If the buyers think that the vehicle service contract or an extended warranty is not valuable, they can easily cancel the policy and can get a refund quickly.
FREMONT, CA: The car dealers often pressurize the car buyers to buy an extended auto warranty or vehicle service contract. On the one hand, it is beneficial for the owners because it covers repairs after the original warranty expires. However, it also has many odds, and sometimes it is less worth than its cost.
Here are some reasons for canceling the extended warranty:
• Cost: Some of the extended warranties cost more to the buyers than expected. Most of the time, these warranties are sold as a per-month purchase, and the buyer later totals the cost of the warranty over the length of the contract and discover it’s much more expensive than they were led to believe. It leads them to cancel their extended warranty.
• No agreement: Some of the sellers often attach extended warranty into a car-financing contract without the knowledge of the buyer. Then they extend the term of the loan to hide the extra expenses without any agreement. When the buyer discovers this situation, they plan to cancel the policy of extended warranty.
• Exclusion: The extended warranties do not cover all the requirements of a buyer; it does not deal with all the damages that can happen to a vehicle. Some of the buyers feel that the cost does not justify the worth, so they cancel the warranty.
• Postponement: If the dealers fail to initiate the extended warranty for at least three years, the buyers would prefer to cancel the warranty.
The buyers who remorse after buying an extended warranty can cancel the agreement and can get the amount refunded. Here are some steps followed to cancel the policy:
1. Find the paperwork for the plan to see whom to contact and if there is a cancellation fee. You can quickly reach the provider, and after completing all the formalities, the policy will be canceled.
2. While talking to the manager, remember that you are taking their commission they earned by selling the policy. Do not feel obligated and justify your reason for canceling.
3. Fill the cancellation form and other documents when needed and keep copies of relevant documents with you for further reference.
4. Set a reminder to confirm the cancellation was completed or not. The buyer can check the loan statement or can contact the lender.