Can an Extended Warranty Be Cancelled?

[egrizzly]

Jurisdiction

Texas

Can the extended warranty that dealerships sell you when you purchase a used vehicle be cancelled? Sometimes these warranties end up being about 25% of the overall loan. I just wanted to get some insight on whether it is true that you can call and cancel it within a given "trial" period to bring your overall loan amount down if you changed your mind.

Or are all things final once that single loan has been extended by the financing bank.

 

[txls]

Yes it can be cancelled. Just call the finance manager at the dealership. They will probably require you to go in and sign a cancellation request.

 

[adjusterjack]

I'm guessing here but prepare yourself just in case. If the warranty was part of your loan the refund is likely to go to the lender. It won't reduce your payments, it'll reduce your balance so you end up paying off the loan sooner.

 

[txls]

I think he already anticipated that.

 

[zddoodah]

Can the extended warranty that dealerships sell you when you purchase a used vehicle be cancelled?

In the abstract, virtually anything can happen. Also, the reference to "the extended warranty" implies that there's only one. That's obviously not the case, and determining whether any given warranty may legally be cancelled would require reading the warranty and knowing the relevant laws of the state whose laws govern the interpretation of the warranty (which might be different from the state where the vehicle purchase took place). One thing that might matter is how long it's been since the warranty was purchased.

 

[army judge]

A statutory right to cancel a contract or return a purchase because you change your mind is NOT the norm in Texas. State law grants a "right of rescission" or "cooling off" period in only a few specific instances. If you do not see a statute that governs your particular situation, you may be bound by your agreement with the seller. Consult an attorney for more information about your right to cancel a contract or purchase.

Guides: Cancellation of Consumer Contracts: Home

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[txls]

I've never known of an extended warranty on an automobile purchase that could not be cancelled. 40 yrs in the car business

 

[army judge]

I've never known of an extended warranty on an automobile purchase that could not be cancelled. 40 yrs in the car business

That's because you are employed by a reputable employer, engaged in honest business practices, and doing business with reputable insurers.

Some of these "insurers" offer products that are far from reputable, if they offer products at all.

The really abhorrent ones are the ones offered by the "buy here-pay here" entities.

 

[txls]

Ah I get ya. My brain doesn't think that way I guess.

 

[egrizzly]

I've never known of an extended warranty on an automobile purchase that could not be cancelled. 40 yrs in the car business

This is highly encouraging TXLS. Thanks a whole bunch