A theme we’ve seen on Leasehackr is buyer’s remorse—especially after buying expensive finance and insurance (F&I) products that were added to a car lease.

Marcus, a Leasehackr reader, recently signed a deal on a new Mercedes-Benz SUV and asked the Leasehackr community for help on this very issue:

I just leased a 2022 Mercedes GLE 350. Everything seemed to go well. The quoted price was the lowest among the five dealers I contacted. But when I stepped into the finance manager’s office to sign the paperwork, things went south.

The Finance Manager was incredibly pushy and insisted that I get Lease Wear and Tear Protection and Prepaid Maintenance. I caved in and agreed to both. The two items added $71 per month ($1,715 total).

I now regret my decision. Only one service is actually required during my 24-month lease, and it only costs $209 with a coupon. I’m very careful with my cars and never had an issue with wear and tear. I’m not going to benefit from either of these two warranties.

Am I screwed now? The dealer did say there’s no “cooling off” period and that the lease I signed is a done deal.

This is a great question, Marcus—as it’s a predicament that many people find themselves in. Here’s what you need to know.

What is F&I?

The F&I department is the final step of the car buying process. It’s where you go to sign your lease contract and other paperwork, and it’s the part of the dealership that sells loans and optional add-ons, called “F&I products”, on top of the vehicle itself.

F&I products include extended warranties, vehicle service contracts, lease excess wear and tear warranties, road hazard warranties, and GAP insurance. Both of the products Marcus purchased fall under the category of F&I.

The F&I department is a major profit center for the dealership, adding on average over $2,000 to the cost of each vehicle sold.

The experience can feel pushy because the goal of any successful F&I manager—who is not the same person as the salesperson—is to extract maximum profit from each consumer that walks into the F&I office.

(Here’s an entertaining training video on how F&I managers sell F&I products to hesitant customers.)

Can I Cancel F&I Products?

The good news for Marcus is that, in most states, F&I products can be canceled and refunded within a certain time period.

Generally, the consumer is entitled to a full refund of the purchase price of a vehicle service contract, such as Prepaid Maintenance, if the contract is returned and canceled within 20 to 30 days of purchase (also known as the “free-look” period). Consumer protection regulations will vary state to state.

Be sure to read the fine print of your service contract, protection plan, or warranty for the full terms and conditions. You’ll want to make your cancellation and refund request in writing and keep a copy of all relevant communication.

If the free-look period has already elapsed, you may be entitled to a pro-rated refund on certain F&I products.

Tips Before Heading to F&I

F&I is generally an unavoidable part of buying a car at a dealership. That said, you can still prepare yourself to make the best out of the situation.

1. Research F&I products in advance. Depending on how you use the vehicle, some F&I products could be of value. If so, familiarize yourself with products you plan on purchasing, including how much they commonly cost. (The Leasehackr community is a great resource for this.) Note the prices of F&I products can often be negotiated down.

2. Be polite, but stay firm. If you’ve decided that these products are unnecessary, it’s helpful to make a plan to politely say “no” to any such pitches.

3. Browse Leasehackr Marketplace. Skip the negotiation altogether and browse the Marketplace, where you’ll find sellers who offer competitive deals for the Leasehackr community. Some of the dealers on the Marketplace have discounted set prices for F&I products. You can also avoid visiting the dealership altogether by working with a broker on the Marketplace.