Auto Dealer Extended Warranty Fraud

Extended vehicle warranties provide coverage after the manufacturer’s warranty expires. If you purchase extended dealer warranty coverage, the dealership should fulfill its obligation to make repairs.

Making false representations about a vehicle warranty is fraud. If the dealership doesn’t honor your extended warranty coverage, talk to a vehicle fraud lawyer about your legal options.

What Are Dealership Extended Warranties?

Extended auto warranties, also known as vehicle service contracts, provide additional protection for new or used cars. They are in addition to the vehicle’s standard warranty, and dealerships may offer them for an additional cost.

Most new vehicles come with a car manufacturer’s warranty. An auto warranty ensures the automotive company will cover any defects or problems with the vehicle. Car warranties have different levels of coverage for different vehicle systems. Types of warranty coverage include:

• Bumper-to-bumper warranty
• Powertrain warranty
• Emissions warranty
• Factory warranty
• Seatbelt/restraint warranty

Dealerships can push extended vehicle warranties to get more money from a potential car buyer. Auto warranties are not necessarily a scam. But they’re not worth the added cost for many consumers. Before agreeing to an extended car warranty, understand what it covers. Consider the benefits and drawbacks of buying a warranty for a used or new car.

What Does an Extended Warranty Cover?

The warranty benefit depends on what it covers. Automaker warranties are generally clear about what is covered by the car warranty. But when you buy an extended warranty, it’s not always clear who is behind it and what it covers.

Many used car dealers use third-party extended warranty companies. When it comes time to get repairs, the policy may have exclusions that don’t cover what you need. If you want to know what the extended warranty covers, you have to read the fine print.

Do You Have To Buy an Extended Warranty From a Dealer?

Generally, extended warranties are optional. You don’t have to buy an extended warranty from the dealership. However, it won’t stop the car dealer from trying hard to convince you that you should. The dealership may try to sell extended warranties by talking about the high cost of car repairs. For most drivers, the cost of an extended warranty is higher than the cost of repairs for average wear and tear.

Can You Sue a Dealership for an Auto Warranty Scam?

If a dealership ripped you off, you can file a lawsuit to recover your damages. If the extended warranty company refuses to pay for your covered repairs, you can file a claim to hold them responsible. If the car dealer fraudulently included warranty coverage without your consent, you can also take them to court.

There are consumer protection laws that prohibit certain deceptive business practices. A lawsuit allows you to recover damages for your financial losses. Talk to a consumer fraud lawyer about how much your case might be worth.

Beware of Car Extended Warranty Calls?

Dealership extended warranties are different from the phone call scams that have been going around. Phone call scams will try to defraud you by getting your personal information or credit card number. These are generally robocalls or scammers, and they don’t represent the motor company or dealership.

These calls may sound legitimate because scammers have information about your motor vehicle. They use spoofing phone numbers to make the caller ID look like it’s from legitimate automakers or dealerships. Don’t give them your Social Security number or other financial information.

If you get telemarketing unwanted calls, you can file a complaint with the FCC or report scam calls to the FTC.

Can a Dealer Fraud Lawyer Help With Extended Warranty Fraud Cases?

A dealer fraud lawyer is familiar with the tricks dealerships use to rip off buyers. Some of these add-ons are from good sales tactics. Others are illegal fraud. A dealer fraud lawyer can review your case and explain your legal options. Your lawyer can help you get a refund or recover money after a car warranty scam. Contact a dealership fraud lawyer for legal advice.