Newbie wanting to cancel extended warranty

[saqarizona]

I'm a proud new owner and very glad that I found this site with lots of help available! I did what I said I wouldn't do and got an extended warranty from the dealer, paid $2000, it only covers 6 years and 100,000 (I drive less than 10,000 per year), and really want to cancel it. I purchased the vehicle on May 10. I haven't received any paperwork on the warranty and when I asked the dealer, they said I won't receive it for 30 days.

Do I have 30 days from purchasing the warranty or 30 days from the day I receive the documentation? I'm not even sure who to contact at this point. I would prefer not to deal with the dealer, and would like to go straight to the warranty company.
Any advice would be great and thank you in advance!

[lefat1]

did the same thing. called the dealer to cancel the warranty and several other items he put in without my knowledge...they even have a form with all the items listed so its easier for you and them to cancel what you need to. but you have 30 days from day of purchase...call the dealer asap

[Jabber]

Yep.. call the dealer. They don't need your paperwork to cancel it. Since you are within the 30 days, they "flat cancel" it. Did you finance? If you did, you do realize your payment isn't going to go down, right? You pay less total payments, but your payment will stay the same.

[saqarizona]

Originally Posted by Jabber

Yep.. call the dealer. They don't need your paperwork to cancel it. Since you are within the 30 days, they "flat cancel" it. Did you finance? If you did, you do realize your payment isn't going to go down, right? You pay less total payments, but your payment will stay the same.

Yes, I financed through the dealer, and I'm fine with the payment staying the same. However, they said I was given a 4.88% due to buying the extended warranty. Any thoughts on what that would do? I can refinance elsewhere.

[alevinemi]

I would challenge them on that.

Unless your paperwork specifically states the 4.88% is contingent upon purchasing and retaining the warranty, I don't think they would have the right to cancel the loan or force you to refinance. Demand the 4.88, and say if they don't give it to you, you will finance elsewhere.

In this case, the parole evidence rule is in YOUR favor. You may have promised to buy the warranty, but if it ain't in writing, anything said before you signed the contract is VERY hard to enforce. Dealerships use the parole evidence rule in THEIR favor all the time (they can basically lie and get away with it, as long as it's in the contract).

That said, if you have good credit, Chase auto finance offers pretty good rates (though probably not as low as 4.88). Just check out www.chase.com.

-->Adam

Originally Posted by saqarizona

Yes, I financed through the dealer, and I'm fine with the payment staying the same. However, they said I was given a 4.88% due to buying the extended warranty. Any thoughts on what that would do? I can refinance elsewhere.

[saqarizona]

Thank you very much!

[NoMoShocks]

Yeah, I believe they are BS ing about the lower percentage rate being tied to the warrantee purchase. They are telling you this because they make nearly as much money selling the contract for over $2000 than they make on the car. In fact. the MSRP for those contracts is only about $1500.

If the contract was included in the financing, they will need to send the refund to the lean holder, who will credit it against your priciple, likely keep your payments the same, and your loan will just pay off a little earlier.

[alevinemi]

You are welcome.

I also recently bought a used Prius and researched warranties in detail. If you are considering buying a replacement warranty, you may want to look at my thoughts in this thread:

http://priuschat.com/forums/prius-ma...cusations.html

In short, I haven't bought one yet, I probably will buy one, and it won't be the Toyota warranty.

If you do end up buying a Toyota warranty, consider WarrantyShack. They will cost a few bucks (less than $100) more than some other dealers, but they support PriusChat. I can also attest to the fact that the guy who is in charge of it (forget his name) is very helpful. He provided me with a contract for review promptly, with no problem, and with no pressure.

-->Adam

Originally Posted by saqarizona

Thank you very much!

[Silver bullit]

I bought a 2009 Prius in Feb. and bought the extended warranty. After further research I decided to cancel it. I did not go through the dealer. I called Toyota financial and they asked me to fax them some information. Shortly thereafter I received a check in the mail for the full amount. Time is of the essence. Good luck. BTW you have 3 yrs or 36,000 miles to get an extended warranty. At this time I do not think I am going to get one.

[saqarizona]

I'm assuming I can google Toyota financial and go from there. Again, I have no information and no number to call but I'm good with researching. Thank you for the info. I will contact them immediately!