When you buy a car, it often comes with a manufacturer’s warranty that covers major repairs. this warranty will be limited to a certain number of years or miles. When that time and/or mileage is about to expire, vehicle owners will have the opportunity to legitimately extend the warranty period.
what is a motor vehicle service notification?
This is a notification, usually an unsolicited letter or postcard, warning you that your car manufacturer’s warranty is about to expire. will ask you to extend the warranty by calling a toll-free number. These notifications may accompany phone calls urging you to extend your vehicle’s warranty.
These motor vehicle service notifications often claim to be from the dealer or manufacturer, but a significant percentage are not. however, take a look and anything you claim to the contrary.
In truth, these notifications are actually from extended warranty companies. some of the companies may be legitimate, but many are not.
Warranty scams are surprisingly common, so it’s essential that you do your homework. In fact, the Federal Trade Commission warns consumers not only to trust vehicle service contracts that arrive in the mail, but also to accept warranties from their dealers first.
Many vehicle owners who purchase these extended warranties find that they don’t cover most repairs (regardless of what the policy agent claimed at the time of purchase), so they’re not worth the paper in the that are written. other vehicle owners will find that these extended warranty companies change their phone numbers or go bankrupt quickly.
even when companies are legitimate and do not go bankrupt overnight, as is the case with many of these types of companies, the cost of a policy is very high; it is difficult for most vehicle owners to justify, as its price will far exceed the costs of any necessary repairs during the covered period.
The simple truth is that most people who buy these policies don’t use them at all, making them (most of the time, anyway) a waste of money.
False motor vehicle service notifications may use terms like “final order notice” or “discontinuation notice”, implying that you should contact them urgently as if it were an obligation on your part. you probably don’t have to do anything at all. There is seldom the urgency that these notifications convey, and the best place for them is often the Trash.
why did you receive the notification?
You will receive these motor vehicle service notifications if your vehicle’s manufacturer’s warranty is about to expire (and sometimes even when it isn’t). Sometimes you may receive these notifications when you no longer own the vehicle.
You may get genuine notices from your dealer or manufacturer when the time comes, but neither of these should bombard you with mail if this is the case. they will, of course, have your details as you provided them when you bought the car.
Third party extended warranty sellers will have your data because your dealer (or possibly someone else) sold them your information. The fact that someone has some details about you and your car does not make them legitimate, however, the legitimate appearance of the card or the authenticity that rings on the phone.
These fake motor vehicle service calls and/or notifications will contain just enough information about your car’s make, model and year of manufacture to convince the unsuspecting that it’s real. many will have (fake) logos of the manufacturer, dealer, or even the Department of Motor Vehicles stamped on them.
You should never deal with such a company, even if they offer what appears on the surface to be a great deal. An honest company providing honest service does not have to resort to such tactics as their service should surely speak for itself. they don’t need to pretend to be anyone else.
The notice will try to convince you to renew or extend the vehicle service warranty and may even try to persuade you that you “owe” because your finance company requires it.
how do you know if the motor vehicle service notification is real?
signal 1: the notification arrives at the right time
Authentic notices are sent when the current manufacturer’s warranty is about to expire or has expired.
The normal manufacturer’s warranty covers basic vehicle parts and lasts 3-5 years or 36,000-50,000 miles, whichever comes first. If you are receiving notifications and your original warranty has not yet expired due to age or miles, you can be pretty sure the notification is fake.
sign 2: the notification has its basic information
A legitimate motor vehicle warranty expiration notice has your basic (correct) information, plus the correct year and mileage of your vehicle as last known serviced. it is not missing these details nor is it wrong with these basic details.
sign 3: the notification has the correct purchase price of your vehicle
A genuine claim has the correct original price of the vehicle. You will not miss this information or make a mistake,
sign 4: the notification has the name of a company
A legitimate motor vehicle service claim will have the name of the business. If the letter or postcard doesn’t have a company name on it, then it was sent by a scammer.
sign 5: the company name and phone number in the notification match the manufacturer’s warranty
You can tell if you are dealing with the same company that provided the manufacturer’s warranty by comparing the details on the postcard or notification letter with the details on the original manufacturer’s warranty. the company name and phone number must match exactly.
If you can’t find your original documentation, check the company’s (real) website, not the web address provided in the notice. then compare the phone number on the website with the phone number on your notice. alarm bells should ring if the details differ.
sign 6: the notification was sent from the company’s known location and not from a different state
be careful if the notice was sent from out of state.
sign 7: the company’s customer service agents treat you with courtesy
A legitimate company will not try to scare you or hard sell you or tell you that you “must” have it.
signs your motor vehicle service notification is a scam
1. signal 1: the notification does not arrive at the right time
If you receive a notice and the OEM warranty is nowhere near extended based on the age and/or mileage of your vehicle, you can be pretty sure the notice is a scam.
sign 2: the notification lacks basic information or the basic information is incorrect
A scam notification, while it has some information, is unlikely to have all the correct basic information about you and/or your vehicle, such as your vehicle’s mileage from its last known service.
sign 3 – the notification lacks the correct purchase price of the vehicle
A genuine claim has the correct original purchase price of your vehicle.
sign 4: the notification lacks the name of the company
A genuine notice will have the company name.
sign 5: company name (if any) and/or phone number does not match manufacturer’s warranty
It should be obvious that these are scammers. both details must match exactly.
sign 6: the notification comes from a different state than where you know the manufacturer is located
this could be a warning sign that you are dealing with scammers.
sign 7: agents insist on the phone
Scammers don’t like to give you a moment to think about it. they will use scare tactics to bombard you to sign up and sign up right now. They can even become rude and disrespectful if you hesitate or ask too many questions. the best thing to do when this happens is to hang up.
sign 8: they greatly exaggerate likely future repair bills
Scammers will use wildly inflated figures about what future car repairs could cost you to justify their expensive (and often unnecessary) extended warranties.
signature 9 – they say that their financial company requires it
This is highly unlikely to be the case. this is a scare tactic to fool the unwary. There is an easy way to confirm if your finance company really requires it: call them and ask them.
what to do to protect yourself from motor vehicle service notification scams
caution 1: know that these guarantees are generally not necessary
As stated above, even if the extended warranty comes from a genuine company, they are rarely profitable for most motorists, and most finance companies will not require them either.
caution 2: do not give out your personal information
Never give out your vehicle identification number or driver’s license number to anyone, or any other personal or financial information. Not only could you be scammed by a lousy extended warranty, but you could end up in a much worse situation with identity theft.
caution 3: check your documentation
Always keep the manufacturer’s documentation that came with your motor vehicle. if you have lost or misplaced it, you can obtain copies by talking to the dealer or manufacturer. this will come in handy for times like these.
Take a look at these original papers that came with your vehicle and verify if your warranty has really expired or not due to the kilometers and/or years that it has been used.
verify that the other basic details are correct and complete. wrong details and/or missing details indicate it is being sent by scammers. some information is not enough. everything has to be correct.
then take a look at all the other details of the notification. confirm that the company’s phone number matches the number on your original documents or the manufacturer’s official website (not the one on any notification, as it could be fake).
If the phone number doesn’t match, call the number on your paperwork or the number on the website and ask if the notice you received was actually sent by them. Also, see where the notification was sent from. if shipping from another state, then you know where the manufacturer operates; that’s a warning sign.
everything else must match, including a watermark, if any. the quality of printing and paper can also be another great giveaway.
caution 4: read the fine print before signing
If you really think you’ll find one of these useful, read the fine print before signing anything. These warranties typically come with a host of exclusions hidden in the fine print, regardless of what the agent tells you over the phone.
If the agent doesn’t want you to see the fine print, that’s a red flag. be careful if they want you to decide right away too. Legitimate companies that offer authentic services give customers time to think things through and check things out.
caution 5: ask your dealer
Contact your dealer and ask them about motor vehicle service notification. if it’s real, they’ll soon tell you.
Is it a requirement to buy an extended warranty after buying a car?
Extended warranties are sometimes sold at the time of purchase. these are normally entirely at your discretion. you shouldn’t have to buy one, even if you buy the car with financing.
some unscrupulous dealers will tell you that you need to purchase an extended warranty.
When new vehicle buyers realize the extended service contract was unnecessary, they are locked into a costly contract that they cannot cancel. check with the finance company directly before signing anything.
Dealers have been known to try to sneak into an extended service contract without your knowledge. always read your paperwork carefully and if you notice a service guarantee fee you didn’t ask for, remove it before you sign your loan document.
Buying a car, not to mention owning and maintaining it, is a big deal, so it’s crucial you know what you’re getting into.