Tips on Buying Cars: Purchase of Warranty coverage, cold light of day, chevrolet malibu

Question
Jeremy.
You have given me great advise. Thanks.  I did purchase a 2009 Chevrolet Malibu from an Authorized Dealership yesterday 05/18/09.  My wife and I had an appointment with the salesman at 10:00 AM and after a lot of negotiating came to an agreement at 2:30 PM, without any lunch during all this, There was one more VERY IMPORTANT thing to go over, this Warranty thing.  We were ready to get out the door, our nerves were shot. We signed the lowest thing that was offered and after looking at this in the cold light of day, we don't want it.  We are going back to the dealer tomorrow and tell them we want out as we can not afford it.  Will we be okay to handle it this way?
Thanks,
Edward

Answer
Edward,

Thanks for your question.  I assume that you have already done this based on the date of your question.  This is simply up to the dealership.  The warranty coverage is optional.  It does not have to be on any vehicle.  It is up to the consumer as to whether or not they want an extended warranty.  While they are very worth while, and a very good investment, not all customers see the value, and I understand this.  As far as cancellation of this product after the fact, the dealer more than likely will let you cancel it, but it won't lower your monthly payments.  It will only reduce your principle amount when they send the cancellation check to your leinholder.  With all of this being said, it is solely up to the dealer as to whether they let you completely take out the warranty and recontract, or take my aforementioned action.  This is a dealership issue and policy.  My guess is that they will let you cancel it, but not recontract you without it in there, thereby lowering your monthly payments.

Let me know how this worked out.

Thanks - JB