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Extended warranty question

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Appleman
Valued Contributor

Extended warranty question

Hello and Happy New Year!

 

I just wanted to run this by the forum and see what people thought:

 

I bought a Honda on 12/3/15 and at the time of sale was presented an extended warranty. It was stated that I would have 60 days to cancel and I would receive a full refund. I purchased the extended warranty as it was a 'Lifetime' 3rd party warranty. I did some research on the company that backs the warranty and saw pages of complaints with coverage and reimbursement issues. Reading all of this really turned me off on the warranty.

 

Two weeks ago I went to the dealership and cancelled the extended service contract (ESC)(I guess not truly a warranty). They tried to talk me out of it and said my payments would stay the same (yes but the number of payments will decrease and I will not be paying interest on the ESC). the $1596 I paid was credited back to my loan this week. As I looked through the paperwork I saw that they taxed the ESC at the time of purchase ($147.23 in tax). I went ahead and called my state's Department of Revenue and they said yes, ESC's are taxed and if you cancelled you would be due the tax as well. Thoughts?

 

I emailed my salesman and have not heard from him, so I now have emailed the sales manager and referenced my contact with the Department of Revenue. Hopefully this will result in a speedy wrap-up to my issue.

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1 REPLY 1
Anonymous
Not applicable

Re: Extended warranty question

Actually, this gets kind of tricky sometimes.

 

Each state has different rules and laws and you can typically go to your state's governing body, be it the comptroller or board of equalization or what have you and see the legal requirements.

 

If the dealer won't give you a refund, google sales tax refund for your state and you can probably file a claim directly with that body or follow the instructions if you don't get what should be refunded.

 

Also, car warranties are great in my opinion.  But, you should carefully read all of the fine print as most of the complaints probably stem from people trying to file a claim for something that wasn't covered.  Of course, they didn't know that because they didn't read and hence, they file a complaint.  (EDIT: I see you already did that).

 

A lot of car insurance companies also sell mechanical breakdown coverage and are actually pretty good and can bill you monthly as part of your insurance payment, but there are limitations to both when you can buy this and what it covers.

 

Again, read carefully.

 

Good luck.

Message 2 of 2
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