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.
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