Question:  How long does it usually take to get a refund for a canceled extended warranty?

May 06, 2004

Recently I traded in my 2002 Yukon for a 2004 Yukon.  I had a extended warranty on the 2002 for 100,000 miles and the vehicle had 41,000 miles on it when I traded it in.

The dealer said I had a refund coming from the extended warranty and the gap insurance. My question is how long does it take to receive this refund?

Thanks for your time,

Troy

Answer:

Hi Troy,

On average it takes 1 to 3 months! Now I'm assuming you bought the warranty through a car dealer. The speed with which you get your refund depends on several factors:

• How fast the Finance person sends the paperwork to the dealership's office. Often they will hold the paperwork for a while, because once the refund is processed it means a charge back against the Finance person's commissions.
• How fast the dealership office processes the paperwork to the warranty company and the gap insurance company. If they have an office manager who is really looking out for the dealer he or she might sit on the paperwork for a while, because once it's processed it means a charge back against the dealership's commissions!
• How fast the warranty company and the gap insurance company want to refund your money!

You may also want to keep in mind that extended warranties cover a certain amount of time and/or so many miles. For example, 5 years or 100,000 miles. The refund will be calculated on whichever of those two are closer to expiring.

All I can say is stay on the Finance person's butt every week until you get your money. Drive him crazy if you have to. If you can't get any satisfaction from him, start bugging the office manager. And if it still drags on contact the warranty and gap companies and bug them.

This is of course, the worst case scenario. You might get lucky and actually be dealing with honest and conscientious people.

Good luck . . .

Tony Iorio