Edmunds Answers



  • MrShift@Edmunds 12/16/12 9:33 pm PST

    If it's not in the contract, then it's just your word against his; however, you did make a deal, so if the dealer gets mad at you, I wouldn't necessarily blame him. On the other hand, he's making money either way on the financing. Still, if you agreed to his offer, you are backing out---not saying you're a bad person or anything, but just throwing that out there so that you might understand if the dealer gets grumpy on you.

    Obviously if there is a cancellation clause then the warranty company is okay with it. No doubt the dealer can offer any qualified buyer the lower interest rate.

  • knowledgepower 12/17/12 9:15 am PST

    This rate change is just a ploy that the Finance Manager is using because all he is looking at is how much he would make selling you the extended warranty. Let's be clear that they're re-signing your buyers order changing the whole deal or not just one form that cancels only the extended warranty. In order to completely void the warranty purchase yes they have to re-sign you and that's why the Finance Manager is angry and said he'd raise your rate. He's doing this to make up for the money he won't make in selling the warranty. You have the upper hand in this matter, you can cancel the extended warranty whenever you want after signing a contract but you don't get the refund back in your hand. The refunded amount lessens the amount at the end of your contract that is due, the warranty company can do that. Remind the Finance Manager that you will get a survey in the mail from the manufacturer and you will give them the lowest survey ever if they choose to raise your rate. No, they can't call anybody to stop you from getting a survey because it is solely controlled by the manufacturer. These surveys have a huge impact on the dealer's rating and they know that. No, don't give them a survey after you've received it you can copy it and show them that but whatever you do mail it in yourself. This is just a Finance Manager's ego which is normally as big as those giant gorillas on top of the dealership saying "Big Sale". I dealt with these big egos as a Fleet Manager and sometimes it was pathetic. The interest rate change is just some goofball Finance Manager teed off because he can't make more money. Take absolutely NO extended warranty at any price. Tell these clowns you'll switch the warranty for GAP insurance which cost ONLY $500 nothing more. GAP insurance protects you if the vehicle is totalled, it pays the difference from what you owe vs. what the vehicle is worth. These guys don't like selling it because it makes them very little money but helps you down the road. I've sold them and the customers that had to use it did get new vehicles. Don't back down, stand your ground as the buyer and good luck.


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