lanerd wrote:
Since the OP won't be back and not provide any more info, I thought I'd add some more questions here on basically the same subject.
It's my understanding that when you purchase an extended warranty from a dealer when you purchase the vehicle, that the markup on that warranty is usually close to 100% that goes directly to the dealer.
So, if you want to cancel that contract (and able to do so) will the dealer also refund (pro rated of course) his portion of the contract along with the warranty provider?
Just wondering..
Ron
That is true. The dealers "buy" the service contract for say, $1,000 or somesuch amount and anything they get over that is gravy. That's how an $8,000 service contract magically becomes $3,000 when you're about to walk. Huge profit maker for the dealer and many of the contracts are worthless or the issuing company goes out of business because the profit is made by selling contracts and not paying out on any claims.
