cancel
Showing results for 
Search instead for 
Did you mean: 

Cancel gap, bought thru dealer???

Auto Loans for ANY Credit Situation. Immediate Response.
Advertiser disclosure
Highlighted
Valued Contributor

Cancel gap, bought thru dealer???

How long does one have to cancel the dealer add ons, like gap, warranties, etc? How does all of that work?

Rebuilding and Reducing Debt, is my game plan.
Message 1 of 8
7 REPLIES 7
Highlighted
Frequent Contributor

Re: Cancel gap, bought thru dealer???

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.

Message 2 of 8
Highlighted
Frequent Contributor

Re: Cancel gap, bought thru dealer???


@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.

Current Score 10-2-19: TU: 806 EX: 788 EQ: 791
Goal Score: 800 Across the Board
In My Wallet: Cap1 QS - PenFed Power Cash Rewards - PenFed Promise - AmEx Delta Gold - AmEx Platinum - DISCO - NFCU Cash Rewards - AmEx Simply Cash Business - Chase Sapphire Preferred

Message 3 of 8
Highlighted
Valued Contributor

Re: Cancel gap, bought thru dealer???

The vehicle is financed, I have the original loan. I no longer want it. Finance guy made very clear i can cancel any time.

I just didn’t know if I was already-fully charged for it. Sounds like if I was to cancel they would take that portion off the principal balance.

Thanks.
Rebuilding and Reducing Debt, is my game plan.
Message 4 of 8
Highlighted
Frequent Contributor

Re: Cancel gap, bought thru dealer???

You're welcome

Current Score 10-2-19: TU: 806 EX: 788 EQ: 791
Goal Score: 800 Across the Board
In My Wallet: Cap1 QS - PenFed Power Cash Rewards - PenFed Promise - AmEx Delta Gold - AmEx Platinum - DISCO - NFCU Cash Rewards - AmEx Simply Cash Business - Chase Sapphire Preferred

Message 5 of 8
Highlighted
Valued Contributor

Re: Cancel gap, bought thru dealer???

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

Message 6 of 8
Highlighted
Valued Contributor

Re: Cancel gap, bought thru dealer???

Do you think it would be wise to cancel gap on a high interest loan such as mine? 15%apr

Rebuilding and Reducing Debt, is my game plan.
Message 7 of 8
Highlighted
Valued Contributor

Re: Cancel gap, bought thru dealer???


@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.  

Message 8 of 8
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.