Service Contract Warranty

Discussion in 'Clarity' started by cyberteen, May 26, 2020.

To remove this ad click here.

  1. Insighter

    Insighter Active Member

    First, I didn't say the insurance company valued the Prius at $10K less than its purchase price. Second, of course he didn't put a lot down or gap insurance wouldn't even be a relevant consideration (even in hindsight). Gap insurance is useless if you put a lot of money down. It only helps if you're upside down on your car. My friends have great credit and got a great promotional interest rate. Third, they didn't overpay for the car. As I said, it was right at the end of the model year. They got a great deal, and couldn't get such a great deal on the '17 they replaced it with. Even with that great deal, what the insurance paid off on the car after three months of use was thousands less than my friends had paid. Finally, as with any insurance, whether buying it makes sense comes down to what level of risk the buyer is willing to accept. If someone's car getting totaled early on would mean they couldn't pay it off and it could ruin their credit, then gap insurance makes a whole lot of sense. Or, if they're like me and they want to avoid concerns like a gap between insurance coverage and the amount owed, it may make perfect sense. Just because you view these matters in a certain light doesn't mean other people view them the same way. I weighed in with my opinion about gap insurance, which I did not say anyone else should necessarily have. Then you reply asserting that your answer is the right one! It isn't, it's just one way of looking at it.
     
  2. To remove this ad click here.

  3. Here’s the situation that is relevant to this discussion.

    I would not purchase Gap insurance in this situation, nor would I recommend anyone else, in the same situation, purchase Gap insurance.
     
    cyberteen and Insighter like this.
  4. Insighter

    Insighter Active Member

    I think there is sound reasoning for recommending that. Financially, it probably does not make sense for most people.
     
  5. cyberteen

    cyberteen Member

    Done and Dusted! TLDR at the bottom.

    So, on Thursday, the finance guy calls me if I could drop-in at the dealership as the bank is needing some more paperwork. I said sure, but that I'd come on Saturday noon (i.e. today). Also, I made the first move. I told that him I'd want to cancel my GAP and Extended warranty as well. He immediately asked why, told the golden words "I realized I don't need it anymore, so want to cancel it". He said, "Okay, come to the dealership we will discuss it there.."

    So, I go today. Guess what? The bank themselves wanted me to cancel the GAP as I have put a good enough downpayment. Okay great. But then he started to say I could put this 1000$ as maintenance fee, etc. I said "I can take care of it when needed". Lol, why would a PHEV need 1000 dollars of maintenance?
    He then said, "let me check for college grad discount" and came back with an offer for 600$. I said no thanks. LOL

    Then it starts, the main game for the warranty. He started telling all sorts of crap like "I am a Computer Engineer, I should know how many electronics this car has, I get covered for 6 years, blah blah..."

    He kept trying me to put a price. One of the first quotes he gave me was 1800$. My mind voice was like, "dude, you didn't even budge a bit from 2900$ when I asked you a week back?" He tried to convince in all sorts of ways to make me say that price was the problem here and somewhere deep in my heart I wanted warranty.

    Good thing, I practiced a couple of lines foreseeing those offers. I said, "I realized I can take care of any expenses then and there, and not paying for warranty gives me peace of mind". He finally ended the negotiation by saying "Interesting.. ha ha ha" as if I was making a blunder of my life. He did say the first time when I was sitting with him, things like "If you end up canceling the warranty, It is like shooting yourself on your leg" blah blah...

    Another good part was since bank had not yet processed my loan request yet( they needed me to cancel GAP and wanted a better pic of my grad Diploma), I guess my monthly payments reverted back to the original one without any of these warranties and GAP. Sweet.

    I collected my Honda charger, which was missing when I took my delivery and left happily. :D

    TLDR: Bank themselves wanted me to cancel GAP. Told the guy, no price would make me buy the warranty. He gave up. The loan was reset to just the car payments, nothing else :D

    Really an interesting first experience for me dealing with these car dealers. I will pass on this knowledge to whomever I can and also be better prepared in case I step into the dealer again, in the near future.

    I thank each and every one of you here for the encouragement and words of wisdom to go prepared and help me talk to the F&I guy. Much love
     
  6. su_A_ve

    su_A_ve Active Member

    Cyberteen - at this point, please make sure you will be eligible to get the $7500 credit...

    In any case, when Finance guy mentions insurance, I say, I'm not keeping after 2 years...
     
    cyberteen likes this.
  7. To remove this ad click here.

  8. Skynosaur

    Skynosaur Member

    Good to know you beat them in their game.

    There is a reason why they need you to cancel Gap insurance. If the dealer makes too much profit from the deal. The bank won't allow it so some of the money needs to be moved towards warranty (F&I bs warranty). The bank won't approve the loan if it exceed a certain amount.

    When he drop the price down. There should only be a few hundred markup.

    I think you owe all of us a drink . Enjoy the car.

    Sent from my G8142 using Tapatalk
     
    cyberteen likes this.
  9. Clarity20

    Clarity20 New Member

    which part of California are you from? I’m from Bay Area, and I talked to like 10 dealerships. Only one was willing to go down to 32800 for base and one dealership willing to sell $36500 for Touring OTD. The rest let me walk out. I decided to buy Touring at $36500 on 5/31 because most incentives would expire by then. Seem I overpaid. Did you qualify for any other incentive beside $500 grad incentive?

     
  10. cyberteen

    cyberteen Member

    I am from SoCal. Only qualified for new grad incentive. It’s always a hit or miss I guess, when trying to get the best price.

    Enjoy your new Clarity :)



    Sent from my iPad using Inside EVs
     
  11. cyberteen

    cyberteen Member

    Definitely. Let me know when there is a Clarity owners meetup :D


    Sent from my iPad using Inside EVs
     
  12. To remove this ad click here.

  13. Drewbe

    Drewbe New Member

    You can get gap insurance through your insurance company. It is very cheap. Call your insurance company for a quote.


    Sent from my iPad using Inside EVs
     
  14. Which wonderful So Cal dealer provided you with this experience?
     
  15. cyberteen

    cyberteen Member

    Mossy Honda
     
    Last edited: Jun 10, 2020
  16. Skynosaur

    Skynosaur Member

    There use to be a $10,000 incentive in 2018 for leasing. Not sure what it is now. To take advantage of this offer. You lease the car first month than buy it out. At the time financing the car was about $3k off. As far as the $10k offer goes. It show it expires that month. But the offer continue on month after month because here in NY clarity weren't moving well. It's all up to Honda Corp to release these offers.

    Look up Truecar and use that to negotiate the deal. Let me know what other pointers you need.

    Sent from my G8142 using Tapatalk
     

Share This Page