u should be able to purchase a warranty and gap with new lender.
u wont know until u try.
@Anonymous wrote:
I have a question. I recently purchased a car. My interest rate 7.9%. I was offered a refinance for 4.59%. I've only had my loan for a month.
My contingency for this amount is to cancel my warranty and gap and buy one through the new lender.
Should I be concerned? I'm scared if I cancel my Warrenty can they resend the offer and leave me without a Warrenty?
Any suggestions.
Without knowing the details of your credit profile, that rate drop is significant enough to proceed with the refi.
You wouldn't have a choice with the GAP protection. If you want GAP, you would have to purchase it from the new lender. The GAP coverage cannot be part of the refi (unless it is the same lender).
Is the current Service Contract financed in your current loan?
What are the reasons you have for wanting to cancel that Service Contract?
If the Service Contract being offered by the new lender and is cheaper and has better coverage/term, I would understand wanting to cancel the existing one.
Addressing your concerns regarding having no warranty coverage...
If the new lender is offering to refinance your existing loan and that loan includes a financed Service Contract, the Service Contract would stay intact.
You shouldn't be required to cancel your existing Service Contract to refinance the loan.
If you want the Service Contract instead of the existing contract, don't stress about this.
You would sign for the new loan (the refi) before the existing loan is paid off and closed anyway.
You would see the terms of the refi (and the new Service Contract, GAP) itemized on the contracts.
You cancel the existing Service Contract with the source that sold you the Service Contract and they process the refunds back to you. Same with the GAP.
