Repossession

[Shawndoe79]

Quick question folks.  If someone car is being repo'd but had an extended service/warranty contract, could they get they money back from that.  The contract was for 5/60K but only had the vehicle for 14 months 13k miles.  Im sure it could be prorated.  But will the person be able to get that money back or will it go to the lienholder due to the repossession.

[ezdriver]

The warranty ended with the repo so call the warranty carrier and ask for a pro-rated refund. Also, read the refund-related stuff on your warranty document.

[Metsfantransplant]

This happed to a family member a couple of years ago. They dealer had a check for a prorated refund on the gap insurance that was purchased. Since the car was repoed, the refund was sent back to the lein holder (Capital One). If you traded in the car or sold it, they warrant refund would be sent to you. But since it was repoed, the leinholder is trying to recoup any money it can and the refund will be sent to them. 

[faze2988]

 Like the OP said the check will be sent to the dealership then the dealership will ask you for proof of payoff on the vehicle which you don't have so they will automatically send it to the lien holder. Even if it wasn't repoed but you still owed money on the car it still would be sent to the lien holder since its there money.

[Shawndoe79]

Ok, good info guys thanks a lot.  This forum is so helpful.  So what if it hasnt actually been repoed yet, but is in default and will be repoed if he doesnt make a payment?  Will they call and verify a good standing before a prorated check can be cut.

[TRC_WA]

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@Shawndoe79 wrote:

Ok, good info guys thanks a lot.  This forum is so helpful.  So what if it hasnt actually been repoed yet, but is in default and will be repoed if he doesnt make a payment?  Will they call and verify a good standing before a prorated check can be cut.

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You aren't going to get the money.

The service contract/GAP was included in the financing of the vehicle.  If you cancel the contracts (for whatever reason no matter if you are current or in default) the refund checks go to the lienholder.

They would only send the checks to you if you were the owner of the vehicle... or if you had paid the contracts in full at time of purchase.

[Shawndoe79]

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@TRC_WA wrote:

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@Shawndoe79 wrote:

Ok, good info guys thanks a lot.  This forum is so helpful.  So what if it hasnt actually been repoed yet, but is in default and will be repoed if he doesnt make a payment?  Will they call and verify a good standing before a prorated check can be cut.

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You aren't going to get the money.

The service contract/GAP was included in the financing of the vehicle.  If you cancel the contracts (for whatever reason no matter if you are current or in default) the refund checks go to the lienholder.

They would only send the checks to you if you were the owner of the vehicle... or if you had paid the contracts in full at time of purchase.

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It wasnt for me, it was a friend of mine that was asking.  However, you are absolutely correct, he told me that the finance manager said the same exact thing about cancellation.  Also, that he couldnt transfer it to another vehicle.