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How long does one have to cancel the dealer add ons, like gap, warranties, etc? How does all of that work?
It totally depends.
I will say when we traded my daughters 2016 Mazda 3 on a 2018 leftover Mustang we were under mileage for the base warranty and were able to cancel the extended warranty and GAP even though it was more than 2 years since we bought the car. It was a really nice suprise how much we got back because the dealer would not tell us. Gap I think refunded a couple of hundred but we got over $1,000 back on the extended warranty. I am sure both are lots less than we paid but still very nice to get back.
Talk to the dealer. Even the extended warranty company would not give me numbers.
@Schoolbuskid wrote:How long does one have to cancel the dealer add ons, like gap, warranties, etc? How does all of that work?
Easiest thing to do is call the finance department where you bought the car. You didn't mention if you were canceling because you no longer own the vehicle or if you just don't want it. You also didn't mention if you have a loan on the vehicle. If you are keeping the vehicle, and you have the original loan on the vehicle (meaning you have not refinanced the vehicle), the GAP insurance company will be sending the check to your lien holder, essentially reducing your principal balance.
If you're vehicle is paid off - the finance department should be able to assist you in submitting any cancellations and you'll receive a check in 4-8 weeks.
You're welcome
They roll GAP, protection plans etc into the total you paid or borrowed before you left the lot. In the paperwork you have you will be able to find the companies they bought these products from (for you at a nice markup). All you have to do is contact them and cancel. There will be language in the documentation about how to do so. I am pretty anti GAP, I think the much better way to go is new car replacement through insurance which pays the value of the car plus 20% pretty well insuring you won't walk away with nothing in the event of a total loss and the cost for me is about $15 a year on my BMW
Do you think it would be wise to cancel gap on a high interest loan such as mine? 15%apr
@Schoolbuskid wrote:Do you think it would be wise to cancel gap on a high interest loan such as mine? 15%apr
Take a close look at that terms and conditions of the GAP you bought. Most have caps on them the dealers don't tell you about. I believe they are generally capped at 120% of fair market value. The problem with paying for a GAP on a 15% loan is your paying high interest on even more debt. Having said that there is peace of mind from having protection. I prefer new car replacement from the insurers because it is cheap, you don't pay interest on it and it will pay 120% of the fair market value for any total loss or theft so its a cheaper way from my perspective to get the same result.