Forced Warranty Scam

Serving Los Angeles, Riverside, Ventura, San Bernardino Counties & Nearby Areas of California

One scam that is commonly encountered in both new and used car sales is the forced warranty. Basically, the dealer tells the buyer that financing for the car will not be approved unless the buyer purchases an extended warranty. Usually this is passed of as protection for the buyer should anything go wrong with the car. What the dealer isn't telling you is how much profit he or she is making on the deceptive business practice deal.

Extended warranties are huge money makers for car dealers. In an interview with the New York
, Consumer Reports automotive editor Rik Paul revealed that extended warranties for new
cars are "major profit centers" for auto dealers. Even worse, when buyers fall for this unfair
business practice
, the warranty charges are often rolled into the financing arrangements. This makes it difficult to tell exactly how much the warranty really costs, and the extra cost hits their wallets again and again throughout the lifetime of the loan.

So is the extended warranty really worth the extra money? That depends. Most new car dealers
look at the warranty as a cash cow because so few customers wind up using the extended
coverage. For used cars, the situation is slightly more complicated. What is not complicated is
the buyer's option to shop around for the best warranty prices instead of being pressured or bullied into accepting a warranty on the dealer's terms.

Don't stand for unfair business practices. If you have been the victim of unfair car dealer practices or have gotten a defective vehicle, contact the Law Offices of Howard Silver for a free consultation with a skilled unfair business practice attorney.