Have you noticed an increase in the number of car warranty offers you’ve received in the mail? you’re not alone. Many consumers have reported receiving postcards informing them that their car warranties are about to expire.
For more information on how to extend or upgrade your vehicle’s warranty, the instructions recommend calling the toll-free number on the card. If you were thinking of accepting his offer, reconsider. Many of these guarantee offers are nothing more than scams.
Your motor vehicle registration and service history is stored in the Motor Vehicle Service Notification Record ID. calling the toll-free number provided will help you maintain optimal protection and performance.
The notice may come from the vehicle’s factory manufacturer and contain all the verbs necessary to convince anyone that the notice is genuine. but does it ignore the notification with the indicated consequences?
How do you know if your warranties have expired?
In most circumstances, they probably won’t, but because state motor vehicle data is public, they may know that you own, say, an eight-year-old SUV and its vehicle identification number. Because the warranty on most cars that old will no longer be available, telemarketers need to make educated guesses about who would be the right candidates.
how does the scam work?
A vehicle service notice is a mechanism for the manufacturer to warn you that your extended warranty is about to expire and give you enough time to decide how to proceed. It works in the same way as an internet, cable or cell phone contract, although in a more sophisticated way.
The motor vehicle service notification letter itself may appear legitimate, with all the proper markings and seals, as well as a security seal. when you open it, you will discover that it contains information about your vehicle, some of which is not publicly available. there will always be a 1-800 phone number you can call to schedule an extension of service.
The critical information about the car is what makes the fraud look legitimate and leads most people to believe it is genuine. however, much of the information used can be obtained by performing a basic vin check. go to your car and look at the bottom of the windshield on the driver’s side; there is a small part where you can see a series of numbers and letters. This is your vehicle’s VIN, and can easily be reproduced by a scammer in a public parking lot. the vin contains a wealth of information about the car, making it an invaluable resource when shopping for a used vehicle.
It’s easy to understand how this information could be interpreted to lead you to assume that the letter came directly from the dealer or manufacturer. the scammer has access to your car’s make, model, engine type, and last recorded odometer reading, allowing them to simply concoct a scenario where your car has traveled too many miles to be covered under warranty, and the only option is to renew it.
Some scams are outright thefts, where you wire them money only to never hear from them again. however, the vast majority of scams are completely legal. they convince you to take out an insurance policy, but the contract is written in such a way that you can never claim it. The most common is to claim your car has been misused, regardless of the problem, which automatically voids the warranty you paid hundreds, if not thousands, of dollars for.
Here are some tips for spotting fraudulent notification letters:
- the letter cannot start with your first and last name; instead, you can start with “dear ford owner” or other generic terms.
- the body of the letter is authoritative and even frightening, so you respond quickly and without thinking.
- Important information is missing, such as purchase date, contract code, engine number, etc.
- includes what appears to be important information that can be easily obtained with a vin check.
- The only way to get in touch is through a phone number.
- the letter lacks company information.
how do you get away with phone calls claiming to be from auto warranty companies?
This is not a new scam, but it has reached unprecedented levels. Automobile warranty calls and letters were the most frequent call complaints recorded by customers in 2020, according to the FCC, and this trend is expected to continue. you can be sure these scammers are making a lot of money, as they wouldn’t use this method if they weren’t.
Scammers try to sell you a $3,000 car warranty while ignoring the national do not call registry. They trick you into thinking they’re extending your current warranty. this is misleading and certainly illegal.
To make matters worse, you can’t just block calls. the technology spoofs area codes and phone numbers, ensuring that the same number never contacts you twice. This is bad news if you wait for the operator and want to be removed from the call list. You just proved to the robocaller that you are not a robot. that means there will be even more calls. what happens if you take the bait and buy a plan? You probably won’t know it was all a fraud until you have a problem with your car and you know the warranty is invalid.
what to do
Check with the manufacturer if you receive a letter, postcard, or phone call informing you that your car’s express warranty is about to expire. it could be a car warranty fraud. do not call the number on any letter or postcard you receive, even if it appears to be from the manufacturer. could be a fake.
Do not purchase a service contract if your vehicle warranty has expired or is about to expire. instead, plan on buying a reliable vehicle and maintaining it according to the manufacturer’s recommendations. then self-insure by saving the money you would have spent on a service contract and putting it toward any necessary repairs or maintenance.
If you feel compelled to purchase a service contract, consider one offered by the automaker. Third-party contracts are notorious for having fine print that excludes numerous types of repairs and denies claims for what the provider deems to be a pre-existing condition. Repairs required due to normal wear and tear may also be excluded.
never sign a contract for any good or service without first reading the terms and conditions, no matter how long the company says you have to change your mind. If a seller pressures you to make a purchase right away, walk away.
Here are some additional steps you can take:
- Protect personal information: Never give out personal information such as your social security number, credit card information, driver’s license number, or bank account number.
- double check: If you think you’re talking to someone from the dealer where you bought your car, hang up and call back using a number you found on the company’s website.
- Don’t click any buttons: Pressing buttons during an automated call can lead to more calls. just hang up the phone.
- Screen Incoming Calls: If you have caller ID and you don’t recognize an incoming call, don’t answer it. if it’s urgent, they’ll leave a message and you can check the number to make sure it’s legitimate before calling them back. a quick google search can reveal a lot.
- be careful with all numbers: be careful even if a number appears to be genuine. Thieves have the ability to spoof phone numbers so they appear to be calling from a trustworthy company.
- File a complaint: Although it only takes a few minutes, it can help authorities track down scammers and put a stop to these harmful calls. You have the option of filing a complaint with the FCC. alternatively, you can file a complaint with the federal trade commission.
need an extended car warranty?
Now that we’ve gone over the service notification, let’s talk about the car’s extended warranty. first and foremost, it is not a warranty, but rather an insurance policy put in place to safeguard the consumer from having to pay for expensive repairs and parts. extended insurance coverage is available through the manufacturer (oem) or third-party providers.
oem policies include powertrain or “bumper-to-bumper” coverage. the engine and transmission are covered by powertrain insurance, while full coverage includes interior electronics and other equipment. third parties develop a variety of packages that are generally less expensive than those offered by the manufacturer; however, repairs and components used are not guaranteed to be of oem quality.
So the question is, do you need any of that? the answer is determined by the age and type of vehicle being purchased.
reasons to avoid buying an extended car warranty
Dealers will strongly encourage you to buy an extended warranty with the car, but if you buy a new car, it already comes with a three-year/36,000-mile warranty. you can effectively postpone the purchase of the extended warranty from 2.5 to 3 years and still receive full coverage.
The reason dealers are so adamant about selling you an extended warranty is that it allows them to earn the most money in commissions. the dealer keeps half of the money you spend on the extended warranty, making coverage twice as expensive as it should be.
Consider your buying habits: Will you keep the car for three, five, or ten years? if you plan to sell before the warranty kicks in, you don’t need it. For some used cars, the cost of the warranty can be as high as the value of the car, rendering the warranty worthless. While an extended warranty can give you peace of mind, it’s only worth it if it’s used to cover an expensive repair.
When you think about it, I’ve read about a notion that makes a lot of sense. Set aside some money if you’re buying a car from a brand known for its reliability, like Honda or Toyota, instead of getting the extended warranty. If your car breaks down, you’ll be able to pay for the repairs, but it’s much more likely that when you sell it, you’ll be able to keep most of your savings.
reasons to buy an extended vehicle warranty
The main reason to purchase an extended warranty is if you are buying a car with a history of breakdowns or expensive parts. Mercedes-Benz and BMW can be quite expensive to maintain, while British cars are notorious for falling apart. you can end up saving several times the initial cost with an extended car warranty.
Performance cars, sports cars, and conventional models that have been tuned to produce maximum power have substantially shorter lifespans because you can’t have all that power without sacrificing something. As a result, they are a good option for an extended car warranty, ideally OEM, to benefit from high-quality replacement parts.
summary
When it comes to motor vehicle service notifications, there’s no need to rush. instead, call your dealer or the place where you bought the coverage and make sure they gave you the notice. Otherwise, ignore it because it’s a marketing ploy that isn’t legally a scam.
many drivers choose to purchase an extended warranty to be worry-free and not have to worry about the costs that may arise. Because it’s up to the insurance provider to determine if your driving was the cause of the damage, there’s a good chance you won’t get coverage even if you pay for it. If you want to purchase an extended car warranty, make sure you get it from a legitimate company.