If you’re having remorse about buying an extended warranty, rest assured that someone’s given you permission to cancel it—and it may not be as difficult as you think.
The advice comes from Kathryn Wasson (@kittykat2475), who recorded a TikTok video on July 31, getting more than 209,000 views since. Much of her content covers the car-buying process, and she’s very direct in how she feels about extended warranties, starting her video with the declaration that “all extended warranties are cancelable.”
“They won’t let you leave the office until you buy something,” she says of the car-buying process. “So you feel strong-armed into purchasing this $4,000 service contract that cost probably $1,200, so they just ganked you like nobody’s business, and they’re feeling solid about their deal.”
“I’m gonna tell you what to do,” she advises those who bought the extended warranty and now regret it. “Smile kindly and don’t let them know what you’re about to do. When you leave the dealership, you’re gonna go straight home and you’re gonna cancel that service contract. It is going to take that money off of that deal, and it’s going to send it to the balance of your loan.”
She claims, “Your payment’s not going to change, but it’s going to take that four grand off there. You have every right to cancel, and within 30 days, you get 100% of your cancelation. They don’t take anything. If you wait 30 days, there’s usually a $50 fee.”
She then says that you need to get confirmation that the warranty’s been canceled, and if necessary, you should go back to the dealership to get that confirmation.
“You stand there and make a scene, if necessary, until they cancel that b*tch,” she advises. “Do not let them take advantage of you. This is not their money. This is your money. So stop letting them do this to you.”
Is it really that easy?
According to NerdWallet, “Most warranties can be canceled and you’ll get a prorated amount refunded.”
It adds that most warranties are “expensive gambles,” citing a Consumer Reports study saying a little more than half of customers didn’t even use the extended warranty they paid for, and a considerable number of those who bought it paid more for the extended warranty than they would have for the service out of pocket.
The article contends that in some cases, “Some buyers discover that an extended warranty was slipped into their car financing contract without their knowledge or agreement. Then, the term of the loan is extended to hide the extra expense.”
While they note that some customers might find it worth it because of the peace of mind it brings, it might not be the best move for every car buyer.
What commenters think
The video brought some reactions from people who felt otherwise.
“Canceling your service contract sounds great until you need an engine replacement after a year,” one observed.
“Paid 2500$ bumper to bumper extension warranty 120000km for 6 years,” another shared. “Have had 6000$ in work done within the warranty. Well worth the money.”
Others reasoned that if you don’t want it, you don’t have to agree to it initially.
“Just say no,” one suggested. “Why agree to later cancel?”
Another had a happy story about shopping around for it. “I bought a Honda and dealer was charging $4000 for the warranty. I said no. I paid for warranty at another dealer for $1515 for the same warranty through Honda.”
The Daily Dot has reached out to Wasson via TikTok direct message.
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The post ‘Don’t get strong-armed’: Expert shares how to get out of your car’s extended warranty. Is it worth the hassle? appeared first on The Daily Dot.
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