09-16-2013 01:40 PM
After getting my car two week ago for a good deal and a good APR (thanks to this forum) I thought I could spread the wisdom to my gf since this forum was so beneficial to me. My question is, My gf took out an auto loan for a Toyota yaris back in Jan of 2010 and owes roughly 6,800. I told her to give me her contract to just review it ( I was bored), when I saw it I saw that the salesmen had probably told my gf that she needed gap and a "platinum" warranty , worth close to 2 grand. I know she can cancel the Gap insurance but is it possible to cancel that warranty and get a refund? The warranty contract says it expires at 60,000 miles or in 2015, she hasn't used the warranty if that helps.
09-16-2013 03:49 PM
How many miles does she have on it? Most service contracts and GAP will be a prorated refund.
09-16-2013 03:59 PM
They can definitely be cancelled but expect to get less than half of the original cost back on them.
09-16-2013 04:27 PM
09-16-2013 04:29 PM
The warranty is useless until the factory bumper to bumper expires at 3yrs/36k. She is almost to the point that she may need it. However, it is highly unlikely the car will have problems as long as she has properly maintained it.
10-01-2013 08:16 AM
Thanks for your help. Yeah the warranty was about 1200 or something like that. She does maintain the car pretty well, no major issues in the almost 4 years she has had the car. The reason she wants to cancel the gap and insurance is because after looking at her loan, with this stuff plus interest shes going to pay close to 21 grand for a basic toyota yaris, so with the money she gets back she can apply it to the principle to save money and get out of the loan quicker, she has roughly about 6300 to go on a 72 month loan.
10-01-2013 09:34 AM
The warranty and the GAP are primarily insurance programs in the event that something major goes wrong mechanically or the vehicle is totaled while the loan is underwater. Canceling both now is likely to result in a savings of less than 50% of the original cost. You need to do the math and risk analysis in that is she (you) ready to write the check in the event of these occurrences. As pointed out earlier it is very likely that the vehicle is out of manufacturer warranty and you still have a bit to go on a 72 month loan.
I am one of those (un)? fortunate souls who has had to have major auto repairs be covered under an extended warranty. I was very glad I had it in that case. But that doesn't mean it works for everyone. I personally am always in favor of buying an extended warranty / service for automobiles. Not so much for other products like electronics. Just my opinion.
10-01-2013 10:37 AM
Thank you for your insight, what you guys have said about extended warranty does make sense and probably she should kepp and knowing her she will want to keep it. But as for the gap insurance, she isnt under water she has about a grand or 2 in positive equity on the car and even though she'll get rougly 350 or so back from that, thats 350 or so she can apply to her priciple. Once again, thank you guys for your help and input's!
10-01-2013 01:17 PM
I just got suckered into an expensive extended warranty on a car I purchased and was debating about whether to keep or cancel for a full refund with the first 30 days. Then I read this in the contract details, "The aggregate total of all repairs and benefits... paid shall not exceed...$3000.00" (summarized).
And I'm out!! With the price I paid rolled into my financing I'd end up paying more than it would even pay out.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.