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Discussion Starter · #1 ·
Bought a 2017 HB Premier a couple days ago. Starting to regret purchasing the extended warranty, which added 5k to loan. They told me it covers everything, including wheels and tires, plus GAP. Wish I didn't buy into the fear tactics the finance people use.

The finance guy lied to me and said you can't cancel for 6 months. I looked at paperwork and it says within 60 days. I called him twice to ask to remove it, but he says it's a done deal. I Think it's too late to redo finance paperwork on it, but if you cancel, they just refund you. Thing is, I already had a blown tire and they covered $100 to have someone come out and put spare on. So, I need to find out how much I would be refunded.

Sorry for the drawn out post. But any comments, suggestions?
 

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Discussion Starter · #3 ·
Looking at your service contract, who is the provider?

Rob
I bought the car through Autonation and they provide all the service with 0 deductible, at any of their locations. Forgot to mention that I am 2 hours away from nearest Autonation provider. There is $100 deductible for out of network providers.
 

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OK.....I was trying to determine if GM (Known as Major Guard) was the underwriter.

Regardless, I'm guessing the tire change expense was covered by the regular roadside assistance coverage that comes with the car.
Generally, Autonation sells extended warranties underwritten by Ryan, FYI, and as long as you are still in the 60 day window it should be easy to cancel.

You must call the phone number on the contract and be prepared for a fair amount of pushback......they will try to keep you signed up.
Problem comes in though, as you noted, the contract is rolled into the financing.
So, before cancelling, you must speak with whomever is carrying the loan for guidance.
I suspect, if the amount of refund is paid to you, the lender will recommend passing that amount back to them and then rewrite the loan.

That would be the best case since you are paying interest not only on the car loan, but also on the financed service contract.......so you want to get the loan lowered by that amount.......hurry though. Get your ducks in a row before making the decision.

To any other readers: Never roll a service contract $$$ into a loan if at all avoidable. Service contracts are highly negotiable but if you roll it into the loan the interest you pay negates any discount you received. Always pay for the contract independent of the loan.....

Good luck,
Rob
 

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Discussion Starter · #6 ·
Thanks, Rob!

I'm a little hesitant to cancel because of some of the issues I see some Cruze owners talk about in this forum, but at the same time I think it's so overpriced. I declined at first and just asked for GAP, but buckled under sales guy pressure.
 

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Think of it as this.

What possible warranty claim could you possibly have that would cost 5k. IMO..none.

Get out of that extended warranty ASAP.
 

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If you successfully cancel you can buy a GM program for much less and likely longer coverage while the car is in base, 3yr/36k coverage.

I do recommend the factory backed programs if you are not $$$$prepared for, sometimes significant, repair expenses after warranty coverage is gone.
Think of it as a one time payment for health insurance........you are betting the car will have a failure(s), the provider is betting it wont during the contract term.

FYI......I'm a semi retired wrench and I still put them on my cars........parts prices are too high to make 'rolling the dice' economically feasable.

Rob
 

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Think of it as this.

What possible warranty claim could you possibly have that would cost 5k. IMO..none.

Get out of that extended warranty ASAP.
Might want to reconsider......GMPP, paid 4200.00 for the trans and TCM on my wife's 08 Malibu last year........and during the plan coverage: Struts + alignment, CD player, twice @ $1300.00 each, control arms (ball joint failures, part of arm).
When the car was traded last month, GMPP had paid well over $8000.00 over the years.

I tend to recommend service contracts (if ownership will exceed the warranty) because most folks today are not $$$$ prepared for out of pocket expenses exceeding two or three grand (or less for some).

Not a concern for me (or you) but the vast majority can easily have their budget destroyed by a high dollar car failure.

Rob
 

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The finance guy lied to me and said you can't cancel for 6 months. I looked at paperwork and it says within 60 days. I called him twice to ask to remove it, but he says it's a done deal.
Canceling it has changed from optional to a moral imperative.
You must deny that lying sack of feces his commission on the service contract, if only because he doesn't deserve to get paid extra for repeatedly lying to you.

Did I mention that I haven't bought a car from a franchise dealer in nearly 30 years and wanting to have nothing to do with Finance and Insurance managers is one of the reasons?

If you still want a service contract, I believe the GM sponsored plan can be purchased from any other dealer, or directly from Ally, before the bumper to bumper warranty runs out. It wouldn't hurt to get quotes from the usual suspects:
https://www.bing.com/search?q=general+motors+protection+plan
 

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In certain States these products are sold as Insurance and regulated by your State, Arizona not being one of them. Just another reason to avoid AutoNation, started by H Wayne Huizenga who founded Blockbuster and Waste Management Industries. What exactly was that $5000 for, not even in the ballpark as a fair price. The Gap coverage is something you should cancel as well. I got taken by my sales manager friend for $300. I would visit a few GM Dealerships and get their best price on a GM sponsored plan, should be between $1000 to $2000 with a $0 deductible. Since this charge is probably part of your financed contract the $5000 will go towards the balance of the loan, there is no way they will rewrite the contract once submitted and or refund your money. The bad tire doesn't count as a claim on this additional coverage you bought that runs concurrently with the factory coverage. In essence the protection you purchased starts when the factory coverage ends
 

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That's quite expensive, I have the GM extended warranty and paid $1100 (within the loan) for it, and it's $100 or less deductible. Not the greatest deal but definitely better than $5000. I hope you get the outcome you desire because that's quite a lot to be paying.
 

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Get out of that service contract. Then if you really want one, and I agree with Robby about having them, take your time to figure out what you really need. When you get the money back make a big payment on your car loan (after ensuring it carries no pre-payment penalties) so you'll end up paying off the car several months early. I paid $1,900 for a 5 year/100,000 mile service contract on my Volt - it will cover the life of the loan so I never have to pay for repairs while paying for the car.

The finance folks at dealerships always try to sell the top contract. You need to work them down to what you don't have covered elsewhere, such as towing and rental reimbursements. These are frequently available through your insurance company and in many cases they don't require an insurance claim to activate.
 

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Discussion Starter · #16 · (Edited)
Thanks so much for all of your help, everyone. They are open today, so I called and asked to speak with the finance guy's boss. He won't be in until Monday.

Another part of this: The finance guy forgot to ask me to sign an arbitration agreement. He fed-exed it to me and said I need to sign it. And I can return it with the receipt for the tire that blew and he will reimburse me.

From what I gather, the dealership should not have been able to let me leave with the car without that being signed. Maybe I have some leverage to have them redo the loan?
 

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Thanks so much for all of your help, everyone. They are open today, so I called and asked to speak with the finance guy's boss. He won't be in until Monday.

Another part of this: The finance guy forgot to ask me to sign an arbitration agreement. He fed-exed it to me and said I need to sign it. And I can return it with the receipt for the tire that blew and he will reimburse me.

From what I gather, the dealership should not have been able to let me leave with the car without that being signed. Maybe I have some leverage to have them redo the loan?
My 2nd comment. When going back to the dealer, bring someone who has years of experience dealing with dealers
 

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Don't ever give them something for nothing.

They want you to sign an agreement giving up your rights to sue them in court and only use an arbitration forum of their choice? What will they give you for it? Otherwise, you're not signing.

My first thought: if you traded rebates/price for financing, consider redoing the contract for minimum loan balance and higher interest rate and shopping around elsewhere to see if you can immediately refinance for 1.49-1.99%.

My second thought: if you got 72 months at 0% and want to keep it, don't talk the your F&I guy or his boss, don't sign anything new with the stealership, just follow the instructions for rescinding your extended warranty/service contract in writing and move on with your life.

PS: The Federal Arbitration Act (FAA) has become a nightmare for consumers.
Arbitrators do not have to follow the rule of law or even the contract that authorized them to exist.

I know of a case in which a consumer sued Citi for $300 in small claims court. The arbitration agreement specified that the consumer retained the right to sue in small claims. Citi removed the suit to arbitration. The arbitrator basically said "yup, you have the right to small claims court, but since you're already here, I'll just save everybody's time and money and take the case myself". 3 years and over $10,000 later, the consumer won his $300 arbitration award but didn't win his legal costs, despite the contract clearly stating the consumer's costs would be paid if he won (just like the contract clearly specified that he had the right to small claims court).
 

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You wasted 5 grand, your car comes with a new car warranty, the dealer is a crook, as are most .
Nobody needs your biased advice. The car is fully covered for 36000 miles and then you're probably SOL. I've used EVERY Repair policy I have ever purchased with no regrets. I have read Autonation tries to make it very difficult to obtain refunds on their added protection policies because they bundle them with other maintenance services. The "Warranty" for Autonation is administered by the Warranty Group out of Chicago. They have been in business for 53 years, use other alias company names and are very very low rated. Don't sign any arbitration although I know my Arizona dealer said I had to and I probably did, I was under the influence of Narcotics at the time. Even the Chevy Ownership manuals mention Chevy uses Binding Arbitration as well, "In the event you have a problem".
Mandatory Binding Arbitration FAQs
 
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