Avoiding Warranty Scams with Approved Auto Loans

While many legitimate and reliable car warranties are available online, there are also warranty scams in which low price warranties are offered to unwitting consumers who are actually paying for a useless or fraudulent warranty. Other scams include overpricing of warranties by affiliate and lead sites, and then there are car warranty sites which in reality are dreaded "phishing" sites that exist only to obtain private data that is then abused. Avoiding these scams, and finding the right online car warranty, is a matter of being alert and knowing how to recognize scams while dealing only with companies that have a proven track record in issuing car warranties.

A good extended warranty can give you peace of mind but be on the lookout for phone and internet scams that can be a waste of money when financing with bad credit car loans. Be careful out there Once you receive your approved auto loans you may be contacted by a number of fraudulent phone centers representing themselves as warranty companies. We've heard of this happening because for the past years we've been helping applicants with poor car credit with the help of our bad credit auto sales department.  Buying used cars Because they're more affordable, most bad credit buyers choose to finance a used car. Buying a two or three-year old vehicle helps avoid the 15 to 40 percent depreciation that usually happens during these years. But even though used car quality is very good, we typically will recommend also buying a service contract – sometimes called an extended warranty – to cover the entire length of a bad credit auto loan. There are many reasons for buying one especially if you're on a tight budget and have bad credit. The most important, however, is that it may help you avoid big, unforeseen car expenses – one of the biggest reasons a bad credit car loan can end in repossession. But we also encourage buyers to purchase one from the selling dealer and for a number of reasons. Used car extended warranty scams scenario: As soon as you buy a car (even if it's already covered by a new car warranty or service contract), you might be swamped with letters, phone calls and maybe even emails from companies that want to sell you a vehicle service contract. Many will do just about anything to sign you up. Companies usually get this information by buying lists that contain the names of car buyers who have recently purchased of a new or used car. The lists are then given to telemarketers who call these people in order to sell them a service contract. During some sales pitches, consumers have been told that: •    Their warranty is getting ready to expire, when that isn't true •    The company is selling an extended warranty, which is not true (these are service contracts, which do not "extend" the new car warranty and may even overlap an existing warranty). •    They are being called from the selling dealer or a manufacturer, when in fact they are being contacted by an independent service contract company. •    The service contract is a "bumper to bumper" warranty just like a new car warranty, which it's not. •    If they're not completely satisfied with the service contract, they'll get a full refund. In many cases, when the customer calls back to cancel and get a refund, they're unable to reach anyone at the company. Consumer rights If you're contacted by one of these companies, request a name, address and phone number. Then, before you do anything, contact your Better Business Bureau as well as your state's Consumer Affairs department to check if the company is licensed to do business there to be sure it's legitimate. If the number called is registered with the Federal Do Not Call List, the company shouldn't be contacting you in the first place. Our take By buying a service contract from the selling dealer, if you have any issues you'll know who to contact. Licensed dealers must adhere to your state's consumer protection laws, which is not always the case with an anonymous out-of-state warranty company. You should also shop around before you buy from anyone to make sure the service contract is priced fairly. So if you're ready to begin rebuilding your auto credit, you can start now by filling out our online3 easy steps  auto loans application.