Leased a Honda last week. Offered a service package that would add $6/month to payment which was a fair price. Admittedly my guard was down and F&I rushed thru signing. I discovered they were packing payments and in reality the service contract was $1,600 or more than $45 per month.
The contract says refunds go to lienholder listed. How does Honda Financial apply that type of refund ? Check to me? Apply to payments? Keep It?
Appreciate the help. I’ll post more about the dealer experience after I resolve this with them as I’m in the back and forth right now.
It goes towards the rest of the total lease. So if the total of your payments are $20,000, you now have $18,600 remaining. But in reality it would basically go towards your last payments. So if your payments are $400/mo, you last 4 payments are “paid” for. The payment you signed for on the contract will stay the same.
That makes sense. I’m giving the dealer chance to unwind and rewrite without it but it’s possible it’s already funded so I’ll just submit for a refund thru the service company if that’s the case.
Similar situation happened to me, and I was given the refund in a form of a security deposit from HFS. Later, sold the lease back to the dealer and was sent a check of the full Service Contract (VSC) amount.
That’s what I thought too. But the sales price of vehicle on the lease matches the purchase contract which matches the original quote. I’d be fine if that was the case they just moved things around but my 99% guess is the printed lease quote included tax whereas they said it didn’t because of being out of state. So they packed $30-40 a month into the paper quote so that they could add F&I.
I do blame myself for not being more thorough but seems at the very least I’ll have a security deposit refund or last few payments covered at end of lease if dealer doesn’t want to fix. And learn yet another lesson to never let my guard down.
Ok got off the phone with the general sales manager. They are recalling the contract from Honda and redoing. There was a lot of runaround but they admitted they made some mistakes.
The explanation was they showed a higher payment even though they ran credit and saw we had A tier. Usually out of state deals they do everything over e-signature ahead of pickup but didn’t because main guy was “on vacation”.
So then reading between the lines they used this as an opportunity to pack in a $50/month protection package while saying it’s “only $5”.
The thing where I know there was shady stuff going on was when I said, Oh so only $180 over the term, that’s not a bad price. F&I guy shook his head and said yes.
Supposed to get overnighted paperwork.
Still put a lot of blame on myself for not running figures myself multiple times but props to them for fixing this, even though it “hasn’t ever happened in the X years I’ve been here and I’m so embarrassed”
I guess I don’t have docs yet but seems they’re able to. I also figured it funded since I got it Saturday and only emailed them Wednesday AM. We’ll see!
