Selling my car, What do I do with my extended warranty?

When purchasing a car some consumers choose to purchase an extended warranty so they have warranty coverage on the car that exceeds the manufacturing warranty. Extended warranty can sound appealing because drivers have prolonged coverage and won’t have to pay for unforeseen car repairs. If you are looking to trade-in or sell the car you currently own before the extended warranty has expired, then don’t worry you are able to get a pro-rated refund for the amount of that unused warranty if you have purchased a refundable warranty.

Additionally, most warranties provided by auto manufacturers offer limited coverage that varies on the vehicle. If you recently purchased your extended warranty you most likely have 30 days of the initial purchase to still cancel. The entire process of canceling your extended warranty is not complicated, the longest part is waiting to get your refund!

To get a pro-rated refunded and cancel your extended warranty you should follow these steps as soon as possible:

  1. Find Your Original Warranty Documents

It is important to locate your original warranty documents so you can determine what is exactly required to cancel and where you should send your paperwork. At times, you are able to handle it directly with the auto dealership. However, other warranty companies may require you to deal directly with the warranty company,

  1. Get An Odometer Reading On Your Car

At the time of your trade-in, you should make a copy of paperwork that shows the odometer reading on your car. Making an extra copy of this is to have evidence of the mileage your car has and there is no room for error.

  1. Obtain Paperwork That Shows Sales Dates or Trade-In Date 

You should absolutely make a copy of paperwork that shows your sales date or trade-in date. At times, warranty companies pro-rate your warranty refund based on how many months you have remaining on the policy and miles. As a result, they refund you the lesser of the two.

  1. Submit Your Paperwork

Once you have completed steps 1-3 you should submit your paperwork to the dealership or warranty company of your car. Be sure that you have signed all the proper documents and everything should be smooth from there. Always be mindful, if you do not hear back promptly within 14 days you should follow up with your dealership or warranty company to get an update. We also highly recommend that you contact the original dealership. However, if the dealership is no longer in business you should contact the warranty company. On average your refund should arrive in four weeks or more depending on the date you might have submitted your paperwork.

If you are looking to trade in your car in Illinois or Indiana you can contact the Castle Buy Center to get more information on how you can get cash for your car instantly. Also, you can get an instant online quote for your car with our Kelley Blue Book Instant Cash Offer. Some of our Castle Buy Center locations where you can sell your car, truck, or SUV are located in Villa Park Illinois, Elk Grove Village Illinois, North Riverside Illinois, Portage Indiana, and Michigan City Indiana.

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