Sep 24 2008
Dealer Scams: The Forced Warranty Scam
The forced warranty scam happens when the finance manager at the dealership informs you that you are not eligible for the loan by the bank unless you pay an extra $2000 for a 2-3 year extended warranty.
Actually, this scam doesn’t make any sense. Basically, the finance manager is telling you that the bank won’t trust you to pay the $20,000 loan for the car; however they will trust you if you pay even more money.
If you believe that the finance manager at the dealership tries to scam you force them to put in writing that you “have” to pay the extended warranty in order to get the loan. Avoid this scam by telling the finance manager that you first have to bring a copy of the contract to your local State’s Attorney’s office and verify that the deal is valid.
