How does this work- Bought Ext warranty, trading in truck now

PaulM · August 28, 2014

If I bought the full extended GM warranty when I bought my truck, and now and trading in toward another truck, isnt there some type of monetary value on that extended warranty? Dealership salesman is telling me I cant get anything for that but I am calling BS. How does that work exactly? I think I ended up paying $1k or $1500 extra for it.

Sooperdave · August 28, 2014

Call the ext warranty company. I do believe refunds are available if one does not use all of it.

ToesonTheNose · August 28, 2014

whats the new ride?

BIGDOGx · August 28, 2014

Man I have never seen so many people buying new vehicles and trading them back within a year, and I'm not talking about just these trucks, it seems to be a common trend today.

As for the question here the salesmen is correct, a ext. warranty is not going to add much value to a trade in on a not even year old vehicle already under factory warranty. Your only option is to call the warranty company and ask for a prorated refund which they should be able to do for you.

uncletony76 · August 28, 2014

The last ext warranty i bought was through a seperate warranty company not GM directly. So remember that part. On that one i had A GMC Acadia Denali for my wife for about a year. We paid 1800 for the warranty. One year later we got rid of that vehicle, i went back to the dealer that sold me the vehicle and they filed the necessary paperwork with that company and in 3 weeks i got a prorated check of 1200 back. (i know that stinks but i knew that going in, extenuating circumstances forced us to get rid of that vehicle).

That being said if this was purchased directly through GM as "their GM extended warranty" i find it hard to believe you can't get at least a pro rated amount of what you paid back. You're never going to get the full amount but there has to be some kind of return on something you never utilized as the factory warranty wasn't even out of date yet. All that being said, i don't know because i've never bought an ext warranty directly from GM. If this is true and you get nothing in return for it after not using it and getting rid of the vehicle. That would make me pretty angry. However they put a lot of stuff in the fine print so you never know. Be sure to go through the ext warranty paperwork you got when you orginally bought the vehicle. You never know what it will say in there. And be sure next time you talk ext warranty about any vehicle, that you ask up front and see it in the contract that "upon sale of the vehicle how and if you get a return of the unused or prorated portion of the extended warranty."

00Silverado4x4 · August 28, 2014

Call the ext warranty company. I do believe refunds are available if one does not use all of it.

^^^^This is what I would do. I've gotten refunds for all my extended warranties that were still in force at time of trade.

thewhitestallion · August 29, 2014

call the warranty comp. if you did not exceed the 36k mile mark then you will receive a full refund. if you are passed the 36k mile mark then will pro-rate your refund. remember salesman don't really know what they are talking about they just want the sell.

Resqu2 · August 31, 2014

Always received a refund on extended warranty and you should get most of your money back.

14SLTZ71 · August 31, 2014

"Extended warranty refunds are pro-rated on the amount of time/miles the warranty was in force. There will certainly be a cancellation fee. Some service contracts will offer a full refund if you cancel within a certain time period after signing, usually 30 days. The worst case scenario is the non-refundable extended warranty. Yes, they exist and usually are not sold by any reputable company. This is why it is doubly important you make sure to research the company you are buying a warranty from."

Automotive.com

danbohn · September 10, 2014

We just had this happen when we got rid of 2013 ram 2500 for a 2014 gmc all terrain... We let the new bank pay off the existing loan first and then I called the dealership were we had bought the ram and told them we sold it, all they need was the exact mileage and then. Like 2 weeks later we got a check in the mail for the balance of the extended warranty

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Willc11 · September 11, 2014

You can get your prorated $ back on your GMPP. All the finance department has to do is call them with your VIN, and current mileage and they can cancel it over the phone. I did this with my Acadia Denali when I traded it in. Check was received 2 weeks later.

Will

colrise · September 11, 2014

I used my extended warranty as equity toward my new silverado. They should be able to prorate it. My other truck was only a month old before I traded it in. I got all of it back and used it toward the new one. The finance officer at the dealer should be able to show you something.

nards444 · September 11, 2014

Warranties are pro rated if you turn it in early, usually. Now the extended warranty will not add value to your trade that would be correct.

My two cents on extended warranties, its foolish to buy them from the dealer at the time of purchase. Your paying for double warranty coverage for the first 3 years on bumper to bumper and 5 years on power train. So in a sense your paying for repairs you might never use. If you think about it are dealers handing these out for fun, no they are making money on them. Which means somebody has figured out (bean counter) that more people do not use their warranty vs those that do. And this margin has to be pretty big for them to make money and push it so hard. Whats more foolish is if you finance this cost as that warranty now cost you even more money. Then top it off your paying a deductible for repairs with some warranties as well. Which over the life of ownership you could be paying thousands for that extended warranty, question is you going to have that many repairs.

Lastly the manufacture as well as dozens of other companies will ping you the whole time you own the vehicles and right before the warranty runs out to extend it, so its not like you cant ever get one again.

Realistically the consumer loses on these more times than not. Of course theres a guy or a guy that knows a guy that used but that exception. Dealers are able to pull heart strings with the line of protecting that 50k truck you just bought

chuckl1218 · September 11, 2014

If I bought the full extended GM warranty when I bought my truck, and now and trading in toward another truck, isnt there some type of monetary value on that extended warranty? Dealership salesman is telling me I cant get anything for that but I am calling BS. How does that work exactly? I think I ended up paying $1k or $1500 extra for it.

So to the OP, how did it work out for you PaulM? Did you call the warranty company?

keakar · September 11, 2014

Always received a refund on extended warranty and you should get most of your money back.

has anyone ever tried to transfer the warranty over to the new vehicle? if you never got out of the factory warranty then it shouldn't be a problem I would think since they never actually gave you the coverage yet