This is off topic but I'm looking for the advice and experience of seasoned car buyers. I previously owned a Buick Rendezvous (now don't all laugh at once, MINI owners), which I traded in before purchasing my MINI. When I originally purchased it, I bought an extended service contract to 36 mo/ 75,000 miles (to bolster the 36 month, 36,000 mile original warranty), mainly because I do a lot of driving and wanted to cover excess miles. When I turned in my Buick, the mileage was around 21,000 miles, about 25 months (so still under original warranty).

I went to Cutter Buick of Waipahu to tell them I no longer had ownership of the car and wanted to get a refund, first of all it's taken over two months to hear anything. Now they tell me my refund is less than 1/3 of what I paid for the policy! When I objected, the finance guy said he'll double check, but it'll take another week.

Am I understanding this right, or am I getting hosed? :evil:

Any advice or clarification people can give?

 

So what was the total length of the service contract? Was it a total of 72 months and 75k?

On would assume that if it is based on mileage, your refund would be based on ([75/75 - 21/75] x contract price) - some admin fee say $100 = refund

However, if the contract was for a total of 36 months, 75k it might go like this ([36/36 - 25/ 36] x contract price) - some admin fee say $100 = refund

A lot of it will depend on who your extended warranty was with. If you think you are getting screwed, check with DCCA-RICO as they should be able to help you.

I know it doesn't make sense because you never touched the extended warranty part, but it starts running the day the car is sold. I'm speaking from experience as I have been through this before.
_________________
Are we having fun yet?
bmw/mini = money, money = evil,
THEREFORE, bmw/mini = evil

 

It was actually for 36 mo/ 75K mi. But I don't understand why I would be levied a charge if the original warranty was still in place. I understanding, when this was sold to me, was that it would add 29K miles to the existing warranty. To charge me while the existing warranty is in place would seem like double dipping, no??


>>So what was the total length of the service contract? Was it a total of 72 months and 75k?
>>
>>On would assume that if it is based on mileage, your refund would be based on ([75/75 - 21/75] x contract price) - some admin fee say $100 = refund
>>
>>However, if the contract was for a total of 36 months, 75k it might go like this ([36/36 - 25/ 36] x contract price) - some admin fee say $100 = refund
>>
>>A lot of it will depend on who your extended warranty was with. If you think you are getting screwed, check with DCCA-RICO as they should be able to help you.

 

I know it doesn't make sense, but that's how those extended warranties work. So what is happening is you are getting a pro rata share based on 11/36 of useable contract less an admin fee. It sucks, but now you know why the F&I guys at stealerships make 6 figure incomes.

 

Mahalo, Beast.
You need to change your sig.

"MINI=Good; Fire=Bad; F&I guys= EVIL" :evil:

>>I know it doesn't make sense, but that's how those extended warranties work. So what is happening is you are getting a pro rata share based on 11/36 of useable contract less an admin fee. It sucks, but now you know why the F&I guys at stealerships make 6 figure incomes.

 

>>Mahalo, Beast.
>> You need to change your sig.
>>
>> "MINI=Good; Fire=Bad; F&I guys= EVIL" :evil:
>>

That does not compute.

 

Oops, had a loose association, alluding to the old frankenstein movie, where they're teaching him to talk.
"Fire=bad! . . . arrrgh!"

>>>>Mahalo, Beast.
>>>> You need to change your sig.
>>>>
>>>> "MINI=Good; Fire=Bad; F&I guys= EVIL" :evil:
>>>>
>>
>>That does not compute.

 

Not trying to be mean, here but... I'm surprised they gave you anything back.
I was essentially an insurance policy, right?
Did they say that if you didn't go over the original warranty miles you would get a refund?
If that was the case it would make sense for everyone to buy the policy, then get their money back if they don't use it - no risk insurance, with only the cost of capital as an expense.
It's a bummer, but that's the risk of paying for a future service. Even if you don't use it, you've already paid for it.

Rule of thumb - the reason they sell extended warranties is because they make money. I never bet that what I'm buying is going to break. (though I've been wrong before!)
At least you're in a MINI now!

 

Appreciate your candor but I guess I was expecting better service. When I had the same experience with BMW, I walked in to inform them that I had sold the car, and walked out of the dealership with a refund check the same day! Have to give BMW of Honolulu kudo's for that!

My contention is that the warranty "sale" (following the car sale) was deceptive if they did not fully inform me of my rights and limitations. It's like informed consent before a surgical procedure. And you know that "aftersale" is where you can get burned by the F&I guy. That's the time when your'e all tired from the haggling, and you get reams of paper shoved in front of you to sign very quickly and you just want to get the heck out of there and drive off in your new car.

We shouldn't have to tolerate insurance abuses or deceptive sales, so even if that may be considered to be the standard at some dealerships, that doesn't make it right. "Unethical" is doing the wrong thing; "illegal" is just a sick bird.

But again, I have to say in counterpoint, that BMW of Honolulu did right by me in a similar situation.

My finger was poised to click the "send" button on my BBB complaint, but I'll await Cutter's customer service manager's efforts. She sounded like she was listening when I spoke to her.



>>Not trying to be mean, here but... I'm surprised they gave you anything back.
>>I was essentially an insurance policy, right?
>>Did they say that if you didn't go over the original warranty miles you would get a refund?
>>If that was the case it would make sense for everyone to buy the policy, then get their money back if they don't use it - no risk insurance, with only the cost of capital as an expense.
>>It's a bummer, but that's the risk of paying for a future service. Even if you don't use it, you've already paid for it.
>>
>>Rule of thumb - the reason they sell extended warranties is because they make money. I never bet that what I'm buying is going to break. (though I've been wrong before!)
>>At least you're in a MINI now!

 

baronious has an extended warranty on the s2k and when he sold it, he received a fat refund for it.

good luck, nobias99. you can always call the DCCA/RICO -- the staff there are very helpful.

 

Thanks Mini-T; the DCCA/RICO folks are next on my speed-dial list. :smile:


>>baronious has an extended warranty on the s2k and when he sold it, he received a fat refund for it.
>>
>>good luck, nobias99. you can always call the DCCA/RICO -- the staff there are very helpful.

 

Wait a minute! BMW of Honolulu gave you a full refund? That's interesting as the information I relayed to you was from my dealings with our local BMW/MINI dealer. And you walked with a check the same day? Something's fishy here. I guess you get better treatment than others.

_________________
Are we having fun yet?
bmw/mini = money, money = evil,
THEREFORE, bmw/mini = evil

 

>>>>baronious has an extended warranty on the s2k and when he sold it, he received a fat refund for it.

I think the car is a HONDA S2000 not a BMW.

 

beastmaster knows what a s2k is....his post is in reply to a statement made by nobias99 and his experience with BMW:

>>But again, I have to say in counterpoint, that BMW of Honolulu did right by me in a similar situation.


>>
>>>>>>baronious has an extended warranty on the s2k and when he sold it, he received a fat refund for it.
>>
>>I think the car is a HONDA S2000 not a BMW.

 

I don't know if the dealership has changed hands in the last 15-20 years or so (oops that's dating me, huh?). Let me see, I'm trying to remember how many cars ago this was . . . I know it was when they were on Beretania and before they added the other European cars to the showroom. Oh well, . . . but I thought they treated everybody like that.

>>Wait a minute! BMW of Honolulu gave you a full refund? That's interesting as the information I relayed to you was from my dealings with our local BMW/MINI dealer. And you walked with a check the same day? Something's fishy here. I guess you get better treatment than others.
>>
>>_________________
>>Are we having fun yet?
>>bmw/mini = money, money = evil,
>>THEREFORE, bmw/mini = evil
>>

 

Aahhhh, that explains it! The dealership did change hands since the early days on Beretania. Back in the day, my friend Ray's dad was the big boss there! A German car dealership run by a German!