Legal Question in Consumer Law in California

Extended Warranty on car purchase

I recently bought a used car and was talked into buying a 2,000.00 dollar extended warranty. Once home, I read the fine-print and discovered I could cancel the extended warranty within 30 days. I telephoned the Dealership and said I wanted to cancell the warranty (3 days after purchase) I was told that if I waited and cancelled just before the 30 days was up, I would have coverage for that many days - but after thinking about it, and since I financed 70 % of the used car purchase (including the 2,000,00 warranty) won't I be paying interest on that 20+ days of having the warranty ?

Used car salesman are so slippery (o.k., not ALL of them) I have to wonder if they are advising me correctly.


Asked on 8/08/05, 9:05 pm

2 Answers from Attorneys

Carl Starrett Law Offices of Carl H. Starrett II

Re: Extended Warranty on car purchase

The are probably hoping that you will forget to cancel the warranty within the 30 days. You should also watch our for an proration of the warranty fees. Did your purchase come with any type of dealer warranty? What about remaining balance of the manufacturer's warranty? If you still want to cancel the warranty, I recommend doing so in writing and with some type of method where can verify they received the letter such as by fax or certified mail. Finally, follow in cancellation instructions in the fine print.

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Answered on 8/08/05, 9:11 pm
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Extended Warranty on car purchase

Used car salesmen only lie when their lips are moving. We lawyers are very grateful to used car salesmen for keeping us off the bottom of the list of most admired occupations.

The extended warranty you bought is written in weasel words, and it doesn't really cover anything that might go wrong with your car. Cancel it now by strictly following, as attorney Starrett advised, any cancellation procedures set forth in the small print, and also by letter, certified mail, return receipt requested, to the correct name and address of whatever person or corporation is named as the other party to the contract. Even so you may well have to go to small claims court to get your $2000 back or to receive any acknowledgement that you did cancel or that you owe $2000 less on the car (assuming there is not some other penalty in the finance contract). In your letter, demand written acknowledgement of your cancellation together with a check for $2000 within 15 days.

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Answered on 8/08/05, 11:37 pm


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