Florida extended warranty issues

[kapitanshaun]

Hello, new member from Florida here. I'll be picking up my new 2012 Pilot Touring 4WD in a couple of weeks. I've been debating whether or not to purchase a Honda Care extended warranty. Being from Florida I’ve heard all the negative issues. Such as, I’ll have to pay full price from a Florida Honda dealer. Then there is, Florida state regulations won’t allow you to purchase a warranty from a dealer in another state. If you purchase a warranty from dealer in another state it won’t be valid. After hearing Florida won’t let you do this or that I went to the Division of Consumer Services Homepage and called the Florida Insurance Commissioner’s office. I was informed that it is not illegal to purchase a Honda Care extended warranty from a Honda dealer outside of the state of Florida. The only caveat is if you have a policy dispute the Florida Insurance Commissioner’s office will not back you up. They will direct you to contact the Insurance Commissioner’s office in the state in which the warranty was purchased. I was also informed by the individual at the Florida Commissioner’s office that there is no regulation or statute stating the dealer has to charge full price for the extended warranty. The extended warranty price can be negotiated. In fact during the conversation I was informed of SB 2176 that took effect on 06/01/2010. Below is a copy of a summary of SB 2176 in regards to motor vehicle service agreement-forms and rate issues.

Motor Vehicle Service Agreement - Forms & Rate Issues
As a result of SB 2176, effective 06/01/2010, the requirement that forms and rates for motor vehicle service agreements (also referred to as an auto extended warranty).be filed and approved by the Office of Insurance Regulation has been lifted.
By July 1, 2011, each service agreement sold in this state must be accompanied by a written disclosure to the consumer that the rate charged for the service agreement is not subject to regulation by the OIR. A service agreement company may comply with this requirement by including such disclosure in its service agreement form or in a separate written notice provided to the consumer at the time of sale.
The OIR may order a service agreement company to stop using a form that:
1. Is in violation of or does not comply with the Florida Insurance Code or an Administrative Rule.
2. Contains any inconsistent, ambiguous, or misleading clauses, or exceptions and conditions which deceptively affect the risk purported to be assumed in the general coverage of the service agreement.
3. Has any title, heading, or other indication of its provisions which is misleading.
4. Is printed or otherwise reproduced in such manner as to render any material provision of the form substantially illegible.
5. Contains any provision which is unfair or inequitable or which encourages misrepresentation.
6. Contains any provision which makes it difficult to determine the actual insurer or service agreement company issuing the form.
7. Contains any provision for reducing claim payments due to depreciation of parts, except for marine engines.

I’m the first to admit that I’m not an expert on this topic. If anyone has any insight on this topic please feel free to share.

[jl_ss]

Currently, Honda corp policy currently does not allow a dealer outside of FL to register a HC contract to a FL address.

From Curry Honda's website: "No Honda dealer, outside the State of Florida can register a Honda Care contract to anyone that uses a Florida address."

That may change with the new regulations but I don't think that will happen in the time frame you are buying.

The best bet would be to try to negotiate with your FL dealer pointing your research documentation that negotiation is allowed if they claim it is not. This may not get you anywhere because it requires dealer competition to lower the price. At this point, I would guess the dealers are not going to voluntarily lower the price when they can keep charging full price based on outdated regulations that no one knows aren't in effect anymore.

I would get discounted quotes and offer that price to your FL dealer as a take it or leave it offer. Meaning you just won't buy it at any higher a price. Force them to take the lower price or nothing at all.

[rocky]

Also raises the question of violation of interstate trade regulations, a FTC issue.

AND, whether a Florida dealer will accept a Hondacare warranty from a car brought in from another state and now registered in Florida or just visiting.

[jl_ss]

Originally Posted by rocky

Also raises the question of violation of interstate trade regulations, a FTC issue.

AND, whether a Florida dealer will accept a Hondacare warranty from a car brought in from another state and now registered in Florida or just visiting.

The original reason for not being able to buy a FL extended warranty outside of FL is based on a FL specific Consumer Protection Statute. If FL gov't sources responsible for regulating sales of ext warranties are now saying that is not the case, I don't think it will be a ITR violation. Especially since they sell warranties to every other state.

I don't believe a dealer or Honda cares how you bought it when it comes time for service. Just that they have not violated any laws in selling it to you. People relocate all the time. There are no requirements in the contract for letting Honda know you have relocated (unless it is cross border).

[kapitanshaun]

Thanks for the responses to my post. Negotiating is always worth a try. However, I don’t see dealer’s finance manager lowering the price when they have been charging full price all along. No one ever lines up to be the first to earn less profit on a sale. I received a pricing scale from a dealer in Tallahassee FL that showed $3040.00 for an 8 year/120,000 mile, zero deductible warranty. At that price I’m inclined to bank the money and pay for any repairs out of pocket. If there are no warranty issues I'll have the money available for the next vehicle. Maybe I'll ask my nephews magic 8 ball for a cost benefit analyst of buying the warranty. If it was only that easy. hahaha.

[jl_ss]

Originally Posted by kapitanshaun

Thanks for the responses to my post. Negotiating is always worth a try. However, I don’t see dealer’s finance manager lowering the price when they have been charging full price all along. No one ever lines up to be the first to earn less profit on a sale. I received a pricing scale from a dealer in Tallahassee FL that showed $3040.00 for an 8 year/120,000 mile, zero deductible warranty. At that price I’m inclined to bank the money and pay for any repairs out of pocket. If there are no warranty issues I'll have the money available for the next vehicle. Maybe I'll ask my nephews magic 8 ball for a cost benefit analyst of buying the warranty. If it was only that easy. hahaha.

I agree, that's why I ended with the take or leave it offer. $3040 is more than twice the price you can get from Bernardi or Saccucci. If you have to pay $3K, I'd also agree - put it in the bank earning interest for any required repairs rather than buy the extended warranty. That way, you get to keep it if you don't use it.

Here is the discounted price schedule:

[kapitanshaun]

Thanks for the pricing info from Saccucci.