Extended Warranties Help to Put the Brakes on Being Scammed
Sometimes called an "extended warranty", a service contract is a promise to perform (or pay for) certain repairs or services. Although technically not a “warranty” as defined by federal law, service contracts may be arranged at any time and always costs extra. Warranties, on the other hand, ONLY come with a new car and are included in the original price. Vehicle service contracts are popularly referred to as "extended auto warranties" or "extended warranties". Use of the term "extended warranty" or "warranty" on this site is intended to refer to vehicle service contracts and not manufacturer's warranties.
Kerri
Schuster's mechanic gave her great news: Although her brake pads needed to be
replaced, and it would be an expensive job, her car's extended warranty would
be paying for half the cost. So Kerri need only pay $300. The only problem was,
she was being ripped-off.
On
a Mercedes AMG, practically any repair work is expensive. The engine itself is
valued at nearly $40,000. So when Kerri went in for a routine inspection, she
knew that there could be trouble. She was glad, however, that her pocketbook
was protected by an extended warranty. Still, on a relatively new car, she did
not expect any work would be needed.
As
is often the case in such situations, Kerri was wrong, or so she was told.
"The tech told me that I needed new brake pads. I don't know when you're
supposed to get them, so I just said 'okay,' and gave him my car warranty
contract to call. He came back in a few minutes to say that the pads were
covered and all I had to pay is $300. I thought that was expensive, but just
figured everything with this car was," said Kerri.
While
at the shop, Kerri's husband Marc called, to check on how things were going.
"Good, I told him. It needs brake pads but they're covered by our auto
warranty, so we only have to pay $300," she explained to her husband.
"That doesn't sound right. I didn't think pads would be covered. Why don't
you call the car warranty people and see," advised Marc. It was good
advice.
It
was true, brake pads were not covered by the Schuster's extended warranty, or
by anyone's warranty. But that was the only truth of the entire afternoon.
Turns out, the mechanic never called the warranty company. "The people
with my extended warranty were so nice and helpful. They told me that I was
probably being ripped-off, that I probably didn't even need brake pads, and to
just get my keys and go. So I did."
Turns
out, the folks at the warranty company were right. Kerri went to another shop,
and told her that her car was in great working order, no need for new brake
pads or anything else. That afternoon, a relieve Kerri spent the rest of the
day writing complaints about the first place. She doesn't take attempted fraud
very lightly. "My first complaint was to the state attorney general. That
should get his attention," she said with a wry smile.
Having
a quality extended warranty doesn't just mean the peace of mind of having your
vehicle repairs paid for, though it certainly means that. It also can mean
extra advice, help, and wisdom when you need it most. Companies like AA Auto
Protection specialize in offering car warranties staffed by people who helped
Kerri and Marc.
Kerri
adds, "Whenever I tell that story, people always ask, 'What's the name of
that extended warranty company you have?' I'm always glad to tell them."
10/12/2010 11:52:59 PM
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