What is Warranty Extension Scam?
This is an old trick but the car dealer will tell you when you buy a new car that you are required to buy the extended warranty or extended service plan as a financing condition in order to get financed by the bank.
This is a flat out lie so if the car salesman tells you this tell them to produce this in writing? They will not be able to give you this document.
If a car salesman tells you this I would personally get up and walk right out of the dealer and go to a competitor and buy the car from them.
The only finance requirement is they require full coverage insurance to protect the lenders interest. When the loan is paid off then you can get liability auto insurance.
Tip – never buy an extended warranty if the car salesman tells you it’s a lending requirement because this is a car scam
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