Warranty Scams: What you need to know

You may have recently received a letter, a postcard, an email or a phone call that looks or sounds very important concerning "your expiring auto warranty."

That eye-catching correspondence usually has the words "final notice" attached to it aimed at forcing you into a panic. When we are harried like that a lot of us tend to make irrational decisions. In this case, that bad move is to shell out our hard earned money on something that really doesn't help us at all.

Car warranty scams are something that have increased greatly over the past few years. The Better Business Bureau reported last year that over 1200 complaints were made to its company about predatory extended auto warranty companies. Those evil outfits are especially on the prowl during income tax refund season because they know most of us have extra money to spend. The last thing you want to do in February or March is fork over the federal money you banked in the previous 11 months to sleezy scam artists. If you don't want that to happen, read the next few paragraphs carefully so you can recognize when a warranty is warranted.

The best warranties to purchase are the extended ones offered through your local car dealership or a another reputable party who works in conjunction with your car dealer of choice. Later, you can read the factors that make up the best extended warranties, but first let's seize these scammers.

A third party scammer has no direct business relationship with the product it covers....namely your car! A manufacturer's warranty uses original parts on your car and factory trained technicians to tend to it. There is no such attention to detail by these third parties. When a telemarketer calls you about extending the warranty on your vehicle please excuse yourself from the call. Telemarketers should never be calling on behalf of a warranty company and in some instances they may be breaking FCC rules. The caller should always provide his/her name, the name of the business they represent and the number should appear on your caller I.D. If a message is left, the caller must identify the business represented and leave a return phone number. In the case of a warranty scam artist, these steps are grossly skipped. If you do choose to talk to these "helpers" please never provide any personal information. If you get a letter or post card in the mail that has the looks of something official you can either use it to help keep the flames roaring in your fireplace or you can call the sales associate or dealership you bought your car from and ask them about it. If you bought your car from a private dealer then you know for certain that this piece of mail is junk. An email from a scamming company like this usually will fall into your junk mail where it actually belongs, but in the case it doesn't, there is no reason to respond to it unless it came from your sales associate or dealership. Also, be leary of any company that provides "limited time offers" or trashes another company's reputation on its advertisements. That's not only tacky, but it also screams scam!

As mentioned previously, the best extended warranties are bought at the dealer or through an organization that your dealer recognizes. The average cost of a warranty is between $700-$2000 depending how in depth you want to go. If you want the extra protection, make sure you know just what is covered by it and what isn't. There are six things to look for that are vital to have if you are buying an extended warranty. That sensational sextet are: using a company that allows repairs at any ASE certified shop, choosing a warranty that pays the entire bill for you up front and doesn't make you pay for it first then wait for reimbursement, make sure the warranty is transferable if you sell your car, demand that the warranty takes effect the day you purchase it, check that the company you buy from is highly insured and uses a top rated insurer for their "claims reserve account" and be positive that you can cancel your warranty within 30-60 days if you decide to and receive a 100% refund.

No matter which warranty you choose it will still behoove you to do the routine maintenance on your vehicle as scheduled and to keep proof of that work. Some companies, even if they are trustworthy, will use the excuse of a lack of maintenance as a way to weasel out of doing repairs.

If you feel you have been the victim of a warranty scam by a telemarketer and want to file a complaint you may contact the FCC at: fcc.gov/complaints or call 1-888-callfcc (225-5322). You may also contact your local Better Business Bureau to investigate any info you receive in the mail.

Getting your oil changed at your local dealership versus your local quick lube

Going to the dentist is a biannual event that most of us despise doing.

The automotive equivalent of getting your teeth pulled is taking your beloved vehicle in for an oil change. One of the main reasons this task inflicts so much pain on us the consumer is that we really aren't sure what is best for "our babies" when it becomes time to make that change. There is a small percentage of car enthusiasts who are very adept at, and find it very enjoyable, to do their own oil changing. For the rest of us who are not so mechanically savvy, there are questions that need to be answered before sinking our hard earned money into lubing our cars.

Years ago, about the only place to take your car for a complete oil change was the dealer where you purchased your prized possession. Over the past couple decades more and more quick lube shops have popped up offering ten minute service while you sat in your car and, more importantly, discounted prices. It's hard to determine which avenue is the better one driven, but there are some things you should consider before choosing between the dealer and "Mr. Quickie."

Money, as is usually the case, is a great place to start this conversation. A normal oil change will cost anywhere between $19.99 and $39.99. Now there are exceptions such as the sensible shopper who clips coupons that may save them as much as 20%, to the paranoid person who always seems to think what they are receiving in service is never enough and tends to buy "add ons" that increase the final total. For argument's sake let's assume the average cost for an oil change will be $30.

So what should I expect for that decent sized fee? No matter where your oil change is done, it should always include a few standard procedures. The mechanical metamorphosis will start with draining the old engine oil. Removal of the old oil filter and replacing that dirty part with a new one will be the next step. A new crush washer should now be installed followed by proper torquing of the drain plug. One important detail to remember is that the new oil that is poured into your engine should always be filled at proper weight. We are now out with the old and in with the new.

While staying strapped in your seat and spending less time getting your car serviced than it normally takes to get through a Starbucks drive-thru may sound appealing, waiting at the dealership does have its advantages. First off, most dealerships are equipped with state-of-the-art waiting rooms that offer big screen televisions, comfortable leather chairs and free wi-fi. Secondly, complimentary refreshments are on hand to keep you satisfied. While your sipping a soft drink and checking the internet, your vehicle is going through a thorough examination by someone who is trained to take his or her time. The specialist at the quick lube is proficient at changing oil and filters and filling tires, but the mechanic at the dealership is certified to find other things that may be happening to your car that is totally unbeknownst to you. If a part is needed to fix that unforeseen ailment, there's a great possibility it's in stock at the dealership and you won't have to come back to get it serviced again. Also, these same mechanics get paid and graded by the job meaning their performance may be taken more seriously.  Some dealerships also offer free car washes with each oil change, a discount on tire rotations and a "discount card" that has you pay for a certain amount of oil changes before receiving a free one.

If managed well, the quick lube shop is still a viable option too.  Although, a lot of dealerships offer no appointment oil changes you still may have to wait up to an hour before your car is completed. There is a lot to be said for cruising into the quick lube at lunchtime, getting the oil changed and still having time for a sandwich and fries before heading back to work. Just make sure that quick lube establishment you choose is reputable, the service technicians are knowledgeable and you get the complete service you are supposed to be getting without any up-sale.

That leads us to our final piece of advice on oil changes, which is avoiding a rip off. We all work too hard to spend our money foolishly. Spending too much when you are falsely advised it is necessary is downright aggravating. Whether you go to the quick lube or dealership, there is usually a basic oil change and a signature oil change offered. On most occasions the basic one gets the job done, but if the signature satisfies you more make sure it is worth the extra money you are spending. 

It is important that a new filter replaces the old one so before you go for the oil change put an X on the old filter with a sharpie. If the "replacement" filter still has that mark on it, make sure you speak up. If you are paying for extra services that are not part of the basic plan, get proof that those services are performed. 

The good thing these days is that, unlike in our father's time, our new cars don't need to have the oil changed before 5000-7500 miles. In most cases that cuts our trip to the quick lube or dealership's service department down to twice a year. A lot of vehicles even alert us when our oil needs replaced giving us something that is valued by us all.....one less thing to worry about.

Fred Martin's award winning service department is here to answer any additional questions you may have about your car.  Feel free to call us at 330.793.2444.