Q: Can a car dealership cancel the warranty on a car financed because you decide to pay off the loan in full?
Purchased a car with a two year warranty or 24K mikes and the dealership has a mechanic shop that handles the warranty guaranteed by the dealership. I’ve decided to payoff the loan in full, the dealership did the financing in house buy here pay here. I’ve had a few issues in the month or two since I purchased the car and I want to just payoff the loan but they are telling me that if im not financing the car with them then upon payoff I’ll lose my warranty I got when I bought the car however it’s not specified in my contract about this. Is this legal?
A: No, unless you have a written agreement specifying that. Tell them that if the warranty is not honored, you will need to get your lawyer involved. They may say, "go ahead". Then schedule a consultation.
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