by Dennis Tate
Parting is Such Sweet Sorrow…
It was a hot August morning right before I entered the 5th grade. Like every summer day I hopped on my BMX bike and cruised over to my friend Jessica’s house to play. As I rounded the corner, I was faced with a child’s worst fear…a big yellow moving van! So many questions raced through my mind, “Why, How, What, When???” My childhood ‘girlfriend’ was moving away. While neither of us wanted this to happen, we had no choice, she had to move on.
While we would love for all our customers to stay with us forever, sometimes they move on. For this purpose, we do our best to make this an easy and efficient process. How can you help with this process? Below I have highlighted the answers to some of those same questions I had on that August morning. I also highlight some helpful hints and tips:
WHY do they want to cancel?
When a customer comes to you to cancel the Alpha contract it is important to determine the reason why they are cancelling. There might be some confusion that we can resolve. For example, a common reason we hear is the customer wants to cancel because they are selling their vehicle. If it is a private sale, they can transfer the contract ownership to the new buyer!
Another common reason for canceling is due to confusion around a claim on an uncovered part. Even though we may not be able to cover that specific item, our contracts do offer coverage on hundreds of other major components. Sometimes an explanation of coverage can help persuade a customer from canceling.
HOW do I submit a Cancelation?
All cancellations are initiated and go through the selling dealership. The customer must complete a Cancellation Form, and obtain an Odometer Statement from the dealership. You can find the cancellation form in the Forms section of our ZOOM portal. These completed forms are then submitted by the Alpha Fax number, email address, or mailing address (listed at the bottom of the cancellation form).
Once Alpha receives and processes the cancellation request, if there is still an active loan on the contract, the lienholder will receive the refund. If there was not a loan, the customer will receive the refund from the dealership. If there was a loan but it has now been paid off, the customer will need to submit documentation to the dealership showing that it has been paid in full. Then the customer can receive the refund from the dealership.
WHAT Refund Amount Should I Expect?
Depending on the contract terms the customer or lienholder will be refunded a pro-rated refund based on time and/or mileage, minus any necessary cancellation fee, and claims which have been paid..
WHEN can I Expect the Refund?
The turnaround time on the refund depends on processing time and whether all relevant details have been provided. We work with all parties to make the process go as quickly as possible. It can take up to 30 days for the customer, or lienholder to receive the refund.
Keeping You from Uncertainty
On occasion I have wondered what ever happened to my childhood friend. Here at Alpha we do not want our dealers or customers ‘wondering’ or feeling uncertain. We keep the process as seamless as possible to show that we care about our dealers and customers. We hope that both you and our customers will think of us again in any future automotive service contract needs.
- Be sure to complete all appropriate fields on the form.
- You can verify in the Cancellation section of the contract the exact terms and details.
- If the contract is being canceled due to vehicle total loss, a total loss statement from the lienholder or insurance company can be used in place of the odometer statement.
- Any outstanding claims paid will be deducted from the final refund amount.
Online Contract Cancellations Now Available
Starting March 31, 2020, we’d like to make you aware that Alpha dealers will be able to submit contract cancellations online at the Alpha Warranty Zoom website. If you are a dealer that does not have a ZOOM account, you can work with your Alpha agent or contact Alpha Warranty Dealer support at email@example.com or by calling 800-662-5519 opt 5.
While no one likes receiving a request to cancel a contract, we hope this online tool will make it more convenient for our dealer partners to submit any such requests that are made. Finally, please note that starting July 1st, 2020, we will require that all cancellations are to be submitted through Zoom. After that date, we will no longer accept faxed, mailed, or emailed cancellation forms.
To watch how easy it is to submit a cancellation request through Zoom, please watch this short video
Dennis Tate is the Sales Operations Manager at Alpha Warranty Services