Can an extended car warranty be cancelled? The answer is yes. An extended warranty is a type of policy that provides consumers with additional protection beyond the manufacturer's warranty. It can be a great way to ensure that your car is covered in the event of any unexpected repairs. However, sometimes consumers decide that the cost, exclusions, and delay in implementation don't justify keeping one.
In this article, we'll discuss how to cancel an extended car warranty and what to expect from the process. The most direct way to cancel an extended warranty is to contact the dealer's accounting department. This department is usually responsible for processing cancellation and refund documentation, so it's the fastest way to complete the cancellation of the extended warranty. Be sure to write down the name and phone number of the associate who helped you.
When you cancel your extended warranty, you will normally receive a cancellation form from the dealer or warranty administrator. The form will indicate the mileage and date on which the contract is canceled. Usually, you'll need to get a signed copy of the document from the dealer. There should be an address on the warranty form where you can mail your cancellation and request a refund. In general, you will have 30 days to receive a full refund on most extended warranty contracts.
Generally, the flat cancellation period for the extended warranty is 30 to 60 days after the date of purchase. For affordable and reliable cars, warranties may not be as useful, especially if you have enough savings to cover occasional repair bills. While cars have become more reliable, when something goes wrong, “it's usually incredible” says Scot Hall, former dealer finance manager and executive vice president of Swapalease, a lease negotiation site. You may have heard the dealer introduce the extended car warranty and agreed that it was a great idea at the time. A warranty program can last from one to eight years and most manufacturers offer in-house extended warranty programs when you purchase the vehicle. Many car buyers claim that they encounter dismissal, resistance, or even aggression when they try to talk to the financial officer who charged a commission for selling the extended warranty. If you follow these steps, you can make sure that you can cancel your car's extended warranty without problems:
- Read the cancellation clause in the extended warranty agreement and see how much time you have to request a “fixed cancellation” in which you will receive a full refund.
- Get a signed copy of your cancellation form from the dealer.
- Mail your cancellation form with your request for a refund.
The cancellation process is often long and tedious, and sadly, the warranty provider will be reluctant to cancel the extended warranty as dealers will lose their commission in doing so. The purchase order contains all of the information that the dealer needs to process the cancellation of your extended warranty. One of the newest players in this industry, in addition to offering extended warranties, also offers insurance against mechanical breakdowns in California. You may find two types of extended warranties when buying a new or used vehicle from a dealer:
- Vehicle Service Contract (VSC): This is often referred to as a “car warranty” or “extended car warranty” but it is not actually a warranty.
Be sure to read through all of your paperwork carefully before signing anything and make sure that you understand all of your rights and obligations under any agreement that you enter into. If you're considering cancelling an extended car warranty, there are several steps that you should take in order to ensure that everything goes smoothly. First off, read through all of your paperwork carefully before signing anything so that you understand all of your rights and obligations under any agreement that you enter into. Then contact your dealer's accounting department as this is usually responsible for processing cancellation and refund documentation - this is also usually the fastest way to complete this process. You'll need to get a signed copy of your cancellation form from them too - make sure that you write down their name and phone number for reference. When cancelling an extended car warranty, you'll normally receive a cancellation form from either your dealer or administrator which will indicate both mileage and date on which it was cancelled - make sure that this is signed by both parties before sending it off with your request for a refund.
Generally speaking, most contracts offer 30 days for full refunds so make sure that this time frame isn't exceeded. Finally, if you have an affordable and reliable car then warranties may not be as useful - especially if you have enough savings to cover occasional repair bills - so make sure that this is taken into consideration too before making any decisions.
