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Watch Out For Fraudulent Auto Warranties

Lemon LawBuying an auto warranty for a vehicle is risky if you are not aware of the regulations and rules of the warranty. It is smart for vehicle owners to hire a professional car consultant who will help guide them through the buying process of the auto warranty. If the vehicle owner decided to purchase the warranty without any help, they risk for buying a fraudulent warranty is higher.

Fraudulent auto warranties refer to warranties that come with many features and are priced very well. However, the providers of these warranties do not actually provide the services that are mentioned in the warranty. In the used car market, fraudulent warranties are common. Therefore, people who buy used car warranties should be very careful.

As a result of fraudulent auto warranties, the US administration has created a law to protect consumers. This used car warranty law is called the lemon law.

Purchase An Auto Warranty For Your Used Car

2006 Acura TLSurveys have shown that the number of people who purchase used cars is higher than the number of people who purchase new cars. However, many consumers worry that they will not get a quality auto warranty for their used cars like the warranties that they would get with a new car. There are many fraudulent auto dealers and companies out there, so there is a chance that you will buy a car that will breakdown the very next day or an auto warranty that won’t provide the coverage that the company claims in their warranties.

Generally, if you purchase a used car from a dealer that is licensed, the dealer will personally provide a used car warranty. However, there are many dealers that do not do this and often times customers will not inquire or ask about used car warranties. Like any other auto warranty, a used car warranty to be carefully selected. There are many factors to consider when buying a used car warranty. One of the most important things to consider is the period of validity. This is dependent upon the car’s current mileage and condition. Therefore, research used car warranties that will be good for you car before going out on the road.

Getting An Auto Warranty For Your Used Car

Used Car LotSurveys have shown that the numbers of people who choose to buy a used car are higher than the numbers of people who choose to buy a new car. However, many buyers are worried that they may not get a good warranty for their used cars like they would get with a new car. There are many fraudulent companies and auto dealers out there, so there is always a chance that you will purchase a car that will breakdown the next day or a warranty that will not provide the coverage that a company claims in their warranties.

Usually, if you buy a used car from a licensed dealer, the dealer himself will give a used car warranty. However, many dealers do not do this and many customers do not ask or inquire about used car warranties. Like any auto warranty, a used car warranty needs to be selected very carefully. Many factors should be taken into consideration when purchasing a used car warranty. One main thing to look at is the validity period. The validity period is dependent upon the current condition of the car and the car’s mileage. Therefore, be sure to look into getting purchasing a good auto warranty for your car before hitting the road in your used car.

Be On The Lookout For A Fraudulent Warranty

2013 Scion TCPurchasing an auto warranty for a car can be risky if you do not know the rules and regulations of the warranty. It is advisable for car owners to hire a professional car consultant who can help guide you through the purchase of the warranty. If the car owner makes the decision to buy the one on their own, they are more at risk for purchasing a fraudulent warranty.

Fraudulent warranties refer to warranties that come with many features and are priced well, but really, the provider of these warranties do not actually deliver the services that are mentioned in the warranty. Fraudulent warranties are common in the used car market. Consequently, people who are purchasing used car warranties should be extremely careful when purchasing an aftermarket auto warranty.

Due to fraudulent auto warranties, the US administration has created a law that protects the customers. This used car warranty law is called the lemon law.

11 Important Things To Consider When Purchasing A Used Car

Honda CivicThere are a lot of important things to consider when making the decision to purchase a used car. In order to make a smart and worthwhile purchase you should take these key points into consideration:

1. Find out the car’s current mileage. The standard amount of miles put on a car per year is twelve thousand miles.

2. Be sure to ask if the person selling the car to you is the original owner because if they are, they will be able to give you all of the information you need to know about the car.

3. Ask if there are available records of services, to know what repairs and maintenance have been performed on the car. This will ensure that you are purchasing a car that has been properly taken care of and that is in proper working order.

4. Find out what special features are included in the car such as a good audio system, power windows, air conditioning, heated seats, etc. Also, be sure to know they are all working properly.

5. Find out why the seller is getting rid of the car. If they are just getting rid of it because it doesn’t work properly, it is not a smart purchase. Most likely the seller will not reveal this information to you, so have your wits about you and be sure your receive a good or logical explanation such as they are moving or buying a new or different car.

6. Be sure to find out the car’s accident history. Know what accidents the car has taken part in.

7. Be sure to take a closer look at the car. Ask if you can take it for a test drive or to a local garage for a quick inspection.

8. With such high gas prices, it is important to know about the car’s fuel economy and the how many miles the car gets per gallon. Also, know what kind of fuel the car runs off of.

9. Find out how much the car is worth and know if you are being offered an appropriate asking price. If the price is either a rip off or it does not fit your budget, see if you can get the seller to lower it. If not, it is a good idea to shop elsewhere.

10. Find out if the previous owner was happy with the car. If you get an honest and enthusiastic answer you will be more likely to be happy with the car as well. This is because you are most likely avoiding any car problems that you were not informed of by the previous owner.

11. If there is no auto warranty in effect for the car, consider purchasing a used car warranty.

Facts About Bumper-To-Bumper Warranties

2010 Infiniti G37 CoupeBumper-to-bumper warranties offer the most inclusive coverage for your vehicle. As with any warranty, there are some things that won’t be covered. Therefore it is important to do you research and know exactly what is and is not included in the auto warranty that you choose to purchase.

The good thing about bumper-to-bumper warranties is that they cover most major mechanical repairs as well as minor problems with your car. Another perk to purchasing a bumper-to-bumper warranty is that a lot of manufacturers will offer things like roadside assistance, free gas, towing service, periodic maintenance, car rental refunds, the occasional wear and tear, or coverage for issues with electronic equipment.

Usually, bumper-to-bumper coverage does not cover the things that are covered by other types of auto warranties. For example, it may not cover tires, rust, or emission control equipment, whereas other types of warranties might offer such coverage. More commonly wiper blades, exhaust system, break pads, belts, aftermarket accessories, hoses, rotors, light bulbs, drums, and damage caused by intentional abuse or an accident will not be covered by bumper-to-bumper coverage.

Also be sure to remember that some manufacturers will offer coverage only if you agree to take your car to the dealer’s repair shop for mechanical work. Therefore, before agreeing to a manufacturer’s warranty it might be a smart idea to look into an aftermarket auto warranty company to compare prices and coverage. After you do your research, you will be more likely to purchase a used car warranty or new car warranty that best suits your needs.

Purchasing A Certified Used Car

Certified Used CarVehicle certification programs allow consumers to buy a used car for better value. These programs assures consumers that they are buying a used car that is in good condition, meaning they were not a part of any severe accidents or floods. Certification also helps aid in the avoidance of scammers and dealers who sell cars that are badly damaged. When choosing a good certification program to purchase a used car, here are some things you should keep in mind:

1. Know what standards are set for the certification program and make sure that these standards are being met.

2. Seek out programs that are backed by manufacturers. This is important because they build the cars and this makes them the most reliable people to certify the cars.

3. It is good to look for a used car that has an original warranty as well as a limited warranty offered by the manufacturer.

4. Do your research and look for a model of car that is best suited to your driving wants and needs.

5. Look into safety and reliability reports on your car. Also, you should compare prices.

6. Be sure that the car has an in depth mechanical inspection as well as an in depth vehicle history report.

7. Check to see if your certified used car comes with an extended used car warranty. If it comes with one, be sure to know what coverage you are receiving as well as how long the warranty will last. If there is no auto warranty included, look into an aftermarket auto warranty company to purchase an auto warranty.

8. Ask if you can have roadside assistance options included in your purchase.

Used Car Warranties Are Transferable & Cancelable

tot.jpgHow do you avoid a financial loss when your car is totaled?


New and used car buyers are potentially losing thousands of dollars when their vehicle is totaled after an accident or theft.  Many do not know that they can acquire an additional insurance policy when they first purchase the car.


Some auto warranty providers believe the reason many drivers do not take out Guaranteed Asset Protection (GAP) Insurance from their selling dealer is their lack of understanding the benefits of these policies.


Almost a million cars are written off in the US each year and many drivers are left owing a lot of money to their finance company as the insurance payout is far less than the outstanding finance balance on their car loan.  On higher value used cars this could amount to a few thousand dollars, especially if the car was recently purchased.


GAP insurance pays the difference between the insured value of the vehicle and the outstanding finance balance.  Recently there was a situation where a very expensive luxury car was written off following an accident. The difference between the insurance pay out and the outstanding finance balance $13,000 because the car was only three weeks into its finance contract term.  Because the owner had taken out GAP insurance the policy paid out the difference and he was able to buy another car without any additional out of pocket expense.


Many used car warranties purchased with the vehicle have their own built Gap Insurance as the extended warranties are cancelable on a pro-rata basis.  This is just another reason that a used car warranty turns out to be a very smart purchase.

A New Law Impacts Used Car Sales In Minnesota

uc.jpgWhen buying a certified used car in Minnesota the word “certified” now really means something. Earlier this month a new law took effect that will regulate what a car dealer can say is a certified vehicle. It is part of a new car owners’ bill of rights that lawmakers passed in early 2007.  It is something that consumer activists as well as car dealers both agree is a good idea.

The term “certified” is used quite liberally and much too loosely in the automobile industry and the new used car warranty law gives it some credibility.  It is important to note that “certified” still means different things to different people. With the old law a dealer who advertised a “certified” car could define the term however he felt he wanted it presented. Now the law says that a certified used vehicle must include some type of auto warranty and the dealer must state that the car is in good shape and has no current damage.  As we are all aware, used car warranties are an essential part of any vehicle’s sale.

Auto Repair Q&A

shop.jpgHere is the situation presented to us…

Q: One of our contract holders allowed a friend to take over his car payments for 6 months while he was out of the US. A notarized contract was signed by both people. A month later, after the car was put in the shop for repairs incurring a $750 repair bill the person who took over the payments lost his job.  He claimed he was broke and moved out of the state, abandoning the car at the repair facility. The shop refused to release the car to the original owner saying that as the car’s owner he was responsible for the bill even though all repair paperwork was signed by the person who had assumed responsibility for the car.Is the repair shop in the right?

Is it worth the effort of taking legal action against the shop to release vehicle since taking the other party to court is not an option?   

A: Legally it really depends upon the laws regarding an auto repair in your state. In most states the person who authorized the work is the one that is liable to the repair facility for the repairs. Since this person had possession of the car with your consent (and by your “contract” arrangement), they were the one acting as your agent and had authority to contract with the shop for repairs. 

The shop is entitled to get paid for the work they did. They’re under no obligation to release the car to you without any charge. If they wanted, the shop could even get technical about the situation and require that they will only release the vehicle to the party who brought it to them in the first place and for whom the work was performed in good faith.

Obviously, in the future you would be many dollars ahead of the game by simply purchasing a comprehensive auto warranty.  This would keep you form worrying about any used car warranty law issues in the future.  There are many excellent aftermarket auto warranty programs to choose from.  In my opinion the best of the best is Auto Advantage Incorporated at 

Good luck with your current situation.

Fax 1-800-615-0366