The number 1 thing to consider with potential refinancing is that if the loan payoff is much higher than the value of the vehicle banks won't touch it. Returning the warranty will drop the loan by 2,000 and help you out in that regard. Similarly, any extra payment you can make will help too. An extra 50 a month will save you almost 2000 in interest as well.
I myself have a Versa Note, and it can be a solid vehicle, so the value to you as you mentioned is definitely worth the price, and they are keeping their value fairly well, so you can keep it for quite a few years after you get out from under this loan.
They had to give you paperwork with the extended service contract. The issue with getting the extended service contract refunded is that the money will go to the finance company. So your payment will not go down but the amount you owe will. The loan life will be reduced and so will the total you are going to pay.
The sales person or more likely finance guy is making a fat commission on that extended.
Take the contract to the dealership and tell then you are cancelling the extended warranty. They will not like it but will do it. Often you can get 100% refund in the first 30 days.
Please let us know how it goes...
Like others have mentioned, if you don't want the warranty just go back to the dealership and cancel it. Depending on the warranty company you may not even have to do that. Some will let you cancel as long as you send a signed letter to them stating you want to do so. The refund will be sent to your lender and will reduce your balance. All the while the sneaky finance manager will get a nice charge-back and lose any money he has made.
If for some reason you have to go back to the dealership to cancel and they want to give you a hard time...just tell them you'll speak with the Attorney General...that'll speed things up in a hurry. The Attorney General is like kryptonite to a dealership...they certainly don't want them poking around their shady operation. Best of luck to you!
Singsonbing, although establishing and maintaining an emergency fund is a great idea, unfortunately the refund will be sent directly to the lienholder. Any cancelable aftermarket product's are refunded directly to the lienholder if they were financed, it will reduce the payoff amount, if the vehicle is paid off early/traded in, the refund should be made payable to the person and not the lienholder in those instances.
This is shady practice, and dealership's like this are what ruin it for everyone, sorry for your unpleasant experiance.