Should I refuned my extended warranty?

[SimpleGreen]

Long story short, in April 2012 when I was sitting at the desk doing this paperwork, I thought I had said no to this darn thing, and didn't read my paperwork close enough. My fault, first time car buying in a hurry. Well, first brand new car. I bought a used truck before....but whatever.

Anyways. It cost me $1665. I found it in the miles of paperwork. I called the service today, I can get $1100 refunded back onto the principal of my car payments. I'm looking to pay the car off in two years instead of the scheduled five, so that's why I was hunting money.

Any reason I should keep it? It's good until 5 years/75K.

Thanks.

-Chris

[Angrybird 12]

Originally Posted by SimpleGreen

Long story short, in April 2012 when I was sitting at the desk doing this paperwork, I thought I had said no to this darn thing, and didn't read my paperwork close enough. My fault, first time car buying in a hurry. Well, first brand new car. I bought a used truck before....but whatever.

Anyways. It cost me $1665. I found it in the miles of paperwork. I called the service today, I can get $1100 refunded back onto the principal of my car payments. I'm looking to pay the car off in two years instead of the scheduled five, so that's why I was hunting money.

Any reason I should keep it? It's good until 5 years/75K.

Thanks.

-Chris

Well it won't lower your payments any, just give you money in the pocket. Unless you are going to make extra payments on the car with the money I would probably keep the warranty if you think the miles you are driving will not equal 75K before the 5 years.

[HumanWiki]

I've usually refunded my extended warranty after the fact or denied it up front. My reasoning was always due to the mods I was going to perform, it wouldn't have mattered one way or another. The money in pocket was more valuable than debating with the dealer after the base warranty ran out.

[Angrybird 12]

Originally Posted by HumanWiki

I've usually refunded my extended warranty after the fact or denied it up front. My reasoning was always due to the mods I was going to perform, it wouldn't have mattered one way or another. The money in pocket was more valuable than debating with the dealer after the base warranty ran out.

Well since the factory drivetrain warranty is usually what is affected by mods the extended warranties that go for less than the factory drivetrain (5/50K) warranty are usually covering the other stuff like AC, power windows, etc, not the drivetrain.

[cornerspeed92]

I just bought my new 1LE and tried to sell my 2011 1LT which i bought the extended warranty as well,but had to trade it in,and since i modded my V6,i was no way going to buy another extended warranty.Long story short i did just that,after talking about it,it just seems like cheap ins.since just 1 or 2 trips to the dealer would cost way more.There are a lot of high priced items on our cars that will cost $$$$$ to fix.

[HumanWiki]

Originally Posted by Angrybird 12

Well since the factory drivetrain warranty is usually what is affected by mods the extended warranties that go for less than the factory drivetrain (5/50K) warranty are usually covering the other stuff like AC, power windows, etc, not the drivetrain.

I'm aware of that. I'm just stating what I've done and why I've done it. Most of the issues I'm going to have with a car that would be a warranty issue, I'll find out in the first couple years of ownership based on what I put my cars through.

I don't expect a dealer to warranty something beyond the provided since I'll have pushed the car beyond what it was built for anyways.

I also make sure that I visit dealers that know and understand what I do. I'm upfront with them and I don't try to take them for free repairs. They always know why the car is in and what was done to get it to that point. I've even told a couple of them that I wouldn't let them warranty something I knew I broke racing. That usually makes them more willing to actually warranty out things that are truly GM's fault.

[SimpleGreen]

Originally Posted by Angrybird 12

Well it won't lower your payments any, just give you money in the pocket. Unless you are going to make extra payments on the car with the money I would probably keep the warranty if you think the miles you are driving will not equal 75K before the 5 years.

Well like I said, they are putting it back on the principal if I refund it. It's about three months worth of notes. I'm not concerned with it lowering my monthly note, I'm just looking to pay the car off and put the title in my hands.

I'll probably be at around 65,000 after five total years of driving. I don't foresee any mechanical mods being done past what I have in my sig.

[steveo9043]

Originally Posted by SimpleGreen

Well like I said, they are putting it back on the principal if I refund it. It's about three months worth of notes. I'm not concerned with it lowering my monthly note, I'm just looking to pay the car off and put the title in my hands.

I'll probably be at around 65,000 after five total years of driving. I don't foresee any mechanical mods being done past what I have in my sig.

Did you buy your extended warranty from the finance company? I don't know how they could personally put it on the principle if they aren't the same company.

If you did get it from the finance company, check over your paperwork. By getting a 1800 extended warranty it dropped my interest rate 0.5% i believe and they could raise the interest rate back up making it not worth canceling.

[SimpleGreen]

It's not the same company, however, I read the terms and if you have a lein holder (in this case, the bank has the title) they get the money. I imagine they would just be writing a check to my bank, essentially. If I had the title, I would get the money. Since I intended to put the money to the car either way, this doesn't make much difference to me.

[2010SS2SS]

getting a 1800 extended warranty it dropped my interest rate 0.5% i believe

hmmmmmmmmmmm! Thats ILLEGAL..
Dealerships can not tie an interest rate to the purchase or none purchase of a extended service contract.
they pay it to principal no matter if the financing and service contract are through the same company or not, any cancelations while there is a note on the care goes to the lien holder.

[wtcadman]

I just had this same sitiation. I cancelled my extended warranty. The dealership said the money is going straight to my finance company.

[steveo9043]

Originally Posted by 2010SS2SS

hmmmmmmmmmmm! Thats ILLEGAL..
Dealerships can not tie an interest rate to the purchase or none purchase of a extended service contract.
they pay it to principal no matter if the financing and service contract are through the same company or not, any cancelations while there is a note on the care goes to the lien holder.

That's interesting. I've had that offered 2 times to me and have known others who got the same offer from multiple dealerships.

[daveagogo1]

Originally Posted by 2010SS2SS

hmmmmmmmmmmm! Thats ILLEGAL..
Dealerships can not tie an interest rate to the purchase or none purchase of a extended service contract.
they pay it to principal no matter if the financing and service contract are through the same company or not, any cancelations while there is a note on the care goes to the lien holder.

Actually some banks now require you to have an extended warranty for at least the term of the note or they will not finance it. This is especially true if the vehicle is being refinanced even after a few months. Also, IF you refi the note to another lender the original lien holder on the contract has been paid in full so any refund from cancellation after that goes directly to you then regardless if it still financed with another lender.

[Matt @ FSP]

A good client/friend of mine sold my car to me, we both joked with the sales manager if they would just refund my warranty now because it will be gone in 3 hours & GM won't have to worry about any repairs. Sure enough, after work, the cam went in and it was all down hill from there.