Warranty Cancellation
 

Hello everybody, so I recently just received my new frs:thumbup:. But after a talk with my parents, we want to cancel one of our warranty services which is the extended service warranty. Does anyone know if we cancel it if it will affect the APR we were given? Me and my mom tried to cancel one at the dealer but they kept telling us that if we do cancel it that our APR would rise. Hopefully someone could help me out, thanks!

You should start by reading the contract that you signed for your loan. If it's not in there, you should be OK to cancel it.

Yea I've been reading the terms for the warranty that I can cancel anytime I wanted within 60 days but haven't really seen anything specifically saying that "If I cancel this, my APR will go up". Would it be worded differently? I was reading for the options list of where the Service and Maintenance is included and says on the bottom that "the goods and services are not required as a condition to securing financing terms". Does this mean that these shouldn't affect my APR rate if I cancel either of this listed options?

The dealer is bs'ing you. If you cancel the dealer doesnt get their money for selling the warranty. The APR thing is BS, it is just done to scare you...by the tyme ou figure it out guess what your 60 days are up.

Yea we will actually call a number that was provided on our contract than going to the dealer because all they will do to us is tell us that our APR will go up if we take it off, will update soon with the results. Thanks for the reinsurance and hope everything goes as planned!

May I ask why you want to cancel it?

For financial reasoning. We never really wanted it in the first place but the dealer told us we "had" to get it in order to get lower APR. But if it's practically impossible to remove the warranty without affecting our APR then of course we will just leave it as is and keep it. Do you think extended service warranty is highly suggested for an FR-S? After reading around the forums I feel that a lot of people have some reoccurring problems which could always be fixed for free with service warranty if im not mistaken.

That is exactly how I would interpret the contract language, yes.

Ordinarily one should be able to cancel the extended warranty without penalty. Your dealer is being dishonest, attempting to "force" you to keep it; they make a tidy profit from selling the warranties.

Whether to keep the warranty is always a gamble. Most "authorities" advise against purchasing such contracts. I have never purchased an extended warranty on a product, but that's me. Who knows, you might be one of the rare few who actually benefits from such a warranty, but it is statistically unlikely. As a general rule, purchasing an extended warranty on a modern automobile that is already well-covered by the manufacturer's warranty is unnecessary and not recommended.

I recommend canceling this warranty through the company that issued it, not the dealer who has already shown himself to be untrustworthy; bypass this unscrupulous dealer entirely, if possible.

Perhaps you could return to this thread with a follow-up when you successfully cancel the extended warranty. Other less experienced buyers might benefit from your experience.

Keep in mind that it's the fine car you "married," not the dealer. Don't permit this dealer's behavior to spoil the experience of owning this fine new car. ;)

One of the hardest things I've ever had to do was cancel an extended warranty the dealer snuck in on me when I bought my first car. I had to go back to the dealer like 5 times and eventually had to give them a copy of the letter I was going to send to the Better Business Bureau.

Don't let them BS you, they will try to do everything to hang onto that extended warranty sale.

Remember by dropping all those add ons you will not change your monthly payment as the cost was calculated in the beginning. You will just have fewer payments at the end of your loan. Unless you refinance after you remove them.

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Unless you have an adjustable rate car loan (I hope to god those don't exist), nothing can change your APR once you've signed the contract.

As said you are not going to get a check or cash back. It will just be taken off the principle amount of the loan. Only way to get a check for that and or gap coverage is on a trade in.

They can't change the APR after the fact without having you resign a new loan agreement because the APR is part of the contract that they made with you at the time of signing. Unless there's specific language to that effect in the loan contract, you should be well within your rights to cancel the warranty.

The warranty should have no bearing on the interest rate as because it is a contract, you are required to pay regardless of the car's value or current condition. That's the whole point of gap insurance, it's the lender covering their own ass if you write off the car and end up owing them a few grand even after your insurance pays out and you don't have the cash. Since the warranty has no bearing on that contractual agreement Toyota Financial Services (The people who likely own your loan, it's NOT the dealership) has no reason to force you to buy the warranty other than the profit the warranty itself nets.

Nathan

Call Toyota Financial Services @ (800) 874-8822