Car Warranty Scams

Car warranty scams are one of the new scams to look out for.  And unlike other scams a car warranty scam is actually quite easy to protect yourself from.  What the warranty companies promise to do is protect you in case an expensive part on your car breaks.  They will step in like Superman, and pay for the problem to be fixed. This, my friends is where you can really step up to the table and take control for yourself.  But first let me tell you a story.

I remember my first car.  It was a reliable car, and went through many long journeys with me.  We took 500 mile road trips with regularity.  Yet there was one trip where the engine just stopped running.  Thank g-d, my car and I had enough momentum to pull into a rest stop where it was eventually towed to a repair shop and evaluated.  Evaluated?  Yes, how much would it cost to fix the car?  Would it be worth it?

That is where car warranty scams really get you.  We develop attachments with our cars, and we want to hold onto their pleather for as long as possible, but when their time comes, we can only bring the car in every week for so long.

What I am trying to say is the best way to avoid car warranty scams is to be careful when signing up.  Know how much your car costs.  Know the opportunity cost of fixing the car.  Warranty or not, if it would cost you more to fix the car, than to buy another car, then you should think twice about getting your car fixed.  Buying a car warranty does, however, make sense when you have a car with a high value and the manufacturer’s warranty is no longer in effect.

Your safest best with a car warranty scam is to know when it is time to let go.  If you need to spend $3,000 to fix the engine on the car, and your car only costs $4,000, it may make more sense to let go.

To end my story.  My car and I made it to 95,000 miles.  We had many good rides together, but it had served its purpose.  I still miss my car, but she will always provide me with pleasant memories.

Remember, use common sense and be smart, and do not fall for something you do not need.  Take the time to truly evaluate your needs, and you may just end up saving yourself time and money.

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