Aug
31

Leasing Scams: The Extended Warranty

This leasing fraud happens when the car dealer sells the customer an over-priced extended warranty on a lease vehicle. Unsuspecting consumers purchase there warranties not knowing that the vehicle is already under warranty during the entire period of the lease. According to the research conducted the extended warranties are high-profit items for most car dealers, that is why they try to add it to every contract- even when they are not needed.

The car dealer will, most likely, try to get you into the deal by telling that he offers a special price on the warranty and that it won’t be available later during the lease or at the end of the lease when you decide to buy the vehicle.

Another dealer trick used is when the dealer tells the customer that the warranty is refundable if you turn in the vehicle at the end of lease. This is simply not true, so when the dealer offers you this option just refuse.

The best way to avoid the extended warranty scam when leasing a vehicle is to sign a lease for no longer than the manufacturer’s warranty period. Always remember that you lease the car and don’t own it.

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3 Responses to Leasing Scams: The Extended Warranty

  1. Mike says:

    Attn Mr Knokes Owner
    Antioch Chrysler – Jeep – Dodge COMPLAINT
    1810 Auto Center Drive
    Antioch ,Ca 94509 SERVICE DEPARTMENT
    Sept 10th 2009
    Re : Invoice # 151746 Sent Via fax
    925- 754-5837

    Dear Owner , I brought my 2006 Town Country Van to your facility for repair of my rear
    Sliding Passenger door , Service advisor # 86 Beranardus wrote up the repair order I advised
    your service writer the door did not open from the inside and the door did not close right .
    And the paint was peeling off the right window trim where the door track ran on .

    I also asked him if the car was still under it’s factory warranty he stated yes it was I then
    went to look at new cars and got a phone call from your service advisor telling me the key
    was locked it the van , I told him I gave you the key and the van was still open when I Left
    he stated do you have a spare key so I can move it I told him I was 125 miles from home .
    Your adviser said don’t worry about it I will figure it out .

    I got picked up by a friend and was waiting in the area However I do have first day rental coverage your advisor said it would be taken care of that day , I called at 1:45 pm to check
    on the car , your service advisor said the door is fine opens from inside can not find any problems
    I told him the door does not open close right , and will not open from the inside he said let me
    have my guy check it again . Your adviser calls me back at 2: 25 pm and says they found a cable
    that had fell off the door on the inside , and the door now works great . Ready for pick up .

    I arrived at back at 3:25 pm Your service advisor directed me to the cashier to sign the paper
    work . I did so and the went back out to the advisor to get the Van keys he had the van brought
    up First thing I noticed a bird crapped all over my front windows , and I tested the door my self
    Yes the door did open from the inside now but still did not close right and the paint that was peeled on the window trim was not addressed at all . I went back to him and said what’s going
    on here the door still does not close right , and what about the paint , he said your right the door
    does not close right and the roller on the door is the cause to the paint peeling he said let me get
    my tech back here to look at it . The tech looked at the door and told him it was out of adjustment and the door roller was hitting the paint , then your service advisor stated , that is
    no covered under the warranty , At that point I was really pissed off after waiting all this time
    to get no results . Other than bird crap on my window and more song and dance .
    What a night mare from hell dealing with your service department . Cat and Mouse Game .

    I will be making a complaint with Chrysler and the better business Bureau along with Complaints
    Board . Com from start to finish your company get’s a hands down in service .

    SO MUCH FOR MY WARRANTY AND THE ONE I PAID 2 K for

    Thank You
    ####### #####
    Cc: Chrysler Corp Cc: BBB Cc: Cc: CBDC

  2. Margarian says:

    Thank you for sharing your experience on our blog. If the dealership has still failed to address your concerns please call my office and we will intervene on your behalf.

    - Hovanes Margarian, attorney at law

  3. Clyde says:

    It’s really a great and useful piece of info. I’m glad that you shared this helpful info with us. Please keep us up to date like this. Thanks for sharing.

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