What Is An Extended Warranty Scam?
Many people wish to extend the life of their auto warranty for better and longer lasting coverage on their car, truck, or van. An extended warranty is cheaper than regular warranty coverage; you will save hundreds, maybe even thousands on future maintenance and repair costs. However, instead of using a trusted and reputable dealer ship or other company to renew and extend their warranty, most have started using third party sellers and business. While most third party vendors are completely legitimate when it comes to buying warranties, and a few may even give you a special discount or better deal, about fifty percent or more of third party sellers are pure scam artists, fly by night companies, and less than reputable businesses.
Examples Of Extended Warranty Scams: Signs To Avoid
Many extended warranty scam artists and businesses will attempt to push their product over the phone or though the mail. The sales people for these companies tend to more aggressive and confusing than normal. They will try to push you into buying by claiming that the warranty deal will end as soon as you hang up the phone, or they claim to offer a free discount or other shady deal. Beware of extended car warranty scams unsolicited phone calls and emails. Also, resist the strong temptation of the “too good to be true deal”.
Another trick that famous scam artists often use when selling fake warranties is the “give us your personal information or else” trick. This involves asking for your personal information, such as your bank account information, and threatening to blacklist you and your vehicle so no one else will want to your car. This list does not exist, however many people have been deceived by this type of scam. Never give out your credit card, Social Security, or bank account numbers for any reason.
Before you buy and extended warranty from any company, make sure you check all of their credentials, including their background. Do research at the BBB and other websites, and also look at what other people have to say. If you see a company with bad or mixed reviews, avoid them. Also avoid small start ups that have been around for less than five years. These companies are more than likely scam and fake companies.
Finally, try to get your extended warranty from your car’s manufacturer or dealer ship. Those two are the most legit ways to get an extended warranty. Make sure you get everything in writing, if you don’t see the paper work, do not buy the warranty. All legit companies will offer you some sort of contract or agreement. Be wary of businesses that offer you no contract deals and no paper work to fill out. These companies are merely hiding the fact that the warranty really doesn’t exist and you are being scammed. Also check review sites like BestReviewsHub.com and business review sites like the Better Business Bureau.
What To Do If You Do Get Scammed
If you do get scammed by a third party warranty dealer, and especially if you have lost large amounts of money, quickly file a report to the BBB or FTC. Do take note however, the FTC is not for single consumer complaints. Instead, the FTC will start an investigation and prosecution against the company based on your evidence.
Maintaining a car without a warranty will put dents in your wallet. As it is, you already know about the the rising cost of fueling your car, fixing or replacing parts and so forth. Without taking a car warranty policy, the cost can easily triple. Again, a warranty will help you fix unexpected repairs easily and cost effectively. It saves you when you’re about to deal with expensive repair bills at the mechanic’s garage.
Why this is not a joke
If you just bought a new car, chances are that repairing it will be the last thing in your mind. In fact, if you’re lucky, you will end up going for months or years without having your car develop some complications. However, the problem is, there’s no telling when faults will happen to your car or when you will need expensive repairs to get your car up on the road. Mechanical and electrical failures are the most common problems cars will face, and as anyone who has handled these problems will tell you, these are the most expensive problems to fix. This would be a major setback if you heavily relied on your car for moving from point A to B. In fact, it would be the most difficult time of your life if you entirely depended on your car.
By clearly seeing the problems you’re likely to face, it will make sense to you when you hear the words ”car warranty insurance” being mentioned. It gives you the piece of mind you need to have when you know that regardless of what happens, you will still be able to send your car to the garage. Simply put, a car warranty will cover mechanical and electrical damages. It will also take care of new parts if needed and labor costs as well.
Car warranty and stand-alone providers
When it comes to acquiring a car, many buyers opt to get new ones because of the warranty offer. However, if you decide to buy a used one from a car dealership, it will also come with a warranty. However, there’s also the option of buying a car warranty from a specialist provider. So if you happen to buy a warranty from an warranty company, you could decide to attach that warranty to any car, whether new or used. On the other hand, if you bought a car that was covered by a manufacturer’s or dealer’s warranty, you could still extend that warranty so as to cover what the original warranty didn’t take care of.
Before you buy any car warranty
Based on sites, Before you can invest in a car warranty from a specialist provider, make sure you do a little bit of research to find out if you can get a good deal from one specialist as opposed to the other. You might be surprised that some stand-alone warranty providers offer big savings than their other counterparts, and this is something you’d want to take advantage of.
The cost of a car warranty varies depending on factors like the car make, model, age, and your personal details. It’s always good to know what you’re going for and why you’re paying a certain amount.