Friday, September 14, 2007

Car Dealership Customer Doesn't Trust Them to Cancel His Extended Warranty and GAP Insurance!


When I cancel my extended warranty and GAP insurance where does the refund go? I have a loan on the car, so does the bank get the refund? Shouldn't the refund come off the "amount financed" so I would owe less, or are they messing with the numbers and I'm actually paying the same?


Hi John,

The refunds will go directly to your bank where the vehicle is financed. The loan contract and the payments will not change, but the total amount you owe will change as the refunds will be taken off the end of the loan. So if you make it to the end of the loan you will have fewer payments to make, or if you pay the loan off early the refunds will be reflected in the actual payoff.
The key is making sure the car dealer processes the refunds right away.
Click here to read full question and answer.

Tony Iorio

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