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Can a car finance manager force me to change my loan’s APR if I cancel the extended warranty?
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[Phoenix, Arizona] I recently purchased a car for $22,000. The dealer offered me a 8.9% interest rate before walking into the finance office - that was the rate I agreed to on the sales floor. The finance manager then started attempting to sell me extended warranties. They decided to offer me a reduced interest rate of 3.9% if I purchased the warranty. I agreed to that. The warranty has a 60-day 100% refund cancellation policy. I went in the next day to cancel the warranty, and the finance manager is claiming that if I cancel the warranty, I’ll go back to the 8.9% interest rate. Isn’t this tied selling, and isn’t this practice illegal? Thank you.

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3 months ago