Refinance... Meaning, payoff off the Toyota Loan you got from the Dealership and get a new loan from your bank. You'll pay less because most likely the loan from the dealership is higher than the one from the bank.
For Example: Current Finance with Toyota is 6.99 interest rate so my car totals 26,000 over the term. Changing to my bank, interest changes to 4.99 so now my total cost would be 24,000. I'm sorry you didn't understand, it's loan talk. But because you refinanced, the bank PAID OFF the loan with toyota so you transferred to theres. On the warranty it mentions you'll get all your money back from the Warranty once the loan is paid off, that's why people hesitate to remove their Warranty because they have to wait for years. But by refinancing, your current car loan would reduce its balance and you can get a complete refund for the warranty. It's pro-rata, even if it's past 90 days, they'll deduct a few bucks from the warranty.

That's the explanation of Refinance, you learn something new everyday.

Tim

 

did this make no sense to anyone else?

are you talking about the actual cars warranty or some warranty of the loan?

im really lost. im usually good with this stuff but you've thrown me for a loop here.

could you please explain more?

scott

 

my answer is this, have you dad write a check for the entire car the night you buy it, and the car is already paid off, just like i did

 

Okay, REFINANCE...

Means, switching your loan OVER to your bank. Most likely, your current car loan is with Toyota Finance.

To REFINANCE: Go to your bank, ask for a refinance on your car loan.

As a result, your interest rate would be lowered by a few points.

For Example: Toyota Finance interest is 6.99 and lifetime balance would be 26,000 and to go through your bank, interest would be 4.99 and balance would change to 24,000.

To refinance a loan, your bank PAYS OFF the loan of whatever is left from Toyota.

Meaning, bank pays for everything.

To remove the warranty and get a full refund on the spot, the Fiannce with Toyota needs to be paid off.

Warranty COULD be removed, but you would only receive it once the loan is paid in full.

Which is why people don't remove warranty because they don't have the warranty thoughout the years until the loan is paid off.

By Refinancing, your bank pays the Toyota loan in full and you could remove your warranty on the spot and get your bucks back.

At the end, your interest rate is lower and you get your warranty money back.

Think of it this way...

Refinance = Lower Car Payment + Remove warranty(if you want to)

Easiest way to do it is not try to understand if you don't... Just ask for a refinance with your bank and they'll work from there. You'll get lower interests and you can optionally remove the warranty without hassle.

 

yeah, paying for it all at once is great!

 

Heh, this thread is for people who finance, if you pay cash you can do whatever you want.

 

Are you talking about getting out of an AFTERMARKET or extended warranty?

 

Yes, Extended Warranty that I was stupid enough to purchase. Extended 6 year warranty.

 

OKAY! thank you Mark and Xephon for clearing that up!
i thought you're talkin about your reg. powertrain warranty and wondered why you wanted to ditch it. thats where i was lost. i know how to refinance and do that stuff, i was just lost on the whole warranty deal.

thank you
scott

 

how about just thinking it through and NOT buying it?

 

it must be tough when your own thoughts confuse you....jk. thanks for the clarification though.

in essence, you paid off your car loan that included an extended warranty by refinancing the car with a new loan. in doing so you removed the financial obligation of the extended warranty that had been financed in the initial loan. you got your money back.

correct me if i'm wrong; your point was that if you bought an extended warranty and want to remove it, you suggest refinancing the car loan because it will remove the extended warranty obligation financed in the initial loan.

seems an odd way to remove an extended warranty.

 

damm that was confusing. and when he tried to explain it again, it was even more confusing. Than when someone asked the question, it was good. You don't have to refinance to "remove the extended warranty". You just tell them you no longer want it and bam, its gone.

 

you think it's bad trying to figure it out sober....

I just spent 10 mins trying to figure it out and drew diagrams, and stuff, drunk.

 

I got the extended warranty. IMHO it is worth it, I can transfer it to the next owner giving my tC even better resale value.