(WHTM) — The Better Business Bureau (BBB) has just issued a new alert about vehicle service contracts, or extended warranties as they are better known. It says many of the ones that call you may sell you an expensive plan that will leave you disappointed down the road.
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It seems every day, someone needs to reach out about your warranty expiring. Sometimes, they even know the make of your car. How do they know that? They buy it from manufacturers and the state. But, the FTC says buyer beware. In many cases, these are shady companies that may sell you a warranty your dealership won’t honor.
From the Doesn’t That Stink File — what can happen if you agree to sign up for one of these service contracts? The BBB has just issued a new alert saying it has had 15,000 complaints in recent years about extended vehicle warranties not paying for repairs. That stinks.
It says to check the BBB record of any company officering you a plan, and if it has a poor review, you may want to avoid it. For those who do want an extended warranty, talk to the dealer directly to see what programs they like. That way, you don’t waste your money.