I bought my Prius 6 months ago. Can I still cancel my extended warranty?

Discussion in 'Gen 3 Prius Care, Maintenance & Troubleshooting' started by DerekinaPrius, Apr 20, 2011.

  1. DerekinaPrius

    DerekinaPrius New Member

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    Thread title pretty much says it all. I bought my 2010 Prius in November 6 months ago. I've never really felt too certain on the extended warranty, but after my girlfriend buying a new car, I'm certain I don't need mine. The fine print says exactly the following:

    "Cancellation of Your Agreement
    If your vehicle has been repossessed, declared a total loss or you give notice of cancellation, this agreement will terminate. You may cancel this agreement at any time by notifying the selling dealer or administrator in writing of your intent to cancel. You must also send the selling dealer or administrator this agreement and a notarized statement indicating the actual mileage (odometer reading) of your vehicle at the date of the request. If this agreement is canceled within the first thirty days and no claims have been filed, you will receive a full refund. If this agreement is cancelled after the first thirty (30) days or a claim has been filed, your refund will be determined by multiplying the amount you paid for this agreement by the lesser of the ratio determined by:
    a) the number of in-force days remaining for the agreement compared to the original term of the agreement, or
    b) the miles of remaining coverage under the agreement as compared to the original terms of the agreement.

    If there is no lien holder, the refund, less a cancellation fee, will be paid to you. If there is a lien holder, the refund less a cancellation fee will be paid to the lien holder. If the agreement holder elects cancellation, the administrator may retain a cancellation fee not to exceed fifty dollars."


    Then there's an amendment on the back because I live in Nevada:

    "If this contract is originally delivered to you by mail, you may cancel this contract within 20 days after the date the contract was mailed to you and receive a full refund of the contract price provided no claim has been made under the contract. If a full refund is due to you under this contract, a 10% penalty per month will be added to the refund if it is not made within 45 days of return of the contract to us."



    Sorry for all the info. So how much would I even get credited to my loan? I have just under 11k miles and I signed this contract on November 16, 2010.


    Any advice would be nice. Thank you!
     
  2. patsparks

    patsparks An Aussie perspective

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    Your contract tells you that you can cancel and you will get a partial refund. If you bought the car on finance and the car has been used to secure the loan the refund will go to the finance company
     
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  3. DerekinaPrius

    DerekinaPrius New Member

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    Thanks! Is there any way to estimate how much the refund would be before I go to the dealership and put up with their hassling?
     
  4. Paul58

    Paul58 Mileage Miser

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    What was the original term of the warranty? The refund will be calculated using a formula they will deduct the number of months passed and the number of miles driven off the original. Unfortunately, you'll probably have to deal with the selling dealership to determine the refund amount.
     
  5. DerekinaPrius

    DerekinaPrius New Member

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    72 months - 75,000 miles

    I figure it's inevitable that I'll have to deal with the dealership. I have no problem establishing dominance. Haha
    I originally bought the extra insurance because this is my first hybrid, but I just don't think I'm going to need it. I'd rather that money go towards the loan.
     
  6. stream

    stream Senior Member

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    The formula is in the info you posted.;) Since only you know how much you paid, only you can do the calculation:

    If this agreement is cancelled after the first thirty (30) days or a claim has been filed, your refund will be determined by multiplying the amount you paid for this agreement by the lesser of the ratio determined by:
    a) the number of in-force days remaining for the agreement compared to the original term of the agreement, or
    b) the miles of remaining coverage under the agreement as compared to the original terms of the agreement.
     
  7. SageBrush

    SageBrush Senior Member

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    Google pro-rata. Since you have no trouble establishing dominance, I'll assume you can multiply and divide.
     
  8. DerekinaPrius

    DerekinaPrius New Member

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    I don't understand that formula. They use big words that I don't like. =[

    I paid $1516 for the extended warranty.
     
  9. SageBrush

    SageBrush Senior Member

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    Yes, but for what ? months/miles
    If you e.g. bought a 84/100k miles warranty,
    and kept the warranty 8.4 months then they keep 8.4/84 or 10% of the amount you paid.

    If you drove 20k miles, they keep 20/100 of the amount you paid.

    You can see the results are different. Use the number that returns the smaller amount to you.

    Can you see the idea ? You do not get back that fraction of the warranty already used.
     
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