Helpful Tips to Avoid Auto Warranty Scams
Many of you have probably received postcards in the mail or phone calls urging them to buy an auto warranty, but many of these unscrupulous companies simply take money from consumers and leave them with little help when repairs are needed. Read our blog to avoid these car scams.
1. Step 1
Avoid companies with little history in the auto business. If the company goes out of business, you will have to pay for your own car repairs.
2. Step 2
Stay away from any dealership that claims that you must buy a warranty in order for your financing to be approved. This is a common car scam.
3. Step 3
Say “no” whenever your car salesman tries to pressure you into buying an extended warranty or tells you that you will not be able to buy an extended auto warranty later.
4. Step 4
Avoid scams by keeping your personal information private. Don’t give out bank-account details or Social Security numbers over the phone. Never give credit-card numbers to warranty companies unless you’ve contacted the company and are positive of whom you are speaking to.
5. Step 5
Never make a down payment before you see the full written auto warranty and its terms.
6. Step 6
Be particularly wary if you are a senior citizen. Some companies target seniors with scams involving high-pressure sales calls and mailings.
7. Step 7
File a report with the Federal Trade Commission or the Better Business Bureau if you feel you have been ripped off or targeted by a scam. Also, you should report the scam to the United States Postal Service if it involved mail.