Help! I bought an extended service warranty contract?

Question

Hi There. I had a question regarding how to cancel my extended service contract that I purchased when I bought a new car. I was a little confused when it came to all that warranty stuff and did not need to purchase an extended contract. I read the cancellation policy and it says to return the contract to my selling dealership within 60 days for a full refund less 50 dollars. Can I mail it to them or do I have to actually go in? (I'm in another state now).

Also, with that refund, does the money go straight against my loan, or do I get it back in the form of a check?

Answer 1

1. Read the contract word for word. They will tell you to do ABC, then say oops you should have done XYZ, it is too late to cancel now, sorry.
2. Document everything you do. Keep a log of calls and copies or all documents. Use certifed mail.
3. Call the dealer and get in contact with the F&I manager. Tell him you want to cancel the contract. Be nice, but very direct. Remember he is the expert and by cancelling the contract you are taking hundreds of dollars out of his pockets. Some of these pay at 30-50% commission rate.
4. Fax over a summary of the directions he gave you.
Dear Mr Smith, I am requesting my contract be cancelled as per the contact I am within the 60 day window to cancel the contract and recieve a full refund minus a $50 fee. You have asked me to do A, B , and C. To confirm this is the correct process please print your name and sign below, and fax back to me.
I would also get a contact at the warranty company to deal with.
As for the refund, if the warranty was listed on the loan contract, ie included in the loan, then they most likely will pay back the lender. That is fine, it will just reduce the balance of your loan.
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Answer 2

If you financed it will go back against your loan and you will not get a check back. Do not mail it or the dealer will say they never received it because they do not want you to cancel it. They make a lot of money selling these. Get something in writing from them that you cancelled it with the date you cancelled it and the exact miles on the car at that time.

Answer 3

You do have to go the dealership. Sorry. Tell them you want to cancel your warranty. They may try to tell you not to or that you cant......you can. They will give you a pro-rated amount back or the full amount depending on the fine print.
Try calling the Dealership first, that way they might have a check when you get there. It takes a couple of weeks to process, unless you want to go there twice. Good Luck