Extended Warranties for Cars Are ‘Fraught With Peril for Consumers’
“While reputable options exist, the robocalls are almost certainly scams, an industry group warns. And for consumers who feel they have been ripped off, there is no guarantee anyone will help” writes Christopher Jensen for The New York Times.
“vehicle service contracts — are “fraught with peril for consumers, especially economically vulnerable people who can’t afford to have their car break down,” said Rosemary Shahan, the president of Consumers for Auto Reliability and Safety.”
‘In the worst case, telemarketers are just collecting money. “There is no warranty, it is just a flat-out scam,” said Chad M. Canfield, an official with the Michigan attorney general’s office.’
‘Policies can cost thousands of dollars, and consumers believe they are getting bumper-to-bumper coverage when they hear claims such as “100 percent of covered repairs are paid.” But that is “misleading because many things are not covered.”
Just say NO! to extended vehicle warranties. If buying a used vehicle, get it checked out first by a trusted mechanic. Instead of buying the warranty, put the money into your emergency savings.
Source: Financial Planning for Women