As you know, the Perkins Motors team is fully dedicated to keeping our friends free of vehicle scams. There are countless car/truck/motorcycle scams that impact consumers across the US each day. It is literally a billion dollar industry. We have reported on many over the past year, including the infamous Craigslist scam(s). You may remember the work we did a while back with KKTV to let the public know of a certain Craigslist scam…see here to refresh your memory and to keep safe!
Earlier this month, our friends at Consumer Reports shared information on another troubling campaign of deceit: CAR WARRANTY SCAM. They discussed if you receive a call or letter saying that your new car warranty is about to expire and it offers you an “extended warranty,” use caution, and in fact, RUN. Car warranty scams, which attempt to trick consumers into buying vehicle service contracts, continue to plague consumers despite the government’s efforts to crack down on the people responsible.
Consumer Reports tells us that the Federal Trade Commission (FTC) announced in July that it was mailing more than $4 million in refunds to nearly 6,000 consumers who the agency said were conned by a company that used robocalls to sell service contracts costing from $1,300 to nearly $2,900.
What to do if you receive a letter like the ones described above – here are tips directly from Consumer Reports:
1. If you receive a letter, postcard or telephone call advising you that your car’s express warranty is about to expire, do your research and check in with the manufacturer RIGHT AWAY. It could be a car warranty scam. Don’t call the number that’s on any letter or postcard you receive, even if it looks like the communication is from the automaker. It could be a fake or it could be a number that charges you large amounts of money to call it back. (We learned about these kinds of phone scams thanks to the BBB of Southern Colorado).
2. If your vehicle warranty has expired or is about to, don’t purchase a service contract. Instead, plan ahead by buying a reliable car and maintaining it as the manufacturer recommends. Then self-insure by saving the money you otherwise would spend on a service contract and use that for any needed repairs or maintenance.
3. If you feel you must purchase a service contract, consider one offered by the carmaker. Third-party contracts are notorious for fine print that excludes many types of repairs and for denying claims for anything the provider deems to be a pre-existing condition. Repairs required because of normal wear and tear also may be excluded.
Bottom line, never ever agree to a contract for any product or service without reading terms and conditions, no matter how long the company says you have to change your mind. If a salesperson pressures you to make a purchase right away, go elsewhere. If you have questions, Perkins Motors will help. All you have to do is call us at 855.832.3986 and we will dive in on your behalf! Our team has many relationships across the Front Range and we will ensure you have the best information possible before you make any decisions.
- Crystal Johnston, Director of Marketing