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Canceling extended warranty
BlochWave
Registered User regular
Registered User regular
I bought a car a little more than 2 months ago and got my interest knocked down a percent to 1.9% by agreeing to get the extended warranty (although the finance manager didn't call it that, it was the "Honda preferred whatever BS")
In my cleverness I just figured I'd cancel that after the loan was all set and proceed to both possess and devour my delicious cake. Well lo and behold, I'm an idiot and put it off one day too many until it just reentered my mind.
My understanding after internet research is that you can cancel these any time, but after the first few days or month or so, you only get back a pro-rated amount based on the car's mileage and time passed. So after 2 months and less than 3000 miles, I should get back a significant amount, right?
Second: The finance manager was captain jackass (he tried to tell me I couldn't get the low financing AND the cash incentive, but the incentive I had made them give me was a manufacturer to dealer incentive which they readily gave (not the customer cash incentive, of which there were none for that car at the moment), and we went through the whole "I'll call and check...oh my mistake" routine) and I called the number on the warranty paperwork and they said it has to go through the dealer. Yippee. Can I expect any trouble or lies? The loan's gone through, I've already made payments, so he can't pull any "if you undo that we can't give you your extra low rate we offered!" crap, right?
Is there anyway I can do it through the warranty company instead? I hate dealing with people when they're trying to rip me off
In my cleverness I just figured I'd cancel that after the loan was all set and proceed to both possess and devour my delicious cake. Well lo and behold, I'm an idiot and put it off one day too many until it just reentered my mind.
My understanding after internet research is that you can cancel these any time, but after the first few days or month or so, you only get back a pro-rated amount based on the car's mileage and time passed. So after 2 months and less than 3000 miles, I should get back a significant amount, right?
Second: The finance manager was captain jackass (he tried to tell me I couldn't get the low financing AND the cash incentive, but the incentive I had made them give me was a manufacturer to dealer incentive which they readily gave (not the customer cash incentive, of which there were none for that car at the moment), and we went through the whole "I'll call and check...oh my mistake" routine) and I called the number on the warranty paperwork and they said it has to go through the dealer. Yippee. Can I expect any trouble or lies? The loan's gone through, I've already made payments, so he can't pull any "if you undo that we can't give you your extra low rate we offered!" crap, right?
Is there anyway I can do it through the warranty company instead? I hate dealing with people when they're trying to rip me off
BlochWave on
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If it is the same warranty they offered me when I purchased my Honda, then the answer is no. The cost of the extended warranty is included in the loan and once you sign on the dotted line that is it. An extended warranty through a third party may have a monthly payment you make along with a deductible and be canceled at any time, but that isn't how the Honda extended warranty works.
Hate to break it to you, but the finance manager got their job for a reason, they are pretty damn clever. The time to determine your cleverness isn't while sitting in the manager's office, it is sitting at home researching this stuff ahead of time. When I bought mine the bastard tried repeatedly to pull fast ones on me and very carefully chose his words when answering my questions. Every answer you need is in the fine print, if its not in the contract it doesn't matter. So read your paperwork and see what it specifies about canceling the warranty.
On the paperwork for mine it's listed as Olympicare/Ethos Group, and I had the contact number which is what I was called and told to go to the dealer. That all sounds like the natural progression given this: http://www.insidercarsecrets.com/warranty_cancel.html
As it is though I've heard a lot of different stories. My cousin did the exact same thing I did and actually got an automated hotline to cancel and got mailed a check for 1500 bucks, but that was buying a Toyota truck. If nothing else, it being financed just means the amount is returned to the financing institution and a couple of payments get knocked off, even if you don't otherwise see the money directly.
if your car breaks you get free fixing
Extended warranties generally don't work like that. First, you have to keep strict maintenance records of everything to show that you changed your oil at specified intervals, rotated the tires, changed and checked fluids, etc. After that, they don't fix many things that go out due to just normal wear and tear, which is what most nearly everything that goes wrong with a car is.
Anyhoo, here's more detail, and now it gets fishy. I understood what was happening, but was stupid regardless. Like I said, he never said extended warranty. He offered it as the Honda "standard" plan vs the Honda "preferred" plan, he presented the standard plan as at 2.9% APY at, whatever monthly payment, and described the regular dealer warranty. He presented the "preferred" plan at 1.9% APY but at a marginally higher monthly payment but with what was the extended warranty. His manner of describing it is BS, of course the "preferred plan" was just with more money financed in for the warranty.
Gamesmanship aside, the actual final sales contract tells you all you need to know, there's a line in there with 1200 bucks being financed for Olympicare and it describes the warranty (months and mileage). He shuffled the verbal description around to hide that. My friend and I decided to just take it and cancel it later. The 1.9% financing is not truly dependent on that warranty, of course, and if I were a better haggler I probably could've just skipped this step and gotten him to give it to me, but I'm not.
My own crippling laziness aside and perhaps saved for another topic, I just realized that in the process of not telling me I was getting an extended warranty, he also didn't give me the associated contract. I'm so sure it's not lost and that I in fact didn't go through that step that I'm pretty sure if I ask them for a copy, they're not going to have anything signed by me.
Sooo...how does that change the situation? I did sign the sales contract which did have it, and hell, I knew it was there. I guess a 1200 dollar lesson in carelessness (financed over 36 months!) isn't the worst thing
edit: yea there's a line describing what the mileage and cost of the extended warranty is, but there should still have been a separate thing to sign describing the actual terms of that warranty.