After signing a contract on a car but a few days later want to cancel the warrenty..?

Question

If the bank hasn't already funded the loan, is the dealer suppose to rewrite the contract or can he still leave it as it is and say oh well you signed?

Answer 1

I canceled my extended warranty in the alotted time ( I think within 3 months to avoid a penalty ) . The sales manager had me fill out a simple form .  She explained that since the loan and warranty were written together they could not re-write the loan , I would just pay off the car sooner with a higher monthly payment .  

Answer 2

Depending on the dealership and warranty company, it may be able to be "flat canceled if it has only been a few days.  If it can not be flat cancelled, you can apply to the warranty company to cancel the warranty.  Sometimes you can do it directly through the warranty company, other companies, you need to do it through the dealership  Usually, if the vehicle is financed, the warranty is included in the funding.  And in most cases, when a warranty is cancelled, it will be taken off the amount you owe to the lienholder and you will not get a cash refund.  It doesn't matter if you put a large downpayment on the vehcile, the warranty will be part of the contract to the bank.   Unless you have a seperate invoice for the warranty only.  

Answer 3

Car Purchase and Extended Warranty should never be combined. That would be called Payment Packing & is illegal in many states.

You do have some time & ability to cancel the Extended Warranty. If it was a good dealer, there would be two separate agreements. One for the Car Purchase and the other for Extended Warranty. So it would depend on the clauses in the Extended Warranty Contract. It does not have anything to do with your financing of that car. Here's an article that's educational.

http://www.edmunds.com/advice/buying/art...

Now if the Dealer was a fraud and did combine the two, then you can Roll back the sale and return the car provided the loan was not approved by the bank or you will have to seek legal advice.

Last option not at all recommended would be to say "Oh well you signed it so might as well keep it. " I'd not go that route at all.

Answer 4

It will depend on which company the warranty is through. Usually they have written in the contract how long you have to cancel. Try looking in the contract, contacting the warranty company, or talking to the dealer. Warranties are typically not worth the money due to their clauses about like parts, meaning you will get used parts if your vehicle needs to be repaired, and the deductibles you pay when your vehicle needs work.