Beware of Auto Warranty Scams: What You Need to Know

How the Scam Works

Auto warranty scammers prey on vehicle owners’ concerns about unexpected repair costs. When you answer one of their calls, you’ll typically hear a pre-recorded message claiming to be from your car’s manufacturer or dealership. The message warns that your vehicle’s warranty is about to expire and urges you to act quickly to extend it.

You’ll be prompted to press a key to speak with a representative. Once connected, a live agent will attempt to convince you to provide your payment details in order to secure the so-called “extended coverage.”

In reality, these calls have no connection to your car’s manufacturer or the dealership where you purchased it. The product they are pushing is not a genuine warranty—it is a third-party service contract. These contracts can be expensive, often costing thousands of dollars, while offering limited protection. Coverage is usually restricted to specific parts, with exclusions hidden in the fine print.

Deceptive Tactics Scammers Use

To make their pitch seem credible, scammers often mention your vehicle’s make and model. While this may seem convincing, such information is widely accessible. Scammers can obtain it from public motor vehicle records or purchase it from data brokers.

In addition to phone calls, scammers may send fake warranty expiration notices by mail. These letters are designed to resemble official correspondence from car manufacturers or government agencies, complete with a toll-free number urging you to call.