# Extended Warranty- Should I cancel?



## Robby (Mar 1, 2013)

Looking at your service contract, who is the provider?

Rob


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## TammyCruzesAZ (Oct 15, 2017)

Robby said:


> Looking at your service contract, who is the provider?
> 
> Rob


I bought the car through Autonation and they provide all the service with 0 deductible, at any of their locations. Forgot to mention that I am 2 hours away from nearest Autonation provider. There is $100 deductible for out of network providers.


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## TammyCruzesAZ (Oct 15, 2017)

Also, they call it a Protection Package, but I guess that's the same as an extended warranty.


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## Robby (Mar 1, 2013)

OK.....I was trying to determine if GM (Known as Major Guard) was the underwriter.

Regardless, I'm guessing the tire change expense was covered by the regular roadside assistance coverage that comes with the car.
Generally, Autonation sells extended warranties underwritten by Ryan, FYI, and as long as you are still in the 60 day window it should be easy to cancel.

You must call the phone number on the contract and be prepared for a fair amount of pushback......they will try to keep you signed up.
Problem comes in though, as you noted, the contract is rolled into the financing.
So, before cancelling, you must speak with whomever is carrying the loan for guidance.
I suspect, if the amount of refund is paid to you, the lender will recommend passing that amount back to them and then rewrite the loan.

That would be the best case since you are paying interest not only on the car loan, but also on the financed service contract.......so you want to get the loan lowered by that amount.......hurry though. Get your ducks in a row before making the decision.

To any other readers: Never roll a service contract $$$ into a loan if at all avoidable. Service contracts are highly negotiable but if you roll it into the loan the interest you pay negates any discount you received. Always pay for the contract independent of the loan.....

Good luck,
Rob


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## TammyCruzesAZ (Oct 15, 2017)

Thanks, Rob!

I'm a little hesitant to cancel because of some of the issues I see some Cruze owners talk about in this forum, but at the same time I think it's so overpriced. I declined at first and just asked for GAP, but buckled under sales guy pressure.


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## Camcruse (Oct 4, 2011)

Think of it as this.

What possible warranty claim could you possibly have that would cost 5k. IMO..none.

Get out of that extended warranty ASAP.


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## Robby (Mar 1, 2013)

If you successfully cancel you can buy a GM program for much less and likely longer coverage while the car is in base, 3yr/36k coverage.

I do recommend the factory backed programs if you are not $$$$prepared for, sometimes significant, repair expenses after warranty coverage is gone.
Think of it as a one time payment for health insurance........you are betting the car will have a failure(s), the provider is betting it wont during the contract term.

FYI......I'm a semi retired wrench and I still put them on my cars........parts prices are too high to make 'rolling the dice' economically feasable.

Rob


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## Robby (Mar 1, 2013)

Camcruse said:


> Think of it as this.
> 
> What possible warranty claim could you possibly have that would cost 5k. IMO..none.
> 
> Get out of that extended warranty ASAP.


Might want to reconsider......GMPP, paid 4200.00 for the trans and TCM on my wife's 08 Malibu last year........and during the plan coverage: Struts + alignment, CD player, twice @ $1300.00 each, control arms (ball joint failures, part of arm).
When the car was traded last month, GMPP had paid well over $8000.00 over the years.

I tend to recommend service contracts (if ownership will exceed the warranty) because most folks today are not $$$$ prepared for out of pocket expenses exceeding two or three grand (or less for some).

Not a concern for me (or you) but the vast majority can easily have their budget destroyed by a high dollar car failure.

Rob


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## Rivergoer (Mar 30, 2017)

I’m no expert but $5Gs for an extended service contract seems high and financing it with interest, Ugh.
Wouldn’t hurt to get an online quote before you cancel.

https://allypremierprotection.com/a...MIod7q3ePy1gIVBgppCh13dw9MEAAYASAAEgJ4ofD_BwE


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## Robby (Mar 1, 2013)

THIS!!!!!! ^^^^^^^^^^^^^^^^^^^^^^^^^^^

Rob


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## Taxman (Aug 10, 2017)

TammyCruzesAZ said:


> The finance guy lied to me and said you can't cancel for 6 months. I looked at paperwork and it says within 60 days. I called him twice to ask to remove it, but he says it's a done deal.


Canceling it has changed from optional to a moral imperative. 
You must deny that lying sack of feces his commission on the service contract, if only because he doesn't deserve to get paid extra for repeatedly lying to you.

Did I mention that I haven't bought a car from a franchise dealer in nearly 30 years and wanting to have nothing to do with Finance and Insurance managers is one of the reasons?

If you still want a service contract, I believe the GM sponsored plan can be purchased from any other dealer, or directly from Ally, before the bumper to bumper warranty runs out. It wouldn't hurt to get quotes from the usual suspects:
https://www.bing.com/search?q=general+motors+protection+plan


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## Eddy Cruze (Jan 10, 2014)

In certain States these products are sold as Insurance and regulated by your State, Arizona not being one of them. Just another reason to avoid AutoNation, started by H Wayne Huizenga who founded Blockbuster and Waste Management Industries. What exactly was that $5000 for, not even in the ballpark as a fair price. The Gap coverage is something you should cancel as well. I got taken by my sales manager friend for $300. I would visit a few GM Dealerships and get their best price on a GM sponsored plan, should be between $1000 to $2000 with a $0 deductible. Since this charge is probably part of your financed contract the $5000 will go towards the balance of the loan, there is no way they will rewrite the contract once submitted and or refund your money. The bad tire doesn't count as a claim on this additional coverage you bought that runs concurrently with the factory coverage. In essence the protection you purchased starts when the factory coverage ends


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## anthonysmith93 (Jul 15, 2015)

That's quite expensive, I have the GM extended warranty and paid $1100 (within the loan) for it, and it's $100 or less deductible. Not the greatest deal but definitely better than $5000. I hope you get the outcome you desire because that's quite a lot to be paying.


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## obermd (Mar 3, 2012)

Get out of that service contract. Then if you really want one, and I agree with Robby about having them, take your time to figure out what you really need. When you get the money back make a big payment on your car loan (after ensuring it carries no pre-payment penalties) so you'll end up paying off the car several months early. I paid $1,900 for a 5 year/100,000 mile service contract on my Volt - it will cover the life of the loan so I never have to pay for repairs while paying for the car.

The finance folks at dealerships always try to sell the top contract. You need to work them down to what you don't have covered elsewhere, such as towing and rental reimbursements. These are frequently available through your insurance company and in many cases they don't require an insurance claim to activate.


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## TammyCruzesAZ (Oct 15, 2017)

Thanks so much for all of your help, everyone. They are open today, so I called and asked to speak with the finance guy's boss. He won't be in until Monday. 

Another part of this: The finance guy forgot to ask me to sign an arbitration agreement. He fed-exed it to me and said I need to sign it. And I can return it with the receipt for the tire that blew and he will reimburse me. 

From what I gather, the dealership should not have been able to let me leave with the car without that being signed. Maybe I have some leverage to have them redo the loan?


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## Camcruse (Oct 4, 2011)

TammyCruzesAZ said:


> Thanks so much for all of your help, everyone. They are open today, so I called and asked to speak with the finance guy's boss. He won't be in until Monday.
> 
> Another part of this: The finance guy forgot to ask me to sign an arbitration agreement. He fed-exed it to me and said I need to sign it. And I can return it with the receipt for the tire that blew and he will reimburse me.
> 
> From what I gather, the dealership should not have been able to let me leave with the car without that being signed. Maybe I have some leverage to have them redo the loan?


My 2nd comment. When going back to the dealer, bring someone who has years of experience dealing with dealers


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## Taxman (Aug 10, 2017)

Don't ever give them something for nothing. 

They want you to sign an agreement giving up your rights to sue them in court and only use an arbitration forum of their choice? What will they give you for it? Otherwise, you're not signing.

My first thought: if you traded rebates/price for financing, consider redoing the contract for minimum loan balance and higher interest rate and shopping around elsewhere to see if you can immediately refinance for 1.49-1.99%.

My second thought: if you got 72 months at 0% and want to keep it, don't talk the your F&I guy or his boss, don't sign anything new with the stealership, just follow the instructions for rescinding your extended warranty/service contract in writing and move on with your life.

PS: The Federal Arbitration Act (FAA) has become a nightmare for consumers. 
Arbitrators do not have to follow the rule of law or even the contract that authorized them to exist. 

I know of a case in which a consumer sued Citi for $300 in small claims court. The arbitration agreement specified that the consumer retained the right to sue in small claims. Citi removed the suit to arbitration. The arbitrator basically said "yup, you have the right to small claims court, but since you're already here, I'll just save everybody's time and money and take the case myself". 3 years and over $10,000 later, the consumer won his $300 arbitration award but didn't win his legal costs, despite the contract clearly stating the consumer's costs would be paid if he won (just like the contract clearly specified that he had the right to small claims court).


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## Lazer (Feb 14, 2016)

You wasted 5 grand, your car comes with a new car warranty, the dealer is a crook, as are most .


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## Eddy Cruze (Jan 10, 2014)

Lazer said:


> You wasted 5 grand, your car comes with a new car warranty, the dealer is a crook, as are most .


Nobody needs your biased advice. The car is fully covered for 36000 miles and then you're probably SOL. I've used EVERY Repair policy I have ever purchased with no regrets. I have read Autonation tries to make it very difficult to obtain refunds on their added protection policies because they bundle them with other maintenance services. The "Warranty" for Autonation is administered by the Warranty Group out of Chicago. They have been in business for 53 years, use other alias company names and are very very low rated. Don't sign any arbitration although I know my Arizona dealer said I had to and I probably did, I was under the influence of Narcotics at the time. Even the Chevy Ownership manuals mention Chevy uses Binding Arbitration as well, "In the event you have a problem".
Mandatory Binding Arbitration FAQs


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## Osgoood1 (Sep 26, 2017)

I can't say what the gap, tire protection and extended warranty are worth but the cost for a dealer for just the 100k 6 year bumber to bumper warranty is 1400 their cost. Will try and charge you 3000 but you can get them down to around 2,000 with no deductible


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## dhpnet (Mar 2, 2014)

$5K seems extremely high for an extended warranty. My dealership offered me one that covered 10 years, 150K miles with $100 deductible for $2,500. 

If you decide to get out of the current contract, read the fine print carefully and follow it to the letter. You should probably act quickly because they usually have a short time to get out without any penalties. 

It's not a bad idea to have a service contract. But, it's a gamble, like putting $5K on red at the roulette table. Do you think your car will need more repairs than the contract cost? You might be better off putting the $5K in an interest bearing account and leaving it there for an emergency. Most cars require much less than that on repairs. If they didn't then the insurance company would go out of business. They are not offering it to be nice. They in the business to make money. 

I have never spent more on repairs for a car than the contract would have cost me, but it could still happen. I would shop around before spending that much money. I currently have the Mechanical Breakdown Insurance (MBI) from Geico. It only costs me about $35 every 6 months and covers any mechanical problems for 7 years with a $250 deductible.


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## ChevyGuy (Dec 13, 2014)

TammyCruzesAZ said:


> He fed-exed it to me and said I need to sign it.


And what happens if you don't? Their mistake, not yours.


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## Eddy Cruze (Jan 10, 2014)

I have a feeling this is what Tammy was given, an all encompassing package of needles crap. Get your money back for these coverages.
https://www.autonation.com/protection-plans/all-products


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## Sunline Fan (Jul 29, 2012)

Eddy Cruze said:


> I have a feeling this is what Tammy was given, an all encompassing package of needles crap. Get your money back for these coverages.
> https://www.autonation.com/protection-plans/all-products


Maybe your favorite semi truck delivers these kind of packages?


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## Eddy Cruze (Jan 10, 2014)

Sunline Fan said:


> Maybe your favorite semi truck delivers these kind of packages?


I would have liked to know as well. I actually got a package once sent by Wynn Oil Company to activate my Extended Warranty. You had to pour these colored fluid in the different parts of the engine. Even that cost $1000 bucks, real story, real company and they still offer plans, BEWARE!
Wynn's USA | Wynn's Preventative Maintenance Products & Services


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## Blasirl (Mar 31, 2015)

Go to your local credit union, join, and refinance. Usually you will get a lower rate.


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## Taxman (Aug 10, 2017)

ChevyGuy said:


> And what happens if you don't? Their mistake, not yours.


You need to sign this or I'll be in trouble for not having you sign it when you bought the car!

(and remember, this lying crook deserves all the workplace troubles he can receive)


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## TammyCruzesAZ (Oct 15, 2017)

What should I do? I called the manager and he said that he would rewrite the contract without the protection package. But then he offered to extend warranty. Right now it's for up to 75,000 miles. He will extend it to 100,000 miles and 10 years. Same price.


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## obermd (Mar 3, 2012)

TammyCruzesAZ said:


> What should I do? I called the manager and he said that he would rewrite the contract without the protection package. But then he offered to extend warranty. Right now it's for up to 75,000 miles. He will extend it to 100,000 miles and 10 years. Same price.


It's impossible for a dealership to extend the warranty - only the manufacturer can do that. All a dealership can do is an extended service contract. Dump this contract entirely and contact Ally or GM about the current GM Extended protection plans. Also, I wouldn't sign an arbitration agreement with this crook - they're not required by law and only benefits the dealership and Autonation.


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## goochman (Mar 20, 2015)

TammyCruzesAZ said:


> What should I do? I called the manager and he said that he would rewrite the contract without the protection package. But then he offered to extend warranty. Right now it's for up to 75,000 miles. He will extend it to 100,000 miles and 10 years. Same price.


$5k is too much for what they are offering.


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## Patman (May 7, 2011)

goochman said:


> $5k is too much for what they are offering.


Agreed entirely! I would take my chances! On top of that, you will be paying interest on that 5K since it is added to the loan. Honestly, what is the likelihood you will keep the car that long? He is just afraid of loosing his overpriced contract and not really giving you much!


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## Eddy Cruze (Jan 10, 2014)

TammyCruzesAZ said:


> What should I do? I called the manager and he said that he would rewrite the contract without the protection package. But then he offered to extend warranty. Right now it's for up to 75,000 miles. He will extend it to 100,000 miles and 10 years. Same price.


Just say no, then drive by the next GM dealer and ask for the lowest price they will sell you the top of the line GMEPP. All Vehicle Service Contracts are NOT the same and as I posted earlier, AutoNation is using a really bad vendor. You have 3 years or 36000 miles to make up your mind. I bet if you signed that arbitration paper they wouldn't have offered to rewrite the sale, somewhat unheard of although Robby did mention that as a possibility!


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## TammyCruzesAZ (Oct 15, 2017)

Thanks so much for the help! I feel like I have a support system here lol. You guys seriously helped me out with your advice. They are going to rewrite the contract without the extended protection plan. 

And yes, I am sure I would have had zero leverage if I had signed the arbitration paperwork. 

The manager of the dealership admitted that the finance guy messed up and I think he was a little embarrassed that one of their guys was so dishonest. 

Now I can feel happy with my purchase and enjoy the Cruze! I check out the GM warranty, too!


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## TammyCruzesAZ (Oct 15, 2017)

.....


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## TammyCruzesAZ (Oct 15, 2017)

obermd said:


> TammyCruzesAZ said:
> 
> 
> > What should I do? I called the manager and he said that he would rewrite the contract without the protection package. But then he offered to extend warranty. Right now it's for up to 75,000 miles. He will extend it to 100,000 miles and 10 years. Same price.
> ...



Whoops, not the warranty, but the extra protection package that Autonation offers.


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## Rivergoer (Mar 30, 2017)

TammyCruzesAZ said:


> Thanks so much for the help! I feel like I have a support system here lol. You guys seriously helped me out with your advice. They are going to rewrite the contract without the extended protection plan.
> 
> And yes, I am sure I would have had zero leverage if I had signed the arbitration paperwork.
> 
> ...


Great job. I take it the new contract is $5,000 less and your next step is to use the savings to find a new extended service plan.


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## TammyCruzesAZ (Oct 15, 2017)

[/QUOTE]Great job. I take it the new contract is $5,000 less and your next step is to use the savings to find a new extended service plan.[/QUOTE]


Exactly!


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## Taxman (Aug 10, 2017)

Live with the car for 30 months/30,000 miles and then decide:
1. How long are you going to keep the car?
2. How likely are you to experience covered repair costs during the remainder of your ownership?

Only if your answers to both questions are high do you buy the GMPP contract from the cheapest dealer you can find locally or on the internet. Little point in buying coverage for a future owner, and little point in buying coverage you don't expect to use.


One possible alternative to buying GMPP:
Let's say the best deal you can find for the plan you want is $1500.
Instead of buying the plan, you stick $1500 in the bank and use it for repairs. When you've spent $1500 or close to it on repairs, not maintenance, sell the car.


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