[obermd]

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.

 

[obermd]

What should I do? I called the manager and he said that he would rewrite the contract without the protection package. But then he offered to extend warranty. Right now it's for up to 75,000 miles. He will extend it to 100,000 miles and 10 years. Same price.

It's impossible for a dealership to extend the warranty - only the manufacturer can do that. All a dealership can do is an extended service contract. Dump this contract entirely and contact Ally or GM about the current GM Extended protection plans. Also, I wouldn't sign an arbitration agreement with this crook - they're not required by law and only benefits the dealership and Autonation.