These pitches more than likely come from independent companies that want to sell you extended warranties — more specifically known as service contracts — that are often sold for hundreds or thousands of dollars. If you`re answering a call from a company that presents so-called extended warranties, you`ll likely hear high-pressure sales tactics, as well as requests for personal financial information and a down payment before you get details about the service contract. And if you buy a service contract, you may find that the company behind it isn`t in business long enough to fulfill its obligations. Compare service contracts with the manufacturer`s warranty. New cars come with a manufacturer`s warranty that usually offers coverage for at least three years or 36,000 miles, whichever happens first. A service contract probably does not offer any benefit until the manufacturer`s warranty expires. Check the documents to make sure this is the case before accepting the purchase of a service contract. Bought a Hyundai 2015 July 2015. In early September, I received a card in the mail that listed the year and model of the car I bought, which said that my factory warranty was either expired or that it would soon expire. The map is called “Vehicle Alert Notice” and showed a fairly sick eagle on it. Instead of calling the number on the card, I emailed Hyundai customer service and after sending them a copy of the card, I was informed that it was most likely a fraud. Should this be notified to a government agency and, if so, who? Scams: Distributors call or send letters to warn you that your car warranty expires soon, and then offer to sell you a service contract to cover the cost of future repairs.
These policies, which can reach around 3,000 $US, are also promoted on TV, radio and the internet and promise bumper-to-bumper coverage that will prevent you from making a lot of money in the event of a gearbox failure or engine failure. The advice: Some “auto repair service vendors” have made customers believe they are related to automakers. This is not the case. These companies operate on their own and are infamous for their refusal to reimburse claims on car repairs, says Bill Smith, an investigator with the St. Louis-based Better Business Bureau (BBB). According to Smith, sellers often cite flaws in the contract (the ones you could never recognize) to avoid payment, then invalidate the document and abandon you. So protect yourself: Although the Federal Trade Commission has severely cracked down on the use of illegal robocalls to sell auto repair contracts, many companies like StopRepairBills.com, Consumer Protection Services, and Service Protection Direct are still in business (despite getting F-tickets from the BBB). If you`re the goal of one of these deals, look for the company`s history on bbb.org – or to be safe, avoid these policies altogether. As it is – No guarantee. If you buy a car “as it is,” you`ll have to pay for all repairs, even if the car breaks on your way home from the dealership. However, if you purchase a dealer service contract within 90 days of purchasing the used car, the “implied warranties” of national law may grant you additional rights.
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