Cancelling Gold Plus Warranty--Refund Problems - Subaru Outback - Subaru Outback Forums
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post #1 of 34 (permalink) Old 06-23-2012, 09:53 AM Thread Starter
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Cancelling Gold Plus Warranty--Refund Problems

Hello. I'm a new Subaru Outback owner. So far I've only found one discussion a few months ago about an owner having trouble getting his refund for cancelling his ext. warranty. I'm not even certain which forum is the appropriate place to post this discussion. We tried to cancel our Gold Plus Warranty 22 days after purchase (5/31/12 car purchase). Back of my agreement says I'm entitled to a "full refund within 90 days from the dealer." I assume "full" means the tax I paid, too. I put more than 50% down on the car and financed the rest. They had my husband fill out NO paperwork and said we'd receive refund "information" (huh? why just that?) within four weeks and that the refund will just come off the "back of the loan." What? Why am I not entitled to a full refund in the form of a check handed to me from the dealer. It took me no time to write them a $17000 check--why can't they write me a check immediately? If they REALLY can only take it off the loan, I don't care, but I want it taken off the principle immediately on the front end. Please advise me if anyone knows how a refund should be issued. I think they are going to jerk me around, too, as in SBPark's thread. The finance guy was "busy" so the general manager at the store said it would be cancelled and paperwork sent in a month, but they didn't have my husband fill out any forms and didn't give him any kind of paperwork that said it would be cancelled effective 6-22-12. Don't you think this is a stall tactic? Please help. I think I will pay them another visit, today, and wait for the finance manager to be available. Thank you.

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post #2 of 34 (permalink) Old 06-23-2012, 10:20 AM
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Not that this is germane in any way to your question, but why did you buy it initially and then cancel it three weeks later ?? Could it be because you found it cheaper after the fact ??

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post #3 of 34 (permalink) Old 06-23-2012, 10:25 AM
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This is where contract law comes into play big time.

Read all your contracts regarding the warranty, anything they "told you" won't matter, only what you signed. If it was a Subaru warranty you should be okay. You can always go right to SOA direct, they will want the dealer to work on first though. A legitimate reason they are stalling is they need to pull all your paperwork. Many places store paperwork offsite and it can take a couple days to pull it. If they drag it out more than a couple days get more firm.

A couple of tips:
Be polite, be professional. You will get 10 times farther with a friendly attitude than tearing the place apart. Be firm and learn the legal jargon that is in your favor. Say things like "according to my contract..."
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post #4 of 34 (permalink) Old 06-23-2012, 11:11 AM Thread Starter
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Hi, thanks for your replies. To WVUGUY--From the day after the purchase of the Ext. Gold Plus Warranty I regretted it. The finance guy literally "slipped" it into his estimate of monthly payments without offering us the product or telling us about its availability. We hadn't signed anything, yet, but he was good at his job and then convinced us why we would really need it, "...with all the electrical components and Nav system you'd be crazy not to...." We've passed on these offers in the past at Honda, but we don't buy cars but every 8-10 years, and were a little rusty. Forgot they offer ext. warranties. My husband decided on the spot to leave it in the paperwork. We didn't "haggle" price or deductible--7 years/100,000 miles $100 ded. for $1100 + 7% tax. I was still unsure and started reading up on the necessity of it and the price after we bought the car with warranty and got home. Think that was a good price IF I really needed/wanted. Next picked up the car the following day and said wanted to cancel. Again, they said, "Think about it. You have 90 days to cancel for full refund with no problems." I bet. So here we are. I did look a little around for a better price without a deductible, but didn't negotiate and in the end decided to just cancel it. So, I wasn't trying to really cancel only to buy someone else's policy. I did look around after the fact because I didn't like how the product was "sold" to us and was told I was receiving the "Costco Member Price" for the product--no such thing on the warranty. I didn't like the finance guy's attitude and sales method, so that made me want to cancel all the more, even if I elected to repurchase at a later date elsewhere.

Re: Novablue/Dave's reply.... thank you. We definitely didn't read enough at the time of signing or ask enough questions. We seem to repeat mistakes. I don't want special treatment, just what is fair and want them to honor their end of the contract. Looking at the loan contract, it does appear that the $1100 warranty was put into it, despite my putting $17K down on the car. I still don't see anything in the fine print that says the refund must go through the lender, though. Just says I'm entitled to a full refund--not how the refund is to me made, so I guess it could go either way. Turns out my husband did fill out some form at the dealership, yesterday, regarding cancelation. Did he ask for a copy of the form?? Nope. He agreed that it was okay to receive the refund "on the back of the loan." I'm not okay with that. Why should we have to wait 32+ months for it to be applied to principle? That is crazy, right? Please let me know,though, if you think we should receive the refund at the "front of the loan," at the mininum, versus the "back." Just to be clear, "back" would mean they apply principle near the last few payments; "front" means I'd see the amount applied to the principle very soon.
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post #5 of 34 (permalink) Old 06-23-2012, 11:44 AM
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First thing to see is that paper your husband just signed, get it soon before they hall that off to the warehouse too. By law they have to give a copy to the signer (but they don't have to force you to take a copy). Depending on your state and who's name is on the car will determine if both of you needed to sign. I'm not a legal expert by any stretch of the imagination, I only know that some states have different laws. If you paid the $17k then it's worth asking the dealer why they did not have you sign?

You definitively want the refund at the front of the loan. Only someone who wants to give away interest would want it at the back of the loan. If you are locked in you might check and see if there are penalties for paying the loan off early and get another loan to pay off your current loan. That would make the "at the end of the loan" be negligible. I don't really understand the end of the loan talk, I'm sure it's possible but why screw your customer like that? Don't they want repeat business?

I can't be sure but it sounds like they are trying to get as much interest as possible out of the deal. Dealers make money off of how much interest you pay. Unless you got 0%, then it doesn't mater at all. This a great little calculator which can tell you how much you would save if the money was applied to the principal or not.

Loan calculator

If I assume many things like your loan started today and that you financed 13k for 32 months @2.5% currently you be payed off Feb '15. If the $1100 is paid at the front of the loan you save $71 in interest but you are paid off a bit earlier too at Dec '14 so you also "save" two payments.

-Dave

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post #6 of 34 (permalink) Old 06-23-2012, 12:11 PM
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I was the one who was having issues with canceling my extended warranty. I'll set the record straight here and give my experience and how I got all of the money back after canceling the warranty. I also told the dealer, because they jerked me around and outright lied to me, I will never buy a car, let alone any parts, accessories, etc. from them from this day on. Total scumbags.

The dealership I bought my car from jerked me around for weeks when I tried to cancel the extended warranty, so what I ended up doing was calling and writing SOA. Go to mysubaru.com and register if you haven't already. Yes, there is a window for canceling the warranty for you to get back 100% of the amount you paid for it, and as you mentioned it is either 30 or 90 days, but I can't remember at the moment. hey never returned calls, kept making excuses. When I got SOA involved and told them how this was my second Subaru and have never had any issues in the past, and because of this experience I probably won't ever buy a Subaru ever again they seemed concerned. They ended up taking charge and handling it with the dealer. The dealer still jerked me around, so I told the dealer, 'I'm coming down there today and making scene and will not be leaving unless you either write me a check on the spot, or give it to me in writing that you will refund this money on the amount borrowed so it shows up as a reduction in the principal.

Long story short, it was eventually taken care of and the full amount was deducted from the principal of the loan. The reason they will not write you a check on the spot is because that money for the warranty was part of what was factored into the amount financed. Now, if you would have writhed a separate check, that was specifically for the just the warranty, then my understanding is they would have given you a check, but the way it was most likely done, they took your down payment and used it a just that, a down payment, and the remaining balance due plus the warranty amount was what was financed.

Eventually, what needed to be done was to fill out a "Subaru Service Contract Cancellation" form. Apparently if this was done from the beginning the refund on the principal would had been initiated sooner. The dealer NEVER mentioned this form or had me fill it out in the weeks that I spent contacting them, and just kept telling me they "were taking care of it". SOA eventually told me they were waiting for this form to initiate the refund. The dealer played dumb, and said, "Oh, we didn't know that form had to be filled out." This was there was of jerking me around. Once the form was filled out I got confirmation from SOA that the department that initiates the refunds had processed it. Once the refund was initiated, it did take a full billing cycle for it to show up on my statement, so if they issue the refund mid-billing cycle, do not expect it to show up on your next statement, but the one after that. Also, be aware that after the refunded amount is taken off your principal balance, your payments will not change/be lowered. It is apparently not possible to re-write or change loan terms after the contact has been drawn up and signed, so what happens if you will make the same monthly payment, but the loan will be paid off sooner.

Hope this helps.
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post #7 of 34 (permalink) Old 06-23-2012, 02:12 PM
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If you made a large cash down payment and financed the remainder,
it's probably not possible to say whether the extended warranty was
paid in cash, financed, or some of each. In any case, a "full refund"
seems pretty self-explanatory. They should write you a check. NOW.

Once you have the refund, it's your choice whether to put it in your
pocket or use it to reduce the loan principle.

...good luck,

Looby

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post #8 of 34 (permalink) Old 06-23-2012, 02:38 PM
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Quote:
Originally Posted by Looby View Post
If you made a large cash down payment and financed the remainder,
it's probably not possible to say whether the extended warranty was
paid in cash, financed, or some of each. In any case, a "full refund"
seems pretty self-explanatory. They should write you a check. NOW.

Once you have the refund, it's your choice whether to put it in your
pocket or use it to reduce the loan principle.

...good luck,

Looby
unfortunately you are wrong. you have to read the contract and actually see what you are signing and how the financing was done. plain and simple, if the extended warranty was factored into the amount financed, then the refund will be issued via a reduction in the principle amount financed. The downpayment was exactly that, a downpayment, it was not a downpayment AND a payment for the warranty, unless that was expressly written that way. Regardless, they will get their money back if they read my post and just cut to the chase and fill out the cancellation form and get SOA onboard if the dealer is jerking them around. What you have to realize here is just because YOU want them to write you a check, doesn't mean that's how it's going to happen. I learned my lesson. Take the time to read the fine print and realize what you are singing before you go off demanding checks to be written to you. I honestly couldn't care less how they gave me back the money, be it a check they wrote on the spot, or refunded with the full amount being deducted from the principal balance. If you do your research and read other threads and comments of posters who have cancelled the warranty where the amount was added into the amount financed, it has always been returned via a reduction for the amount off the principal.
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post #9 of 34 (permalink) Old 06-23-2012, 03:43 PM
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Quote:
Originally Posted by SwimMomRuns View Post
Hi, thanks for your replies. To WVUGUY--From the day after the purchase of the Ext. Gold Plus Warranty I regretted it. The finance guy literally "slipped" it into his estimate of monthly payments without offering us the product or telling us about its availability. We hadn't signed anything, yet, but he was good at his job and then convinced us why we would really need it, "...with all the electrical components and Nav system you'd be crazy not to...." We've passed on these offers in the past at Honda, but we don't buy cars but every 8-10 years, and were a little rusty. Forgot they offer ext. warranties. My husband decided on the spot to leave it in the paperwork. We didn't "haggle" price or deductible--7 years/100,000 miles $100 ded. for $1100 + 7% tax. I was still unsure and started reading up on the necessity of it and the price after we bought the car with warranty and got home. Think that was a good price IF I really needed/wanted. Next picked up the car the following day and said wanted to cancel. Again, they said, "Think about it. You have 90 days to cancel for full refund with no problems." I bet. So here we are. I did look a little around for a better price without a deductible, but didn't negotiate and in the end decided to just cancel it. So, I wasn't trying to really cancel only to buy someone else's policy. I did look around after the fact because I didn't like how the product was "sold" to us and was told I was receiving the "Costco Member Price" for the product--no such thing on the warranty. I didn't like the finance guy's attitude and sales method, so that made me want to cancel all the more, even if I elected to repurchase at a later date elsewhere.
At the end of the day, it's up to you to understand what you bought......still, that's obviously not a good thing your dealer did to you.
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post #10 of 34 (permalink) Old 06-23-2012, 04:01 PM
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Quote:
Originally Posted by sbpark View Post

unfortunately you are wrong.
No. I may be wrong, or you may be wrong -- as you say, it depends
on the details.

However, the bottom line is that the dealer got a check for 100% of
the car + extended warranty + tax&tags + everything else before
the car was driven off the lot. That's a check (or checks) for the full
amount, up front. Shortly thereafter, SoA and the "floor plan" bank
got their cut from the dealer. Up front.

With the huge cash down payment from the OP, they could easily
refund the full warranty price, in cash -- because the car is worth
far more than the principal, and the loan will never be upside down.

As someone else suggested, if the dealer and/or bank won't go for
that, I'd be calling my several credit unions with the intention of
refinancing the loan at a lower monthly payment. With any luck,
the original lender would then "claw back" any finders fee paid to
that scummy dealer.

Deducting the refund from the loan balance IS NOT the same as
a "full refund within 90 days."

.


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2013 Subaru Legacy ...…... 2.5L H4
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