What to know about auto service contracts and extended warranty scams (2024)

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FAQs

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oscar

April 21, 2023

since march 06 2023....... no one will help me.... well Nissan Consumer Affairs, Carfax, the salesman Mosuam, Boulus the finance manager or the sales manager who lied about his name being Oscar....I think its Oscorza.... I bought a used 2015 Toyota Prius for $19,991....or at least i taught that was the listed price ..and taxes and other finance fees of course I'm not challenging that...maybe $26,000 total the most. but the next day I picked up the contract and car with realized the total itemized total price was $34,000. never left the dealer lot and i told them ...but i've been ignored as soon as the keys were handed to me.... I was very unfairly treated and mislead ...lied to...they finessed me and inflated my income to add..... and sneak over $9,000 over the listed price overpriced. .... ! With optional that are not optional or clearly not explained or even disclosed. I've tried to get help from them and its useless it's been a month and regret ever going there!.... I really did trust them... it was my first time getting a car from a dealer.... now I'm worst off.... it sucks when someone robs you by what is assumed to be legal an honest business! if this is not illegal business practices..... what they are doing,,,,, i don't know what is.......it's more like thugs in suits. Ill never ever go to Los Angeles...... universal city Nissan. It's a bad place to go .....They just don't know what someone is going thru in their already everyday struggles....... they should not mess with people like that it is not cool...... I'm sure it's illegal they cleverly finesse people......you guys should really look into their business practices to find out for yourselves...............................! Citizens will surely appreciate it... I'm so exhausted with these people at Universal city nissan! you guys should know this..... before someone really gets mad.....with them.........its not cool what they are doing!

Margaret Devaney

May 24, 2023

I bought a vehicle service contract from Endurance .paid 3kplus over 3 year for a 5 year warranty. When I had to have a repair done on my car , thy refuse to honor the warranty.saying that my initial odometer reading I gave was not correct .
This has to be a company that scams consumers
What can I done to get my repair bill covered or my money back?
Mepco took money out of my account every month .
Thanks for any help you can give

What to know about auto service contracts and extended warranty scams (2024)

FAQs

What is the difference between an extended warranty and a service contract? ›

Extended warranties are an optional add-on product that covers defects or failures that are not covered by the manufacturers' warranty. Service contracts or prepaid maintenance plans are additional add-on products that cover regular maintenance or other service needs.

What are 3 questions you might want to ask before purchasing an extended warranty for this product? ›

Before you purchase one, ask yourself these six questions:
  • Do you really need an extended warranty? ...
  • What's covered? ...
  • How long is coverage available? ...
  • Is the auto warranty transferable? ...
  • What's the warranty provider's business reputation? ...
  • Are there any other benefits?

Is it a good idea to buy an extended warranty explain your answer? ›

In general, extended warranties can provide peace of mind and protection for consumers, especially for expensive products such as cars, appliances, or electronics. If the product is likely to require costly repairs, an extended warranty may be a worthwhile investment.

Is the motor vehicle service notice real or fake? ›

Legitimate Motor Vehicle Service Notifications will provide you with verifiable contact information, including a phone number, email address, or website. If the notification lacks this information or the provided details do not match the official contact information of the service provider, it is likely a scam.

What is the difference between a car warranty and a service contract? ›

Warranties cover defects in materials and workmanship which are under the control of the manufacturer and are typically “bumper to bumper”. Service contracts, on the other hand, typically cover a list of parts and components, not the entire vehicle.

What are the two types of vehicle service contracts? ›

Vehicle service contracts can be separated into two main types: the powertrain warranty and the Exclusionary Coverage warranty. You can find out about each specific warranty, its coverage, and more below.

Why should you never buy the extended warranty? ›

Extended warranties don't cover everything that can go wrong with a purchase, and they are expensive to boot. Your purchase likely comes with a manufacturer's warranty, and the retailer you buy it from may also stand behind it. The best credit cards also offer purchase protection.

Why do dealerships push extended warranties? ›

Because dealerships profit more from aftermarket sales than from new car sales, they hope to be your primary source for an extended car warranty. Dealers want to make the car buying experience as easy and efficient as possible, so they will try to sell you a warranty based on convenience and accessibility.

What are the 3 C's of warranty? ›

To be worth the price charged for the repair or claimed via warranty, ROs must capture the 3C's: complaint (beginning), cause (middle), and correction (end).

What is a fair price for an extended warranty? ›

After getting quotes from the best car warranty companies, we found that extended warranties cost an average of $108 per month with a total average cost of $2,845.

What are two of the things should you consider before getting an extended warranty? ›

Vehicle mileage: The higher the mileage, the more your car warranty will cost. This is because your vehicle is more likely to need major repairs than one with low mileage. Vehicle make and model: If you drive a make or model that's expensive to repair, you'll end up paying more for an extended warranty.

What is not covered under an extended warranty? ›

Like most warranties, extended warranties and vehicle service contracts don't cover routine maintenance, wear items such as tires, brakes or wiper blades, collision damage or damage resulting from lack of maintenance or abuse. You should not expect heavily modified vehicles to be covered.

How do you tell if a car dealer is scamming you? ›

Tips for avoiding scams when buying a car
  1. Always have the car inspected. After you test drive the car yourself, get it inspected by a mechanic you trust. ...
  2. Don't trust sellers who say the online marketplace guarantees the sale. ...
  3. Check for liens on the vehicle. ...
  4. Perform a vehicle history check.

How do you know if someone is scamming you for a car? ›

Research the fair market value for the vehicle you want to buy. Never buy a vehicle that you can't see in person. If you can't inspect or test-drive a vehicle prior to the purchase, consider it a scam. If the seller demands an advance payment, walk away.

How do you know if your mechanic is scamming you? ›

How To Know If Your Mechanic Is Scamming You - 10 Things to Watch Out For
  • The Never Ending Repair.
  • The Scare Attempt.
  • Fishy Terms.
  • Cheap Spares.
  • Unnecessary Repairs.
  • Refusal to Show the Old Car Parts.
  • Straying From the Manual.
  • No Clear Explanation of the Issue.
Aug 10, 2022

What is a major difference between contracts and warranties? ›

Deciphering Warranties: What They Promise and How They Operate. With a warranty, the dealer is essentially telling the customer the vehicle will not break, but if it does here is how we will fix it. Under a service contract, the dealer is not making any representation about the current or future condition of the car.

What should consumers know before buying a service contract or extended warranty? ›

Find out what limitations apply. Does it cover accidental damage? Can the company deny coverage if, for example, you don't follow their instructions for routine maintenance? Does it cover only specific parts of the product or specific repairs?

What does "service contract" mean? ›

Service contracts, sometimes called extended warranties or maintenance agreements, are bought separately from the product. Similar to insurance policies, these contracts assure consumers that should something go wrong with a product, their investment is protected at a fraction of the cost of out-of-pocket repair work.

Should I buy a service contract on a new car? ›

If you are buying a new car and the length of the service contract is similar to that of the manufacturer's warranty, it's probably not worth your money. Most new cars don't require many repairs during the first few years. And if your car does need repairs, they're likely to be covered by the manufacturer's warranty.

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