Car Buying Scams: Extended Warranty
The front end of the car deal is not where auto dealerships make the most money. Certainly, they make profit selling new and used cars. But the real money they make of the customers is using car buying scams. They could sell add-on products, including extended warranties.
Actually, an extended warranty is a service contract. It specifies repairs and maintenance on the vehicle for one or additional years after its original warranty has expired. Either car dealer os brokers can sell extended warranties. At first sight, buying it seems to be a benefit and is not associated with any of car buying scams. But in most cases, the its cost outbalances the cost of possible repairs. Some dealers may offer extended warranties for up to $2,500 – $ 3,000. No logical mind will give his consent to pay such a huge amount of money for the warranty.
As the dealers` attempts to ask customers to buy an extended warranty in major cases are doomed to failure. They use different tricks and scams to include it into car purchase contract. There are several excuses a salesperson can present. One of the justifications for a warranty scam is that a financial organization wants to safeguard itself from problems which may arise if a vehicle breaks down.
If a dealer forces you to buy extended warranty, don`t yield, always remember that credit organization has no legal grounds to impose extended warranty or other insurance packages. Deceitful dealers can include extended warranty in car purchase contract without disclosing it, so be careful when signing any paperwork.
What to do?
In case you fall victim to any car buying scams, including extended warranty scam contact dealer fraud attorney Hovanes Margarian for free case evaluation.