www.Hondafinancialservices.com

Many people that have bought an extended warranty at a car dealership want to cancel their extended warranty once they actually receive the service contract in the mail. Whether they realize that they have been overcharged or they just don’t see the value in it, it is something that many people want to do and many car dealers tried to prevent.

If the car dealership tells you that your warranty cannot be canceled, they are lying to you. You can cancel your extended warranty any time that you choose and in fact, if you cancel your extended warranty within 30 days then you are entitled to a 100% refund.

You can save a lot of money and get a cheaper service contract if you buy direct from the warranty company. The reason that finance departments in car dealerships will try so hard to talk you into keeping your extended warranty is because if you cancel, then they have lost a lot of profit. Most people don’t know exactly how much profit the car dealership does make on the sale of backend financial products. This includes service contracts.

The easiest way to cancel your extended warranty is to go to the dealership and simply tell them that you decided that you want to cancel. There is one thing that you have to do however, and that is make sure that they give you something in writing that states that they have received and acknowledged your will to cancel. If they tell you that they cannot you do something in writing, then tell them that you would simply like for them to sign off on a receipt that you write out.

When you cancel the warranty (or service contract), if the amount for the warranty was added to your car loan then the monies will be refunded to the lien holder that holds the title to the vehicle. This will not reduce your monthly payments, but will reduce the principal amount that you owe.

Related to : www.esurance.com