Last Updated on January 1, 2023 by Leepu Da Maxim
Yes, it is possible for you to get a refund for your extended car warranty. However, whether you could get a refund for your extended car warranty totally depends on the terms and conditions of the warranty and the specific circumstances of your request. So, you have to review the terms of your specific warranty to determine whether a refund is possible or not.
- If you want to cancel an extended car warranty then you have to contact the company or the agent who sold you the warranty
- Many car warranties have a specific time limit, if you cancel the warranty within that timeframe then you will get a full refund
- If you don’t get a refund from the extended car warranty then you can transfer the remainder of your warranty to a new owner when you sell your car
- If the cost of the warranty exceeds the potential repair costs then its not worth to keep the car warranty
Extended Car Warranties – Pros & Cons
|1. The user has peace of mind because his or her vehicle is partially protected|
2. The procedure of budgeting the necessary repairs is much simpler
3. There are benefits included within the extended warranties
4. Cancellations and transfers are easier
5. Not much paperwork is required for general procedures
6. The technicians are certified and the parts are original for your vehicle
7. Coverage and pricing for each extended warranty is usually customized
|1. It is necessary to know each of the exclusions included in an extended warranty|
2. An extended warranty carries a certain risk
3. Saving money in a savings account may be more convenient
4. Some extended warranty providers are not suitable
5. A detailed maintenance record is required
6. Bad providers are more numerous than good providers
How Can I Cancel The Extended Warranty?
Nowadays, a lot of users decide to cancel the extended warranty to get some money. A large number of third-party companies and dealers allow this procedure to make vehicle sales more attractive. To do this, four very simple steps are required.
Check The Policy: Of course, not all policies are the same and some may vary in important points. In particular, the policy should provide all the necessary information so that you can perform this procedure very easily. Therefore, the fee will let you know if you have to pay a fee.
In turn, this also allows you to know the procedure to cancel the extended warranty policy. If you do not have all this information you should contact the customer service team to know all the necessary steps. In general, most companies offer the possibility to cancel the extended warranty.
Defend The Position: Of course, it is necessary to consider that you will encounter some obstacles before you can get the money. Companies don’t want to cancel extended warranties because they only lose money this way. So, it will be really necessary to insist on this procedure if you want to get the money.
Absolutely all companies have the policy to avoid at all costs the loss of money by this type of procedure. That is why the vast majority of users who perform this procedure recommend having all the patience to obtain good results. Otherwise, you might give up before you achieve your goal, which is to get the money.
You Should Keep A Copy Of The Cancellation Form: Here, the online cancellation form can be completed and this should be sent to a person. However, once you complete and submit the necessary form, you should keep a copy of it. In particular, this is proof that you have begun the procedure necessary to obtain the money.
So, if at any point your form is lost for any reason, you can prove that you have started the procedure. Otherwise, if the original cancellation form is lost and you do not keep a copy, then any record of the procedure may be lost. This often happens many times so that the result is simply more money for the company.
Tracking The Process: One of the most important points you should take into consideration is to properly track the entire process you have initiated. It is very common for this procedure to take a long time for some reason that you do not know about. There might even be some mistake in the whole procedure and the company does not warn you by any means.
Unfortunately, many companies do this to avoid disbursing the money that belongs to you. So, it is necessary to continuously call the company to check the status of the money refund. As you call as many times as necessary then the company will eventually give in and you will be able to get your money.
What Are The Reasons To Cancel An Extended Warranty?
Many people hear that it is convenient to cancel an extended warranty at some point. However, many of these users are not entirely convinced, as they do not know the most important reasons for doing so. So, if you want to know the main reasons we can make a summary of three points.
1. The Total Cost Of The Loan Increases With The Extended Warranty
Many people do not know that the total cost of the loan they applied for the vehicle includes any amounts they do not know. One of those amounts that people have to pay is the interest that is due to the extended warranty. There are even a lot of people who don’t use the extended warranty for any reason when it’s available.
In other words, this means that people must pay for something they will probably never use. So, if you want to save some money you can cancel the extended warranty. As we have mentioned, this is a great way to save some money and lower the total cost of the loan. That is why many users recommend performing this procedure.
2. There Are A Lot Of Exclusions
Generally, an extended warranty does not cover all the expenses you will have to cover in an accident. When a new vehicle needs to be repaired for some reason, your extended warranty will probably not cover all the expenses. Therefore, in most cases, the extended warranty only covers a small percentage of all damage to the new vehicle.
Therefore, it may be more advisable to cancel the extended warranty and save some money. Even if your car is damaged for some reason, you will have the ability to save for repairs yourself. This way, the amount of money you may need could be less if you cancel the extended warranty. So, this is a procedure that should be seriously considered.
3. It Is Necessary To Wait A Certain Amount Of Time To Use The Extended Warranty
In this case, the extended warranty can only be used when the manufacturer’s warranty is terminated. Therefore, this is another limitation that users must take into account and often forget. It is even possible to cancel the extended warranty at this very moment and save a great deal of money.
If you prefer, you have the possibility of renewing the extended warranty. This way, you can renew the extended warranty and have it available at the same time. You will be able to save a great deal of money and then get some coverage for your vehicle’s repair costs.
Why Do Some People Not Cancel The Extended Warranty?
Here, it is necessary to consider that not all people want to cancel the extended warranty to save some money. Instead, several people prefer to opt for the peace of mind that the extended warranty offers. So, people have the peace of mind of knowing that they have a certain amount of money in case the vehicle does not need to be repaired.
It would be a real problem if the user has to repair the vehicle and has canceled the extended warranty. It could be that many people are confident in canceling the extended warranty and do not save money for repairs. Beyond that, it is necessary to consider that people who never use the extended warranty are 55% of the total.
On the contrary, 45% of the remaining people use the extended warranty, which is a high number. So, in the case of replacing an expensive part, these people take advantage of the extended warranty to reduce costs. In fact, in many cases having an extended warranty at the right time can save thousands of dollars in new vehicle repair.
In other words, if you need the money you should cancel the extended warranty. If you can avoid using this money it is advisable to continue with your extended warranty.
Especially, if your new vehicle is mid- or high-end you will want to have additional coverage. This way, you will avoid having the repairs become too expensive because it is a high-end car.