Heres Everything You Need To Know About Cancelling Your Expensive Extended Warranty
An extended warranty is a great option to ensure coverage for your vehicle after the factory warranty ends. There are plenty of options available for those looking for an extended warranty with manufacturers as well as third-party warranty providers offering comprehensive plans. But what if you want to cancel your extended warranty for some reason? This article looks at everything there is to know about canceling your existing extended warranty.
How Can I Avoid Making This Mistake In The Future
In almost all cases, you can wait until your original OEM warranty is nearing expiration before deciding whether or not you want to purchase the extended warranty. Of course, they wont likely mention that at the car dealership, but if you know what brand of car you want, you should research it ahead of time.
What Happens Once A Refund Is Issued
You would not receive a cheque if youve financed your vehicle and the extended warranty was included in the total amount. The money you get will be sent directly to your bank. Its unlikely that your monthly payments will go down, but the overall amount youll have to pay will be reduced by the amount of the refund.
If the vehicle has been paid off, and you have proof of it. The refund will come to you in the form of a cheque.
Want to stay up to date on the latest news and stories from the Unhaggle Blog?
You May Like: Car Making Noise When Starting
The Other Option: The Junkyard Plan
Dropping a lot of money for car repair, especially for older vehicles, can be a real headache! It seems like every month some new problem is springing up. Last month it was the failing car air conditioning system. Now its the head gasket. What will it be next time? The transmission!?
When you are finding yourself spending thousands of dollars a year on car repairs, and the extended warranty isnt helping or is non-existent, then you might be wondering what the most economically efficient decision is. It may be calling up the local junkyard for assistance.
The junkyard will recycle your automobile, providing a win-win exit strategy for the car owner. The tow truck will arrive at your house to pickup the car. Sign over the title and collect the cash payment.
Once the deal is done, you can head on down to the dealership and buy a new car that wont be such a financial burden.
At the end of the day, every driver will weigh the pros and cons of buying an extended car warranty on their own. However, if you bought one and now want to cancel, remember that you do have options.
Use This Template To Cancel Your Extended Warranty
This template is for canceling a warranty for a vehicle with a loan in place.
ABC Dealership
Please cancel my Vehicle Service Contract on VIN number ___________.
It is a that I/we purchased from your
dealership in under the name of ______________________.
The odometer on my vehicle currently reads: _________.
I understand that the amount will be sent to my lender to be applied to the principal balance.
Please call should you have any questions _ _ _ _ _ _ _ _ _ _
Please email should you have any questions ___________________.
I/we will follow up on this within a reasonable amount of time. Thank you for your immediate attention to this matter,
Your Signature
This template will help you cancel the extended warranty when you trade in your vehicle.
ABC Dealership
DATE
This is a written notice to cancel my/our Vehicle Service Contract on
VIN number ________________.
It is a that I/we purchased from your dealership in under the name of ________________.
I/we have traded this vehicle and have attached the information you need for cancellation to this written request.
Please call should you have any questions _ _ _ _ _ _ _ _ _ _
Please email should you have any questions ________________________
I/we will follow up on this within a reasonable amount of time. Thank you for your immediate attention to this matter.
Your Signature
Download this template here.
Also Check: How To Play Usb In Car Without Usb Port
When To File A Warranty Claim
File a warranty claim as soon as you realize something is broken or doesnt work properly. If you dont want to give a dealer any excuse to refuse to cancel your warranty, keep all service receipts and records, regardless of who performed the service. This includes any kind of service, like oil changes, tire rotations, belt replacement, and inspections. The receipts can be used to prove that the vehicle was properly maintained.
If you do your own maintenance, you should keep your receipt for the parts. Think ahead when it comes to warranties so that dealers and companies dont use the lack of evidence in their favor.
How To Cancel An Extended Car Warranty And Why You Might Want To
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list ofour partnersandhere’s how we make money.
Car shoppers are often pressured into buying an extended auto warranty so-called because it kicks in to cover repairs after the new-car warranty expires even though they dont know their odds of using it or what it really costs.
For those with buyers remorse, theres good news most warranties can be canceled and youll get a prorated amount refunded.
The question then becomes, do I need that extended warranty I bought? And, if not, how do I get my money back?
Also Check: Can I Reregister My Car Online
Why Do I Need An Extended Car Warranty
Warranty coverage can come in handy if you dont want to spend money later or choose to purchase a vehicle that costs higher than usual to run and maintain. In cases of affordable and reliable cars, the warranties might not be as useful especially if you walk around with enough savings to cover occasional repair bills.
Make Sure You Understand Your Contract
Whether youre about to purchase an extended warranty for the first time or looking to cancel, you should read and re-read the cancellation policy in your warranty contract.
The dealership told one man who attempted to cancel an extended warranty that he had to make three payments before withdrawing. However, his contract said he could cancel at any time. The stipulations legally bind the dealership in the contract, and it will serve you to know yours going in.
You May Like: How Many People Die In Car Accidents Each Year
What Rights Do You Have
The bottom line here is that you have as many rights as your warranty contract says you have. Your rights also depend on the laws of the state where you purchased the policy. If you purchased an extended warranty and the contract says that its non-refundable, you may be out of luck. The same thing goes for transferability, which can vary from provider to provider. How the cancellation plays out depends on the company and on how youve decided to pay for the plan. If youre paying monthly, you may not see a refund check.
Read our Insider’s Guide to Understanding Extended Warranties here.
How Do I Cancel A Toyota Extended Warranty
I think I may have panicked when I bought my new Toyota and signed up for the extended warranty instead of just going with the basic. I donât want to have to pay extra. How can I cancel the extended warranty?
within 30 days
- Gather all the documentation you have regarding your Toyotaâs extended warranty coverage
- and ask to speak to the finance manager about canceling your extended warranty. You may have to schedule an in-person appointment.
- Your vehicle will have to be inspected by a mechanic to assess damages and mileage.
- You will be refunded the amount based on the inspection.
- Sign a cancellation form. Make sure you get a copy so you can confirm the date of cancellation if there are problems down the road.
- Wait for the refund and follow up if you donât receive it within a few weeks.
Don’t Miss: How To Register A Car In Sc
Good Extended Car Warranty Companies To Consider
There is no shortage of extended warranty companies in the world. Some have more than their fair share of complaints, but there are some diamonds in the rough. CARCHEX is one of the best in the business, with several positive reviews, a transparent website, and great coverage options. Endurance is another warranty provider that should be on your watch list. It offers four simple coverage levels, exceptional customer service, and great added benefits, such as roadside assistance and lost key fob replacement.
Here Are Some Reasons To Cancel The Warranty Agreement
If you do end up purchasing an extended warranty and decide that youre probably not going to use it, then you can cancel it. Here are reasons that NerdWallet found as why many customer cancel the contract:
- Non-agreement: If the warranty was slipped into the new car contract without your knowledge. While most dealers are honest, this could happen sometimes.
- Cost: You decide that the extended warranty costs too much for your budget.
- Warranty exclusions: After reading the fine print and realizing that the warranty doesnt cover everything, then you might decide that its not worth the extra cost.
- Postponement: If you eventually decide that you would rather not have the extended warranty and would rather keep your money for now.
Recommended Reading: What Is A Hatchback Car
My Rights To Cancel Dealership Extended Warranty
You must have thought about it once that what are my rights to cancel dealership extended warranty? The cancellation of a dealership or any kind of extended warranty is easy. You have the full right to do it at any time. And this article will show you how to do it. There might be a fixed time period for this action and there can be refunds involved, which you should take full advantage of. The cancellation and refunds depend on when its done by you.
You can get full protection for your vehicle for up to half off of dealer prices.
How Do I Cancel My Extended Service Agreement
To cancel your extended car warranty, you will need to fill out a form specifying your mileage and the cancellation date, and then you will need to get a signed copy of the form from the dealership. You will probably need to nudge them to process the request, so dont be afraid to call every couple of weeks.
Read Also: How Does Rental Car Insurance Work
The Total Cost Of The Loan Increases With The Extended Warranty
Many people do not know that the total cost of the loan they applied for the vehicle includes any amounts they do not know. One of those amounts that people have to pay is the interest that is due to the extended warranty. There are even a lot of people who dont use the extended warranty for any reason when its available.
In other words, this means that people must pay for something they will probably never use. So, if you want to save some money you can cancel the extended warranty. As we have mentioned, this is a great way to save some money and lower the total cost of the loan. That is why many users recommend performing this procedure.
How Long Do I Have To Cancel An Extended Warranty
Some warranty providers stipulate a strict time period, usually between 30 and 60 days, in which you are allowed to cancel your extended warranty without being charged any fees. Even in this case, however, you should still be able to cancel your warranty, unless your contract explicitly states otherwise.
Don’t Miss: How Much Should I Sell My Car For
What Is An Extended Car Warranty
Lets get something straight right from the beginning: Almost all new cars come with a limited warranty that covers you for the first three years or 36,000 miles of owning your vehicle, whichever comes first.
If you are willing to pay for the privilege of not having to worry about the cost of unexpected repairs for a bit longer, an extended warranty might be for you. However, calling it a warranty isnt exactly right. An extended warranty is just an extra insurance policy that will protect you from having to pay for expensive repairs for a certain amount of time or a specific number of miles. Often, these extended warranties will add a couple of years onto the standard coverage.
Most extended warranties are offered by the makers of the car, truck, SUV, or van in question.
Policies such as this are known as original equipment manufacturer extended warranties. If your extended warranty is covered by a household name that happens to have made your vehicles, such as Ford, Honda, or Audi, then you probably have an OEM extended warranty.
There are two additional types of OEM extended warranty:
- A powertrain warranty will cover any workmanship issue that causes your engine or transmission not to function properly.
- A limited warranty will cover pretty much everything else, including your cars technology features or infotainment system, but not routine maintenance or things that wear out easily, such as tires and windshield wipers.
Reasons To Cancel Your Extended Warranty
If youre still on the fence about your extended warranty, here are three reasons why you might want to pull the plug:
- Adds to the total cost of your loan. If you wrapped your extended warranty into your car loan, youre paying interest on something you may never use. Canceling can help you avoid that extra cost.
- Multiple exclusions. An extended warranty can be limited. If yours only cover minor repairs but requires a large deductible it may be worth canceling and saving up for potential repairs yourself.
- You have to wait to use it anyways. An extended warranty on a new car wont kick in until after the manufacturer warranty ends. And since extended warranties can be purchased at any time, you could save yourself hundreds of dollars by canceling it now and renewing it when you need it.
You May Like: How Do I Find Out The Value Of My Car
It Is Necessary To Wait A Certain Mmount Of Time To Use The Extended Warranty
In this case, the extended warranty can only be used when the manufacturers warranty is terminated. Therefore, this is another limitation that users must take into account and often forget. It is even possible to cancel the extended warranty at this very moment and save a great deal of money.
If you prefer, you have the possibility of renewing the extended warranty. This way, you can renew the extended warranty and have it available at the same time. You will be able to save a great deal of money and then get some coverage for your vehicles repair costs.
Why Would I Want To Cancel My Extended Car Warranty
The biggest reason people buy an extended warranty is that car dealerships love to encourage people to buy them. Its hard to avoid this pressure, and its easy to think about the risks of not purchasing the policy more than the rewards.
Despite this, most of the time, having an extended warranty is not a wise financial decision. In 2018, Consumer Reports found that the median cost of an extended warranty tops $1,500 the majority of purchasers dont end up using it and those who do end up having spent more on the policy than they would have if theyd just paid for the repairs out of pocket.
If you have impulsively purchased an extended car warranty, you might be hoping you can undo this mistake and put the money in a better place.
Also Check: How Much Are Car Brakes
You Bought It Ahead Of Time
Sometimes youre encouraged to purchase an extended warranty at the same time as your new car. But if it doesnt kick in until the manufacturer warranty expires , theres little point in paying for it upfront. Many people in this situation would rather cancel the extension for now and put the money back in their pocket.
Remember, thirdparty providers often offer considerably better value than manufacturers do. By shopping around when the time comes, you may be able to keep some of that cash you saved for yourself.
For What Reasons Can A Car Warranty Be Cancelled
The first and most obvious reason for cancelling might be concern about the extra cost. You may feel that you are struggling to justify spending more than you absolutely have to. Do give this some thought while any product that effectively protects you from unplanned-for expenditure may never be needed, should you cancel and then suddenly find yourself facing repair bills, you may wish you’d stuck with your warranty cover.
The second reason may be that you’re worried about the warranty not covering certain problems. The best way to deal with this is to make sure that you research the warranty cover before signing up, and read the warranty documents carefully. If, at any point, you are unsure or unclear about any cover details, contact your warranty provider directly for clarification. Terms like ‘betterment’ and ‘consequential failure’ can be pretty confusing for consumers and this is why, at Car.co.uk, we ensure our warranty providers avoid jargon wherever possible.
Read Also: How To Paint Your Own Car
