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

Tuesday, September 11, 2007

Car Customer Wants to Buy Used Honda Accord for Cash, but Car Dealer Won't Take It!

Hi Tony,

I'm trying to buy a used Honda Accord, but I'm running into car dealers who won't take me serious unless I finance through them. I want to pay cash! What am I doing wrong?


Hi Lynn,

Car dealers do make a lot of money arranging financing for their customers, but this is the first time I've ever heard of a car dealer letting a deal slip through their hands because you want to pay cash. How stupid is that?

The next dealer you go to simply tell them you're paying cash and that's all there is to it. Tell them to just tell you the price of the car. Tell them not to worry about financing or a trade. They will try to convert you to financing, but as long as you stick to your guns they'll get the point. Click here to read the full question and answer.

Tony Iorio