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"Certified Used" question/warranty question


oumed

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I am evaluating a 2005 Civic Hybrid for purchase from a local Honda dealer. The white buyer's guide sheet taped to the window has the "as is" boxed checked indicating that there is no warranty on the vehicle. However, the internet ad indicates the vehicle is "certified used" as does other signage affixed to the vehicle. The sales associate also affirmed that the vehicle is "certified used". A carfax search also indicates "certified used" status.

 

According to the Honda website, the "certified used" designation affords "powertrain coverage for seven years or 100,000 miles (whichever comes first) from the vehicle's original in-service date and non-powertrain coverage for 12 months or 12,000 miles (whichever comes first) from the original warranty expiration date or, if the original warranty has expired, from the Honda Certified Used Cars purchase date." Thus, I am perplexed as to why the buyer's guide is checked "as is" and yet the car is supposedly "certified used" which should provide warranty coverage. The sales associate indicated that the buyer's guide sheet must be checked "as is" by state law, which makes no sense to me since the "certified used" designation supposedly provides warranty coverage.

 

I'm concerned that something underhanded may be occuring here or perhaps the buyer's guide is incorrectly marked "as is" or the sales associate may not be well informed. Can anyone explain this to me?

 

Thank you for your consideration.

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In addition to Kastigir's comments, I would like to add the following.

 

A warranty is just another word for insurance. It imposes a financial liability, on the issuer of the insurance, when an event should occur as described in the policy’s disclosure. If you doubt what I say, request a full disclosure of any warranty, explicit or implied, on the vehicle of interest. Somewhere on the disclosure will be the name of a financial entity that backs the policy, this financial entity is the insurer, possibly even a well known insurance company, or possibly a self-insured entity such as Honda of America. Honda of America or the dealership, purchases an insurance policy to cover any expected warranty claims, you are what is known as a third party to this agreement.

 

Being that you are a third party in an insurance agreement, you should be able to request full disclosure. You seem to have come across a partial disclosure: something that describes what the policy covers. Now you need to find something that describes when the policy/warranty is null and void.

 

If you see any hold harmless or indemnity language that would hold the dealership harmless in a situation such as, the vehicle being marked "as is"; then walk away if this warranty is a deal-breaker.

 

Honda of America can offer whatever Honda of America wants, but if the dealership does something that voids the Honda warranty; there is nothing you can do and it is as if the dealership is really not offering a warranty at all. This could possibly be where the state law is stepping in and requiring the dealership to let everyone know the Honda warranties will not be honored, e.g. the “as is” on the window sticker. In that case, the lure of a warranty sounds like something to simply get people walking in the door.

 

Personally, I would walk away from any Hybrid sale for the next 6-10 years, since each one is rolling around with a few thousand dollars worth of battery in the trunk.

 

To qualify my remarks, I do work in the insurance industry. I work in subrogation, the process by which the insurance industry recovers all monies invested in any pay-out.

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