Last post on Oct 03, 2013 at 9:11 AM
You are in the Smart Shopper
What is this discussion about?
Dec 29, 2012 (8:42 pm)
My son purchased a 2013 Ford Mustang today. They pressured him into buying the Ford Extended Service Plan. Is there any way that we can cancel this???? He feels like a fool for letting this happen. How do you cancel this thing???????????
Dec 31, 2012 (6:30 pm)
I need some help though. I am first time buyer with okay credit. The financier was telling me if I did not buy the extended warranty, my interest rate would be 12 percent but If I bought it, it would be 5 percent. Is that a scam. Do I have to purchase warranty to get that interest rate? I ended up buying it only after he told me I cancel it after I refinance. I should not have to refinance right? I should be able to cancel the warranty no matter what and get a refund on it and still keep the apr right? Thanks you guys.
#3125 of 3172 Re: warranty apr [fordfocus574]
Jan 01, 2013 (9:24 am)
It's a scam, in that he's offering a lower interest rate because of the huge profit he'd make on the warranty. I don't know about how you go about canceling, you'll have to read the paperwork. Lesson learned - if something fishy pops up, stop, walk out, leave, get away from the dealer. Did you try to get financing elsewhere (bank or credit union)?
Jan 01, 2013 (10:48 am)
I know I can cancel any auto warranty within 30 days so I know I can cancel. I am just wondering if my apr will change if it does? Is this a common practice for people that have okay credit. I was stupid in not getting prior financing. I had gotten prior financing in Feburary and thought it would be similar rates but was I wrong.
#3127 of 3172 Re: EW on 2002 Buick LeSabre - through GM?? [homesong]
Jan 02, 2013 (7:09 am)
Carchex is pretty pitiful also. It takes forever to get someone on the phone. They notch out exceptions to prevent paying for common failures like CV joints. They will not reimburse you if you need pay up front. I wish I had not wasted my money with them.
In my opinion, Carchecx sucks, Carchex is a waste of money, and Carchex has terrible customer service.
#3128 of 3172 Re: warranty apr [fordfocus574]
Jan 03, 2013 (4:08 am)
If the dealer finance guy offered you a rate of 5 percent, it means you qualified for that rate with the actual lender. The dealer finance person does not set the interest rate for which a buyer qualifies. The lending institution sets the rate. Dealers will often pad that rate as they receive a kick back for the difference.
This dealer is scammed you. No finance institition requires a lendee purchase a vehicle extended service contract as a condition of loan. It is likely you really qualified for a rate lower than 5 percent. Smart thing is to check with your local bank or credit union or even one of the on-line auto loan providers, like Capital One to see the actual rate you could have gotten.
You might consider revisiting this dealership and speak to the general manager about this finance person. Not sure, but this scam might be illegal. Who knows, the GM might offer you a freebe or two to avoid possible legal action from you.
#3129 of 3172 Re: warranty apr [billy3554]
Jan 04, 2013 (9:55 am)
Thanks you are really awesome. I really appreciate the advice.
#3130 of 3172 Re: Mamma's not happy [tirednurseok]
Jan 07, 2013 (10:31 am)
I just bought an extended service plan from VW and they said I had 30 days to cancel. Check with Ford to see if your son has the same 30 day period. Although the dealership he bought it at may tell you no because they loss profit. Call Ford and ask. High pressure sales needs to end !!!
#3131 of 3172 Re: Mamma's not happy [pop21]
Jan 08, 2013 (7:06 pm)
What 'they said' means nothing. Only what's in writing.
#3132 of 3172 Re: Extened Warranty [chrissy4605]
Feb 05, 2013 (7:36 am)
If it makes you feel any better, I just signed up for a PowerShield Enhanced plan via Warranty Direct and have similar payments. I had a similar warranty on two previous cars and MORE than got my money's worth.
I take many of the complaints about Warranty Direct with a grain of salt. Many people purchase these plans without reading the contract, and then they get mad when something isn't covered (even though it was clearly stated in the contract).
I think it all boils down to preference. Would it be better to just open a savings account and put $100 in it each month? Maybe--depends who you ask. What I will say is that Warranty Direct IS legitimate, and they have paid out THOUSANDS of dollars toward my repairs over the last few years. The only complaint I can possibly think of is that sometimes, late in the day, their claims dept didn't get back to my mechanic, and I ended up having to leave the car overnight. Ultimately, they always paid, though.