Benson Honda - Watch out while "Financing" - San Antonio, Texas

I agree that the finance dept in any dealership is a big rip off. You had your financing lined up already with your credit union at 3.99 APR, why in the world wouldn't you just use that loan?

If you go in with your $$ lined up with a third party (the credit union) then you don't have to get hit with all the hidden charges the F&I guy/gal try to stuff in the loan. These hidden charges include: warranty plans, gap insurance, etching, car alarms etc.

NEVER sign a contract that you don't understand. NEVER sign a contract that has any term or condition with which you don't agree. If you don't want the warranty, get it removed from your deal and get a refund of the unused warranty period. Use an attorney if you can't get them to refund your warranty money. Report them to the Attorney General.

This sure sounds like the 'Our bank requires an extended warranty in order to get this financing' scam. A quick way to cut this off is to insist that the contract clearly show that the bank required the purchase of an extended warranty to secure financing. Watch them do a backpedal after you push this. Never fall for this scam.

Also, I'd cancel the extended warranty immediately. If they refuse you can threaten to file a complaint about them to the bank. Did you know you can purchase a genuine Honda extended warranty on the net from several real Honda dealers around the country at about 40-50% less than your dealer offered. Very legal and your dealer will hate it. Guaranteed.

Typically the F&I person at the dealership is the key person they count on to generate profit. Not through the price of the car but rather the add-on services and warranties. These are where the profit margins become obscene. Paint sealers, fabric protectors, road hazard, you name it they can invent it. If they're offered just take a pass on them all. Your wallet will thank you.