Are you tired of those extended warranty renewals where your warranty extends and you just want to cancel the deal and save some money but the dealer refuses to cancel extended warranty? Well, if that is the case, then you are at the right place because there will be all about this topic.
- Extended Warranty
- Pros & Cons
- Why Cancel It?
- How To Cancel?
- What If They Refuse?
Sometimes insurance companies, in order to get some profits, just want to rip you off by adding extended warranties to your papers and you sign them even unknowingly. And then you get surprised that you have to pay a hefty fee for this type of service.
Not that the extended warranty is a bad thing. But most people wouldn’t need such a service for them since their cars do not break a lot. Most people do not even use the warranty at all during their ownership of the car. So, why you would need it? These extended warranties are a perfect way for someone to rip you off. But you shouldn’t worry because we are going to help you out.
First, we are going to learn how extended warranties work and what they cover. Then we will cover the pros and cons of extended warranty and how to cancel the extended warranty. After that, we shall discuss what to do if the dealer refuses to cancel extended warranty. So, if you want to learn more about this topic, follow along.
What Is An Extended Warranty
Now before we cover more complex topics about what to do when a dealer refuses to cancel extended warranty. Let’s take a look at the basis and learn more about what is an extended warranty in general. We think that this is necessary because not a lot of people are familiarized with extended warranties and how they work. So, let’s cover this briefly.
So, what is an extended warranty? Well, an extended warranty actually is a type of warranty that is an aftermarket car warranty. This type of warranty is purely optional and if you decide to get an extended warranty you will still have a vehicle that is warranted even though the factory warranty has already expired.
This type of warranty usually is activated once the factory warranty expires. Even though in some cases these warranties can overlap.
What is different with this type of warranty is that you get the warranty from a private company. Not from your manufacturer. So, when it comes to the manufacturer warranty, you get it for free once you purchase it, and after 3 years or 36,000 miles (depending on the manufacturer), this warranty will expire.
And once it expires, you will be notified by your dealership to activate an aftermarket one. This type of warranty is purchased from private companies that work with dealerships. And their job is basically to make you purchase a specific package based on your needs. Their agents will be very persuasive to make you get that specific package they want to sell you.
And most people get the package without even wanting to. So, they try to cancel it. And then the dealer refuses to cancel extended warranty. But more on that we will cover in a bit.
Extended Warranty Coverage
So, we learned what an extended warranty is and covered that this is an aftermarket warranty. Now before we cover what to do when the dealer refuses to cancel extended warranty. Let’s take a look at the coverage of these warranties and learn more about them.
As you probably are aware, this is not the same as the case with manufacturer’s warranties. When it comes to the manufacturer’s warranty, you get covered on most of the stuff except regular maintenance.
The same is the case with extended warranties. But the interesting part here is that you can choose the type of warranty and choose what to cover. So, this is one of the positive sides of going for aftermarket warranties.
And luckily, there are a couple of types of extended warranties out there and we are going to cover them in the following chapters before we dive into what to do when a dealer refuses to cancel extended warranty.
Types Of Extended Warranties
So, we learned about extended warranties and a little bit about coverage. Now before we cover what to do when a dealer refuses to cancel extended warranty, let’s take a look a the types of extended warranties that you can purchase.
If you didn’t know three types of extended warranties can be purchased. And in the following chapters, we are going to discuss briefly on these three types and we are going to learn what they cover.
Dealer Refuses To Cancel Extended Warranty, Warranty Types #1: Powertrain
The first type of warranty that we are going to cover before we start discussing what to do when dealers refuses to cancel extended warranty is the powertrain warranty. But what is a powertrain?
Well, the powertrain on a car is the system (or a series of mechanisms) that propels the car forward or backward. Basically, the system that helps the car move.
And these are the components that most often can break down on a car when the mileage is too high. We definitely recommend this type of warranty when it comes to vehicles that have a ton of miles on them. And the good thing is that you can also save some money.
So, if you want to save some money, you can choose a powertrain warranty instead of going for a full warranty that we are going to cover next.
Dealer Refuses To Cancel Extended Warranty, Warranty Types #2: Bumper To Bumper
The next type of warranty that we are going to cover before we dive into why dealer refuses to cancel extended warranty is the bumper-to-bumper warranty. So, what is a bumper-to-bumper warranty?
Well, this type of warranty is easily one of the most comprehensive types of warranty. This type of warranty basically covers everything. Thus, the name bumper-to-bumper.
So, if you drive a car and you want every component to be covered with a warranty, this will be it. But the downside of this type of warranty is that it is easily the most expensive type of warranty.
For a bumper-to-bumper warranty on a luxury car, you can expect to spend up to $10,000 in some cases, which is a crazy amount. But the positive from this is that these vehicles often fail and when you have a car that breaks down quite often, going for a full warranty much be your best bet if you want to have headache-free ownership.
With this type of warranty, for anything that happens with the car, the dealership will sort it out free of charge. Except for damage that was done in an accident. For this, you still need to rely on insurance. But what if the dealer refuses to cancel extended warranty? Well, more on that we are going to cover in a bit. Let’s first cover the last type of extended warranty.
Dealer Refuses To Cancel Extended Warranty, Warranty Types #3: Specific Component Warranty
And the last type of warranty that we are going to cover before we discuss what to do when a dealer refuses to cancel extended warranty is the specific component warranty. So, what is a specific component warranty?
Well, this type of warranty is the warranty that covers one component or several components to your liking.
For example, if you have a Nissan Altima, you know that the CVT transmissions on a Nissan do not last for a very long time. So, you cover only the warranty in your specific component warranty and that’s it.
And by doing this, you save a ton of money that you will spend on a bumper-to-bumper warranty. And frankly, this is one of the types of warranties that we would recommend getting because if you drive a car that is prone to failures on certain components, it is a much better thing to warranty them separately instead of getting a full warranty.
This will result in a warranty bill that is sometimes thousands of dollars cheaper than a bumper-to-bumper warranty. This is why whenever your warranty expires, make sure that you dive deeper and see from what issues your specific model struggles and get the specific parts warrantied. This way you will not deal with issues when the dealer refuses to cancel extended warranty. But more on that in a bit. Let’s now cover the pros and cons of an extended warranty.
Pros And Cons Of Extended Warranty
Now let’s discuss more about the pros and cons of having an extended warranty. Why do we think that this is necessary? Well, there are a lot of people reading this article that are still considering getting an extended warranty for their car. So, we really need to spill out the facts and learn more about the positives and negatives.
Mainly because most people do not cancel the extended warranty and deal with issues like the case when dealer refuses to cancel extended warranty. They still want to get their car warrantied and get the best deal for their budget. This is why let’s cover this topic before we cover the case when dealer refuses to cancel extended warranty.
Now before we dive into the topic of what to do when a dealer refuses to cancel extended warranty. Let’s cover some of the pros of having this aftermarket service purchased by yourself. What are the positive sides of paying for this? Let’s elaborate.
One of the biggest pros is that you get convenience. With an extended warranty you know where to get your car to and who to call in order to get it fixed and put back on the road.
Everything that says in the agreement is covered so you don’t have to worry about it at all. You just take your car to the dealership that works with the company where you paid for the extended warranty and they will get you covered. It is that easy.
These types of services save a ton of money for people who are rather busy and running businesses. Why do something boring like finding a place where to fix your car when you have a warranty and you take your car there and they fix it for nothing?
The second pro of having an extended warranty is that you avoid risks. Some people are rather risky to purchase second-hand. Vehicles like BMW, Mercedes, and Land Rover can be rather expensive to fix if you don’t in what you are getting yourself into.
But if you spend only a limited amount of money, for example, $5,000 for 5 years, you can be sure that with whatever happens on your BMW, you will be able to fix the problem for 0 dollars. In this situation, you are avoiding a ton of risks that can sometimes cost up to 5 digits.
And on top of that, you can get extra perks like roadside assistance and protection plans for free.
So, we have covered the pros of having an extended warranty. Now let’s discuss the cons before we cover what to do when the dealer refuses to cancel the extended warranty. What are your options in this situation? More on that in a bit, after we elaborate more on the cons.
The biggest con of the extended warranty is probably the cost. Extended warranty can cost anywhere from $1,200 up to 5-digit numbers depending on the vehicle that we are talking about. And for some people, this is a lot of money. So, they choose not to get the warranty and keep driving like this. Which is not a bad thing if you are asking me.
Still, you lose some of the ability to fix problems on the cheap. In the 5 years or depending on how long the warranty lasts, it might nothing happen to your car. But what if your engine or transmission fails?
A new engine can cost anywhere from $5,000 to $9,000 to install. And a transmission can cost up to $4,500. And that is a crazy amount of money. So, sometimes it is worth spending some money in advance on an extended warranty, then spending your whole life savings on a repair.
Another downside of the extended warranty is the coverage. So, depending on what says in your warranty, you are only covered for that thing only and that’s it. Only for bumper-to-bumper warranty, you get covered for all things that fail in a car.
Keep that in mind. Wear and tear items like the seats, brake pads, rotors, and other regular maintenance are not included. But what if the dealer refuses to cancel extended warranty? What to do next? More on that in a bit.
Why Would Someone Decide To Cancel The Warranty
So, we learned all about the extended warranty. We covered the basics of what an extended warranty is and the different types of extended warranties. As well as the pros and cons of having an extended warranty on your car.
And before we cover what to do when a dealer refuses to cancel extended warranty, let’s take a look at why would someone decide to cancel the warranty. What are the most common reasons behind these decisions? Let’s find out.
The first reason is non-agreement. So, what is non-agreement? Well, this is the case when someone slipped you an extended warranty without even you knowing about it. They presented you with a bunch of papers and you signed without even knowing what you are signing. And this is a fairly common situation that can happen and make people cancel and the dealer refuses to cancel extended warranty.
The second thing is the costs. In some cases, these warranties are sold as per-month subscriptions. And when the buyer calculates the overall costs that are much higher than they were actually led to believe. This is false marketing. So, you need to always be vigilant.
Also, extended warranties do not cover things that the person who purchased them believes they cover. People sometimes these warranties cover regular maintenance and standard wear and tear that happens in the car. Which is not the case.
They mostly cover problems with components failing completely. Like the engine, transmission, etc. But what about when the dealer refuses to cancel extended warranty? What to do next? Let’s cover more on that in a bit after we cover how to get your money back.
How To Cancel Extended Warranty
Now let’s take a look at how to cancel the extended warranty. What you can do in order to do this task and make sure that the dealer does not refuse to cancel the extended warranty? Let’s elaborate.
When it comes to canceling this type of warranty, you first need to find the paperwork that you have signed and learn the policy when it comes to the cancellation of this type of service.
In case you don’t have the papers at your disposal, you will have to call the manager that sold this extended warranty to you or call the company that sold this warranty to you. The manager is simply an employee. Also known as a sales agent that sells these services for the company
Then you can have a little chat with them and they’ll explain what you can do in this situation. They will explain everything you need to do.
In most cases, you could cancel it but as with anything that is under contract, you might pay some penalties. This can cost you a couple of hundred dollars or even more. And sometimes if you have left only a couple of months, you might even cancel it without paying anything.
It depends on the company and its customer service. Just try to be polite and explain your reasons for cancellation. But what about when the dealer refuses to cancel extended warranty? More on that next.
Dealer Refuses To Cancel Extended Warranty: What Now?
Now let’s take a look at what you can do when a dealer refuses to cancel extended warranty. What are your options in this situation?
When it comes to the possible options, you first need to learn what says in the policy of the agreement. If the agreement says that it can be canceled, you can cancel it anytime and meet the terms of the company that sold you the warranty and part ways on peaceful terms.
If the dealership refuses to cancel the extended warranty and you have the right to do so, you can first tell them that you will call your lawyer.
Then, when they see that they do not have anything to hold on to, they must comply with your demand. Unless you can call the lawyer and deal with the issue in court. This might get expensive and might not be worth it, so you really need to make sure that you are the person that is right in this situation. Overall, that’s all when it comes to it. Now let’s conclude this article.
Dealer Refuses To Cancel Extended Warranty: In Conclusion…
In this article, we covered quite a lot when it comes to extended warranties. First, we learned what is an extended warranty. Then we covered the different types of extended warranties.
We learned that there are bumper-to-bumper, powertrain, and specific component warranties. Then we covered the pros and cons of these warranties and we learned how to cancel the warranty and what to do when a dealer refuses to cancel extended warranty.
Frequently Asked Questions
Now let’s answer some frequently asked questions.
Should I Buy Extended Warranty On Used Car
If the car is a rather problematic model then you definitely have to get an extended warranty. Still, make sure that is within your budget range because canceling the service might be a hassle.
How Do Car Warranties Work
You just pay a monthly fee for the service and if something breaks down in your car you are covered. This depends on the type of warranty you have and to which components it refers. Whether it is a powertrain, bumper-to-bumper warranty, or certain components covered.
How To Stop Extended Warranty Calls
You can just tell them to stop calling you if you are not interested and they should delete your number if you don’t have anything with them.
Can I Cancel My Extended Warranty
This really depends on the terms of service also known as TOS in your agreement. If you have this option, then you can cancel it. Or pay some fee and then cancel the service. They have to cancel it, just make sure that you read the agreement and the terms, or give them a call.
What To Do When Warranty Is Not Honored
In these situations, if they do not respect the agreement and they don’t pay for the service, you can take legal action against them. Just consult with a lawyer and they will tell you what to do. Just find a law firm that deals with these issues specifically.
Can I Take My Car To A Different Dealership For Warranty Service
If the car is under the manufacturer’s warranty, you can take it at any dealership nationwide. If you have an extended warranty, you need to make sure that the dealership works with the company that sold you the extended warranty.
These tools have been tried and tested by our team, they are ideal for fixing your car at home.
AI Car Expert Chatbot - Ask Me Anything
I'm the MotorVerso.com AI Car Expert. I'm here to help you with your car. Ask me anything car related and see if I can help you today.