Will interest rate go up if i cancel extended warranty? - Toyota Yaris Forums

txprsn · 05-16-2010, 11:42 PM

I bought a Yaris and decided that the extended warranty doesnt really cover much. I want to cancel it but Im concerned that the interest rates will go up. When we were signing the paperwork I was told by the finance person at the dealer that if I didnt get the warranty that my interest would increase by 1.4% and thus my monthly payment would almost be the same as if I had the warranty.

Can they increase the interest rate after signing the contract with a specific interest rate?

fmicle · 05-17-2010, 12:04 AM

@ssholes... outrageous!

sickpuppy1 · 05-17-2010, 06:29 AM

Thats a gimmick used to sell the extended warranty. They get commission for selling those. No, they cant raise your interest rate after the paperwork is done, not if its set in print. The rate is between you and the bank and he negotiates it. They tried to do that on my last car and I told him if he can get the rate with it, he can get it without it, he said he cant, so I told him I'll find someone who can and got up to leave. He asked me to hang on......I'll be darned ! He COULD get it! Amazing!

dingbat · 05-17-2010, 04:55 PM

You got played.

Best thing to do at this point is to drive the car through their showroom window, calmly get out, and tell them you'd like to renegotiate.

swidd · 05-17-2010, 05:21 PM

Just cancel it. I got about $900 knocked off the loan, about 1 month after I bought the car. I also got pressured/fooled into buying it.

You have to type a letter to an address in your paperwork, with your milage and cancellation request and such.

txprsn · 05-17-2010, 10:30 PM

I went in there and canceled it. Since it was within 30 days I will be refunded 100% (per Texas law) with no penalty and interest rate will not change.

I expected more fight from the dealer but they did not give me much trouble. I do not like that I got lied, but realize 99.9% of dealerships and car sales people will try anything to sell, it is my responsibility to be prepared: lesson learned. Still shame on them.

I paid 12,300 for a 2009 Yaris Sedan, power package, mats, mp3 player input jack, abs, 2 "keyless" remotes w/ keys, and free oil changes for the life of the car. It's also a certified pre-owned. In my area there aren't many yaris with these features for less than 12K. Only down is 30K miles though.

On the up side, when I went in I saw the sales person that sold us the car and told him I had lost a hubcap...and out of nowhere he got me one

for free. Those damn things are $20 used each or $97 from Toyota.

YarisOwnersDad · 05-17-2010, 11:10 PM

Check eBay for the hubcaps if you ever need one. I think they are something like $40 apiece and are supposed to be authentic Toyota wheel covers.

I decided that I didn't even want to spend that much, so I will just live with one scratched up hubcap.

Tom

frog13 · 06-25-2010, 08:21 PM

Yes,the salesman pulled some BS on-ya'.The interest rate has nothing to do with warranties.Check your paperwork and make sure theres nothing "in-there" he/she added to screw you again if you cancel the coverage!.

05-16-2010, 11:42 PM	#1
txprsn Drives: 2009 Yaris S Join Date: May 2010 Location: Texas Posts: 9	Will interest rate go up if i cancel extended warranty? I bought a Yaris and decided that the extended warranty doesnt really cover much. I want to cancel it but Im concerned that the interest rates will go up. When we were signing the paperwork I was told by the finance person at the dealer that if I didnt get the warranty that my interest would increase by 1.4% and thus my monthly payment would almost be the same as if I had the warranty. Can they increase the interest rate after signing the contract with a specific interest rate?

05-17-2010, 12:04 AM	#2
fmicle Drives: 2007 Yaris LB Join Date: Mar 2007 Location: San Jose, CA, USA Posts: 685	@ssholes... outrageous! __________________ 5% Tint Rear \| Micro Image LED Ignition Light Kit

05-17-2010, 06:29 AM	#3
sickpuppy1 Drives: 2010 Yaris Sedan Join Date: Feb 2010 Location: Kansas Posts: 871	Thats a gimmick used to sell the extended warranty. They get commission for selling those. No, they cant raise your interest rate after the paperwork is done, not if its set in print. The rate is between you and the bank and he negotiates it. They tried to do that on my last car and I told him if he can get the rate with it, he can get it without it, he said he cant, so I told him I'll find someone who can and got up to leave. He asked me to hang on......I'll be darned ! He COULD get it! Amazing! __________________

05-17-2010, 04:55 PM	#4
dingbat Drives: '10 3D Liftback Join Date: Mar 2010 Location: Mid-Turn (probably late apexing) Posts: 66	You got played. Best thing to do at this point is to drive the car through their showroom window, calmly get out, and tell them you'd like to renegotiate. Last edited by dingbat; 05-17-2010 at 05:38 PM.

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05-17-2010, 05:21 PM	#5
swidd Drives: Yaris HB Join Date: Jul 2007 Location: Central Alabama, GOD BLESS AMERICA Posts: 755	Just cancel it. I got about $900 knocked off the loan, about 1 month after I bought the car. I also got pressured/fooled into buying it. You have to type a letter to an address in your paperwork, with your milage and cancellation request and such.

05-17-2010, 10:30 PM	#6
txprsn Drives: 2009 Yaris S Join Date: May 2010 Location: Texas Posts: 9	I went in there and canceled it. Since it was within 30 days I will be refunded 100% (per Texas law) with no penalty and interest rate will not change. I expected more fight from the dealer but they did not give me much trouble. I do not like that I got lied, but realize 99.9% of dealerships and car sales people will try anything to sell, it is my responsibility to be prepared: lesson learned. Still shame on them. I paid 12,300 for a 2009 Yaris Sedan, power package, mats, mp3 player input jack, abs, 2 "keyless" remotes w/ keys, and free oil changes for the life of the car. It's also a certified pre-owned. In my area there aren't many yaris with these features for less than 12K. Only down is 30K miles though. On the up side, when I went in I saw the sales person that sold us the car and told him I had lost a hubcap...and out of nowhere he got me one for free. Those damn things are $20 used each or $97 from Toyota.

05-17-2010, 11:10 PM	#7
YarisOwnersDad Is now a Corolla S Owner View User's Garage Drives: 2010 Corolla S Join Date: Mar 2009 Location: Western Kentucky Posts: 460	Check eBay for the hubcaps if you ever need one. I think they are something like $40 apiece and are supposed to be authentic Toyota wheel covers. I decided that I didn't even want to spend that much, so I will just live with one scratched up hubcap. Tom

06-25-2010, 08:21 PM	#8
frog13 Tw200--excellent! Drives: 2010 yaris..absolutely red. Join Date: Jun 2010 Location: Ohio Posts: 209	Yes,the salesman pulled some BS on-ya'.The interest rate has nothing to do with warranties.Check your paperwork and make sure theres nothing "in-there" he/she added to screw you again if you cancel the coverage!.