You bought a brand new Ford truck. A while after your purchase you get this letter in the mail that appears very official. It’s from the Vehicle Services Department. It has “important” bolded and in all caps with an exclamation point written across the front. Your pulse starts soaring as you race to rip it open.
As you read the letter, you realize it is from a warranty company. It states that you can extend your vehicle warranty now and save. You’re thinking this might be a good idea. But is it for real? Maybe you got a phone call from a representative claiming that your warranty is about to expire. But is it a scam? Is it from a reputable company you want to deal with?
What is a Vehicle Warranty?
A vehicle warranty is given by your vehicle’s manufacturer with no additional cost associated with it. It is coverage from the manufacturer where they agree to repair the vehicle due to defects in their installation or design.
What is an Extended Service Contract for a Car?
An extended warranty is a vehicle service contract purchased to give the buyer coverage beyond the vehicle warranty provided by the manufacturer. It is typically purchased when you buy your new car and kicks in once the manufacturer’s warranty on your car expires.
What is a Vehicle Warranty Scam?
Not all extended service contracts are created equal. A vehicle extended warranty scam is when a business or a person sells a service contract for your vehicle that is not real or the coverage is incomplete. It might use deceiving language to trick you into buying coverage when you may already have it.
There are a few things to understand about these types of solicitations. These companies may not know that you own a car. They don’t know whether or not you have a warranty that is expiring. The business contacting you is NOT coming from your manufacturer (OEM) such as Ford or Nissan, but a third party. Since they are not from your OEM, they can’t extend your vehicle’s warranty.
An example of a service contract request via mail:
“Our records indicate that you have not contacted us to have your vehicle service contract activated. We are informing you that if your factory warranty has expired, you will be responsible for paying for any repairs. However, if expired, you can still activate a service contract on your vehicle before it’s too late.”
You may receive a fake warranty expiration slip with a toll-free phone number to call. The warnings may have bold text such as Final Notice. This can be scary!
An example of a service contract request via phone call:
“We are contacting you because your vehicle warranty will soon expire and want you to know you can extend your coverage.” High-pressure tactics are used such as this is a one-time-only offer and states how easy it is to cancel if you aren’t satisfied. You may also hear that your current warranty will be cancelled if you don’t sign up.
Steps You Can Take to Protect Yourself
In any case, you can call us for assistance. If you bought your vehicle from us, we can verify your existing coverage.
If you’re getting scam mail:
Read the letter closely. If the letter is legitimate, it would come from your manufacturer. The letter might have a phone number on it. Look up the phone number to confirm who it belongs to. You may notice on a scam letter that there is no vehicle information such as a year, make or model. There is no policy number. This a red flag!
Check your current policy. Upon buying your service contract from us, we provided you with a copy in a special envelope to conveniently place in your vehicles’ glove box. You can also view your purchase documents. The policy states when it will expire.
If you are getting scam phone calls:
Never give out personal information such as your social security number, credit card information, bank account information or your driver’s license number.
Don’t press any numbers. If so, the scammer will know they are speaking to a real person. Just hang up.
If you don’t recognize the incoming call, don’t answer it. If it is a legitimate call, the caller will leave a message. In the case it is a message regarding your extended warranty, do a quick online search. You can call back if it’s legit.
If you do end up speaking to a fraudulent company, asked to be put the the Do Not Call List and block the caller. If needed, tell them you don’t own a vehicle or that you already purchased a policy.
List of Service Contract Companies
While there are legitimate companies out there, there are bad ones, too.
Here is a list of some of the service contract companies out there.
- Endurance
- CarShield
- EasyCare,
- ProGuard
- Carchex
- CompleteCar.com
While some of these may be legit, their approach may be questionable with confusing and perplexing notifications.
Wendle Wants to Keep You Protected
We want to make sure that you and your vehicle are protected. We want you to be aware that if you purchased an extended warranty, don’t pay for another plan from an erroneous company. Check your paperwork and/or check your glove box for your current policy. If you still have concerns, by all means, reach out to us to confirm your vehicle service contract. You can easily contact us online with your questions and we will get back to you. We can let you know if your vehicle is still under warranty and all about your extended warranty.
If you decide that you want to purchase an extended warranty, we can help with that. Our finance managers can explain every aspect of the policy to you and make sure you understand what is covered. If you find yourself in need of service for your car, be sure to schedule an appointment online. It’s easy and convenient to do.
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