Can I cancel an EXTENDED WARRANTY or GAP INSURANCE or TIRE-WHEEL PROTECTION after buying a new car from a dealership?

[qi86x]

FLORIDA

i purchased a new vehicle today from a dealer and opted in for

extended warranty
gap insurance
wheel and tire protection

i have no remorse buying the vehicle itself but i do question my decision to purchase the above. each were sold to me by the dealership and were added to my loan balance.

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what can i cancel?
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a. extended warranty
provided by hyundai directly

b. gap insurance
provided by lithia motors dealership

c. wheel and tire protection
provided by an unrelated third party company

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what must i do?
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d. time period
when must the intent to cancel be dated and communicated by to comply with florida statute

e. recipients of communication
where is the best place to send the intent to cancel and by which means is best to send that communication?

f. other requirements
is there anything else i must do to foolproof my intent to cancel so any failure to respond by each host would be absolute

g. cancellation fee limits
does florida law limit the cancellation fee that be can be charged for any of the above when canceled within any time frame permitted

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closing thoughts
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i believe florida does have a 72 hour time limit in which you must cancel statutorily permitted contracts or agreements. i am not sure if this cooling off period governs warranties or if there is another subsection of the statutes that directly applies to warranties with similar protections..

and since all three purchases above were added to the loan balance at the time of acceptance then i would assume that any cancellation would result in a refund check being sent in which case that amount should be applied by me to the loan balance to reduce the amount owed.

any other advice or guidance you can provide would be appreciated. thank you.

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ps
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for future viewers

i will share that florida provides no right to renege on actual vehicle purchases. statutory cooling off periods explicitly exempt vehicle purchases from these consumer protections.

keep that in mind before you buy a vehicle despite what you might hear from other people who all too often believe they can buy a vehicle and bring it back within three days of purchasing it.

thank your dealer associations and lobbyists for convincing the florida legislature to agree.

 

[quincy]

There should be “cancellation” provisions in the documents/agreements you signed.

http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0600-0699/0634/Sections/0634.121.html

 

[adjusterjack]

I agree you can dump the extended warranty and the tire/wheel BS but I strongly suggest that you keep the GAP insurance.

Your car will depreciate faster than the loan balance and if it gets wrecked in the next couple of years you will owe the lender thousands that you won't get from your auto insurance company.

That's up to you.

 

[qi86x]

so per the above statute here is the majority of the answer to this question not withstanding misrepresentation fraud etc..

a. purchaser must cancel within 60 days of acceptance
b. issuer must refund 100% of the total gross premium paid to the purchaser less any claims made
c. issuer is permitted to charge a 'reasonable fee' for administrative purposes up to 5% of the total gross premium

but slightly different rules apply if the agreement is canceled by the issuer

 

[quincy]

so per the above statute here is the majority of the answer to this question not withstanding misrepresentation fraud etc..

a. purchaser must cancel within 60 days of acceptance
b. issuer must refund 100% of the total gross premium paid to the purchaser less any claims made
c. issuer is permitted to charge a 'reasonable fee' for administrative purposes up to 5% of the total gross premium

slightly different rules apply if the the agreement is canceled by the issuer etc..

If you purchased your vehicle less than 60 days ago, you should be able to cancel the service agreements and receive a refund (minus any claim/administrative fee). Your right to cancel should be spelled out in the documents you signed and received.

I agree with adjusterjack that GAP insurance can be a wise purchase.

 

[LdiJ]

If you purchased your vehicle less than 60 days ago, you should be able to cancel the service agreements and receive a refund (minus any claim/administrative fee). Your right to cancel should be spelled out in the documents you signed and received.

I agree with adjusterjack that GAP insurance can be a wise purchase.

The gap insurance may even be required if your credit score was on the lower end of what they would accept.

 

[quincy]

The gap insurance may even be required if your credit score was on the lower end of what they would accept.

Or if there was a low or no down payment, or if the loan payback is stretched over a long period of time (5+ years). A lender might require it then.

 

[qi86x]

@quincy
@LdiJ

good points about the credit score and conditional lending that could in theory require you purchase gap insurance. in my case my score was above 7 and there were no announced conditions attached to the offer based on scoring used.

it also makes sense that a term above 60 months such as 66/72/84 could require gap to offset the much wider margin between residual value and loan balance as the money borrowed time graduates to maturity throughout those terms.

of course all lending conditions would be announced by f&i and disclosure would be imminent. in other words there wouldn't be an option to purchase gap insurance if it was required.

in some ways it might be a good risk management policy for all lenders to require gap insurance but the problem is that some dealers and lenders charge a fortune for it. credit unions on the other hand are usually very good about pricing gap insurance with my own selling it for $299.

 

[quincy]

@quincy
@LdiJ

good points about the credit score and conditional lending that could in theory require you purchase gap insurance. in my case my score was above 7 and there were no announced conditions attached to the offer based on scoring used.

it also makes sense that a term above 60 months such as 66/72/84 could require gap to offset the much wider margin between vehicle value, daily interest, and loan balance as the money borrowed graduates to maturity throughout.

of course all lending conditions would be announced by f&i and disclosure would be imminent. in other words there wouldn't be an option to purchase gap insurance if it was required.

in some ways it might be a good risk management policy for all lenders to require gap insurance but the problem is that some dealers and lenders charge a fortune for it. credit unions on the other hand are usually very good about pricing gap insurance with my own selling it for $299.

If you are not required to have gap insurance and wish to cancel, review your agreement then to see what is necessary for cancellation.

Good luck.