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Can you cancel the extended warranty after 2 days and if so will your payment drop?
Wiki User
∙ 2015-07-15 18:27:52
You can always cancel the extended warranty. Usually they will return any portion of the money for the contract that you did not use. In your case it should be at least 95% of the amount of the extended warranty. In some states there is a fee for canceling the warranty and some/all states have a grace period where you get a full refund without any fees. They will return your funds instead of lowering your monthly payment because the warranty is paid to a separate company than the car dealership. Even if the payment does drop, you should generally keep your payments as high as possible, since the interest is basically the same thing as getting charged extra for not having money.
Wiki User
∙ 2015-07-15 18:27:52
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Extended Warranty?
If you get something expensive, it is important to make sure that there is some sort of warranty attached to it. However, if your product already comes with a warranty, is it smart to buy an extended warranty? When does an extended warranty just make the company you are buying from a larger profit?Don't Buy An Extended Warranty On A New CarWhen you buy a new car, that car already comes with a warranty. Therefore, there is no need to buy an extended warranty for that car. Most cars will come with a 3 year, 36,000 mile warranty at the very least, so there is no need to buy the extended warranty on top of that. All you are doing is giving your dealership a bigger profit on the sale.Consider The Extended Warranty On Your ElectronicsIf you have a computer, or a TV, you should consider the extended warranty on that purchase. With a factory warranty that might only last 30-90 days, it makes sense that you would want some added protection. Getting a 1 or 2 year warranty will give you some peace of mind in case your computer crashes. That isn't something you want to spend 500 dollars or more on every 3-6 months.How Hard Are You On ProductsDo you really go all out with your products, or are you gentle with them? If you know that you are going to be throwing things around, or you don't really protect your electronics well, it might be a good idea to get the warranty. However, if you have never had anything break before you were ready to upgrade, or usually get good mileage out of things, you might want to skip the warranty as something that just costs more money.Extended warranties are only good if you need them, and most of the time you do not need them. Things break every so often, but they usually last a long time if you take good care of them. Therefore, be cautious when spending that extra money
