Should I cancel my extended car warranty?

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Topic Author
freelancer
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Joined: Sat Jan 10, 2015 2:55 pm

Should I cancel my extended car warranty?

Post by freelancer » Wed May 27, 2015 1:19 pm

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Yossarian
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Re: Should I cancel my extended car warranty?

Post by Yossarian » Wed May 27, 2015 1:39 pm

Yes. You shouldn't have bought it in the first place.

Topic Author
freelancer
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Re: Should I cancel my extended car warranty?

Post by freelancer » Wed May 27, 2015 1:49 pm

Yossarian wrote:Yes. You shouldn't have bought it in the first place.
Didn't know any better then. It was my first used car purchase so I wanted to be careful. The question now is whether $592 is a good price for a 1 year warranty starting from today.

Gill
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Re: Should I cancel my extended car warranty?

Post by Gill » Wed May 27, 2015 1:51 pm

They're really short changing you on pro rating the refund. I'm as strongly opposed to extended warranties as anyone, but for that small a refund and giving up over a year's coverage I might be inclined to keep it.
Gill
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal

adamthesmythe
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Re: Should I cancel my extended car warranty?

Post by adamthesmythe » Wed May 27, 2015 2:25 pm

It's not such a big refund and NOW the car is old enough that you might have a good chance of needing it. At least better than when you bought the car.

Maybe keep it unless you have a good reason to expect the warranty company to try to get out of paying.

Next time (1) buy a car expected to be reliable and (2) decline the extended warranty.

DaftInvestor
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Re: Should I cancel my extended car warranty?

Post by DaftInvestor » Wed May 27, 2015 2:26 pm

I don't believe in extended warranties either (likely no one on this forum does) but as Gill stated - they aren't giving you a fair refund - and you are more likely to have a problem in these last 14 months versus the first almost 4 years you were running the warranty. With only $592 being returned to you - if you don't take the refund - you are essentially paying $42 per month for "insurance" against an expensive repair if something happens. Is the $42 a month worth it to in the unlikely chance that you have a major problem that could cost you $1K?

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JupiterJones
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Re: Should I cancel my extended car warranty?

Post by JupiterJones » Wed May 27, 2015 3:18 pm

DaftInvestor wrote: Is the $42 a month worth it to in the unlikely chance that you have a major problem that could cost you $1K?
And not just any major problem... a major problem that's actually covered under the (probably Byzantine) terms of the warranty.

Assuming you have a solid emergency fund (which you should), I'd cancel it today.

Imagine you never bought the warranty in the first place. The car ran great for four years and you had zero regrets. But now you get an offer in the mail to purchase a special, one-year warranty for $592.

Would you take them up on the offer? Because that's the equivalent of not cancelling.
Stay on target...

Topic Author
freelancer
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Re: Should I cancel my extended car warranty?

Post by freelancer » Wed May 27, 2015 7:10 pm

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cheese_breath
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Re: Should I cancel my extended car warranty?

Post by cheese_breath » Wed May 27, 2015 7:20 pm

freelancer wrote:I will probably cancel it. Is there any way to make them pro rate it differently so I get more back?
Read the contract. The cancellation pro rate rules may be in there.
The surest way to know the future is when it becomes the past.

nhdean
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Re: Should I cancel my extended car warranty?

Post by nhdean » Wed May 27, 2015 7:48 pm

No it is fixed. The reason it seems so little is that you paid way too much for it. Unfortunately it is very hard to make sure you are getting a goof deal on car warranties.

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Crimsontide
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Re: Should I cancel my extended car warranty?

Post by Crimsontide » Wed May 27, 2015 7:57 pm

4k for an extended warranty on a Hyundai??? :oops: man oh man, that's got to hurt. Damage is done, might as well keep it.

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