Legal Question in Business Law in Texas

Automobile extended warranty costs

When purchasing a used car 05/02 from a used car dealer

i was charged $975 for an extended warranty policy

in 03/03 i traded in that car for another car and was

informed that i could get a rebate of the cost of the

warranty. I called the warranty-issuing company expecting

to get the balance of the prorated $975 back and was

informed that the dealer only paid them $374 for the

warranty so i am getting back only $168. How much are

car dealers allowed to mark up extended warranties?

$600 seems almost illegal.


Asked on 4/07/03, 6:33 pm

1 Answer from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Automobile extended warranty costs

That's a good question, and I don't have the answer. Check first with the Commissioner of Insurance, then with the Motor Vehicle Commissioner. You might also touch bases with the Consumer Fraud division of the Attorney General's office.

Read more
Answered on 4/07/03, 6:41 pm


Related Questions & Answers

More Business Law questions and answers in Texas