Can I Get a Refund on My Extended Auto Warranty if I Sell My Car Early?
An extended warranty lets you rest assured that you car is well-protected when the manufacturer's warranty runs out. Extended warranty plans cover repairs of mechanical breakdowns that would otherwise cost you from several hundred to several thousand dollars. Most plans allow a car owner to receive a partial refund if he sells his vehicle while the warranty is in effect.
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Contract Terms
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Cancellation terms of extended warranty plans vary and are often buried in the fine print. Warranty companies do not offer any refunds. When you signed the contract, you agreed to purchase an extended warranty plan based on these terms. If this is the case, you will have a hard time getting are refund. However, most warranty servicing companies would offer you a prorated refund based on the remaining contract term and the vehicle mileage. Depending on a plan, if you cancel within the first 30, 60 or 90 days, you may receive a full refund. Cancellation charges may apply and will be subtracted from the refund amount.
Follow-Up
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Your contract should list contact information, including a customer service local or a toll-free number. Ask what steps you need to take to cancel the warranty. You may need to submit a written request or fill out a cancellation form. A representative can answer your question and take all the necessary information to proceed with the cancellation.
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Manager Assistance
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If you run into problems when speaking with a customer services representative or cancellng a warranty plan, ask to speak with a manager. A manager will have the authority to take the necessary steps to assist you if a representative cannot help. Explain that you need to cancel because you are selling your vehicle. A manager may waive some fees for that reason. If you were not aware of cancellation terms, such as additional charges or fees, you should tell the manager.
Considerations
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Read the cancellation terms in the extended warranty contract before contacting the servicing company. If you are unable to cancel the warranty plan, you may negotiate with the buyer to see if he wants to purchase it from you. A warranty company may not want to give you a refund, but may be willing to transfer the warranty plan to a new owner for a small transfer fee.
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