I recently purchased a car and the finance manager told me that due to a bankruptcy 3 years ago, 'the lender wanted to make sure they were protected, so they wanted me to purchase the extended warranty and gap protection'. I put $2500 down on the car and the gap/warranty were $1950, so my down payment was basically wiped out. Can the finance company legally require this? Now that I think about the conversation he never said the word 'required'... he said it exactly as I worded it above. If it's not required and he just insinuated that it was in order to make money I will feel rather foolish. Can you canel this protection after you've already signed the deal? If so, do they issue you a refund that could then be put toward the principle? Rework the contract? Thanks so much for your help!
2007-05-27 08:46:45 · 10 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
The seller can put on these restrictions if they want to - your option is to not buy from them.
2007-05-27 09:20:34 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Many people may not agree with me on this but here goes...
To the best of my knowledge, they can not require that you buy it, but since you have poor credit and they are willing to lend you the money it's a bit of a give and take.
As for the gap insurance and the extended warranty...I actually am a firm believer in them. I think it's Allstate or Nationwide that now offers gap insurance.
Gap Insurance: When you drive off the lot, the car immediatly depreciates. On average, it takes 36-39 months before you are at a "break even" place where your vehicle is worth what you owe. Until this time, you are "upside down" meaning you owe more than it is worth. If you total the car in an accident or it is stolen and stripped...The regular insurance will pay you the value...NOT what you owe. The gap insurance covers the difference. I had this happen to me in case you are wondering.
The extended warrenty...again because you have poor credit will be a good thing. Let's say you can afford your monthly car payment. That's great. But then something major happens to the car and now you have to shell out a $1,000 to fix it. This could take away what little money you have and cause problems making future payments. The extended warranty will cover major problems with a small deductible, or perhaps cover the whole thing...depending on what you signed up for. Basically, the extended warranty protects you monthly budget. Again...I have ALOT of experience with this. Every car I've ever bought, I've had the extended warranty and have every single time been glad I did.
Until God starts making cars, they are going to break down.
2007-05-27 11:23:32 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Hello, you do not have to purchase GAP or the extended warranty. I went through the same thing and found that it was money in their pocket, plus commission. The finance institution could really care less if you make the payment or not. They can repossess the vehicle and auction it off to recover any losses that occur as a result of you not making the payment. I would look elsewhere for your vehicle.
2007-05-27 08:54:10 · answer #3 · answered by Anonymous · 0⤊ 1⤋
Hole does supply a reimbursement as good the multiplied assurance! The dealership is who pays this out! If you do not ask you're going to no longer know. It is a cancellation refund. You need to go via finance on the dealership to be able to get this information.
2016-08-11 13:59:38 · answer #4 · answered by ? 4 · 0⤊ 0⤋
hollow does provide a reimbursement besides the prolonged guarantee! The dealership is who pays this out! in case you do no longer ask you will no longer comprehend. it extremely is a cancellation refund. you may desire to flow via finance on the dealership as a manner to get this information.
2016-10-06 03:37:07 · answer #5 · answered by ? 4 · 0⤊ 0⤋
You are in control of your money - not the finance company.
You just filed bankruptcy - why are you acquiring debt again? Debt is not your friend!!!
These finance managers prey on broke people who are attempting to "rebuild their credit".
2007-05-27 08:54:16 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Absolutetly not. No lender has the right to tell you what you can do especially after a BK.Even if it is a reaffirmation all you have to do is to keep car insurance on the loan.
2007-05-27 15:51:00 · answer #7 · answered by SecondaryPRO 2 · 0⤊ 1⤋
And the same question shows up again
2016-08-24 03:49:52 · answer #8 · answered by ? 4 · 0⤊ 0⤋
hi check this link its good
http://insurancess.notlong.com
.
2007-05-30 13:52:57 · answer #9 · answered by bharani s 1 · 0⤊ 0⤋
Not sure
2016-07-29 06:18:19 · answer #10 · answered by Velma 3 · 0⤊ 0⤋