Canceling extended warranty bought from dealer?
 

I bought a 7 year 80k mile extended warranty through Subaru dealer when I bought my new BRZ last month. Now I decided to start modding extensively, hence will no longer need the extended coverage. Someone mentioned I can just go to the dealer and request a cancellation, they will refund me back the prorated balance. Is this true? Has anyone done it?

Why don't you just call the stealership and ask? May get a quicker response that way.

I just did it. Call or email the business mgr dealership person who did all the paperwork. Tell them you want to cancel it. They will ask you your current mileage and give you a prorated amount. If you have a loan the refund will go towards the principal of the loan. I got $913 back towards my loan. I have right at 7800 miles and had the car a year.

Thank you. I’ll give it a try.

This was my experience also. Be prepared for them to try and talk you out of the decision.

In my past experience it’d be hard enough to actually get on the phone with business/ finance guys, once the operator knows u not buying a car they will just put u on hold indefinitely or just hang up on u.

I emailed my salesman and he copied the business mgr. who then got back to me.

I actually helped my parents cancel the extended warranty on their Outback. All the information you need will be on the extended warranty contract. I believe that there was a limited time that you could cancel it for a credit to the loan. Check for that first and then go through with canceling it.

The refund goes directly to the loan balance. You basically call, make an appointment, go in and talk to someone in finance and the pro rated amount goes towards the balance of your loan.

It's hard enough to get them to honor that extended warranty, so cancel it right away. They'll point out any little detail they can to NOT pay for repairs under an extended warranty, fyi. Stupid things like missing or being late for a scheduled maintenance on your vehicle can void that extended warranty as well.. it just depends on what insurance lawyers they got to write up the contract. But rest assured, they write the warranty contract in their favor.. just in case they want to deny you repairs that might be too costly for them.

So far no success getting any responses from my salesperson and their finance department. I’ll pay them a visit this weekend.

Giving up free money will never be high on anyone's priority list, so don't expect an expedited process from them. Just keep trying... and good luck on recovering your money!

I did this. Just stopped by the finance managers office while in for service. Easy- peasey.

Called dealer last week and the finance guy said me they need a notarized letter stating the odometer and the cancellation date. I brought the notarized letter to dealer today, the finance guy tried to talk me out of it, telling me what a good deal I got originally and that I can cancel it later after I sell the car even, I told him no, I want to cancel today. He then just told me okay it’s done, check one month later with the finance company. He was giving me attitude when I pushed him for some kind of proof that I did submit the cancellation request today, he just gave me copy of my letter and that was it. I guess he was not thrilled about the cancellation, oh well hope he follows through and process the paperwork.

The finance guys make a good commission off of these extended warranties & similar add-ons during car sales. The salesman don't even get a cut sometimes, so I'll bet he wasn't thrilled. Hope it goes through for you.

This ^
My wife is a finance manager and this is how she makes the majority of her her income (her base salary is actually minimum wage). They are not happy because they do indeed lose a big chunk of income when this happens. How happy would you be if your boss came in and said "the customer cancelled the order so we will be taking back a week's worth of your income from a year ago"? Doesn't matter how unhappy he is though he will have to process the paperwork or else he is committing criminal fraud.

I did this as well.

I did it two weeks after financing the car, i think it was around $1500 for the 100k extra warranty. That full amount went right towards my car loan.

I would not leave it at that... you need to demand some real proof. Every day that they delay cancelling the extended warranty you lose a pro-rated amount of the refund. I’ve cancelled 2 Subaru extended warranties in the past and neither required notorization, that was likely just a delay tactic and the salesperson hoped you would forget or give up.

Thanks i definitely will follow up. There’s nothing I can do besides trusting them at this point. According to them, the reason why they need it notarized is someone could be impersonate me cancelling the warranty.

There is a specific form that they fill out and send to SOA to notify them of the cancellation, they need to provide you with a copy of this form. Then you can contact SOA and confirm that they have received the cancellation request. They will mail a check to the title-holder for the refund, at that point you should be able to request a copy of that check as well.
Unfortunately I’m very aware of the cancellation process because it was a pain the first time that I did it with the sales rep and finance manager wasting time and hoping I would give up... when they finally sent out the refund check they sent it to the wrong address for my lender, which I only found out after nagging them for a couple of months when I wasn’t seeing the refund show up in my account. The 2nd time that I cancelled went much smoother because I knew the process and what to ask for.

i previously had one encounter of canceling extended warranty, that was through Audi USA. i sold my car and then cancel, they figured there's no hope to talk me out of it so they just handed me the check the following week. maybe i should've told them that i already traded in the car elsewhere LOL

I received the refund check in full amount today. It was a dealer check, not by Subaru USA, that’s kind of weird. But anyways it’s all good now.

Actually, not weird at all. Extended warranties and add-ons etc. are all dealer options this is also how they make money. So, if you bought your warranty from the dealership that is between you and them. Glad everything worked out for you.