any experience refunding extended warranty?

robbinbanks

New Member
Joined
Nov 26, 2018
Threads
1
Messages
3
Reaction score
0
Location
harker heights
Car(s)
honda civic ex
So this past weekend got a Honda Civic EX and got the extended warranty with it. Now that I look back on it though friends and family are saying it'd be better to get it elsewhere. Anyone have any experience returning an extended warranty?

They used a 3rd party one called Mastertech vehicle protection program. Really I'm just trying to avoid the finance guy (pushy bastards) but if I have to, I'll stick to my guns this time around. Also the dealership is like an hour away could I try the local dealership? Do it over the phone?

Thanks for the help

Edit: I do have 60 days to refund it, if thats any help

 
Last edited:

NHCivicGuy

Senior Member
Joined
Oct 10, 2018
Threads
24
Messages
1,178
Reaction score
770
Location
NH
Car(s)
2021 R
Country flag
I dealt with cancelling and getting a refund for my grandmother who purchased a used Corolla. Process was painless with the company it was with. Just submitted a form with the mileage, date and signature and she received a prorated refund. Ended up being like 90% or something of what she paid. I think we spoke with the dealer directly and not the warranty company - can't remember off the top of my head. I know we spoke with the sales guy first.
 

Mick the Quick

Senior Member
First Name
Mick
Joined
Feb 25, 2016
Threads
24
Messages
889
Reaction score
684
Location
Southeast MA
Car(s)
2018 PMM Civic Type R (R-08508)
Country flag
I have only gotten HondaCare in the past (including CTR) and have cancelled one plan after a few years when I sold my Accord.
With HondaCare, you can just fax in a form to Honda directly, though Honda really prefers you going through the dealer that sold the plan. Very easy. No games from the finance dude; just need to be firm and don't waffle. You can then get HondaCare online for 8 years/120,000 miles/$0 deductible for $1,050 or thereabouts!

With a third party plan, you need to know what's in the actual contract and must follow the prescribed steps exactly. You probably don't have a copy of the warranty contract yet since you just bought the car. They normally send it to you in few/several weeks.

I would contact Mastertech or the dealer finance guy immediately and get a copy of the contract; ask for a form warranty if they say they don't have your plan yet (i.e., the blank standard form). Don't tell them you are going to cancel the plan (yet) - you say you just want to look up something. You should do this right away because under many state laws, you have a rescission period for this kind of dealer-sold protection plan. This rescission period is stated on the contract, and probably on the invoice/confirmation/application you got from the dealer when you bought it. 7 days is most common, I believe.

If you miss the rescission cut off, you can still cancel but you might incur a penalty of some sort, and/or your purchase price will be prorated. Because they usually prorate from mile #1 (as opposed to after 36,001/50,001 miles for OEM bumper-to-bumper and powertrain warranty expiry, respectively), you will likely lose money then even though you bought the car a couple of days ago (Honda does this, too, however).

Lastly, just keep in mind that if you had financed both your car and the warranty, any refund will be paid over directly to the Bank. The refund will then reduce the outstanding balance of the loan. You monthly payments won't change, though you will pay off the loan sooner.

Good luck!
 
OP
OP

robbinbanks

New Member
Joined
Nov 26, 2018
Threads
1
Messages
3
Reaction score
0
Location
harker heights
Car(s)
honda civic ex
I have only gotten HondaCare in the past (including CTR) and have cancelled one plan after a few years when I sold my Accord.
With HondaCare, you can just fax in a form to Honda directly, though Honda really prefers you going through the dealer that sold the plan. Very easy. No games from the finance dude; just need to be firm and don't waffle. You can then get HondaCare online for 8 years/120,000 miles/$0 deductible for $1,050 or thereabouts!

With a third party plan, you need to know what's in the actual contract and must follow the prescribed steps exactly. You probably don't have a copy of the warranty contract yet since you just bought the car. They normally send it to you in few/several weeks.

I would contact Mastertech or the dealer finance guy immediately and get a copy of the contract; ask for a form warranty if they say they don't have your plan yet (i.e., the blank standard form). Don't tell them you are going to cancel the plan (yet) - you say you just want to look up something. You should do this right away because under many state laws, you have a rescission period for this kind of dealer-sold protection plan. This rescission period is stated on the contract, and probably on the invoice/confirmation/application you got from the dealer when you bought it. 7 days is most common, I believe.

If you miss the rescission cut off, you can still cancel but you might incur a penalty of some sort, and/or your purchase price will be prorated. Because they usually prorate from mile #1 (as opposed to after 36,001/50,001 miles for OEM bumper-to-bumper and powertrain warranty expiry, respectively), you will likely lose money then even though you bought the car a couple of days ago (Honda does this, too, however).

Lastly, just keep in mind that if you had financed both your car and the warranty, any refund will be paid over directly to the Bank. The refund will then reduce the outstanding balance of the loan. You monthly payments won't change, though you will pay off the loan sooner.

Good luck!
Thanks for the reply man, would the "rescission" period be the amount of time I have to refund the warranty? Cause I have sixty days to do so. Or is the "rescission" period something else entirely? (Sorry for noob questions)
 

Mick the Quick

Senior Member
First Name
Mick
Joined
Feb 25, 2016
Threads
24
Messages
889
Reaction score
684
Location
Southeast MA
Car(s)
2018 PMM Civic Type R (R-08508)
Country flag
Sorry, that's just legalese. Difference between a rescission and cancelling is that (i) with rescission, you are rescinding the agreement as if you never ever bought the warranty - therefore you get every cent back, and (ii) with cancelling, you won't get all of your money back because you will get hit with (possibly) a penalty and proration. There are two kinds of proration - based on actual time elapsed in relation to the warranty period (i.e., 8 years), or actual miles driven in relation to the miles covered (i.e., 120,000 miles). So, in essence, every mile/day will reduce your refund amount, if it's a cancellation (though by a little amount). Honda prorates based on the mileage.

It's good that you have 60 days to cancel. Read the language (or post it here) to make sure you know if it's a cancellation or rescission. Just look to see if the language says you would get the entire purchase price back, or if you would be subject to proration.
 
OP
OP

robbinbanks

New Member
Joined
Nov 26, 2018
Threads
1
Messages
3
Reaction score
0
Location
harker heights
Car(s)
honda civic ex
Sorry, that's just legalese. Difference between a rescission and cancelling is that (i) with rescission, you are rescinding the agreement as if you never ever bought the warranty - therefore you get every cent back, and (ii) with cancelling, you won't get all of your money back because you will get hit with (possibly) a penalty and proration. There are two kinds of proration - based on actual time elapsed in relation to the warranty period (i.e., 8 years), or actual miles driven in relation to the miles covered (i.e., 120,000 miles). So, in essence, every mile/day will reduce your refund amount, if it's a cancellation (though by a little amount). Honda prorates based on the mileage.

It's good that you have 60 days to cancel. Read the language (or post it here) to make sure you know if it's a cancellation or rescission. Just look to see if the language says you would get the entire purchase price back, or if you would be subject to proration.
Oh okay cool. Thanks for your help man, it does say I'm supposed to get a full refund within the 60 days but I'll ask for the contract like you said; it'll probably be a few weeks before I get my paperwork in the mail from the dealership. I'll let yall know how it goes.

 

 
Top