Car warranty calls and letters, and the signs of a pitch

Calls, texts and letters about an "expiring warranty" can arrive long after you bought the car. What they sell is usually a service contract, and the company behind them probably isn't working with your dealer or the car's manufacturer.

A warranty and a service contract

A warranty is the maker's promise to fix certain defects or malfunctions for a set time after you buy. On a new car it's included in the price, often for a number of months or miles, whichever comes first. A used car may have some warranty coverage left.

A service contract, often called an "extended warranty," is optional and sold separately, by a manufacturer, a dealer or an independent company. The seller agrees to do or pay for certain repairs or services. Coverage and prices vary widely, and contracts usually leave out accident damage and normal wear and tear.

How the pitch works

The notice uses urgent words, such as "Motor Vehicle Notification," "Final Warranty Notice" or "Notice of Interruption," to make it sound official and pressing. The seller may push for your personal financial information and an immediate down payment before explaining what the contract covers. When you later need a repair, the company may be out of business, or the contract's limits may leave it nearly worthless.

An annotated example

What to do next

Look up when the car's manufacturer warranty really ends, from the paperwork or the dealer. Don't give financial details or a down payment to a caller or a letter you didn't ask for. Keep the car's service records and receipts either way, because a warranty or a contract can require them.