Tips on Buying Cars: pricing law in arizona, gap insurance, service contracts


Question
I made a big mistake and looked at the payment price and singed contract before reading. Was sold 5000.00 worth of dealer add ons that went on window sticker. Is it possible to return new car for refund.

Answer
car guy
car guy  
Hi Terry,

Couple of questions for you:

1. How long ago did this happen?

2. Is there a bank involved or was this a buy here pay here lot?

3. Have they asked you to come back and give them anything...anything at all? or to have you resign anything?

4. I need to know what they sold you and how much they charged in order to tell you specifically what you need to do to get rid of each one...

Without perfect information here are some general thoughts and then our plan.

It is not legal in any state for the dealer OR the bank to tell you you are required to purchase any insurances on the back end of a car deal. The exception to this would be a GPS device which the dealer is technically buying. If it's been a while since this happened and they don't need anything from you and the deal has funded then it just means we are going to have to work a little harder. Here are a few of the common back end things people buy or get sold.

1. GAP Insurance- almost always under $600.00 in the state of oregon GAP insurance is a good idea for anyone whose payoff is significantly higher than the cars value. This is cancellable in most states and in California and probably in Arizona, and others you can cancel and be refunded the unused portion of the insurance ...read the policy. This must usually be cancelled thru the dealer.  

2. Extended service contracts are all cancellable...thru the dealer who is usually the only place you can get the right forms to cancel it...that gives the dealer the chance to 'resell' you on it ...just know that the dealer get's charged back when you cancel ...wait until you see the look on their faces.

3. Etch- Not cancellable

4. Alarm- Not Cancellable

5. Maintenance Agreements- cancellable in most states

6. Life Accident and Health - Cancellable everywhere

7. Unemployment Insurance - Cancellable

Get back to me with your specific products and what you paid and we can go deeper and as always make sure to ask questions until you can give me those perfect 10's and bonus points I work so hard for...lol

Roger