Warranty Cancellation

[Skippman]

Man, I'm glad I've never financed with a dealer. Your APR should be based entirely on your credit score and any special incentives the manufacturer is running, such as offers like "$3000 off or 0% for 60 months."

I'm constantly amazed by the fact most people don't know to run an amortization table on their loan before the sign it. It's the first thing I did when I considered buying my BRZ or any car I've owned. In some cases the 0% financing offered by the dealership ended up being worth less than the cash back and a 2.5% loan from my credit union.

Always consult with a third party lender, if for no other reason than comparing prices. I personally always choose to use a credit union as their business practices tend to be less shady than a banks and their rates are usually better. My credit union is curretly offering 1.99% on a 60 month note where Bank of America wants 2.34% and Subaru wants 2.9% per their "TrueLove" event.

Also, always buy gap insurance. Cars quite honestly depreciate faster than anything else you could ever buy. When my Mini got caught in a hailstorm I thought for sure that they were going to total it out but felt relieved to know that even though I was $4K upside-down on the note that I wouldn't have to suddenly shell out that money to pay off the loan.

Gap insurance, which is bought at the time of the loan, basically makes up the difference between your insurance and the loans value. This can be huge and it's well worth the piece of mind that $300 can buy. Usually it's financed into the cost of the loan.

[zc06_kisstherain]

So i went my dealer to cancel my warranty and he was trying to convince me again to have it. Anyway i got it canceled and hoping that i receive my money in my loan

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[zc06_kisstherain]

Originally Posted by zc06_kisstherain

So i went my dealer to cancel my warranty and he was trying to convince me again to have it. Anyway i got it canceled and hoping that i receive my money in my loan

Sent from my Galaxy Nexus using Tapatalk 2

3/30 will be 4 weeks from i cancelled.(dealer said it will take 4 weeks to credit back to loan)
I am going to call them to check my status of credit back to loan.

will update

[DylanFRS]

Man, the stuff you learn after you buy your first car! I paid way too much for mine, I think around $3k for the GAP and extended warranty. My 30 days are up soon so I plan to cancel it today. I hope it goes well. Lessons learned...

[CamryDS]

Damn, that's good to know -- I think i'll cancel it and just buy it after my factory warranty has been exhausted.

[zc06_kisstherain]

Called dealer and normally takes 4-6 weeks so i am waiting until next week.

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[Tt3Sheppard]

Thankfully my insurance policy has gap built in until 15k which I just hit. I got rid of my extended warranty as well. Got $950 credited to my loan.

[firestorm frs]

I would not cancel your warranty, youll be wishing you had it once the problems start..trust me they start.

[zc06_kisstherain]

tomorrow is 4/20 and it's going to be 7 weeks since i cancelled my warranty on 3/2.
I still do not see my credit back to my loan yet. I will call dealer on Monday.

[#87]

I know sounds like BS but I don't know what to believe since a friend of mine was in a situation like that. Had mediocre credit and the finance guy said they would only approve with the extended warranty and that after the first car payment was paid to cancel it. weird

[zc06_kisstherain]

it's little late but here's an update. i received refund on week of 5/6.

[DylanFRS]

Originally Posted by Marchy

I wouldn't give up on gap insurance unless you pay for it through your insurance company.

the last thing you want is to have your car crashed into in a year, and its worth 19k, but you owe 24. Now you're stuck paying 5k and you have nothing to show for it. (pulling numbers out of me arse)

Well the thing is that I don't need GAP insurance if I don't have the warranty given the amount I put down. The GAP insurance I originally had was $800, the gap from what the car is worth to what I owe was $2800. $800 to insure $2000 is the worst insurance premium ever.

[Silver86]

I used to work for aftermarket car warranty company.

Basically you can switch around your warranty whenever you want as long as you aren't breaking any rules of the contract, like the 60 day period.


They gave me 3.2% APR and I still went for the warranty.

[DylanFRS]

Originally Posted by Marchy

that does sound like the worst insurance ever. Mine covers any difference between what the car is worth and what i owe on it.

Well let me rephrase, mine did too. Except for without it and the warranty, I owe just over what I will get from insurance and that gap will decrease with every payment.