Tips for Recognizing Extended Vehicle Warranty Scams
For a car dealer, the job doesn’t end when their customer has driven away with a new ride. As a professional responsible for helping others find the right unit, it’s also their duty to provide tips on how to protect this investment. This includes letting their clients learn more about additional security measures that they can purchase, such as extended vehicle protection programs.
All newly-released cars come with a warranty or assurance from the manufacturer that they’ll offset the cost of repairs for certain factory or mechanical defects that an owner notices after buying a unit. But, this offer is valid for a limited time and usually expires after the model exceeds a specific number of years or miles.
This is where extended vehicle service protection comes in. It picks up where the manufacturer’s warranty leaves off, activating upon expiration or covering for services that aren’t accounted for in the initial contract. But, sometimes, customers might be easily swayed by deals that don’t exactly deliver on their promises. So, car dealers should assist them in finding arrangements guaranteed to help them out when needed.
To prevent you and your client from falling for such scams, here are some things that you should keep in mind.
Be Familiar With the Unit’s Existing Warranty
Your client’s best defense against fraudulent offers is having a good idea of the auto’s warranty, especially if it’s still in effect. This contract contains the exact date of its expiration. Take note of this and share it with your customers so that they won’t buy into false claims from third parties. Scammers usually contact people and trick them into believing that their arrangement is about to end or has already ended. This makes it easier for them to coax potential victims into purchasing a phony deal.
Take Note of High-Pressure Sales Techniques
In some cases, a customer caves in because of high-pressure sales techniques. These refer to tactics that create a sense of urgency, convincing an individual that the best time to buy is now. Examples of these are deals that are available for a “limited time only.” Another involves threats of having a client’s file deleted from a system if they don’t get a renewal as soon as possible.
Don’t Believe in Blacklisting Threats
Some frauds also threaten unsuspecting individuals with getting blacklisted. This, they claim, will keep clients from obtaining warranties from other extended vehicle protection providers if they don’t take advantage of the scammer’s products right away. There’s no such thing as a blacklist, so don’t forget to warn your customers about such schemes.
Be Wary of Sudden Discount Offers
Some fake warranty providers resort to giving out instant discount rates to potential victims who show signs of hesitation in buying faux contracts. In these cases, it seems as if this offer is brought up right after a client expresses their refusal to buy. It should also be noted that the amount removed from the price is too extreme. It’s another tactic they use to pressure customers into purchasing the fraudulent deal on the spot.
Ignore Requests for Personal Information
Another commonly used method in warranty extension scams involves getting personal information from random individuals. Some suspects call potential victims under the guise of an extended vehicle protection provider, offering arrangements. Once the client falls for the trap and decides to buy the fake contract, the caller will then ask for credentials or passwords. These can possibly give them access to the person’s bank accounts, social security insurance and benefits, and more. In this scenario, the fraud won’t only make money out of a nonexistent arrangement but get some right out of the unsuspecting customer’s pocket, as well.
Get in touch with Freedom Warranty LLC to secure legitimate deals that you can offer to your customers. An estimate of the company’s extended vehicle protection cost can be found on their website, as well, so be sure to check it out.