I recently purchased an 08 TL with a third party warranty for $3500 for 24,000 miles 2 yrs less than a week ago. Soon after I looked up the warranty company Zurich and found many neg reviews and regretted my decision in paying so much for an almost 10 year old vehicle. I called the dealer and ask to cancel. They asked me to come in a sign a new bill of sale because the original one has "used car waranty" checked off and I they need the "as is" section checked off in the new bill, in order to cancel since the car will no longer have warranty once cancelled. I decline and said I can cancel the warranty myself with Zurich which gives me 60days to cancel with a full refund. He then said they will not be liable to pay the bank the $3500 because of the way the original bill has used car warranty checked off. Although when I asked the Zurich representative who will be liable she said the dealer will have full responsibility. After 60 days the refund will be prorated. I can even cancel after a year so how is it that I have to sign a new bill. It just doesn't sound right and I feel as if they are trying something slick with the new bill. Can you guys give me your insight on this situation. Thank you

 

Yeah, sounds like they're trying to pull a fast one on you. By them checking off 'used car warranty' on the bill of sale, they now have to warranty the car for whatever amount of time. I'd cancel it without the dealer's consent.. but IANAL...

 

if you cancel/ terminate service contract you only have to sign the form where its indicate you terminated the contract and you are liable for any breaking contract fees (if this applicable). That letter will cover the dealer for any further claim after the contract termination. I never bother with extended warranty (unless the vehicle is German and/or CPO under factory dealer certified program), most extend warranty will simply deny your claim by stating you bought the car as used and it come with "pre-existing condition".

 

Yeah they were definitely trying to pull a fast one on me. I spoke to the warranty representative and she told me they are completely responsible for my refund even if that is checked off on my bill of sale and if it isn't refunded within a certain time period that the actual warranty company will get involved =). Now the question is I'm being charged close to $500 dollars extra becuase of the $3500 warranty. Now that the $3500 is being refunded who is responsible for the tax reimbursement? Or would I just have to take it as a lost?

 

That should be refunded too

 

I don't think the dealer is at fault.

They have to have paper showing the vehicle was not sold with warranty which in your case they don't.

So, if you go to the dealership after you cancel and try to defraud them by saying I purchased warranty even though you cancelled with the insurance directly, who do you think is liable?

The dealership is trying to cover their back.

 

A couple of things stand out to me:

1.) Dealer Liability - As stated before, this may just be CYA on the dealer side making sure they aren't held liable for future warranty claims.

2.) Tax Purposes - You said tax was paid? On what? I would have "assumed" there was not any tax on the warranty? It isn't an actual service or tangible asset? I know tax laws vary state to state so who knows...

3.) Finance Purposes - Did you finance in the cost of the warranty? If yes, this will have to be worked out with the lender and paperwork updated. This right here is what I think the biggest issue is and what the dealer is probably wanting you to come back in for since you are altering the amount actually borrowed and needing to be financed.

 

The thing is with these warranty the purchaser always has a right to cancel even after a year later. The refund will just be prorated after 60 days. Now with the finance manager knowing that the person buying the warranty always has a right to cancel at any given moment why not just cover their as in the first place. They probably screwed up or are up to no good, and want me to drive out an 1.5 hrs out to sign a whole new bill of sale. There was a whole lot I that happended after the car purchase that makes me not trust that dealer. Including, asking me to come in and sign the warranty cancelation form and a form that I'm buying the car as is. Later into the Convo it slipped out his mouth that it's a whole new bill of sale. Initially he told me the car came with warranty for 2yrs 2400 miles, later on I see $3500 on the bill of sale, car doesn't come with warranty u guys added it and didn't even bother to offer it to me. Now when I decide to cancel it I have to come back in to sign a whole new bill of sale, and I am not even offered any warranty at all from the dealership, not even a month. The finance guy sarcasticly replied warranty for a car with 100,000 miles not going to happen, although I see it done all the time. Wasn't a good experience at all for my first car purchase. Now he is telling me that if I cancel without signing the bill of sale they are not liable vs the warranty company telling me they are completely liable. I see what you guys are saying and if these guys were honest from the start I would have no problem signing the new bill, but now I just don't know if I should and just cancel the warranty myself.

 

Personally I do not see the dealership as being in the wrong. Yes, I agree that it was a shady move to not outline the cost of the warranty in the bill of sale. But really is that not expected of a dealership?? Really? I expect them to do that and more.

Ultimately the responsibility to read the entire contract and acknowledge every aspect of what you are signing falls on the signee, the customer who is purchasing the vehicle. If you dont agree with the contract you need to make adjustments or decline the contract.

Sure you can make a big deal out of it and no I would imagine you do not have to go back and sign a new bill of sale. If I were to cancel my warranty tho I would just go do it, because that would make the smoothest transaction and most likely expedite the payment and likelyhood of them working with you and not against you in paying you back. Keep your enemies close kinda thing.