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Old 11-15-2007, 11:28 PM   #1
greekrex
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Default Can an extended warranty be returned?

I bought my car new and I got the extended warranty on it. Right now I have 30K on the car so it's still under the regular coverage. Does anyone know if the extended warranty can be returned for a refund? thanks
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Old 11-16-2007, 01:12 AM   #2
armand1
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Since there are many different "extended warranties" sold and backed by different companies, it depends on the details. Subaru's Added Security can be returned for a pro-rated refund. I don't remember their pro-rating formula, but it may start at 0 mileage, so at 30k, you might only get 1/2 back of a 60k warranty.
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Old 11-16-2007, 11:13 PM   #3
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I got a full refund on the extended warranty for my Tacoma... but only because the dealer told me it would cover a loaner car anytime my truck was in the shop. Well, the guy flat out lied to me and the dealer would not give a loaner. So I bitched and moaned and they finally sent me a check for the full amount.

I think in your case the best you could expect is some small portion of the amount you paid even though you haven't used it yet.

Good luck, and please report back to tell us how it worked out!
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Old 11-17-2007, 01:14 PM   #4
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I had the Subaru Added Securty on mine and cashed it in. They refunded my money in a few weeks. Like armand1 said the pro-rate it from 0 miles to what you have on the car now.
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Old 11-17-2007, 08:22 PM   #5
greekrex
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thanks for the input. On tuesday I will attempt returning it, i will let u know how it went.
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Old 11-17-2007, 08:26 PM   #6
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I went from a basic extended warranty to the gold plan and they first refunded a prorated amount of the basic, and then I paid for the gold plan.
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Old 11-17-2007, 08:39 PM   #7
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Hey if your car falls within a certain range you can get a similar extended plan through your insurance if they offer it. I have Geico and figured out that a 7 year 100000 mile plan cost about 4 hundred something, as compared to 1800 for the subaru plan.
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Old 11-17-2007, 09:05 PM   #8
Big-E
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This doesn't make sense.

If you're not into the extended warranty period, then how can it be prorated?

By rights, if you're within the regular warranty period, then you should be able to recover the entire cost of the extended warranty.
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Old 11-17-2007, 09:19 PM   #9
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Quote:
Originally Posted by Big-E View Post
This doesn't make sense.

If you're not into the extended warranty period, then how can it be prorated?

By rights, if you're within the regular warranty period, then you should be able to recover the entire cost of the extended warranty.
Good point, but for some reason the "extended" warranty begins from the day the car is purchased new (assuming it's purchased new).
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Old 11-17-2007, 11:40 PM   #10
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Part of the reason you only get a pro rated refund, even if you don't use it or your factory warranty hasn't expired is because technically you haven't paid for it all yet. Most people finance the warranty when they buy the car and it is included with the payments. You usually only get back what you paid on it. At least that's the way it was explained to me.....
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Old 11-18-2007, 12:26 AM   #11
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Quote:
Originally Posted by turbotrimble11 View Post
Hey if your car falls within a certain range you can get a similar extended plan through your insurance if they offer it. I have Geico and figured out that a 7 year 100000 mile plan cost about 4 hundred something, as compared to 1800 for the subaru plan.
Oh god, if I have car trouble the last place I want to call is my insurance company, given my history with them over claims..
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Old 11-18-2007, 12:32 AM   #12
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Quote:
Originally Posted by rexygirl View Post
Part of the reason you only get a pro rated refund, even if you don't use it or your factory warranty hasn't expired is because technically you haven't paid for it all yet. Most people finance the warranty when they buy the car and it is included with the payments. You usually only get back what you paid on it. At least that's the way it was explained to me.....
yup
and if the car is financed, most likely the refund will be in both your name and the name of the finance company.

most people dont get anything back if it's financed, the refund is issued to the finance company and is credited towards the balance of the loan
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Old 11-18-2007, 12:35 AM   #13
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Originally Posted by $lick_Rick View Post
yup
and if the car is financed, most likely the refund will be in both your name and the name of the finance company.

most people dont get anything back if it's financed, the refund is issued to the finance company and is credited towards the balance of the loan
Ahhh... that explains why I got the pro-rated refund when I went to the Gold. I bought the extended warranty straight up. Never though of that.
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Old 11-18-2007, 09:14 AM   #14
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Quote:
Originally Posted by $lick_Rick View Post
yup
and if the car is financed, most likely the refund will be in both your name and the name of the finance company.

most people dont get anything back if it's financed, the refund is issued to the finance company and is credited towards the balance of the loan
Nope, mine was 100% financed and they gave me the money.
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Old 11-18-2007, 09:18 AM   #15
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Nope, mine was 100% financed and they gave me the money.
some finance companies will do that, but they are the exception rather than the rule
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Old 11-18-2007, 01:15 PM   #16
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Originally Posted by $lick_Rick View Post
some finance companies will do that, but they are the exception rather than the rule
But if it's factored into the price of the car, then the buyer is going to owe that amount in the end no matter what. Whether the sell the car or not the bank gets their money.
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Old 11-18-2007, 03:52 PM   #17
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Quote:
Originally Posted by wrxtasy555 View Post
But if it's factored into the price of the car, then the buyer is going to owe that amount in the end no matter what. Whether the sell the car or not the bank gets their money.
I like to look at it as a low interest loan. LOL!!
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Old 11-18-2007, 05:17 PM   #18
$lick_Rick
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Quote:
Originally Posted by wrxtasy555 View Post
But if it's factored into the price of the car, then the buyer is going to owe that amount in the end no matter what. Whether the sell the car or not the bank gets their money.
Correct, and they actually collect less money per non-default account by doing it this way because the refund goes towards the balance, and every penny paid towards the balance is a penny you'll never pay interest on. and any interest you're not paying, is profit they're not collecting.

....but.....

A vehicles worth to a finance company is directly related to its resale value.
On a secured loan, if they are loaning more than they can repossess and re-sale the vehicle for, then their risk jumps exponentially
Instead of financing say $20,000 on a car, $400 between dmv and doc fees, and $1800 on a warranty, the warranty will be gone and then depending on the value of the car, the $1800 for the warranty might not be able to be rolled into the balance of the loan.

on a new car, the immediate depreciation is so great that the banks are usually in that high-risk period for ~1year (depending on many factors).
The finance companies will put the refund towards the balance of the loan to lessen your disequty and in turn, lessen their risk for loss

so they may still be lending the same amount, but now a larger portion of it is unsecured or over-financed which hurts both the buyer and the finance company in the long run
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