Unfortunately, offering an extended auto warranty is a hook sometimes used by scammers and questionable businesses. They will find you and advertise these service contracts as a cost-effective way to repair older vehicles. But are they?

Some consumers have discovered that the “extended warranty” they purchased is not the same as the warranty that came with the car when it was new; and instead, that coverage is limited to certain parts and by numerous exclusions and preconditions. 

Spot the scam:

• Someone trying to sell you an extended warranty is using high-pressure sales tactics to create a false sense of urgency using language like: “Warranty Expiration Notice,” or “This is your FINAL warranty notice.” 
• You get a “Warranty Expiration Notice” in the mail that is disguised to look like it is from your car manufacturer, a dealer, or the state motor vehicle department.
• You are on the Do-Not-Call List and you get a call from someone claiming to be selling extended warranties so you can avoid an interruption of coverage.

Learn More About Auto Extended Warranties