Warranty Cancellation

[DoomsdayJesus]

Originally Posted by firestorm frs

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

It's still an awful investment. If you took that money (say, $1500) and instead of financing it at 3% or worse, invested it in a conservative bond fund yielding 5-9% compounded even quarterly, you'd have more than enough to cover most of the repairs you're likely to encounter from when the extended warranty kicks in until it expires. And if you repair little to nothing, you're left with a nice chunk of change.

Warranties like that are a gamble, and one you're likely to lose. Otherwise dealers wouldn't offer them. Do you think casinos would have slots that consistently pay out more than they take in?

And worst case, you end up like me. I bought a 36k mile warranty (Continental warranty) on a used BMW 330Ci with 105k miles. THAT seemed like a good idea with that kind of mileage. They swore that I could do my own oil changes as long as I documented them (I did) and all other self performed maintenance.

When my transmission failed (which in the BMW was a sealed, unserviceable unit) they used the fact that I changed my own oil as justification to deny my claim, which was total unrelated horsecrap. I got hosed and now I have to pursue them in small claims court after getting it done and trading in the car. Luckily a good legal threat is all you need to recover money since paying a lawyer costs more than they owe me, but still. It's a pain in the ass.

[topazsparrow]

Originally Posted by michaelahess

I also love financing through the dealer, then the next day going to the credit union and re-financing it. Dealer looses the financing profit and I feel SOOOO much better for some reason!

The Dealer loses nothing out this. Any dealership I've ever been to doesn't have their own financing division. It's always through banks or the manufacturer. It's possible that you're undercutting another bank, but that's about it. Most credit unions won't be able to match the financing on most new cars either. Generally the manufacturers offer insanely low interest rates in the interest of moving new cars.

[michaelahess]

Originally Posted by topazsparrow

The Dealer loses nothing out this. Any dealership I've ever been to doesn't have their own financing division. It's always through banks or the manufacturer. It's possible that you're undercutting another bank, but that's about it. Most credit unions won't be able to match the financing on most new cars either. Generally the manufacturers offer insanely low interest rates in the interest of moving new cars.

They get a kickback of sorts for each loan they finalize through the banks. If a loan isn't held to a certain term, they don't get that kickback.

Not all banks/dealers operate this way I suppose but all the one's I have friends working/worked at do.

[xXDeathMaliCeXx]

Just got off the phone with the guys from Toyota Extra Care. All I have to do is mail and sign a letter stating that I want to cancel my extended warranty within 30 days of receiving the info packet and I get a full refund credited towards my loan. Monthly payments, etc all stay the same, but I'll be refinancing anyway soon enough so it doesn't bother me at all.