The Consumer Protection advocates

Tag Archives: forced warranty scam

Feb
23

Forced warranty purchase is a common car dealer scam practiced right in the dealership. The scenario of the scam is quite simple; the car consumer visits the dealership to choose a car. After he likes a car and performs the vehicle test drive, he enters the sales manager’s room to sign the financing documents. Everything seems to be flowing smoothly. However, a few days later, the sales manager calls the customer back to tell him the financing company requires the purchase of an extended warranty. Forced warranty purchase scam works especially well in the case of used car buying, as the used car purchasers are convinced by the dealers …



Jan
27

Forced extended warranty scam is another manifestation of auto dealer fraud. You may come across with this scam when buying both used and new cars. The scenario for the scam is the following; you go to the dealership to buy a car, you negotiate the car price, choose the financing option and leave the dealership to be called when the financing is approved. Soon, the dealer calls you to inform the bank that must have provided you with a loan is requiring that you buy an extended warranty with the car. The only justification the dealer presents for this (especially in the case of used cars), is that the …



Jul
09

Scam 4: The pay off loan or lease scam The car dealer’s newspaper advertisement is constantly saying that they will pay off your entire remaining loan or lease. This is true literally, as this is one of the most common car scams they practice. There is no hint about the consequences of breaking the loan or lease contract. Actually the penalty for breaking the contract for your current car costs thousands of dollars. Of course, the car dealer pays you off the remaining loan or lease, but the penalty of thousands of dollars is subject to you. The ads are just trying to mislead you into buying their car …



Jul
28

A Forced Warranty Scam occurs when a finance manager tells you that you are not eligible for a loan from the bank unless you pay an extra amount of money for an extended warranty. You can avoid the Forced Warranty Scam by asking the finance manager to put in writing the fact that you “have” to pay for the extended warranty in order to get the loan.  Also, you may want to tell the finance manager that you want to check with the State’s Attorney General’s office to verify that such a request is lawful.  If you respond in either of these ways, it is likely that the finance manager will …



Apr
19

Following are some other car scams you should be aware of when shopping for a new car. 1. One of the scams the dealer may use to make more profit is the VIN# Scam. This scam happens when the dealer tries to charge you for having the VIN# etched on the window, because it is required by the finance company. This is not true. 2. Another dealer fraud is the forced warranty scam when the auto dealership will insist that you purchase a $2000, 2 or 3 year warranty in order to qualify for the car loan. The dealer is simply trying to scam you and the truth is …



Feb
27

Credit score scam is the most abused scam. This is where the car dealership tells you that your credit score is lower then what it actually is in order to charge you a higher finance rate on your car loan. No one is immune to this scam because the dealership doesn’t care if you have good or bad credit when they attempt to con you. To get a solution out of this the only best way to deal with this greediness is to bring a copy of your credit score with you when you go looking to buy a new car. Another favorite scam is the forced warranty scam …



Sep
24

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