The consumer guide to uncovering the best value

in auto warranties and repairs.

Auto Warranty Scams

Your Warranty is About to Expire – Phone Calls, Letters, and Post Cards

Unscrupulous companies are targeting consumers with phone calls, letters, and post cards attempting to sell high priced and low quality warranties and in some cases the warranty doesn’t even exist.

The phone calls will either be a person or a pre-recorded voice message and will start with something like “This is a courtesy call to inform you your warranty is about to expire”.

The misleading mailings look like important notices from your dealer or car manufacturer and will usually have a prominent warning like “Final Notice – Your Warranty is About to Expire”.

Rule #1 - If you did not initiate the call then this is not someone you want to be talking to. Do not give out any personal, bank, or credit card information.

Rule #2 - To avoid this scam, know your car’s warranty coverage. If you have any questions about your warranty, contact your dealer or manufacturer NOT the person calling and NOT the phone number on the mailing.

Where Did They Get My Name?

These companies can purchase names, addresses, and phone numbers from legitimate “list brokers” who sell marketing lists to businesses. List brokers gather extensive personal information about each and every one of us. Some of this information includes age, income, education, marital status, homeowner status, hobbies and interests, credit card usage, and car ownership.

Businesses typically purchase marketing lists using “geodemographic targeting”. Geodemographic targeting is based on the concept that people who live in the same area have basically the same lifestyles, income, and consumer purchasing behavior towards similar products and services.

The scammers that are calling and mailing are purchasing lists of all the people that live in the same neighborhood that match their targets. For example, they might be looking for neighborhoods where the majority of people have cars that are four or more years old and the average income is $50,000. This is why even if you have a brand new car, a ten year old car, or no car at all you are being called.

If you get one of these mailings, throw it out. If you get one of these phone calls, tell them to take you off their call list and hang up. And if you are on the Federal Do Not Call list, report it at http://www.donotcall.gov. If you continue to get these calls, report it to your State’s Attorney General.

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