February 22, 2006

Dear Tony

I live in Ontario, Canada. I signed a purchase agreement to buy a brand new Honda Civic DX three weeks ago. During the negotiation I was convinced by the salesperson to buy the extended warranty, rustproofing package and the anti-theft window etching. The add-ons totalled C$3,200.00, which was included in the dealer financing. The car will be delivered on March, 10.

After three days I went to my bank and ask them about car financing. The bank would give me a much better rate than the dealer. I was pre-approved for $20,000.00 which was enough to pay for the car minus the add-ons.

I called the dealer and asked them to cancel all the add-ons. He said that it was not possible because I already signed the purchase agreement.

Is the dealer right? Can I not cancel the add-ons even if the car is still being ordered? Please help me with your advice.

Best regards,

Nestor

Answer:

Hi Nestor,

I'm not familiar with the laws in Ontario, so I really don't know if the dealer can refuse to remove the add-ons or not. There must be a consumer protection division in your government. You should contact them for advice.

I do know that you can cancel the extended warranty any time you want to once it officially goes into effect. Tell the dealer that's what you are going to do so they might as well just remove it now, because they're not going to make any money on it if you cancel it.

As far as the rustproofing and window-etching goes if the car isn't in yet then these services haven't yet been performed on the car. Try talking to the Sales Manager or the owner of the dealership - not the Salesman or the Finance Manager. Hopefully they will value your future patronage enough to be fair and reasonable with you now.

All my very best...

Tony Iorio