As the number of vehicles rises globally, the number of people who want to make money in the car industry increases, even in unlawful ways.
Not only do car dealerships and manufacturers offer you a motor vehicle service warranty, but there are numerous independent car service providers everywhere, which you should be careful trusting.
If you receive a call or letter informing you that the warranty on your new vehicle is expiring and you’re being offered an “extended warranty,” proceed with caution. Vehicle warranty scams seek to lock customers into motor vehicle protection contracts, plaguing buyers despite government attempts to stop these contracts.
Usually, the letter informs you that after your vehicle’s warranty expires, your initial warranty becomes invalid, and you’ll be responsible for paying your auto repair fees yourself.
The “motor vehicle service notification” letter you received contains information about your vehicle’s service agreement. This letter will help you select a security package, usually costing a few thousand dollars.
The question is, how do you know if the letter you received is legitimate or if it’s a scam? What if your vehicle manufacturer sends the motor vehicle service notification themselves? Will you disregard the car protection they ask you to renew in light of the stated risks?
What Is A Motor Vehicle Service Notification?
A motor vehicle service notification is a letter that you’ll receive from your car dealership or an independent service provider informing you of your repair or maintenance contract.
The letter will inform you that your car’s warranty privileges are due to expire and that you should renew the contract to maintain your basic warranty privileges.
The motor vehicle service notification includes your contact information. Things like your home address, email address, phone number, your car’s make and model, and its service history will be on this notice. This information is provided with the intention of persuading you to renew your car’s service warranty.
This postcard includes all of the details in your dealer-service contract and verifies that it originated from your warranty vendors, dealerships, or automakers. These postcards carry your department of motor vehicles’ logo and seal.
Despite how genuine the notice seems to be, be extremely cautious. More often than not, these letters are fraud scams. You must carefully review the letter to guarantee it’s from your car’s dealership or factory maker if you purchased the vehicle straight from the manufacturer.
As a car owner, you have the option to decline the service extension. Make such judgments carefully since a poor choice might jeopardize your finances. How do you determine if something is legit or a scam? Continue reading to find out how.
The Company’s Name
Because the unexpected notification won’t include the company’s name, customers will have difficulty figuring out who sent it. A legit manufacturer’s postcard will feature the dealership’s brand, name, emblem, and seal.
Identified unsolicited mail is simple once you learn how. Just match the name and logo on your auto service contract to those on the postcard you received.
Do not discard or lose the dealership’s vehicle papers. The documentation specifies the importation of your vehicle, including the mileage and year. The majority of shops provide a 50,000-mile or 5-year service or warranty. This means that after the car reaches the 50,000-mile or 5-year mark, the existing guarantee becomes null.
When the warranty period has expired, you have the option of extending or terminating it. Most automobile owners opt to terminate the warranty after the manufacturer’s coverage ends. This is because the expense of extending a service contract for another five years is greater than half the automobile’s value. Also, the renewal does not cover any severe mechanical problems in the meantime.
Compare the postcard to your vehicle service contract to ensure it’s not a scam. The name, logo, seal, and even the toll-free contact number must all be identical. Allow yourself time to examine the postcard at your convenience. Ascertain that the letter is not coming from a third-party supplier of extended warranties. It must come from your car manufacturer or dealership; otherwise, discard it.
Several third-party services and extended car warranty sellers have already declared bankruptcy and are looking for new victims. If you agree to their deception, they will dismiss you when you need vehicle care. If you’re still unsure if the letter is legit, contact your car dealership through the toll-free line provided on your original contract to confirm if they sent the postcard. If they didn’t send it, disregard it, and carry on with your day.
Is Motor Vehicle Service Notification A Scam?
Some refer to this mail as a scam. Is it a scam? Certain companies will absolutely try to scam you. Even in cases where the company is offering you coverage, the guarantee often doesn’t cover most repairs, so read the fine print. Many individuals get this postcard about a vehicle they haven’t even driven in years. If this happens, you can almost guarantee this notice is fraudulent.
I’m not a fan of characterizing all of those extended warranty service companies as fraudsters; however, I urge you to use extreme caution while interacting with these people. These matters are all up to you and your perspective. If you diligently follow the fraud-detection approaches mentioned above, you should be able to determine whether or not your letter is from a scammer.
There are genuine motor vehicle service notifications sent by your car dealership, as well as those issued by the vehicle insurance company. Receiving a letter from unaffiliated extended car warranty sellers advising you to renew your service contracts is fraud.
How are these third-party warranty providers able to get your information? Certain dealerships sell their clients’ information to extended warranty sellers. Therefore, you must look for the source of the notice letter and if it originates from a third-party company or directly from your dealership.
How To Recognize A Service Warranty Notification Scam
If you are a newbie car owner, you probably don’t know about these motor vehicle service notification scams yet. Thankfully, some guides exist to help examine a postcard about your cars’ warranty. A malicious car dealership of manufacturer’s letter or postcard will include these things listed below:
A motor vehicle service notification scam contains an entirely different address or location compared to the original paperwork of the service warranty that you obtained when you purchased your car. Compare the postcard you received with the service warranty you already have.
Different Phone Numbers
Small details such as a phone number might help you avoid falling victim to scammers. An authentic auto dealer or manufacturer communication will include the exact telephone number shown on their web page or paperwork.
If the telephone number is different, call the manufacturer using the paperwork’s toll-free number or their website’s phone number. Explain your call and the notice you got. If the manufacturer refuses awareness of the notice and informs you that it is a fraud, throw away the postcard you received.
Incorrect Vehicle Service Information
A fraudulent vehicle warranty postcard has incorrect documentation of your vehicle’s services or maintenance history. If you have a copy of the papers or receipts of the services you took for your car, compare them. Look at the dates, services completed, and the costs.
Unexpected Postcard Delivery Date
Usually, a legitimate motor vehicle service notification arrives closer to or on the expiry date of your car’s warranty. If the postcard comes too early or too late, that’s already suspicious.
Fake Account Activity
Examine the back of the letter notifying you of a motor vehicle servicing. You’ll notice that the account activity includes a series of fake vehicle repairs with high costs. The message will state that you won’t be required to pay anything if you purchase their policy. In reality, your car may not have had any of this work done while you owned it. This is a clear indication that you are dealing with a fraudster attempting to trick you.
Incompetent Sales Personnel
A legitimate motor vehicle service notification from an honest car dealership or vehicle warranty company will employ a well-trained sales personnel who will promptly and courteously respond to your queries over the phone. If you hear someone who sounds like he just got out of bed or can’t answer correctly to your concerns, say bye and hang up.
Reasons Whether You Need An Extended Warranty or Not
Let’s say the motor vehicle service notification you received came from your legit car dealership or manufacturer, and you’re confused if you need an extended car warranty or not. Listed below are some factors why you need or don’t need to extend your vehicle warranty.
If you think you’ll sell the car within the next 1 to 2 years, you probably don’t need a warranty extension. Let the new vehicle owner take care of it.
If the warranty cost is less than half the vehicle’s purchase price, there’s no need to renew it since the service warranty does not cover all services and repairs.
You Pay on Your Own
If you’re paying the services and repairs on your own or intend to do so for the next car maintenance, extending the warranty is unnecessary. It’s useless to pay for a contract you’re not using or not planning to use in the future.
Keeping the Car
Consider renewing the car’s warranty if you intend to keep it for the following ten years. Car warranties are helpful if it’s legit. It can save you money from repair coverage costs for the years you keep your car.
Additionally, the warranty only covers routine services. Most vehicle repairs include mechanical and electrical services, such as braking noise, steering issues, oil changes, and problems with the air conditioning system. A scam involving a motor vehicle protection notice will contact you every two months or so, enticing you to spend money on a warranty renewal.
Avoid Fraudulent Extended Warranty Sellers
Many scammers lurking out there want to take advantage of you and your money. Thankfully, there are also many strategies to outsmart and keep these people from victimizing you. Here are a few tips on how.
Avoid Sharing Your Personal Information
Provide no personal details, particularly financial info, to strangers. Don’t ever give out your financial data to anyone, including your credit card number, social security number, or bank account number, even your driver’s license number must not be disclosed.
Watch Out for Fast-talking Telemarketers
Take nothing at face value if someone contacts you regarding the expiry date of your car warranty. You may verify your vehicle’s warranty by consulting your owner’s handbook or contacting the car dealer or manufacturer from whom you acquired your automobile. If they want you to decide immediately, be suspicious. Legitimate firms will provide their consumers sufficient time to consider their options.
If you get a motor vehicle notification letter, do not immediately trust it. The companies who issue these messages will attempt to convey that they’re from the car dealer or manufacturer. They will refer to it as “Notice of Interruption” or “Final Warrant Notice.” They will make it look as if the situation is critical, and you will be lured to call their toll-free hotline.
You don’t have to worry when dealing with a motor vehicle service notification. If you sense fraud because the postcard contains inaccurate car service history, inaccurate toll-free telephone number, or the notice arrives sooner than planned, call your dealership or manufacturer where you purchased your vehicle to verify the postcard’s authenticity.
The date of expiry of the manufacturer warranty is specified in your car service contract. When it expires, you have the option of extending or terminating it.
Some car owners prefer to get an extended warranty to remain worry-free and avoid unexpected charges. However, suppose your extended warranty provider finds out that your reckless driving caused damages to your vehicle. In that case, there is a big chance that you may not receive appropriate compensation despite paying for it. If you choose to get an extended warranty, ensure that you do it from a reputable car service company.
Are Vehicle Service Contracts Worth It?
Both the original and extended warranty exclude coverage for certain auto repairs. Renewing the contract is also costly. There are, however, a variety of different forms of complete auto warranties that cover particular components of the car.
Extending the warranty on all components of the automobile will be costly. When you have a warranty on your car, you can avoid paying for costly vehicle repairs on a specific portion of the vehicle. To be honest, whether car service contracts are worthwhile or not depends on your objectives and the difficulties that arise with your car throughout the coverage period.
How Do I Stop Car Warranty Calls?
After the initial call from someone who sells car warranties, use your network carrier’s blocking option to block the robot call contact number. By default, telecommunications companies have a robot call blocking feature for preventing robot calls. Check to see whether your service provider has implemented this functionality. If you have an iPhone, you may protect yourself from these fraudsters by activating the function that allows you to mute unknown calls.
Does My Car Need A New Service Contract?
The answer relies upon the brand and type of your vehicle, its age, and a dash of good fortune. If you’ve made a wise purchase from a maker with a track record of producing dependable cars, extended service contracts may not be necessary.
How Are Warranty Firms Able to Get My Personal Information?
Warranty providers develop a complete personal profile of you by combining your address and automobile details with other readily available data. Before calling the firm, do a quick online check to see if the company is legitimate.