An automobile extended warranty is a service contract that covers the repair or replacement of certain parts of a vehicle. It is meant to provide peace of mind to car owners by protecting them against unexpected and costly repair bills. While extended warranties can be a useful investment for some car owners, they can also be the subject of scams. It is important for consumers to be aware of these scams and to know how to protect themselves.

Examples of Extended Warranty Scams


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A dealership or third-party extended warranty provider tries to sell an extended warranty to a consumer who does not need it. This can happen when a salesperson misrepresents the terms of the warranty or the potential benefits it provides.

In some cases, the salesperson may even claim that the extended warranty is required by the manufacturer or that it is necessary for the car to be covered under the original manufacturer’s warranty. These claims are often false, and consumers should always be sure to read and understand the terms of any extended warranty before agreeing to purchase it.

Inflated Price Scam

A dealership or third-party provider tries to sell an extended warranty at an inflated price. This can happen when the provider charges a significantly higher price than what the warranty is actually worth. In some cases, the provider may even try to sell a warranty that does not provide the coverage promised. It is important for consumers to shop around and compare prices from multiple providers before making a decision.

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Duplicate Sale Scam

A provider tries to sell an extended warranty to a consumer who has already purchased one. This can happen when a provider contacts a consumer directly and claims that their existing extended warranty has expired or is about to expire. The provider may then try to sell a new extended warranty to the consumer at an inflated price. It is important for consumers to keep track of their extended warranties and to be aware of any communications from providers.

Leased Vehicle Extended Warranty Scam

One more scam to watch out for is when a provider tries to sell an extended warranty to a consumer who has a leased vehicle. In most cases, extended warranties are not necessary for leased vehicles because the manufacturer’s warranty typically covers the vehicle for the duration of the lease. A provider may try to sell an extended warranty to a consumer who has a leased vehicle by claiming that it is necessary for the car to be covered under the original manufacturer’s warranty. This is often not true, and consumers should be wary of any provider who tries to sell an extended warranty for a leased vehicle.

Tips to avoid Extended Warranty Scams

There are several steps that consumers can take to protect themselves against automobile extended warranty scams. One of the most important is to do research and shop around before making a decision. Consumers should compare prices and terms from multiple providers and read reviews from other customers to get a sense of the company’s reputation. It is also a good idea to read the terms of the extended warranty carefully and to make sure that it covers the parts and repairs that are most important to the consumer.

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Consumers should also be wary of any provider who pressures them into making a decision or who makes false or misleading claims about the extended warranty.

It is always a good idea to take the time to understand the terms of the warranty and to ask questions if there is anything that is unclear. If a provider is unwilling to provide clear and detailed information about the extended warranty, it may be a red flag.


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In conclusion, automobile extended warranties can be a useful investment for some car owners, but it is important for consumers to be aware of the potential for scams. By doing their research and being cautious, consumers can protect themselves and make informed decisions about whether an extended warranty is right for them.

Extended Warranty Scam Blacklist

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FAQ

An automobile extended warranty is a service contract that covers the repair or replacement of certain parts of a vehicle. It is meant to provide peace of mind to car owners by protecting them against unexpected and costly repair bills.

There are several steps that consumers can take to protect themselves against extended warranty scams. These include doing research and shopping around before making a decision, comparing prices and terms from multiple providers, reading reviews from other customers, and reading the terms of the extended warranty carefully.

Some common types of extended warranty scams include selling an extended warranty to a consumer who does not need it, selling an extended warranty at an inflated price, selling an extended warranty to a consumer who has already purchased one, and selling an extended warranty to a consumer who has a leased vehicle.

If you think you have been the victim of an extended warranty scam, you should report it to the Federal Trade Commission (FTC) and your state’s attorney general’s office. You should also consider speaking with a consumer protection lawyer to see if you have any legal options.

If a provider tries to sell you an extended warranty that you don’t think you need, you should be wary and ask questions. You should also consider getting a second opinion from a mechanic or another trusted source before making a decision.

To determine if an extended warranty is a good deal, you should compare the price of the warranty to the potential cost of repairs that it covers. You should also consider the terms of the warranty, such as the length of coverage and the exclusions, to see if it is a good fit for your needs.

Yes, you can purchase an extended warranty from a third-party provider. However, it is important to do your research and compare prices and terms from multiple providers before making a decision.

In most cases, extended warranties are not necessary for leased vehicles because the manufacturer’s warranty typically covers the vehicle for the duration of the lease. If a provider tries to sell you an extended warranty for a leased vehicle, it is important to be wary and to ask questions.

Attention: Consumers who have been contacted by scammers could have had their personal information breached. TotalScam!™ highly recommends that consumers whose information has been breached obtain an identity theft protection service immediately.

There are several companies that offer identity theft protection in the US. One of the most inexpensive options we were able to find is the protection offered by LifeLock. You can start your protection here.

Disclaimer: The information and opinions contained on this site are not endorsed by LifeLock. TotalScam!™ receives compensation from LifeLock. This helps support our scam prevention efforts.

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