How to Prevent Extended Warranty Scam?

How to Prevent Extended Warranty Scam?

Generally speaking, purchasing an automobile is an essential investment that many people make at some point in their life. It goes without saying that any car owner strives to take care of their vehicle and keep it safe. Sometimes the vehicle fails to operate properly and repair costs may be quite expensive. Thus, here is the warranty to give you piece of mind. Unfortunately, during recent years a lot of car owners fall victims of extended warranty scams. A typical scenario of the extended warranty scam is this one. You receive a telephone call and someone informs you that your auto warranty is about to expire. Thus, ‘’a helpful’’ scammer may offer you the option of purchasing extended warranty. Here is one of the possible ‘’ending scenes’’ of this car scam.

Whenever a consumer agrees to give credit card information for processing the down payment, they will no longer hear from the scammer. Do you want to protect yourself and your loved ones from the extended warranty scam? Take a close look at these helpful tips to prevent it.

It is wiser to stick to auto manufacturer’s warranty

To begin with, the best way of preventing extended warranty scam is sticking with the auto manufacturer’s warranty. Usually, any car manufacturer offers buyers the option of buying a factory extended warranty. Although these warranties are sometimes a little more expensive, but you can take a breath with ease. The reason is that you are dealing with a trustworthy manufacturer and your car is in the right hands.

Finding out the necessary information about the company

Have you made up your mind to buy a third party extended warranty? At this point, take your time to conduct an in-depth research related to the company offering extended warranties. To achieve this goal, you can use the Internet, for revealing everything about the company. Also, consider exploring the BBB website of your state.

You should have a clear idea exactly what is covered under the warranty

When it comes to extended auto warranties, you should have a clear idea exactly what is covered. That is to say, sometimes a consumer purchases an extended auto warranty but fails to explore the document in detail. Thus, when there is a problem with the vehicle, they get very surprised. Why? Well, it turns out that the current problem isn’t covered under their extended warranty. To avoid such embarrassing situations, don’t hesitate to have a close look at the contract. In case, you don’t understand something, don’t be shy. Ask the seller to clarify what is unclear for you.

Ignore telephone calls that suggest renewing your warranty

Do you want to stay away from car scammers’ ‘’flawless’’ traps and avoid extended warranty scam? The most reasonable step is knowing the expiry date of your auto warranty. Thus, whenever a scammer calls you and tells that your warranty will expire soon, don’t panic. You should simply let them know that it is a mistake.

Don’t  give your personal data to individuals who contact you for making an auto warranty offer. 

As an informed car owner, you should be very careful when giving out your personal data to unknown individuals. It is indeed full of dangers. Thus, someone may contact you by mail or telephone to ‘’warn’’ that your warranty expires. Furthermore, they may try to convince you to provide them with personal information. For instance, they may ask for your bank account, VIN number, driver license, etc. NEVER agree to take this step.

Beware of individuals who use high-pressure tactics to sell the warranty

Nowadays a lot of telemarketers may use high-pressure tactics to make you purchase a warranty. They speak with a great deal of urgency to rush you to make a decision quickly. Don’t forget that this is something that is obviously not typical of a reputable and reliable company. Typically, they provide the car owner with the copy of the contract. In addition to that, the consumer has the time to explore the contract and think over this suggestion. Finally, to avoid becoming the victim of scammers, ask them to provide you with the copy of the contract. They can send it by email or fax.

In conclusion, you had better keep the above-mentioned tips in your arsenal to prevent extended warranty scam. Do you suspect that you have become the victim of extended warranty scam? In this case, feel free to file a complaint with the Federal Trade Commission.