Leasing Scams: The Extended Warranty
Leasing scams happen when the car dealer sells the customer an over-priced extended warranty on a lease vehicle. Unsuspecting consumers purchase their 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.
One of the most common leasing scams is when the dealer tells the customer that the warranty is refundable if you turn in the vehicle at the end of the 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.