Can I Get A Refund Or Cancel Extended Warranty?
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- เผยแพร่เมื่อ 14 ต.ค. 2024
- This video explains how to get a refund on a Vehicle Service Contract or Extended Warranty. In most cases it is an exclusionary coverage policy that is cancelable and refundable. How the refund works and what to expect in terms of money back. I also address some of the concerns people have expressed over the years when trying to cancel or get a refund on an Extended Warranty.
Thank you for this video. Very few finance people or dealerships as a whole will be flatly descriptive about this issue or helpful if trying to complete a warranty refund. Buyers beware!
For everyone who has been scammed by F & I Managers, you may want to contact the state agency that regulates Dealerships where you live. You can provide a written complaint, and that agency may investigate the dealership. In Texas, it's the Office of Consumer Credit Commissioner.
I had a dealer do this to me and I cancelled both plans within the first 30 days. They sent the money back. I'm now filing a complaint with my state to have this dealership investigated. I can only imagine the number of people who get taken advantage of during sales transactions.
Good advice. If you feel you have been scammed best to get these folks out of the business they ruin it for everyone. That being said there are a lot of great F&I professionals out in the industry and I hope people realize that.
Great video! I just traded a vehicle in yesterday. It had/still has an extended warranty and gap insurance on it. I was told by the FI manager for my new vehicle that I could cancel this and get my money back on a pro rated basis. I searched Google for validity of this and found you. I'll be going to get my money back. Thanks for the confirmation. I don't expect much considering its been 2.5 years I've had the vehicle but if it'll get me part of my down payment back for the new car...I'm happy.
Oh and my new car has an extended warranty...only cost me 376.00 total. It was a good day yesterday.
Thank you Nathan! I have a power train warranty that cost $2,200 and I only had 29,000 miles on my lease buy out. I swear I don't remember having the option to decline the warranty and it was just 'slipped in.' (Ultimately my fault I get it but...) Then the dealer never sent ANY of the buyout paperwork! (The buy out was in September and after many calls, I just got it at the end of February!) Needless to say I am not happy but am thankful to know I have options! THANK YOU!!!
They did the same thing to me, bought the used car in August, they slipped in extended warranty, over $2300, I don't want it and told them to cancel it and take it off my loan with bank and they still haven't done it, Dec. 21, I am furious, they don't answer your calls, Ramsey Subaru, with these idiots.
Ty man this dude gave me a 4k extended warranty lol im cancelling tomorrow
Me too, we bought an HRV on Saturday morning, did the paper work Friday night, told "Sign here here and here".... $4,670.00 in bs warranty. that was the same amount of our down payment.
@@Jacpeewie snakes man
@@Jacpeewie Did they even mention it to you? I wasnt even presented with the option, just "sign this which states you acknowledge you have an extended warranty." And of course it was at 6pm when they were about to close and had me waiting for 3hrs leading up to it even though no other customers were in. Next day I looked through the paperwork again and saw the $3500 charge for it.
@@thomasgallo7271 same as you, only 9 at night.
Did u get a check for it?
Thanks so much.. for all the answers. God bless you for taking the time out and helping out!
Im canceling my extended warranty.. Cars paid and I voided the extended warranty by being a mechanic and doing my own work ridiculous..
Thank you for the video! I just bought a used car with extended warranty and I got really nervous, anxious, worried, etc after the purchase. I'm glad to hear I can most likely cancel the extended warranty with the percentage you provided. Plus the dealer missed a line I was supposed to sign so the deal isn't 100% complete yet. (I noticed when I got home). At least I have the forms with the missed signature for persuasion if they don't cooperate.
Honda just extended their warranty on 2017 and 2018 CRV With the 1.5L engine to 6 years and unlimited warranty on the engine only. So that may also be a good reason to cancel any extended warranty
i bought a car last night and didn't realize $2500 was added to my loan as an extended warranty until after I looked over my signed paperwork when I got home... I was pissed but it was my own fault for not being diligent enough with what I was signing.
Yup , same here , I'm about to start the back and forth with the finance manager 👎
@@jakec1483 I’m sorry but I don’t get it. When they gave me the paper work and I saw that extra charge the numbers literally jumped off the paper and started running around the dealership 😂
Bro, i just got charged a 4k extended warranty today, best believe Im going first thing monday morning, ill keep you guys updated👍
Update?
Update
Hello, for anyone searching for answers in dealing with this situation, please read the comments and his response. I’ve had several cars and been through a lot of the situations posted and I have to say this guy legitimately knows what he is talking about. Great feedback he gives. It’s pretty commendable 🙏🏽
Fancy Pants that very nice of you to say thank you. Just trying to help folks that’s it.
First thank you so much for making this video and informing us about the Flat Cancelation Time Period!
Second Tell me why I flat out told the finance person I don’t want any warranty on the brand new Limited CHR I bought and a week later when I’m trying to make a payment (although my payment isn’t due until another month) I see an extra $4200 on my balance. Smh. I called to cancel and couldn’t get ahold of the finance person who assisted me… anyways I’ll keep y’all posted once I get ahold of him.
BUYERS BE AWARE and review all your paperworks even when they try to rush you saying sign here, here, here…. Take your time! This is a big investment and something you can easily miss and obliviously pay extra for services you don’t need and didn’t request. Pay close attention!
Any update???
You made a young naive girl very happy. Thank you so much.
Thank you so much for this video. I'm moving out of state and I bought my car used from a Toyota dealership, but it's a Mazda. I have bumper to bumper on an already fully certified vehicle, but because I bought my car from Toyota, I don't think I'll be able to use the bumper to bumper in another state. This video helped me in knowing what I need to talk about when I head back to my dealership. :)
+Alesia Schwenke Hope this helps, in most cases the extended warranties work at any ASE certified mechanic. This is almost any dealership or shop that is worth a salt. You will need to find out the name of the provider, (i.E. CNA, Toyota, Vehicle One...) Usually certified vehicle are brand specific for the coverage so you could go to any Mazda dealership and have no deductible. Read you contract and it will outline the specifics.
Very good information here. I had bad buyers remorse when I recently purchased an extended warranty. Now let's see how much I can get back!
Thank you for the comment, let me know if you need help.
Thanks for this! Got suckered in last night while I was tired and just wanting to get it done. Managed to get rid of the undercoating BS for 2000 but the 10 year 200k warranty stuck. She said nobody EVER says no to THAT! Don't know why i got sucked in either since I plan to do a modification which voids it anyway! Glad my chances of getting out are good, just have to be stern.
Thanks for sharing. Got duped by the FInance guy and happy to hear we can get refunded
I went to get a used car. They sold me a 2003 Chevy for 10,000. They told me that it's the warranty and plan I'm paying for not the car. I'm so pissed I've been emailing the woman and she's not getting back to me. I'm glad I can cancel it. It's only been 4 days since I left the dealership. They made it seem like it was mandatory. I will most definitely cancel it and call tomorrow. Thank you
+Jojo Stanzz Hope it all works out. Nothing is mandatory about Vehicle Services Contracts.
Lol u got suckered in so bad
Hi, this is from the state of Colorado. My girlfriend just purchased a vehicle on 3/28/18 and of course was talked into buying an extended warranty through Portfolio. She was pretty much put on the spot as a "now or never" marketing technique, but also put in writing "if the company denies a claim that is said to be covered, they will cancel the extended service contract." It ended up adding ~$2800 to her car purchase. After researching Portfolio, she sees that it really is not reputable at all and went in to the finance manager to cancel in which they put in her face that it is non-concealable and that it's not the auto brokers policy to cancel either. In the contract it does say non-concealable "unless required by the lender, if any, financing this service agreement." So she went into the bank financing the car and they say they are not able to cancel it. Further down in the Cancellation small print it says that the contract can be cancelled within 30 days of purchase as long as no claims are put through for a full refund. Since the dealer has said they will not do it at all and the bank doesn't seem willing to help, what is the next step? I am going to go into the bank again with her today as it clearly says they have the ability to cancel it. Any advice?
Marc Obando great question, I wish they were more straight forward with the process. I would call portfolio and make sure they document your request to cancel before the 30 days is up and then also have them send you something in writing email or fax. Once you have that go to the GM of the dealership. The general manager will take care of it from there.
I spoke to both Portfolio and the dealership. Apparently the dealership has a specific agreement from Portfolio that makes it non-cancelable from the moment it is signed. It is also not the dealerships policy to cancel it. After speaking to the bank, Portfolio, and the dealership multiple times, it seems the only way to get out of it is if the car is totaled or repo'd. Ever heard of any of this?
@@mobando45 wat happned next?
I'm going to be cancelling my CNA warranty - terrible company. I specifically upped the level of the warranty to cover all of the electronics in the Audi MMI system. The brochure says the entertainment system is covered. The contract has an added sentence under section 11for Interior Electronics (coverage limited to these listed parts). As a result, the majority of the parts are NOT covered. My Audi Music Interface (a box in the glove compartment to which you can physically connect your IPOD) failed. Claim denied because it was not specifically mentioned in Section 11 even though it is part of the "factory-installed entertainment chassis". I asked CNA to clarify what chassis meant. The answer was the frame that holds the radio in place. Here is what they will cover - magnetic tape player (what car has that now?), dash-mounted compact disc player and graphic equalizer (Audi puts the CD player in the glove box and the Amp and tuner in the trunk and the control head under the dash and the equalizer controls on the console - all separate units connected by a fiber ring). Bluetooth, Navigation, radio, amplifier, control head, video display, CD player, IPOD interface, console controls are all connected to this fiber ring. If either component fails completely, you lose everything. CNA and the selling dealer have refused to tell me what components are or are not covered under this extended warranty.
+ajg617 I am sorry this is happening, a good rep would be going to bat for you with the Warranty company. The dealer should contact the provider and get lean on them to step up and help you. Ask for the service manager to get involved and the general sales manager, they want you to have faith in the product and it sounds like they are trying to pull a technicality on you. Audi are tough vehicles for the insurer because stuff always fails and they are very expensive to repair. If anything you cancellation refund should help to offset the cost of repair. I hope this helps.
Thank you so much for the info Nathan!! Yet is there a best way to get a hold of you through the phone because I’d like more info on what other options I have because they are giving me such a hard time.. thanks
Best way to contact the GM and voice your concerns.
Very good video. You also come across as a guy I'd buy a truck from! I have one question for you. I just bought a Sierra Denali and put 40k down at the time of purchase, only financed about 20k. I took out a warranty with CNA, but may just flat cancel it....not sure yet. There is still factory warranty left obviously. My question is, since I technically own far more of the truck than the bank, would they still send the refund straight to the loan? Thanks again for the info, well done.
Great question always goes to the loan.
Many warranty agreements are online. Read the "cancellations" section if you believe you will encounter a stealership person.
Extended warranty is a great way of giving the money to the Insurance company. If you buy a brand new car, you have a bumper to bumper coverage. Just as the guy in this video says, your warranty becomes active from day one. If your car is a total loss and you had 25,000 miles on it, you can say good bye to 25% of the money you paid. They are gonna mail you a check with a 25% cut. It is a total waste of your money, especially if you didn't have any repairs. If you did stop at a dealer for whatever reason, your bumper to bumper coverage was used anyway. You may buy insurance after 35000, which is gonna be almost the same price, if you take into account that the dealer sells you 100,000 coverage, but the truth is it is 65,000 only(100,000-35,000)
Great info and very timely after my new and (parked) car was totaled in a parking lot.
Just had a problem with my extended warranty with Toyota. I had an extended Warranty for wheel and tire. Then the other day my tire light came on and I noticed that a nail was stuck in the tire. So long story short, I took the car to the dealer and proceeded the process of getting the tire fix. The car was only driven one day after for 15 miles per car dash calculation. Anyway, after talking to the dealer they told me that a new tire was needed, and that the tire was damaged due to me driving while on a flat???They were refusing to honor the warranty until I wanted to cancel the coverage. I have a tire pressuring sensor on my vehicle that shows the tire PSI on all four. I only lost 2 psi the entire process and drove about 23 miles one trip to the dealer. I wanted to proceed with canceling the policy. My car is only about 3 months old so they kept me there for a couple hours before paying for the tire. They told me it went through (ext warranty) so I kept the warranty but the service clerk told me that the Dealer did paid out of pocket for the tire themselves. In other words the dealer only paid out of pocket because of threat of cancelation and they would have lost out of thousands of dollars for just a single tire cost. The dealer will always find a way not to honor the Extended warranty period. I think they only paid for it because why lose out of 1000's of dollars for a $200 single tire? I'm going to cancel in a week. The EXT warranty will never be upheld by the dealer. If it was something that was more cost effective and they did not lose out on monies for the warranty being canceled I think they would have not paid out of pocket for it and just left me SOL
You need to realize that if you file a claim with most extended warranties within a 2 to 3 week period the dealer pays for it either way. Always get a tow because you can damage the tire and the rim and the brake caliber, they are correct about that your contract will clearly state not to drive on the tire. You bought the protection for a reason that hasn't changed even with the experience you just had. Hope this helps.
I’m currently going through this with my used car. I purchased a service contract for $2000. I cancelled within 30 days and the dealership only sent $700 to my lien holder. The dealership’s reasoning for this is that they paid $1300 for the contract and they’re refunding me the difference (the profit they made off of me when I purchased the vehicle. Shouldn’t I be getting the full $2000 since that’s what I paid?????
Yes you should the refund should be based off the retail price not the cost, whats on your contract is what the refund should be based on. Hope this helps.
Hi Nathan~ I recently bought a NEW car( within 30 days), and yes I got suckered into an $3500 "extended warranty" . And I new ahead of time, they would try,...and when it happened, I had was stupid and didnt realize what was REALLY going on and what I was signing. The F & I guy lied and said the warranty was serviceable at ANY Honda dealership, however thats not the case. Its ONLY at the dealership I bought the car 80 miles away. He also lied and said it was through Honda USA,...and it was not. He also said EVERYTHING was covered 10yr/100,000 but when I got the info,......."DISCLAIMERS" everywhere. I ALSO had to change financing institution(add higher interest rate), which of course was local inorder to "get the extended warranty"
PLEASE help! Thank you, Rick
Hi Rick,
Sounds like you have a few things going on here. First of all he can sell you a Honda service contract if he is a Honda dealer. Only franchises are allowed to sell branded finance products. A Honda VSC may have a disappearing deductible which means at any Honda dealer your don't pay a deductible. Any service contract worth a salt would work at any ASE certified mechanic not just at Honda. The disclaimers usually outline not covered parts, like wearable items, i.e. tires, windshield wipers, brake pads... If you feel it doesn't cover enough cancel it. No service contract provider requires that you use a specific bank in order to purchase there product. I would call or go see the general manager and see if you can work things out. Usually they want to keep the deal together and want to find a solution that works for everyone. Hope this helps.
I am so glad I found your video!! I bought an Acura a week ago. It was certified to begin with, but the dealership manager told me I couldnt get the interest rate I wanted unless he uncertified it and added an extended warranty but also dropping the price of the car a little. Made no sense after I got home and realized I was financing a little more than I was at the original certified price. To make matters worse the warranty will expire in 2 years since it is 60 months after the manufacturers in service date. He had me on the 100,000 miles bumper to bumper. I am callling today to cancel. I just know he will make it difficult for me what do i do if he tells me i have to resign a contract with a higher interest rate??? Thanks!
Jessica Shoemaker Great question, he can't make you resign anything you have what we call a "Bankable Contract" so there is nothing he can do and you can cancel the VSC just make sure you go over the finance guys head if you get resistance.
Thank u so much! I got it worked out and bow have an actual acura warranty! :) Priced $300 higher than it should be but i can live with that! Thanks again.
We need more Nathan’s in Erie .
Our dealerships here are all Frauds if not .. Google it .. I will be looking for some refund off my 16 Sierra that cost me an extra 3,777 which they made it seem like I couldn’t get it later .. my truck only has 34,000 miles and I have everything but Gmc Scheduled Maintenance - 2 Visits .
Hello, the information you have provided on your video is good, thank you. But unfortunately not all Toyota dealers are great as mentioned. In my personal experience Toyota Headquarters in Miami Lakes have to get their acts together. So sad I didn't check their BBB reviews before purchasing.
Hey Nathan, we got an extended warranty for a BMW. Sold the car just over a month later, and I want to cancel the warranty. Do you think I'm elegible for any sort of refund? If I'm getting no response from the dealer or warranty folks, should I go directly to BMW? Thanks for your time 👍🏼
What's the percentage rate of a new car to break down after the included warranty? If you buy a honda toyota lexus acura is 10% also if you buy a extended warranty you should bring your car for maitenance to a certified place very often to get a proof of that, they will not honor DIY maintenance if your engine breaks down. If you're into savings just stick with included warranty and be gentle with your car.
This is all so confusing to me. I’m a first time buyer and I foolishly got the extended warranty from the dealership and GAP which I really don’t need. I’ve had the car for 7 months and want to get a refund. I only have 5k left to pay off the loan. My car was 13k. financed and with the warranty etc it went up to 17k and then I also see another number for 22k which I don’t even know what that means.
I should read the online articles earlier before I bought my 328i last Saturday. Last Saturday , I went to the BMW dealer @Monrovia SoCal. When closing the deal, the finance manager talked me into buying the extend maintenance plan ($2500). I regretted immediately when I back home, but they told me that unless the car is totaled within 48 months/50K miles of original sales date, otherwise I won't be able to get refund of it. Called BMW customer service, they said different story, but still ask me to talk with the dealer where I got my car. So how do I do? Keep calling the dealer but get the same answer it cannot be cancelled
Hi Nathan: Thanks for your video to help people here with their issues on warranty refund process. I also have a issue with my refund, bought a car from the selling dealer in Nov last year with extended warranty contract on it . I was told by them I can cancel it after 3 months for full refund , in January this year , I called them and asked for cancellation which they said they did. In March , I found out they never did so I have to call the warranty company to cancel it directly . The problem now is my refund has been issued back to the selling dealer from warranty company but the selling dealer refuse to talk to me and never cashed the check from the warranty company . I have paid off my car. Is there any way I can get my money directly from the warranty company but not the selling dealer? I have filled bbb claim and I haven’t hear any thing from then selling dealer . I have very hard time to deal with such dishonest dealer and they are not responsive at all. I am feeling hopeless to get refund directly from them.
Hello great information and video glad I found you on a google search. Here’s a question. I just purchased a new Ram 1500 and I somehow got suckered into the extended warranty and pro-pack, pro pack being a under carriage under coating and paint sealent and interior treatment with coverage for 5 years, rust protection for life. I think I’m stuck with the pro pack charge as it’s already done/applied, but I will get refunded for the extended warranty as they told me it was $15 a month but it actually works out to $15 a week! It’s expensive. Too much. And Ram Mopar Dodge offers a 60 days warranty cancelation refund policy with no pro rate. I guess that amount would go to the loan though.
So I guess my real question is I’m stuck paying for the pro pack as it’s been applied to body and interior and chassis? If so it’s ok as it was a lot less then the warranty and winters are rough here
Hi, great information. Do you know if this applies to Gap insurance and Theft Protection? I read on my contract that I have 30 days to cancel Gap Insurance I got from them. But I’m not too sure about the theft protection which is essentially wheel locks lol. I would appreciate your input on this. Just got the car 2 days ago and I would like to go as soon as possible to get it removed.
Thanks
I got a Honda in California don’t know if that info helps at all.
Yes it does but always best to read your contract it is all outlined in the document.
Bought a new Van, finance office kind of tricked me for a $1600 Maintenance plan, basically oil, filter changes, which I've been doing by myself whole my life. My question: Can I go back and cancel it after few days? Can I do that , what to expect? Thank you.
I purchase extended warranty on my 2012 ford explorer and sold the car in 6 months. I got extra warranty direct from ford but my loan was from Bank of the West. Will I get my refund for 6 months?
Thanks Love your feed backs.
+Play House Thank you for the comment, the refund comes directly from the Vehicle Service Contract Company, it will be for the remainder of the contract. The first 6 months have been used so you will receive a refund for the unused portion. When you purchase the product you are covered in most policies day one and then when you cancel you have used the coverage during the period you drove the car. Hope this helps.
Thanks for the informative video Nathan. I have a question on the extended warranty. I bought a new vehicle with extended warranty from the dealer and very next day I cancelled the warranty. Now the dealer tells me that you will get the refund within 60-90 days but he refuses to give me any paper work which states that the warranty has been cancelled. Is this something usual ? And I paid sales tax on some of the warranty, should I also expect to get that portion of money refunded to my loan account as well? Appreciate for any information on this.
Great Question, I would talk and ask to speak to the general sales manager, also he should be able to provide you the cancellation paperwork, also call the warranty company themselves and let them know the situation. You would have also had to sign the cancellation form, sounds like your getting the run around. Hope this helps keep me posted...
Nathan, I haven't received any response from the dealership on my cancellation yet. I worked with finance director when I made this purchase with my car and have been talking to him about this cancellation and he keep extending it to provide any sort of confirmation. Next thing I am planning to do is to file complaint to BBB. Is there anything you could suggest, I should do for this matter?
Try talking to the GSM or Owner, if that doesn't work ask for the CEO or CFO. You have to get above the finance director to get it handled at this point.
Hi Nathan, thank you for the very informative video. I purchased an extended warranty for a used car, but I decided to cancels my warranty after watching your video. I called the service company directly to have them cancels the policy in the first 30 days. I had no problem getting them to cancelled the policy and having them transfer the funds back to the dealer. It has been 4 months and I have yet to see the funds credit back to my lien holder account. What can I do if i am unable to get my refund back from the dealer?
Your best bet is to call the dealer, most service contract companies won't cancel the policy it can only be done directly through the dealer. So you may have informed them that you wanted to cancel, but you would have to sign a cancellation form and the dealer would then submit it to the service contract company. Also some time you have to call your bank and verify the refund was applied, most people think that your payment will go down but that is not the case. Just the balance will go down.
Can the dealer make you sign a new contract reflecting the new principal when requesting cancellation of these service contracts?
No, they can not, if you already have an executed contract that is valid they can't make you sign a new one. In many cases they may be trying to change the interest rate because you backed out of the product, that is very unethical. Hope this helps.
Good Morning,
We just bought a vehicle and also the extended warranty , unfortunately we did not went into details on asking how much the warranty was going to be and if it was refundable i know that's really bad we were a little nervous it is our first new car purchase as you can tell. Now what would be the best way to approach them about canceling this extended warranty? Knowing that they know that i don't even know if its refundable. I purchased with south point dodge in Austin tx,hopefully im explaining myself good enough.
Thank you
Brisa Tello The best way to cancel it just call the finance manager if that yields no results call the General Sales Manager, if that doesn't work call the VSC company and express the problem and ask to cancel it directly with the company its self.
It's a company called warranty solutions they sucks a waste of money and time
Excellent info! Question: I got a refund check for my canceled service plan within 30 days but how do I recover the WA state sales tax that I paid? I paid cash for the vehicle in Oregon and they collected the Washington state tax, but dealer says they can't refund, I have to take it up with WA state. Any advice on how to do that?
thanks.i went to my dealership today they said I can't cancel it but they scammed me by being told I have 4 month warranty which was 1.5 year and force me to buy 4k for 4 years which he put for three years so he scammed me twice.i think I'm going to have big argue
Smayel Sadeqi You can contact your local Consumer Protection Agency to report them or State Insurance Commission.
I used the extended warranty as a tool to bargain down the purchase price 6k let the truck sit, then refunded the warranty, since they me for of 5k. Since I talked them down 5kbon the purchase price they tried to get me back on the service agreement. I kept the fat deal they gave me and low rate that would have otherwise been 8%.
My question/s---- I have had my car 3 years, and have a 72 month loan on the car. the car was just in a accident and was deemed total loss. I knew I had gap and was concerned because I know that other persons insurance only will give me what they think is the cars actual value but it wont be enough to cover the remanding balance that is left on my loan. I then called to inform them that my car was told it was a total loss and the gap insurance asked for how much... That i do not know,
however she then said until they know what the other insurance is willing to pay out , then they will be able to determine what to do next. She mentioned something about she saw I had extended warranty refund coverage? I did not know I had that...so
what should I expect to happen?
Kate c Great Questions. First off your insurance company should be fighting with there insurance company on the value for the vehicle. At some point there insurance company will need to tell you the settlement amount and the inform your GAP insurance company of the amount. If you do have a service contract you can cancel it and apply that refund to the balance of the loan. It will help offset the amount you owe, by cancelling it. Also don't expect anyone else to figure it out or take care of it, its up to you to follow up and provide the necessary information they need. Your GAP provider will need a copy of the accident report, original purchase order, and the cancellation paper work for the Extended Warranty. Hope this helps.
Man I am in the same boat as a lot of you I just got my car yesterday 5/11/19 we got home we realized we paid for gap and vsc contract that we didn’t want we had a brain fart at dealer, and didn’t know I could get out of contract! I am in Washington state I was happy with deal till looked over my contract when we got home... I hope I can cancel
How did it go
Ugh, there's no point in me refunding my extended warranty now if it doesn't change my payment amount on the car loan. Might as well keep it, $2000 won't make a difference in the end I guess. If my payment doesn't go down, there's no point. I'll take the peace of mind I guess.
Thank you very much on the information👍🏾
Hi Nathan, Excellent Information. I bought new car on Feb 20th , 2018 and dealer forcefully sold me VSC and on 03/15/2018 I have sent cancellation letter to insurance company but I haven't heard anything from them and dealer is not responding. What is the next step? Can I hire a lawyer or can I file a case with State Consumers court? I dont have any idea. Can you please let me know what is the right way to handle this case.
Sorry folks been away for a bit started a new job as a GSM of a Honda Dealership. Happy to answer any comments and questions.
they denied my warrenty,. cause i change my own oil, and they wont gimme refund, now trying to get money back, and lawyer
I purchased an extended warranty though Portfolio when I purchased my brand new Nissan Altima back in 2015. The manager at Nissan gave me paperwork stating that if I don’t use the warranty within 36 months I get 100% money back guarantee have you ever heard of this before?
Hi Nathan, thank you so much for this video, it clarified a lot of my doubts. I do have one question. I purchased my extended warranty a part from the loan for the car. When I get the refund it should go to me right? And not to the loan for the car. Thanks in advance! God bless
It will go to the loan if it is not paid off.
@@nathangoodman1764 thank you!
Red Shield, the worst company ever. I am filing in court against them for not refunding me a rental car and for taxes that they did not pay. I'm filing this week.
Purchased my extended warranty in 11/20 and have been trying to cancel the warranty for the last 90 days. Having hard time with dealer following through.
I’m looking at dropping my warranty because I’m having def issues and I’m thinking of just deleting the truck, thanks for the info:
I purchased my car 2018 and its paid off. I sold it in 2023. should I transfer it to the new owner or get my remaining money back from the dealership?How does that work the extended warranty started in 7/2018 for 84 months
Can I cancel GAP insurance on my travel trailer that I have had only 7 months? I find I do not need it. How much on pro rated basis of the $3000 do you think I would receive off of my lien? Also does this lower my payment?
Nicholas Wilson great questions. You sure can cancel it, your states insurance commission regulates the product. The refund is based on time. This is a rough was to figure it out, if your loan was for 72 months and the cost was $1000 take $1000 dived by 72 then multiple that number by the number of months you kept the coverage. Then subtract that amount from $1000. That would be your refund amount. I hope this helps.
I was told by the lien holder that I can not cancel it. I was told be the dealer I have to call back Monday because "the girl that can help with that is out till then".....do I need a professional authoratative figure? I ask because like my mother I have a very low tolerance for being lied to and scams.
Nicholas Wilson I would call and talk with the GM or GSM and you will get things moving quickly.
It will not lower your payment, probably 70% based on time for GAP refunds. Depends on the term of the loan.
So ive been pretty confused about my situation and i think i have a understanding from you video i would just like some reassurance. So my story is, i bought a car with extended warranty and GAP insurance. I recently traded the vehicle in for a different more suitable car. The car was paid off from my current auto loaner. I have paper stated vehicle was paid in full. So now i just cancelled extended warranty and gap. I will be refunded the un used portion of the warranty and gap correct? so say for example $1000 was total. I paid $500 over the time. i should be refunded $500 back if im understanding right. Been very confused thank you!
+Cameron drak Great questions, yes you would be refunded the unused portion. The calculation for the refund is based off of time and miles. So to make it simple if you purchase a 6 year 25,000 miles plan and kept it for 3 years and drove 25,000 miles from the plans inception you would get 50% refund. Since you trade the vehicle they paid off your loan including all of the products cost, so when you go to cancel it you will need the trade in's odometer statement and they will send the money directly to you for the refunds provided you can prove its paid in full. Usually they just need a copy of the lien release from the bank. The bank you were financed with will send you and the dealership where you purchased the new vehicle a copy.
I'm waiting for ASC to give me my prorated refund.. how long will this take???? thank u...I have a loan on my vehicle so I'm hopeing to see my loan go down soon... my car dealer lied to me about the warranty and I found out got pissed and cancelled it so I could get some of my money back
jhon doe glad the video helped, it can take up to a month for it to come back to the loan.
I have a Hyundai CPO service contract warranty that they included in my purchase price for $2499 and they will not refund me. The assholes told me it was free?? He kept getting quite with me over the phone. If it was free why would the dealer manager let cancel it and keep my proof of warranty!
Contact the division of banking in your state and ask to speak to the GM of the dealership.
@@THEFANDIGUY I hired a lawyer
Someone totaled my brand new car not even 4 days after I bought it. It was their fault, a 17 year old with no license driving his moms jeep. I had factory warranty and a 96month extended warranty at a official Infiniti dealership. The extended warranty was like 3800 is there a way of recouping my 5200 down payment? I had gal insurance and full coverage Im just waiting to see what happens next
Nathan what is your opinion on Car Shield>?
Not familiar have to do some research and I will get back to you.
Can somebody please help me out here, we just purchased a vehicle yesterday and we are first time buyers, but just now looking at all these charges that are pretty damn high, it's under the PRE-CONTRACT DISCLOSURE. I see a charge of $2,995 for optional theft deterrent devices: Portfolio Protection, also see $795 for express autogap and then again charged $795 for portfolio protection under Optional service contracts. Total of $4,585!!! I just purchased this used vehicle yesterday, 2016 Dodge Journey sxt. Can I cancel all of these things listed??
You should be able to cancel them all, and if no one takes anything else away from this chat thread, read documents carefully before you sign them!!! The cancel-ability of the products depends on what the contracts state but in most cases they can be canceled and then applied to your loan balance. I hope this helps.
The theft devices may have been installed by the dealer. However verify this. it may be bullshit and they are charging you for stuff already installed on the vehicle by dodge. But you can cancel the other items you listed. You can cancel gap, the portfolio protection seems like a bullshit charge, ask many questions before you sign on the dotted line....Im canceling gap insurance and using my insurance company instead. As well as canceling my extened warranty, which toyota covers to 60k, the extended only gives me 15k extra miles.
Honest guy you can cancel any warranty and gap insurance. They usually sneak a lot of crap in that paperwork
I cancelled my Portfolio extended warranty 4 days ago, they said they will take care of it, I've noticed the dealer added theft protection that I did not ask for. I told them I want to cancel that too, they said I can't. I told them the precontract form says Optional, they keep telling me I can't cancel it I don't get it, if I didn't tell them to add it why should I have to pay it, but they have these excuses that I can't I asked what kind of theft gadget was installed, the guy said none then I asked was it window etching, he said yes, he said etching was done before it was bought from an auction. Still why do I have to pay it? What is your suggestion I should do? The other person at the finance dept.told me the GPS was installed, that's why they added $199, while the guy said there is none that he didn't know why the other person told me there's a GPS installed. I told him everything is a scam, he didn't know what to say.
bb89670 that’s horrible! What is the name of the dealership?😡
Hi Nathan, i have never bought an extended warranty until now and i know better with the high pressure BS they pull at the end,. . I got a 2012 acura TL at a Chrysler dealership and they sold me the Chrysler 6yr/60k powertrain warranty which i if anything happens i just take to a Chrysler dealer for repair. but now having second thoughts and want to cancel but cant find anything yet in contract that says i can cancel.
Thank you so much for this video. Hopefully I can cancel mine. I bought the truck just over a month ago, paying 3500 for fucking 2 years of warranty. A shock had already gone bad and I don't want to pay a 200 dollar deductible for a 400 dollar job.
The financial person at Mitsubishi advise that the refund won't be added until the end of the loan.
This makes me very confused. She said they'll make a check to the bank, but it won't be applied until the end....
That is not the case, the refund goes to the loan directly and should be applied right after the cancellations. Call back and get clarification.
Nathan Goodman went back and talk to the financial lady. She advise they will send a check and I should check with the bank in a few weeks.
I was recently charged $3100 for Portfolio Protection, I being a first time buying was told it was a "must have" in order to purchase the vehicle. Is it possible with this policy to cancel it when after I have bought the car and signed the paper work? I will go through all the step necessary. I would really appreciate help with this Nathan.
You most definitely can, and that is unfortunate for a car buying experience. The service contract is never a "have to have product" but I do believe there are very necessary and important protections. Home owners insurance is not necessary but a very good idea. Think it over and if you don't plan on keeping the vehicle and keeping the Service contract, contact the issuing dealer and do the necessary cancellation paper work and they will get you a refund prorated on how long you kept the contract enforce. Hope this helps, let me know if you have more questions.
Same thing to me, they changed me $4,000 for Portfolio protection, they made it sound like it was required for financing.
What happens when you have Gap insurance but pay the vehicle off before the term? I was informed that you get a gap refund check, which I did but I don’t understand why the amount was so low that was returned. I originally asked for a payment of no more than $500 a month they asked me to add gap insurance I said ok this made my payment $740. But the gap insurance contract was $995 with a 75 month term. When I paid the car off it still had 57 months on it. The rate of that is around $13.777 , I got a check for $759 refunded from Gap cancellation. My questions is should my refund check be more since my payment was so high?
Thanks for the informative video. U r a good person.
Very informative video Nathan. I was sold a service contract with a brand new car that already had a 100k manufacturer's warranty. I was told it was included at the time of sale (my mistake for not reading - 1st time car buyer, I thought the service contract was the tax). I called the dealer about cancelling and they said they cannot cancel it for 90 days. Is this true? I also called the service company and they had me fax them cancellation letters, and they said once they process it I will no longer be under warranty and I should get a cancellation letter in the mail. However I'm worried the dealer wont cancel, additionally I'm worried the dealer won't apply the money to my loan if the company sends them the money (very shady dealership). Should I be worried or just wait it out? Considering I sent the cancellation letter dated today (within 30 days of signing up) am I now fully eligible for a 100% refund? Thanks.
Update? I think I will cancel mine as well.
Just call the service provider and tell them u want to cancel and the dealer isn't helping you. They will have u send something in and then they will mail you a letter confirming the cancellation. They will also send that cancellation notice to dealer.
Great questions, they should get you a full refund as long as it was within the contracts stated period. It is best if you call and ask for the general sales manger or the owner and explain what happened. They are just trying to delay the refund because that is probably how long the finance manger has to keep it in place to avoid a charge back to his pay plan. You also can always try the warranty company and they can lean on the dealer to cancel. I would also recommend maybe keeping depending on the type of vehicle. Hope this helps keep me posted.
Nathan Goodman Thank you. The problem is the car came with a 10 yr manufacturer's warranty (100k miles) and the warranty they sold me was only 60k miles and cost $4,000. Thankfully it was cancelled thru warranty company and they stated the dealer has 30 days to issue a refund. Thanks.
hi buddy, did you get the refund?
Hi Nathan, I can not find the paper work for the 10 yr extended. Will that be a problem?
Will the dealer give me one?
so i just bought a car.. the finance guy convinced me to getting add-ons and warranty. i agreed but i didnt really know what i was getting into.. end up paying 7k with interest for this :/. anyway can i cancel them??? i signed the contract but its been 2 days now. my payments dont start till august. he told me also that getting them would give me a lower apr from my original estimate without it. will my apr change if i cancel some of these warranties or services. NEED HELP! please reply soon!!
Yes get it refunded(most likely you can). Raising or lowering your apr by the dealer at that point is a lie. You already made a contract on the price,apr, etc.
Were you able to cancel? I'm in the same boat. Please help!!
Hi, great video. I have a question and hope you can give insight. I bought a used car and extended warranty for it. I had it since 2013. It is for 36 months or 36,000 miles, which ever comes first. Since I had it, I only incurred 5000 miles. I purchased it October 2013, it's now only 3/28./2015. Can I get a pro-rated refund if I sell it? I also purchased GAP coverage for $795, can I get a refund for it as well? Thanks in advance for your help! (I live in California if that matters).
If you have any remaining time or miles you can cancel it and get a refund based on the current mileage. The GAP insurance is refundable as well that is just based off of the remaining time on the policy and I only would recommend cancelling it if you have at least 30% equity and can afford any sort of deficiency if a total loss were to occur. In either instance if you still have a loan it the refund goes to the balance of the loan, not to you. Hope this helps thanks for tuning in and if you would give me a thumbs up.
Nathan Goodman Thanks for your prompt reply. Actually, I traded it to another used car in on Friday, 3/27, so it will be paid off by the finance company. Should I contact the original dealership that sold it to me or the finance company to get a refund? Incidentally, the reason why I came across your video is that I was sold an extended warranty on the used car I replaced this with. I plan to cancel the extended warranty as well now that I am more educated. I wish I had known this before I got it. Actually, I did not want to buy the extended warranty and GAP, but the F&I lowered the interest rate and stretched the length of months to finance the car. So, I think I got fast-talked and only after reviewing the paperwork more in depth at home did I realize I did not save anything at all. So, I emailed the F&I and left message to cancel it yesterday, a day after I bought it. Is that ok? Sorry if this is lengthy and I am asking questions about 2 cars, but kind of related issues. Appreciate any input .THANKS AGAIN!!!
It is ok, and just call the original dealer and they can cancel it for you. And it is a good idea to get covered, especially on used vehicles. The products don't save you money right away, they will if you total the car or have a mechanical breakdown. Like most insurance it is beneficial when some sort of loss occurs. You have up to 30 days to cancel and get 100% refund so I usually encourage people to drive the vehicle and feel it out before you cancel, but completely up to you.
Great Video. lots of useful information for car buyers.
Question Nathan , if on loan .. will it just be deducted automatically or the dealer will get it still ? I refinanced it since then meaning the dealer doesn’t know I now have State Farm Bank as the borrower instead of who they got for me to borrow from
Did you find the answer? I finaces through Chrysler Capitol, then refi through a credit union then paid the vehicle off. The dealership I bought from aren’t helping
Is it better to cancel the extended warranty through the dealer or through the extended warranty company? Finance manager said we could cancel but we have to come back in two weeks so all the financing/money comes through for the car before cancelling.
Andrew Chun always cancel through the dealer in most cases the refund is coming from the dealers account. Also most extended warranty companies refer you back to the dealer anyways. Hope this helps.
i purchased a new car on november 20th, cancelled extended warranty and tire and wheel package on the 27th... it's been 8 weeks and the bank still have not received any checks. i called warranty company directly and the sent the check back to dealership on december 20th which was only less than a month after i cancelled it. what do i do now? i kept calling the finance manager and all he tells me every time is "just wait until next week"... next week comes i called him again same answer "wait until next week". the dealership owe the bank total 2750 plus taxes. i'd like to get that back asap. anything else i can do??
Ask for the General Manager and explain the situation, if that doesn't work contact a lawyer.
Nathan, can I get the sales taxe back on a canceled extended warranty I bought at the dealership. I requested in a FAX to cancel the Extended warranty 1 day after purchasing the car...I live in OH and the dealer here is stonewalling...
No refund on taxes, sorry.
If you sell or trade in a vehicle, but you have used the extended warranty once, would you still be eligible for a refund?
Hi Nathan. I just want to ask, what if you bought the extended warranty and want to cancel it after 30 days can you still cancel it? My car is on financing.
+Archie Jay Quiñones Great question, you will need to ready your policy, most companies are %100 refundable within 60 days, but the contract paper work will tell you for sure.
So my wife and I were pre approved through Chase for 7% apr. Got a set price on a car we wanted and the finance manager wanted to check for other aprs and somehow got us 4% apr with Chase with a clause that we accepted the $1600 service contract. How is that possible if Chase already told us 7%?
Thanks for the comment what he is doing is illegal and is called packing. He can't now switch the rate if you decide against the service contract. The pre approval you had was probably before you decided on a vehicle and once the structure was set with the car you picked chase gave the dealership a better rate. This happens a lot because dealerships do high volume with banks. So you can call his bluff and keep the rate without the service contract. If he was any good at his job he would have sold you on the value of the service contract and given you the rate no matter what. You have the upper hand because the cats out of the bag on the true interest rate. Hope this helps.
Nathan Goodman Thanks for your response! That helps a lot. We already bought the car, and I figured he was jerking us around although he tried to make it seem like he was helping us out. But he also said we could cancel the contract but wait 30 days. On the contract it says we can cancel within 30 days and get a 100% refund and if it's after 30 days but before 60 we get 100% less a $50 admin fee. Would it be less of a hassle to get it canceled within the 30 days, or after? Also if we call in say next week before everything is processed and set can he raise the apr back up? Thanks!
Jon A If you don't want the coverage, cancel it right away. You have a copy of the contract so no he cant change the APR now, don't resign a contract if you don't want anything to change. He is just trying to save his own paycheck. If you see value in the Service Contract than I would keep it, it is a good price from what I have heard.
This sounds a lot like my situation.
I plan on ordering a new maverick in july so I want to cancel my extended warranty my extended has not kicked in yet but I have had my trailblazer of 2 years will I get a refund back Ian still under factory warranty for another year I only have 12 thousand miles on my suv
Just bought a car with one warranty, and interested in canceling in favor of another. How best to go about that?
I usually don't recommend switching providers, unless claims are being denied or you are having some other material issues. I don't like when other Service contract companies try and get people to cancel and then purchase there coverage causes issues, and the customer has to pay for the new one usually before the other one is even cancelled. Hope this helps.
Is the dealer supposed to send you a check if car is paid off? Cause I’m about to sell a car that I still have a loan on but with that sale I’ll pay off the loan, will I still get check after?
My dealership said they can’t cancel within the first 30 days because they don’t have the paperwork yet it’s been 3 months they still haven’t got it done how long does it take
So do I contact the dealer that I bought a car from? I’m still paying loan on car and just want to remove the warranty to decrease my loan amount
Hi Nathan, I purchased a vehicle and was told that unless I purchase the plan, my APR would be increased and my monthly payment would be higher than what I would like. Stupidly I agreed to this. I signed everything, agreed to an APR and the car is in my driveway. If I cancel the coverage within 30 days, which my contract says I can do, can the dealer then go back and increase my APR after fact? I've read differing viewpoints about this, and my contact at the bank the loan is through seems to think they aren't allowed to do that. Any advice?
Great question, they absolutely can't do that, once you have a signed executed contract they can't change the terms, that would be illegal. It was also morally corrupt for them to tie the product to the rate. They seem dishonest and I would do business with them again. You never have to buy insurance products to get a interest rate. Hope this helps.
Hello the repairs shop said that maxcare approved my repairs.and said a inspector would be out to see the car tomorrow. What is the inspector looking for
I bought use Audi Q5 2018 at Russell Westbrook in orange county it has 34000 miles on it and I told the sale person I don't want the extended warranty and he said ok then when I was at the finance guy I told him too and he said ok ,then when I got home check my sales contract they add $1200 warranty for 36000 miles or 3 yrs I have the car for 8 days now can I still cancel it,and also just found out Audi do give you warranty 3yrs or 50000 miles is that apply to second owner
How do you get the refund back from the dealer? They owe me $900.00 and told me to call my lawyer. It seems that the company whom is allowing the dealers to sell their warranty is also responsible to refund to the purchaser since I bought their warranty. Can you address this please?
I would contact the warranty provider not the dealer and ask for a manger and tell them what they said that should get the ball moving.
@@THEFANDIGUY
First, Thank you for the reply. I did finally contact the warranty company and they told me that they refunded the dealer and it was between him and I now. I have contacted them many times trying to understand why they did not send any refund to my lien holder. It's in the contract. I have gone over the contract so many times and even spoke to there legal deptartment. They wont talk to me any longer and won't return my calls.They also said that they don't know how much I was charged. So how do you send a refund back to the dealer? I was told that the dealer sold it to me so I need to work it out with him. I cannot get a straight answer out of any of them. I'm sure it can't be legal. I have told ASC warranty company that I that I am including them in my lawsuit. This has been so stressful and i guess I need to go to small claims court. We were charged $1750 for a 2 year plan but every time there was an problem nothing was ever covered. We cancelled the warranty after 12 months and sold the car and payed off the loan but we still are owed a refund.
Made my day today sir
Hey Nathan. Any ideas what is going to happen when I go to cancel an extended warranty on a lease vehicle? I kinda got soaked, ($2999 for a 10yr 75k mile CNA Zseries factory+preferred) but I don't worry too much about that anymore.
Anyway, It's a 6 year lease with a 10k residual (I don't mind the higher payment because I plan to just buy the car after the first year as I kinda got railroaded into a lease when I wanted to buy)
Anyway, the payment that goes to the bank when I cancel, how do you think that will pan out when I go to purchase option early? Am I just going to lose it to fees and interest? Should I even cancel at this point?
Thanks.
+Thenaturalstyles Great questions, the cancellation will go to the lease balance, and at the end of the lease the residual value will be the same as long as it is a closed lease. That means the residual is a fixed number, most are these days. The payment may adjust down slightly because they want to keep you in a payment for the term of the lease. The interest you paid on the warranty is prepaid in a lease so it only benefits you to keep the lease through the 60 months. There should be no fees if you cancel it and the remainder just pays the balance. Its really just up to you whether you want to keep the coverage. I recommend it but it is ultimately up to you and whether you see value in the coverage. I wouldn't get out early you are only hurting yourself because you are going to pay the interest (rent charge) whether you wait or not to pay it off. Hopefully that helps.
Nathan Goodman Sorry, one followup, and I appreciate the answers.
If my lease, in the early termination section, included a clause that subtracts the "Unearned income portion" from the total payoff quote, does that mean they calculate out the "rent charge" that would have been paid if I took the lease to term?
The idea that the rent charge is owed in full for the entirety of the lease, even if I buy in one year seems to me like saying I owe all the interest of a 15 year fixed mortgage if I pay cash the day after we sign the papers.
+Thenaturalstyles it is amortized in the payment so the rent charge is built into every payment, so if you terminate early you pay the remaining payments times the payment plus the residual value and that is usually the payoff. It unfortunately is that way. That is why it doesn't make sense to get out early...
I paid a huge amount of $5000 as service contract and I've taken the car on financing. If I cancel, will it automatically reflect on my monthly payments? It is less than 30 days since I took the car. Please let me know. Thanks!
How much time to get your money back after canceling the warranty and turning in all requested documents ???
Mopar is giving me a hassle after trading in the car.😡