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Why did the car dealer charge me 2950.00 for a service contract?


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If I bought my spark for 14,050 and put 3000.00 down I should owe 11,050? Is the factory warranty free?

I think I have 30 days to cancel a extended warranty. is the service contract a extended warranty?

I only drive 2,000 miles a year so don't need a extended warranty

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Yeah, you need to ask them exactly what it was covering, might only be a paint warranty. Also note that some of these dealers contracts may only be accepted at that specific dealer, read the fine print or take them to court to get the money back if it is that single dealer.

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can I cancel it?

Yeah, you need to ask them exactly what it was covering, might only be a paint warranty. Also note that some of these dealers contracts may only be accepted at that specific dealer, read the fine print or take them to court to get the money back if it is that single dealer.

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That little may not shake out problems, standard warranty is 3 years on everything but wear parts, 10 years on engine and drive train.

Just wanted to point out that manufacturer warranty info is as follows:

Warranty Coverage-

Bumper-to-Bumper (including tires)

Coverage is for the first 3 years or 36,000 miles, whichever comes first.

Powertrain

Coverage is for the first 5 years or 100,000 miles, whichever comes first.

Sheet Metal

Corrosion coverage is for the first 3 years or 36,000 miles, whichever comes first.

Rust-through coverage is for the first 6 years or 100,000 miles, whichever comes first.

http://m.chevrolet.com/owners/warranty-details.html

Posted just so people won't feel ripped off if they didn't get a ten year power train.

Edited by icepick
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A service contract may be for routine service on the car through the dealership. In other words it could be that all of your maintainence is covered by it. Find out exactly what it covers and for how long before you cancel it. If it does cover maintainence, it may be worth it depending on how long you plan to keep the car, how much you drive it, and how long it lasts.

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This is a good example as to why it's very important to read all the paperwork before signing it. A popular sales tactic on the financial side is to sell service and extended warranty contracts. Often, the finance people will try feeding crap about the finance company refused to finance without a contact or warranty, this is actually illegal, and is total bullcrap. I was lucky I bought from a honest dealer, if they tried that with me, I wouldn't have the Spark.

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This is a good example as to why it's very important to read all the paperwork before signing it. A popular sales tactic on the financial side is to sell service and extended warranty contracts. Often, the finance people will try feeding crap about the finance company refused to finance without a contact or warranty, this is actually illegal, and is total bullcrap. I was lucky I bought from a honest dealer, if they tried that with me, I wouldn't have the Spark.

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This is a good example as to why it's very important to read all the paperwork before signing it. A popular sales tactic on the financial side is to sell service and extended warranty contracts. Often, the finance people will try feeding crap about the finance company refused to finance without a contact or warranty, this is actually illegal, and is total bullcrap. I was lucky I bought from a honest dealer, if they tried that with me, I wouldn't have the Spark.

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This is a good example as to why it's very important to read all the paperwork before signing it. A popular sales tactic on the financial side is to sell service and extended warranty contracts. Often, the finance people will try feeding crap about the finance company refused to finance without a contact or warranty, this is actually illegal, and is total bullcrap. I was lucky I bought from a honest dealer, if they tried that with me, I wouldn't have the Spark.

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This is a good example as to why it's very important to read all the paperwork before signing it. A popular sales tactic on the financial side is to sell service and extended warranty contracts. Often, the finance people will try feeding crap about the finance company refused to finance without a contact or warranty, this is actually illegal, and is total bullcrap. I was lucky I bought from a honest dealer, if they tried that with me, I wouldn't have the Spark.

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You should be able to cancel it. Tell them that no one explained to you what this particular contract was, and you signed it not fully understanding what it entailed. These guys are lower than a snake. When I was buying my car, they were explaining to me how complex the ignition key fob is, and believe it or not, they tried to sell me a service contract to cover the keys! I explained to them that I was born, raised, and educated in the United States, and this was not my first rodeo, the only thing I was buying was the car. The sales manager actually laughed, slightly embarrassed, if that's possible. Let us know how it goes.

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Im not happy about this. Does everyone pay the 2950.00 for a service contract?

Yep, you got suckered into an extended warranty like I almost did. The dealer was acting like he couldn't sell the car to me without it. I'd go back to that dealer, give them a piece of your mind, and cancel it right away! Dirty SOB's!

Often, the finance people will try feeding crap about the finance company refused to finance without a contact or warranty, this is actually illegal, and is total bullcrap.

This is almost exactly what happened to me, but rather than straight up refuse to finance, they threatened me with some outrageous interest rate number if I didn't take the extended warranty. I did get it at an acceptable interest rate, but I'm still gonna refinance since I can get it even lower through my credit union.

Edited by Trancer07
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Edited my post, must have been thinking about Hyundae or KIA.

They tried to get me on the key warranty thing too, I bet the dealer charges an arm and a leg to program the car for the keys, but I bet it is something we can do through a special procedure of events like older cars.

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Edited my post, must have been thinking about Hyundae or KIA.They tried to get me on the key warranty thing too, I bet the dealer charges an arm and a leg to program the car for the keys, but I bet it is something we can do through a special procedure of events like older cars.

It's all good. Just didn't want someone to think they got screwed by their dealer. I am also sure it wouldn't be too difficult to program a new key. I'm actually thinking of picking up a GM bypass module and programming it in case my key module messes up. I will need it for when I convince the wife to go with a remote start anyways.

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I will go up there Monday. I hope I don't scare them to much

Yep, you got suckered into an extended warranty like I almost did. The dealer was acting like he couldn't sell the car to me without it. I'd go back to that dealer, give them a piece of your mind, and cancel it right away! Dirty SOB's!

This is almost exactly what happened to me, but rather than straight up refuse to finance, they threatened me with some outrageous interest rate number if I didn't take the extended warranty. I did get it at an acceptable interest rate, but I'm still gonna refinance since I can get it even lower through my credit union.

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I need to ask, was the service contract built into the financing of the vehicle? I ask cause if it was then its a minor victory. That $2950, being financed along wit the car and options, still has interest. A victory is a victory whe it comes to signing a contract, but they are still going to get the intrest amount from you.

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