car warranty -- can I return???

[TooPatient]

Bought our car two years ago. Has something like 43,000 miles ( I think, too tired to remember right now ). We purchased the extended ten year 100,000 mile warranty through the dealership at purchase.

If we were to trade the car in, they would credit the unused percentage of warranty (so 50,000 on car would give us 50% refund).

Things are ugly right now. I am trying to get creative to get us through until something works out for either of us job wise.

So....

Can I return the unused portion of warranty? Without trading the car in?
I would like to just cancel the rest of the extended warranty and get cash back for the unused portion. (what they would credit to us if we traded in)

I need to call the dealership, but am hoping to know a bit about this before I call. They are sales people trying to make money. I don't want to be pushed into keeping it if this is at all an option. (Let's put it this way -- this could be the difference between us being able to keep the car, electricity, and internet or having a really bad week.)


Thanks again for being such an amazing group of people and always being here for the craziest of my questions!

 

[Imdanny]

I don't think a warrant contact would allow that but you should read it. I'm sorry you're having difficulties. I've been there.

 

[Arcadian]

I'm sorry to hear you're going through difficult times. Lots of dust and hugs to help you through them. On warranties, you can't sell them back. But you may be able to transfer it to the new owner (check the paperwork) and this can help make and attractive selling point if you're trying to sell it privately.

 

[azstonie]

Sending success dust and thoughts to you, I don't know the answer to your question but whenever I've canceled insurance policies I've received a check for the unused balance...

 

[TooPatient]

Update:

I was all worried over nothing! The dealer finance people were nice and knew just how to help. We will get a refund on the unused portion based on car mileage. They will send payment directly to lender.

This doesn't help on the payment we need to make, but it does cut our principal owing down.

I am going to call the lender in the morning. I am hoping they may allow it to be applied to payments currently owing.

 

[HollyS]

Update:

I was all worried over nothing! The dealer finance people were nice and knew just how to help. We will get a refund on the unused portion based on car mileage. They will send payment directly to lender.

This doesn't help on the payment we need to make, but it does cut our principal owing down.

I am going to call the lender in the morning. I am hoping they may allow it to be applied to payments currently owing.

They will apply it to your balance, lowering it. Some finance companies will apply it directly to payments you owe.

 

[TooPatient]

Holly -- Thanks! Hmm... I wonder what to do with it now?

I called the morning of going in to the dealer and was told by lender that it would apply as payments. I was careful to include that it had been financed. He said no problem.

Went in to dealership to do cancellation paperwork. They said it would not apply that way. Called lender and was told it usually is not applied to payment but he supposed it might be possible.

I called the lender again and was told it would reduce principal and could NOT be counted as payment. I let him know of previous conversation and was told the other guy was just wrong. "Sorry about that."

So now I don't know which it is!

 

[sonnyjane]

Holly -- Thanks! Hmm... I wonder what to do with it now?

I called the morning of going in to the dealer and was told by lender that it would apply as payments. I was careful to include that it had been financed. He said no problem.

Went in to dealership to do cancellation paperwork. They said it would not apply that way. Called lender and was told it usually is not applied to payment but he supposed it might be possible.

I called the lender again and was told it would reduce principal and could NOT be counted as payment. I let him know of previous conversation and was told the other guy was just wrong. "Sorry about that."

So now I don't know which it is!

Hate to say it but I think it only applies to the principal. I cancelled an extended service agreement and was told they can only take it from the total, the payment plan must continue as is.

 

[Imdanny]

Great news! I'm very happy to be wrong.

I'm sorry if they won't apply it to payment but you still accomplished something!

 

[HollyS]

Holly -- Thanks! Hmm... I wonder what to do with it now?

I called the morning of going in to the dealer and was told by lender that it would apply as payments. I was careful to include that it had been financed. He said no problem.

Went in to dealership to do cancellation paperwork. They said it would not apply that way. Called lender and was told it usually is not applied to payment but he supposed it might be possible.

I called the lender again and was told it would reduce principal and could NOT be counted as payment. I let him know of previous conversation and was told the other guy was just wrong. "Sorry about that."

So now I don't know which it is!

Lenders will usually apply it to the balance, and that balance will be lower . . . but when they do that, the payments you may be behind on are still due. Believe your lender and what they told you, not what someone at the dealership told you.

 

[TooPatient]

I think it must be to balance.

Only confusion came from lender saying yes to payments, then another from same office saying maybe to payments, then the third from same lender office saying no.

Eh. Will plan on payments and be pleasantly surprised if not. Just want it paid off quick and payments gone!