Monday, May 12, 2008

The "Forced Auto Warranty" Scam

This is an old trick... but unfortunately still common. You're ready to sign papers when the finance manager says you must buy a $2,500 extended warranty from the dealership ... "because the bank requires it... or you won't get the loan". BEWARE! In truth... your FICO score... and only your FICO score... determines the financing deal you are offered.

In a case like that... there is only one reason the dealership wants to sell you an extended warranty... and that is to move more money from your pocket to theirs. Buy the right extended warranty... for the right reasons.