will taking the extended warranty off the vehicle lower the loan payments?
Posted by admin
we have a 2007 vehicle with a manufactures warranty on it still. we also purchased an extended warranty. Is it possible to cancel that warranty and if it is, will that lower my monthly loan payment or do we get a refund?
what will happen is you would get a refund pro-rated from when you got the vehicle to how much warranty is left. What will happen how ever is the money for the warranty will be taken off the cash principle for the loan, so in essence you would have a shorter time to pay off the car.
it doesn’t lower the payment but gives you a smaller total loan.
I hope this helps
4 Responses to “will taking the extended warranty off the vehicle lower the loan payments?”
Leave a Reply
July 4th, 2009 at 4:49 am
No. You bought and paid for that warrantee. They will not cancel it. Even if they did they would just give you the money back you paid. You could put that toward your loan, but you wouldn’t get your payment lowered. If you don’t owe way too much on it you may see about financing it through another bank with a lower interest rate.
References :
July 4th, 2009 at 4:55 am
what will happen is you would get a refund pro-rated from when you got the vehicle to how much warranty is left. What will happen how ever is the money for the warranty will be taken off the cash principle for the loan, so in essence you would have a shorter time to pay off the car.
it doesn’t lower the payment but gives you a smaller total loan.
I hope this helps
References :
9+ years car sales professional + finance manager
July 4th, 2009 at 5:16 am
It depends on the company you have the warranty through and thier policies. We allow customers to cancel within the first 60 days (with no claims paid) and receive a full refund. It will go back to the lienholder and as said previously said it would just go to the principle of the loan and not lower the payments just the total amount.
References :
Currently working at an "extended warranty" company
July 4th, 2009 at 5:55 am
You will need to check your warranty contract to see the terms and conditions.
I bought an extended warranty and it was included in my loans. I changed my mind on it and cancelled it within 60 days for a full refund. The refund was credited towards my principal but your monthly payment will stay the same. You will just pay it off a little earlier than whatever you and the bank agreed upon.
Every auto company is different so yours may or may not even let you cancel the warranty.
References :