In recent weeks, the Hawaii Better Business Bureau has received several consumer complaints about third-party auto warranties.
It says companies are contacting consumers by phone, mail and e-mail.
But,if you don’t read the fine print you could end up paying for a warranty that doesn’t cover the cost of possible problems with your car.
Several Hawaii consumers who either recently bought a car or own a car are being targeted.
"We’ve had consumers that have gotten fliers or postal mail for cars that they no longer own or for cars that they just purchased that still have years left on its warranty," says Timothy Caminos of the Hawaii Better Business Bureau.
Caminos says the companies calling offering the warranty know the make and model of your car.
And, many of the offers are being mailed and are usually labeled time sensitive or urgent.
The Hawaii BBB says the warranties being offered vary in price and period of time.
"They can be for one year, three years or five years and depending on the contract their choosing can be dependent on well the price will be depending on that," Caminos says.
But what consumers are finding out is they’re signing contracts without reading the fine print.
"Consumers are finding that the problem they’re having with their vehicles are not covered by anything in their contracts," Caminos says. "So all the monies that they paid through these warranties are completely wasted."
Because, a contract is a binding agreement, Caminos says its difficult to get out of it once signed.
"It’s usually smarter wiser and kind of better investment for consumers just to take any kind of extended warranty offered through the car dealership because any problems that arise in the future will be taken care of," he says.
See the original article at: KHON2 Local News
