Toyota GR86, 86, FR-S and Subaru BRZ Forum & Owners Community - FT86CLUB - Should i keep my extended warranty or drop it?

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- - Should i keep my extended warranty or drop it? (https://www.ft86club.com/forums/showthread.php?t=81907)

Is it too late to cancel My 100k warranty? My car is 2 years old now.. 33k miles

Quote:

Originally Posted by marky (Post 2182874)

Is it too late to cancel My 100k warranty? My car is 2 years old now.. 33k miles

You have until the end of the warranty to cancel, but it's prorated from the date of purchase of the warranty.

Quote:

Originally Posted by AznBRZer (Post 2182913)

You have until the end of the warranty to cancel, but it's prorated from the date of purchase of the warranty.

Thanks.. I call toyota finance for this or my dealer I bought it from?

Will I get a refund or deduct it from my car loan?

Quote:

Originally Posted by marky (Post 2182956)

Thanks.. I call toyota finance for this or my dealer I bought it from?

Will I get a refund or deduct it from my car loan?

I'm assuming Toyota Financial Services. The info you need should be in your extended warranty packet. The refund will be applied to the principal of the loan.

Bought my 2015 BRZ last week and my payment was originally going to be 454/mo. for 72 months, but after talking to the finance manager we got the payment down to 408/mo. for 75 months plus the extended warranty. I've done the math and with the $46 I save every month I end up saving money despite having 3 extra payments.

The extra payments don't bother me because this car will be paid off sometime in 2016, but it makes me wonder why I ended up saving money for going with an extended warranty.

Quote:

Originally Posted by coloradobrz (Post 2183050)

Did they get you a lower interest rate with the extended warranty? That's what happened with mine

Quote:

Originally Posted by Jfheisenberg (Post 2157174)

Ok so, Since i dropped of the extended warranty i asked chase finance department and they tell me that the dealer should send them a check with the amount being deducted from my loan.

I called the dealer and they tell me that i should see the amount being deducted from my loan at the end of the loan.

Does somebody know how that works? Specially if you are financing with Chase?

Have the two agents you talked to confirm with each other what the best practice is for this situation. Depending on state statutes and limits, it very well may be that the dealer is right and that they do not have to outlay the credit until the end of your loan period.

What that does is gives the dealer the advantage in the form of TVM (time value of money), or in other words- they save money by waiting until later to pay the same amount than the outlay at this moment in time.

What it does to you doesn't really matter, so in this case the state you are in may allow this to happen as a pro-business incentive.

Quote:

Originally Posted by chas3wba0 (Post 2183071)

Did they get you a lower interest rate with the extended warranty? That's what happened with mine

My interest rate was the same, the only reason I even qualified was because I was a student.

FYI - I spoke to the financial manager @ Subaru dealer and they submitted my request to remove all the warranties from my loan to Subaru. He said it takes about 8 weeks to process the refund which will be apply towards my car loan. This will reduce the total loan amount and interest....