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Pre-existing problems

Auto Finance News

Don’t buy a used car with pre-existing problems and expect the extended warranty to repair it. This is a common scam used by car salesmen. They will try to convince you to buy a car that you know has problems, and suggest that you have it repaired under your extended warranty.

First, never buy a used car that you know has problems unless you know exactly what is wrong, what the cost to repair is, and are willing to spend the time and money required to fix it.

Second, never expect an extended warranty to take care of pre-existing conditions. If you have a claim on your extended warranty in the first 90 days it’s going to trigger a red flag. The warranty company will most likely send an inspector to the repair shop. They can easily tell if damage or wear has occurred recently, or if it has happened over time.

Note: A few of the better auto warranty companies will do an inspection before you buy a warranty to determine if the car has any pre-existing problems. This is a great way to prevent claims from being denied. Fly-by-night warranty companies simply do not have the resources to do pre-purchase inspections. These companies will routinely deny claims in the first 90 days. Ask if your warranty company does a pre-purchase inspection.

If you have any questions please email me at ctbutler2008@live.com

Charles Butler

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