Choosing the right dealership can really be a make it or break it type situation. As you are probably well aware whether you have bought a car before or not is that there are a lot of dealers out there that are looking to take advantage of you. One very common type of used car scam is going to deal with the service contract. You should make sure that you are well educated on the topic and are prepared because they can come over the phone or through your email so know that they are everywhere.

Those who have taken the time to get bad credit used car loans should be aware of all potential risks that way you do not end up hurting yourself. Whether it be just a little financial hit or a complete disaster which ends up in repossession neither are going to be anything that you should want so that is why we are here to help inform you of some things that you should keep a close watch for.

Potential for Used Car Service Contract Scams

When getting an auto loan especially a high risk auto loan it will be pushed upon them that they get what is known as a service contract. This basically means that the warranty will be extended to cover the entire length of the loan. There are many circumstances when this is highly recommended such as if you are purchasing a used car. There are many things that can go wrong though and that is why if you do make sure that you go through directly through the dealership. While other places may offer better deals, there is a good chance that they are just going to be trying to scam you.

Now if you are wondering how they received your information it is simple, they buy lists with information of people who recently took delivery of a new or used car. Similar idea of how those pesky telemarketers get your number. During most of these calls you are going to hear the following:

• Your warranty is about to expire
• The company is selling an extended warranty
• The call is coming from the selling dealer or manufacturer
• The service contract is "bumper to bumper"
• You will get a refund if not satisfied

If you are intrigued by what they have to say get a name, address, and phone number of the company and check with the Better Business Bureau to see if they are registered to do business. If so then you can look into it some more, and if not avoid them by all means.

Why Dealers are More Reliable

If you do want to get a service contract to extend your warranty then you will want to go through the dealership that you purchased your vehicle from. The most important reason why is because if anything goes wrong you know exactly where to go to talk to someone and get information. Licensed dealers will also fall under state consumer protection laws as well. If you feel you are not getting the price though feel free to shop around, but only through other dealerships. With all that being said you should have no problem getting a great service contract deal.