5 Red Flags to Avoid Scammers When Choosing a Vehicle Service Contract


Not every provider has built a reputation like Cars Protection Plus. Watch out for the following red flags when deciding whether or not to agree to purchase your next vehicle service contract.

  1. Urgent Notices by Mail

Be skeptical of mailings that read more like a threat than an invitation to do business. Some aftermarket warranties or service contracts are marketed using scare tactics, sending warnings that you will soon lose your warranty and be faced with huge repair bills. Steer clear of this negative practice. A genuine service contract offering should focus on the benefits of the coverage instead of frightening consumers into a bad decision.

  1. Pushy Sales Techniques

When a representative won’t take no for an answer it is a sign that something isn’t right. Reputable companies want to earn your trust and your business, not bully you into submission.  Don’t hesitate to hang up the phone if a sales caller becomes aggressive. It is normal for a company to have limited enrollment periods, but you shouldn’t feel pressured if you aren’t sure or choose to decline an offer.

  1. Vague or Rushed Explanation During Sign Up

Legitimate vehicle service contracts are detailed and specific. A company trying to sell you a contract that will assist financially when your vehicle breaks down should provide you with an explanation of the coverage. Ask for it in writing!

  1. Too Good to be True

The saying, “You get what you pay for” is generally true. Be wary of anyone pitching you bumper to bumper warranty coverage at an extremely low price. Vehicle service contracts are a good investment for peace of mind, but generally there are limitations on the types of repairs that are offered for assistance. Gather more information before deciding to purchase something that seems too good to be true.

  1. Little Track Record or Uninsured

Fly by night warranty companies come and go, sometimes leaving their customers without coverage when they go out of business. Select a company with a long track record of service that is fully insured. For example Cars Protection Plus has been helping customers for nearly 20 years and is proudly insured. Choose a company that has taken precautions to protect your investment.

Manufacturer Warranty vs Vehicle Service Contract: What’s the Difference?

happy-driverThe average brand new vehicle loses about half of its value during the first 3 years of ownership. When selecting your next vehicle, the choice to buy a used car instead of a new one can save you thousands of dollars in depreciation. One major sticking point preventing consumers from making the leap from buying new to used is the Manufacturer’s Warranty. Commonly referred to as a factory or “Bumper to Bumper” warranty; these warranties last about 3-5 years, are included in the cost of the vehicle and cover the vehicle’s first 30,000 to 50,000 miles. Choosing instead to purchase a used vehicle with a vehicle service contract can provide the reassurance needed to make this smart financial decision.

A service contract isn’t the same as a manufacturer’s warranty. It is a highly customizable plan designed specifically for you and your car or truck. Most people realize a used vehicle is not break proof. It is important to select a vehicle service contract that will allow you to maintain your budget during your time of ownership. The factory warranty issued with a new vehicle is a standard contract designed to cover components that the manufacturers know seldom break. There is virtually no financial risk to the insurer during the factory warranty coverage. A service contract, sometimes called an aftermarket warranty, is different in that you can target the items that generally experience issues on your type of vehicle.  Buying a contract that covers common issues with your vehicle ensures you will have assistance when those parts experience a mechanical breakdown.

Another great feature of a good service contract is your ability to cover high mileage vehicles. CARS Protection Plus offers service contracts on vehicles with up to 200,000 miles for up to 48 months. These contracts stay with the vehicle and can even add value if you decide to sell the vehicle and transfer the contract to the new owner. Manufacturer’s warranties are generally limited to 100,000 miles and are not usually transferable.

When it’s time to purchase your next vehicle remember to save yourself some serious cash. Buy a vehicle that is a few years older with a service contract to provide peace of mind for years to come. To learn even more about the benefits of vehicle service contracts, take a moment to watch a few videos from CARS Protection Plus.