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Hi, my Honda lease is expiring. I am thinking I will buy it for cash. I would also like to buy the Honda warranty. Will the dealer sell me a Honda warranty if I am paying cash for the car and not using their financing?
Sure, just negotiating the price may be a bit tougher. Not sure about Honda but I know from other car group forums that certain dealers get a rep for the best deal on factory extended warranties and being able to sell them online to any state. So maybe worth looking around for that rather than just using your local.
Generally the profit on the warranty they sell you is half for the dealer. You might be better off putting your money somewhere and let it grow and use it for repairs-if needed.
Having said that, if you are set on warranty, separate the deals from each other. Buy the car and then call around and get a quote for the warranty from various dealers. You can do that before going in for the purchase so you will know what is reasonable and make them an offer.
dh~ You might want to look into financial incentives on new units.
While it's nice to be able to "pay cash," this is NOT an incentive to a dealer that gets kick backs from Toyota Financial. These "hold backs" may come your way, as a buyer.
But, if you want to pay for a used vehicle, that you just rented, then you do you.
Thanks all. I found a decent financial guy at a dealership who told me that I will save $1100 if I do pay cash but I have to do a lot of it myself. But there is something to be said for using their financing and getting any other incentives as a buyer. I've looked into new leases and they are high. He is telling me 8% for dealer financing--I am sure they get money back on that from the banks.
As far as the warranty goes, I do hear many people say not to buy it. Just not sure about that. I'm not disciplined enough to be putting money away for car repairs.
I like the car--it's a CRV with. 37,000 miles on it now. I've put new tires on it and done all the maintenance. I guess my only question is how to buy it--dealer financing where they throw in the warranty or pay with my own check and then shop around for the warranty. I am trying to hold onto whatever cash I have. Thanks.
They don't get ...kickbacks from the banks. Rates are high on used cars now. I got a DEAL @ 5.99 for my car. Yea, that's actually a deal on a used car in this market.
Buy it out. Don't buy the warranty. You know it's a Honda, right? Enjoy 10 more trouble free years.
All these folks trying to help you make sure it's a "good financial deal". That's awesome and very nice of them but at the end of the day, are you going to pass and go buy something else over the difference betwteen maybe $1,500? 2 grand? Here's a car you know. Has it been reliable? Yes? Buy it, no warranty. Has it been a troublesome car? Doubt it or we wouldn't be here. Don't buy it or buy it with a warranty.
At the end of the day TO ME, buying a used car that you have known since new, makes more sense to me then buying another used car and is worth a premium.
Peregrine, yes I like the car and have put money into it as if it were my own car. So you are saying just pay the cash directly to Honda and not deal with the dealership at all?
Notnamed--my buyout is $18,000 and they are selling these cars for about $26K. So I think it is a good deal for me.
Thanks.
This experience is 12 years old but I don’t think things have likely changed that much. We would do this at the dealer I worked at. They’d do this often when the car was being financed at lease end. No reason they couldn’t do the same with a cash buyout, just not as much money in it and therefore not as much motivation.
The way it worked was we would assign a stock number as if it were a car in our inventory and process it that way.
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