I have a 2019 Honda Accord Sport 1.5t that I bought brand new in November 2019.
I currently have 182,101 miles (95% highway miles) and my transmission went out yesterday. I have a lifetime powertrain, so I took it to Honda. They called me today and told me that they took out a claim through AutoGuard (who the warranty is through) and they are requesting proof of the upkeep on the car. I have always done oil changes, brakes, transmission drain & fill myself bc it’s WAY cheaper, but I never kept my receipts.
So my question is, what’s the best way to get out from the car if they won’t cover it?? KBB value is $6088 and owe $12,892.88.
Trading In Car or Selling It To Dealership??
byu/Prior_Perception_166 inpersonalfinance
Posted by Prior_Perception_166
10 Comments
The best way is to pay to fix it. You owe more than twice what it’s worth.
Probably close to three times because it’s not worth 6 grand with a busted transmission.
>So my question is, what’s the best way to get out from the car if they won’t cover it?? KBB value is $6088 and owe $12,892.88.
From least bad to most bad options:
1. Pay out of pocket to have it repaired
2. Sell the car as-is and pony up the ~$7k delta between what you owe and what it’s worth
3. Trade it in for a new one and roll ~$7k of negative equity into a new loan, and ideally get a much shorter term loan than your previous one
Provide them the spreadsheet with the dates and miles you did the changes, along with your receipts for the oil and filters and brakes, etc
The car and the loan are two different things. You don’t get out of the loan. You have to pay back the loan. Because it’s a Honda, I would have the transmission repaired and keep driving the car as long as you’re not aware of any other problems with it. Otherwise you need to come up with $12,892 to pay off the loan so you can sell the car. I would not borrow that money.
Did you purchase the transmission fluid through the dealer or through an auto parts store? Either one should be able to look up your purchases if you gave them your phone number or something while purchasing.
Anyway, if someone is willing to buy it, and someone is willing to take it as a trade in…. which one nets you more money? Seems like a no-brainer.
You’ve been making payments for over 6 years and still owe $12k?
Nothing should matter besides the transmission upkeep. CVT fluid change is about every 30- 50k miles. Do you have any proof?
I hope they cover it, but this is why I never bother with extended warranty. It’s a total craps shoot if they will cover you.
“I have always done oil changes, brakes, transmission drain & fill myself bc it’s WAY cheaper, but I never kept my receipts”
Write down all the dates you did it and what you did, this is a maintenance log. Give them that. That is proof enough and if not then pay for it yourself and take them to small claims court and then you give that same thing to a judge and they will determine it is good enough.
You’ve been making payments for 6.5 years and you still owe half of the MSRP? What on earth kind of deal did you get into…
Use your receipts via email or go to the auto parts store and have them print proof of purchase if you used a loyalty card or anything. It’s worth advocating for here.
Even if refused, It’s likely cheapest to fix the car. Get a quote for a replacement transmission from an independent shop but you’re paying for a transmission whether you sell the car broken or you fix it but fixing it avoids rolling over $8-10k of negative equity (they’re not paying KBB on a trade with a busted transmission).