How to Spot Car Warranty Scams

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You’ve likely received a call or letter in the mail in recent months regarding extended service warranty notices about your vehicle. 

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Are these calls and letters legitimate? In most cases, the answer is no. Here’s what to look for the next time you are contacted about extended service warranty for your vehicle. 

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What Are Extended Service Plans? 

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First off, it’s important to know that extended service plans are legitimate plans that are available when you purchase a vehicle. These plans protect drivers from major vehicle repair expenses. 

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Einspahr’s General Manager, Matt Einspahr, explains extended service plans in this way:

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“Vehicles are built better every year, but when repairs to those vehicles come up, they can be more costly due to the technology and parts required. Extended service plans cover everything from repairs to rental vehicles and towing in case something on your vehicle breaks down.” 

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For a few dollars a month, you can be covered and have peace of mind that you won’t need to fork over an arm and a leg to repair your vehicle in the event that a major repair is needed. 

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Spotting Vehicle Service and Warranty Scams

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When you receive a call or letter in the mail about these plans, the company contacting you may know your vehicle make and model, making the notice sound somewhat legitimate. They may even mention the dealership from which you purchased the vehicle. 

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However, it’s important to keep in mind that this data is public data that can be obtained by state motor vehicle records and purchased by data collection companies. (Note that at Einspahr, we never give your information to anyone!) 

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Do’s and Don’ts of Evaluating Car Extended Service Plans

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• Do be skeptical of letters or calls using language such as “Urgent” or “Immediate.” 

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• Don’t give your personal and financial information to anyone you don’t trust.

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• Do check your current service plan coverage so that you know what you’re paying for. 

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• Don’t purchase an extended service plan or extended warranty plan without talking to the dealership where you bought your vehicle first. 

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Many outside companies also offer legitimate limited service coverage plans. Unfortunately these plans can come at extremely inflated prices. In many cases the service plan doesn’t even cover the expensive components of a vehicle and the length of time and mileage offered don’t match the driving habits of customers.

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Contact Einspahr with Extended Service Plan Questions

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When in doubt, give our finance team a call. At Einspahr Auto Plaza, we offer Extended Service Contracts from both Ford Motor Company and Stellantis (Chrysler, Dodge, Jeep, and Ram), in addition to CNA (the 5th largest insurance company in the world). 

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With all of these options, we can find the right plan that covers the components on your vehicle for the right length of time that also matches the amount of miles you put on your vehicle. Why pay for a plan that gives you 30,000 miles per year when you may only drive 12,000 miles?  

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Plus, we offer the ability for customers to purchase extended service contracts that allow you to pay over the course of 36 months with zero interest! This is just one example of how you know we are looking out for you at Einspahr. 

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Still have questions? We’d be happy to look at a letter you received regarding extended service plans or hear about a call you received from an outside company, as well as answer any extended service plan questions you may have.

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LEARN MORE ABOUT CAR FINANCE AND WARRANTIES »

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