I went back to the dealership and told them to cancel the HondaCare warranty since I was going to get it from this dealer over the internet. I showed them the email that I got from this internet dealer.

My dealer then offered to match the price of the warranty if I would buy it from them instead. I agreed.

So now I have 7/100 HondaCare for $870. Am much happier now. I think I got a good deal. Car (including door edge guards and wheel locks) for $19750 + 7/100 Warranty for $870 + tax & license.

Thanks a bunch everyone here for your help.