When I purchased my mini cooper back in August 2007, I was told by the financial advisor at Mini Cooper that if I purchase an extended warranty and decide to cancel the warranty before the extended warranty kicks in, I am allowed a full refund.* The most they can deduct is a $25 “processing fee”.* Even if I am part-way through the extended warranty, apparently I will still be eligible to receive a pro-rated refund'. So I decided to pay almost $2100 including tax on the extended warranty.
My factory warranty was good for 4years/50,000 miles and when I requested a cancellation on my extended warranty, my car only was at 3.5 years and 32,000 miles. So, I was expecting a full refund from my dealer.
I waited little over 3 months to receive a refund from my dealer and when I finally got a check, it was only $817.
It was very frustrating for me that they deducted over $1200 on my refund when the extended warranty did not even begin. So I visited the dealer again and talked to the financial advisor. Instead of giving me a legitimate reason or breakdown of how $2100 became $817, she gave me very rude/arrogant attitude and told me it's too bad that i misunderstood her. And I was told $817 is a correct amount because it is prorated since the day I purchased the warranty. But during the first 4 years I was still under Factory warranty and my Extended warranty did not even begin when I cancelled it..
Am I supposed to receive a prorated refund? or a Full refund??
I think they count the extended warranty as starting from the day you buy it. I had a lot of pressure from the dealer to buy the EW and when I figured out that it was $12,000 additional for all the options for 5 years protection ($200 per month for 60 months), I said "No Thank you".
If they offer it for 5 years I don't think that means starting when the regular warranty runs out. Extended also means that it covers things (like wear and tear items) that the regular warranty does not.
Personally, I think extended warranties are a rip off whether a new car or a computer or whatever. There is a reason they sell them -- they make lots of money from them.
You might want to talk to a lawyer about your options. Good Luck,
I totally agree with Spud. The extended warranty starts the day you buy it and "overlays" the factory warranty. That's why it's a bad idea to buy it when you have factory warranty left. Your factory warranty will pay for the repairs and you basically gave the warranty provider $2,100
Hi please help me. I think i got ripped off,,,
I agree!
