give me 20K today, and 8 years from now, if you can find me, I'll give you 100K.
09-07-2010, 11:27 PM
#5
2010 TL AWD 6MT: New King
09-08-2010, 12:33 AM
#6
COTM Coordinator
yeah that deal is such BS it's not even funny. If that dealership has been around for 50 years , which is presumably two generations, you would think it would be a well known dealer and his warranty plan would be heard around the world. Yeah, I don't think so.
09-08-2010, 08:32 AM
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09-08-2010, 09:15 AM
#8
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It doesnt really matter what everyone thinks. if you have the deal in writing then its a legal binding contract obligating that dealership to fulfill its end of the contract. Unless of course that dealer gets 40 guys like you and vanishes into the night..... We are looking out for your best interest. Usually when things seem too good to be true, they are.
09-08-2010, 09:22 AM
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I agree with you. It's a piece of printed paper, says "if I didn't use any of warranty service in all the time". I will get the money back. Signed by the Financial guy.
If I want to get the money back, I can't use the 4 years 50000 miles factory warranty. I think if they don't want to pay the money back to me, they even can damage my car when it's in service and let me choice what to do.
If I want to get the money back, I can't use the 4 years 50000 miles factory warranty. I think if they don't want to pay the money back to me, they even can damage my car when it's in service and let me choice what to do.
It doesnt really matter what everyone thinks. if you have the deal in writing then its a legal binding contract obligating that dealership to fulfill its end of the contract. Unless of course that dealer gets 40 guys like you and vanishes into the night..... We are looking out for your best interest. Usually when things seem too good to be true, they are.
09-08-2010, 09:23 AM
#10
Safety Car
Not only do they invest your 1500 for 8 years (2577 @ 7% interest) but they get your out-of-pocket cash for what should be warranty work too.
Put your 1500 in a Money Market fund for 8 years. Use the Acura warranty until it expires. If something goes wrong after that, you'll have a maintenance fund that belongs to you, not the dealer.
Put your 1500 in a Money Market fund for 8 years. Use the Acura warranty until it expires. If something goes wrong after that, you'll have a maintenance fund that belongs to you, not the dealer.
Last edited by XLR8R; 09-08-2010 at 09:27 AM.
09-08-2010, 09:45 AM
#14
Safety Car
Did you happen to finance with the dealer?
Did they add the 1500 "Acura Care" warranty to the loan?
Because 1500 @ 7% interest over 60 months just happens to be 2100, which they would have to disclose.
Did they add the 1500 "Acura Care" warranty to the loan?
Because 1500 @ 7% interest over 60 months just happens to be 2100, which they would have to disclose.
09-08-2010, 10:30 AM
#15
Safety Car
There is a difference between "Acura Care" and what was offered here.
Here's a Q&A from an Acura Care web-site:
Here's a Q&A from an Acura Care web-site:
Can I get all my money back when my Acura Care expires if I have not had any claims?
If your Acura Care contract expires by time or mileage, no refund is due you from Honda.
Some dealers, as an inducement for you to purchase a service contract, will include a separately purchased insurance policy that may refund whatever you paid for the service contract if it expires and you have not filed any claims. These insurance companies are not affiliated with Honda and Honda does not endorse them. The terms and conditions of these policies make it so that very few people ever collect on them.
If your Acura Care contract expires by time or mileage, no refund is due you from Honda.
Some dealers, as an inducement for you to purchase a service contract, will include a separately purchased insurance policy that may refund whatever you paid for the service contract if it expires and you have not filed any claims. These insurance companies are not affiliated with Honda and Honda does not endorse them. The terms and conditions of these policies make it so that very few people ever collect on them.
09-08-2010, 10:44 AM
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Yes. Financed with the dealer. What do you mean 1500 happens to be 2100?
09-08-2010, 11:39 AM
#17
Safety Car
I mean the cost of borrowing 1500 from the dealer over 60 months equals 2100. (This may be disclosed in the contract.)
They have loaned you 1500, which you have given right back to them to pay for the service contract. In addition to keeping the 1500, they will make another 600 from you in interest over the life of the loan = 2100 (at 7%).
Plus they are giving you incentive to pay out-of-pocket for repairs. If you use even 100 of the service contract money , you lose it all. So, for example, at the 3rd year mark, you have now paid them about 1800 and you are also paying them for small repairs on a car with a factory warranty!
In the meantime they are re-investing your payments made with their loan -- earning interest on interest.
They have loaned you 1500, which you have given right back to them to pay for the service contract. In addition to keeping the 1500, they will make another 600 from you in interest over the life of the loan = 2100 (at 7%).
Plus they are giving you incentive to pay out-of-pocket for repairs. If you use even 100 of the service contract money , you lose it all. So, for example, at the 3rd year mark, you have now paid them about 1800 and you are also paying them for small repairs on a car with a factory warranty!
In the meantime they are re-investing your payments made with their loan -- earning interest on interest.
09-08-2010, 12:36 PM
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Not this way. They charged $2100 more from my car mortgage and told me only charged $1500. You can see how dishonest the car dealers are.
I mean the cost of borrowing 1500 from the dealer over 60 months equals 2100. (This may be disclosed in the contract.)
They have loaned you 1500, which you have given right back to them to pay for the service contract. In addition to keeping the 1500, they will make another 600 from you in interest over the life of the loan = 2100 (at 7%).
Plus they are giving you incentive to pay out-of-pocket for repairs. If you use even 100 of the service contract money , you lose it all. So, for example, at the 3rd year mark, you have now paid them about 1800 and you are also paying them for small repairs on a car with a factory warranty!
In the meantime they are re-investing your payments made with their loan -- earning interest on interest.
They have loaned you 1500, which you have given right back to them to pay for the service contract. In addition to keeping the 1500, they will make another 600 from you in interest over the life of the loan = 2100 (at 7%).
Plus they are giving you incentive to pay out-of-pocket for repairs. If you use even 100 of the service contract money , you lose it all. So, for example, at the 3rd year mark, you have now paid them about 1800 and you are also paying them for small repairs on a car with a factory warranty!
In the meantime they are re-investing your payments made with their loan -- earning interest on interest.
09-08-2010, 02:49 PM
#19
Safety Car
Yikes! Assuming 7% over 60 months, they are taking 2495 -- and they said you would get 2040 back!
Let us know how it goes when you tell them to cancel.
Let us know how it goes when you tell them to cancel.
09-08-2010, 02:52 PM
#20
09-08-2010, 03:03 PM
#21
hopefully the right of recision language is expressly stated on your contract.
im gonna be frank here, and not judging you at all, but you cannot blame the dealer by pushing a point of sale and profitable item on the buyer and turning out an additional sale. Makes all the sense in the world to me. its business. now, if they told you one price, and ran you for another, thats not good, but if u read the final work up and signed it, well
im gonna be frank here, and not judging you at all, but you cannot blame the dealer by pushing a point of sale and profitable item on the buyer and turning out an additional sale. Makes all the sense in the world to me. its business. now, if they told you one price, and ran you for another, thats not good, but if u read the final work up and signed it, well
09-08-2010, 03:17 PM
#22
Safety Car
Something's fishy.
How can a dealer telll you that the service contract refund is affected or reduced by anything that happens in years 1 - 4, when the manufacturer's warranty is in force?
The warranty is a contract between the buyer and Acura for 4 years or 50k miles. The dealer's service contract cannot alter that.
How can a dealer telll you that the service contract refund is affected or reduced by anything that happens in years 1 - 4, when the manufacturer's warranty is in force?
The warranty is a contract between the buyer and Acura for 4 years or 50k miles. The dealer's service contract cannot alter that.
09-09-2010, 09:24 AM
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Back from the dealer, looks like the man don't know anything or try to cheat me.
This time he said claim for factory warranty is ok for money back. I will attach a image of that piece of paper later.
This time he said claim for factory warranty is ok for money back. I will attach a image of that piece of paper later.
Something's fishy.
How can a dealer telll you that the service contract refund is affected or reduced by anything that happens in years 1 - 4, when the manufacturer's warranty is in force?
The warranty is a contract between the buyer and Acura for 4 years or 50k miles. The dealer's service contract cannot alter that.
How can a dealer telll you that the service contract refund is affected or reduced by anything that happens in years 1 - 4, when the manufacturer's warranty is in force?
The warranty is a contract between the buyer and Acura for 4 years or 50k miles. The dealer's service contract cannot alter that.
09-09-2010, 04:00 PM
#26
so you bought an extended warranty - odd thing is is that an extended warranty picks up after you run the full original warranty period, so my question is - did u buy a warranty for 25k? (powerplant) or 50k (full warranty) and what is the 100k miles signify? What im saying is that what does this contract even mean? you have an extension to 100k miles, or the contract is good for an additional 100k miles over the factory because its an 'extended service' contract? what did you buy? do you even know? u must have more terms/paperwork than this im guessing
09-09-2010, 07:58 PM
#27
Safety Car
He bought a dealer provided service contract. The service contract expires 8 years to the day after the date of sale and at exactly 100,000 miles.
What is not so apparent, is that the service contract will not be a player until the factory warranty expires at 4 years/50k miles. So in reality the service contract is only 4 years/50k starting when the factory warranty ends. (It would be foolish to make a service contract claim during the factory warranty.)
The contract he posted is not the service contract; it's a dealer provided Insurance policy for the service contract. This also comes at a price (ya gotta love these guys).
The insurance policy appears designed to incentivise people to pay out-of-pocket for repairs -- use even one dollar of the service contract and the refund's toast. So owners pay for post 4 year/50k repairs, holding the contract funds in reserve for the "big one" (turbo? tranny?) and hoping to get the money back.
Dealers like to mortgage the service contract so that even a full 100% refund still nets them the 600 or so in interest paid.
As I posted above Acura does not endorse these insurance policies, which calls into question the Acura name appearing on it.
What is not so apparent, is that the service contract will not be a player until the factory warranty expires at 4 years/50k miles. So in reality the service contract is only 4 years/50k starting when the factory warranty ends. (It would be foolish to make a service contract claim during the factory warranty.)
The contract he posted is not the service contract; it's a dealer provided Insurance policy for the service contract. This also comes at a price (ya gotta love these guys).
The insurance policy appears designed to incentivise people to pay out-of-pocket for repairs -- use even one dollar of the service contract and the refund's toast. So owners pay for post 4 year/50k repairs, holding the contract funds in reserve for the "big one" (turbo? tranny?) and hoping to get the money back.
Dealers like to mortgage the service contract so that even a full 100% refund still nets them the 600 or so in interest paid.
As I posted above Acura does not endorse these insurance policies, which calls into question the Acura name appearing on it.
09-09-2010, 09:38 PM
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What you said is correct. I have an other yellow paper that is a real "acura care" 8 year 100,000 miles.
I think the way is like this: I paid $2100, acura care got $500. The rest $1600 gives to dealer, they do the repair. If they refund me $2100 8 years later, how can they make profit? I think they will think some way to void it.
I think the way is like this: I paid $2100, acura care got $500. The rest $1600 gives to dealer, they do the repair. If they refund me $2100 8 years later, how can they make profit? I think they will think some way to void it.
He bought a dealer provided service contract. The service contract expires 8 years to the day after the date of sale and at exactly 100,000 miles.
What is not so apparent, is that the service contract will not be a player until the factory warranty expires at 4 years/50k miles. So in reality the service contract is only 4 years/50k starting when the factory warranty ends. (It would be foolish to make a service contract claim during the factory warranty.)
The contract he posted is not the service contract; it's a dealer provided Insurance policy for the service contract. This also comes at a price (ya gotta love these guys).
The insurance policy appears designed to incentivise people to pay out-of-pocket for repairs -- use even one dollar of the service contract and the refund's toast. So owners pay for post 4 year/50k repairs, holding the contract funds in reserve for the "big one" (turbo? tranny?) and hoping to get the money back.
Dealers like to mortgage the service contract so that even a full 100% refund still nets them the 600 or so in interest paid.
As I posted above Acura does not endorse these insurance policies, which calls into question the Acura name appearing on it.
What is not so apparent, is that the service contract will not be a player until the factory warranty expires at 4 years/50k miles. So in reality the service contract is only 4 years/50k starting when the factory warranty ends. (It would be foolish to make a service contract claim during the factory warranty.)
The contract he posted is not the service contract; it's a dealer provided Insurance policy for the service contract. This also comes at a price (ya gotta love these guys).
The insurance policy appears designed to incentivise people to pay out-of-pocket for repairs -- use even one dollar of the service contract and the refund's toast. So owners pay for post 4 year/50k repairs, holding the contract funds in reserve for the "big one" (turbo? tranny?) and hoping to get the money back.
Dealers like to mortgage the service contract so that even a full 100% refund still nets them the 600 or so in interest paid.
As I posted above Acura does not endorse these insurance policies, which calls into question the Acura name appearing on it.
09-30-2010, 03:35 PM
#29
they make profit by earning interest on your money while they hold it.
you're giving them a 0% loan on the service contract amount, they are turning that 0% cash into either reduced principals on their various loans, or into some interest bearing financial instrument.
I don't think the dealer is trying to get you to pay for service out of cash, I think they're just trying to get you to think "well, if I never need the warranty I'll just get a refund" rather than "can I expect to get a return on my warranty purchase equal or greater than it's cost?". if you're asking the first question, they're making more money than if you're asking the second question.
you're giving them a 0% loan on the service contract amount, they are turning that 0% cash into either reduced principals on their various loans, or into some interest bearing financial instrument.
I don't think the dealer is trying to get you to pay for service out of cash, I think they're just trying to get you to think "well, if I never need the warranty I'll just get a refund" rather than "can I expect to get a return on my warranty purchase equal or greater than it's cost?". if you're asking the first question, they're making more money than if you're asking the second question.
10-04-2010, 09:56 AM
#30
Trolling Canuckistan
What you said is correct. I have an other yellow paper that is a real "acura care" 8 year 100,000 miles.
I think the way is like this: I paid $2100, acura care got $500. The rest $1600 gives to dealer, they do the repair. If they refund me $2100 8 years later, how can they make profit? I think they will think some way to void it.
I think the way is like this: I paid $2100, acura care got $500. The rest $1600 gives to dealer, they do the repair. If they refund me $2100 8 years later, how can they make profit? I think they will think some way to void it.
The big catch I see in that 100% Money Back Gaurantee is that you will need to keep the car for 8 years or put 100,000 miles on it to get the refund. I think the dealer is banking on the fact that very few people buy a new car and keep it for that long. If you trade it in in 5 years, you get nothing, if you total it, you get nothing.
FWIW, most service contracts/extended warraties will pay you back a pro-rated portion if you get out of the vehicle before the coverage expires.
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