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

Monday, July 9, 2007

Car Dealership Responsible for Damage To Car, but They Won't Own Up!

Dear Tony,

My daughter took her truck to a dealership for repair, and it was left there. While there over the week-end they parked it outside. Monday morning they reported vehicles broken into and damaged. Hers was one of them.

Now they are telling her she has to turn in a claim to her own insurance company. Her insurance company says, No the dealer is responsible for repairs. Today I talked to her and she say now they claim she signed a waiver . . . I told her she better ask to see that!

What would your advice be? My daughter is not rich. She was so relieved to hear that the problem with her truck would be covered by her extended warranty. Now she has this to deal with.

I don’t know if laws are different in other states but I believe they are pulling fast one!

Thank you,

Karen H.

Hi Karen,

I really don't know what the legalities are here, but you would sure think the dealership would go out of its way to take care of its own customers. If your daughter did in fact sign a waiver (which I'm sure wasn't explained to her if she did sign it) and the dealership insurance company isn't responsible as a result then I don't see why her own insurance company won't cover it. If she can't get somebody to cover this she may have to talk to an attorney.

Good luck . . .

Tony Iorio

Tuesday, May 22, 2007

Announcing My New Website at

I would like to announce that my latest website at is now up and running.

This website offers you timely consumer information that will enable you to make wise decisions when choosing which credit cards are best for your particular needs without you being taken advantage of!

Whether you're a hard working person looking to
Establish Your Credit for the first time, or you're a Student in need of a credit card. Perhaps you already have a good credit rating and you're looking for Low Interest, Higher Credit Limit, Cash Back or Other Incentives. Even if you have Bad Credit and you're looking to re-establish your credit rating, you'll find all the credit card offers and related information you need right here on this web site.

We are part of a network of consumer oriented websites helping you to save money, time and aggravation, and helping you to avoid being ripped off and scammed by unscrupulous credit card companies.

Please visit this new website and please tell others about it.

Thank you . . .

Tony Iorio

Monday, May 14, 2007

Will I be able to buy an extended auto warranty on an 2003 BMW 325 Lemon Buy-Back I recently purchased?

Hello Tony,

I've been reading your site and it is great!

My husband purchased a Lemon Buy-Back 2003 BMW 325 convertible about 5 months ago. The price was about $6,000-$12,000 cheaper than used cars from other dealers.

At that time, I did not know what a lemon buy-back was. It was explained that the ignition coils were the problem and were replaced. More recently, I've been doing more research into this matter and am getting worried that we overpaid for the vehicle and that we may run into problems in the future.

So far, fortunately, there have been no problems with it at all. Now, I am looking into purchasing an extended auto warranty on the vehicle since the manufacturer's warranty will be expiring soon. Do you foresee any problems with warranty companies covering this vehicle?

Thanks in advance for all your help!

Best Regards,


Hi Denise,

Thanks Denise for your kind words regarding my website.

I don't see why there would be any problem getting an extended auto warranty for your BMW. They should cover it like any other car. Most Lemon Buy-Backs don't have any major defects. The manufacturers usually buy these cars back from the original owner in order to keep the customer satisfied more so than for any major defects the vehicle may have. Any car can have a minor mechanical problem such as yours did with the ignition coils.

In most of the cases there's never any problems after the repairs, but some people worry themselves to death. In these cases the factory will buy the car back to keep the customer from having a nervous breakdown rather than because the car has any defects!

The more the customer worries about the vehicle the less satisfied they are, and the manufacturers don't want dissatisfied customers out there.

All my very best...

Tony Iorio

Friday, May 11, 2007

Another Warranty Company Bites the Dust!

One of the largest aftermarket warranty providers has filed for bankruptcy, leaving warranty holders wondering who'll pay for repairs.

Automotive Professional's, Inc. bankruptcy has put thousands of vehicle warranties in limbo, reports the Houston Chronicle.

Automotive Professionals, Inc., one of the country's largest auto warranty claims companies, has suspended claims payments on 300,000 contracts sold nationwide, according to filings this week in Chicago bankruptcy court. According to the bankruptcy filings, Automotive Professionals began having serious financial problems in 2003 and 2004.

Six months ago, unpaid Automotive Professionals claims started piling up on car dealer balance sheets. Car dealerships will sometimes pick up the pieces after a service contract company or its insurer becomes insolvent, said Tim Meenan, General Counsel for the Service Contract Industry Council, which represents administrators and insurers.

This story was reported in .

Monday, April 30, 2007

Advantages of Having an Extended Warranty on Your Vehicle if You Decide to Sell or Trade It!

If you have an extended warranty on your vehicle it can enhance the value of your vehicle if you decide to sell it.

Most extended warranties are transferable if you sell your vehicle. There is usually a small fee you must pay to transfer the balance of a warranty to the next owner, but the increased value of the vehicle is more than worth the fee.

You can even ask the new owner to pay the fee.

If you decide to trade your vehicle in to a car dealer you can't transfer the warranty, but you can cancel it and get back a portion of the original cost.

All things considered having an extended warranty on your vehicle is a very smart move, because the warranty will give you mechanical breakdown coverage in the event something goes wrong, and if you decide to sell or trade your vehicle you can recoup at least part of your original investment.

Sounds like a Win - Win situation to me!

Tony Iorio