What is a Motor Vehicle Service Notification? Have you recently received an unsolicited letter or postcard informing you that your car’s warranty is soon to expire? What will you do in case you receive this kind of notice? In this article, I’ll discuss what this notice is about and what you need to do about it.
What is a Motor Vehicle Service Notification postcard? This is a notice claiming that your car’s manufacturer’s warranty is soon to expire. It actually refers to the service contracts that vehicle servicing providers issue. However, some of these companies are already bankrupt, and when you need car repairs, they will most likely deny repair coverage.
This notice may mention your car by model, make, and year. And it may warn that you need to update your protection plan or be responsible for all the required repairs. It may also provide a toll-free telephone number that you can call.
Others regard this letter as a Motor Vehicle Service Notification scam. But is it a scam? Some companies that send this letter are legitimately trying to sell you an extended warranty. However, many times, the warranty doesn’t actually cover most repairs, which they might write in the fine print. A lot of people receive this postcard or letter for a car they haven’t owned in years. As a result, this notification could be classified as a scam.
Read on to know more about the Motor Vehicle Service Notification and what you should do if you receive one.
What Is a Motor Vehicle Service Notification Letter or Postcard?
It is a notice that warns you that your vehicle’s warranty is about to expire and provides a toll-free number to call if you have any questions. Usually, the letter will provide just enough information regarding your car’s make and model to persuade you that it’s legit and that there is a problem.
These letters seem to be legit at first glance as scammers design them to convince you that they really came from the car dealer or manufacturer where you bought the vehicle. Also, these notices may even bear the Department of Motor Vehicles logo complete with the seal of the state.
Most often, the companies sending out these notices are ‘extended warranty’ sellers. They operate a business full of scammers and outright thieves. Although some of them may be legit, most are, unfortunately there only for whatever money they can get from you.
If your vehicle can still bring you to wherever you want to go and you keep it well-maintained and updated for repair costs, whenever they come, they will always be manageable. It will be less expensive than the service contracts offered by these ‘extended warranty’ sellers. Whenever you require their services, they will almost certainly claim that the service contract does not cover your repair issue.
People Constantly Receive These Notices
You’re not the only one who has received this kind of notice. You’ll find many people saying that they had received such notices if you access different car forums on the web. Some of them have been receiving these notices on a regular basis.
One of the forum contributors said that he got such notices all the time and believes that it’s simply a marketing strategy of companies that offer extended car warranties. They may or may not be legit. He advised to simply ignore them.
One more forum participant said that he was receiving such postcards and letters for about a year. It says that he owns a particular car make and model and states that it was time to renew his vehicle protection.
But the problem was that he had never owned that particular car make and model. What he owned was a vehicle of the same brand of an earlier model, which he already brought to the junkyard a year ago.
Motor Vehicle Service Notification Scam: A Scam or Not?
Others refer to this letter as a Motor Vehicle Service Notification scam. So, is it a scam? Some companies send this letter to you and legitimately try selling you a warranty for your car. Unfortunately, many times, the warranty doesn’t actually cover most repairs, which companies might write in the small print on the contract. Plus, a lot of people receive this letter or postcard for a car they haven’t owned in years. So, as a result, this notification could be classified as a scam.
I wouldn’t like labeling all these extended warranty service companies as scammers. However, I advise you to be very cautious when dealing with them. If you’re not yet satisfied, let me give you some more real-life experiences of people who have received these kinds of warranty notifications.
One forum contributor was reluctant to call them scammers. Although he admitted that, more often than not, these companies are not connected to your vehicle’s original warranty. What they want to sell you is an extended warranty, but you have all the right to refuse their offer.
They will even urge you to read your vehicle’s original papers and check the expiry of your warranty. Typically, the vehicle warranty is indicated by the years used or miles and not by the date.
It could also be a scam, according to another forum participant. He admitted that many car dealers even sell car warranties and that some of these dealers will sell your personal information to others. Generally, an extended warranty on your vehicle isn’t worth it unless you plan to use it for heavy-duty work or retain it for more than 10 years.
Another forum contributor received this unsolicited notice many times. He decided to finally call the phone number indicated in the letter. He called and asked the company why he is constantly receiving this notice because he was not interested at all.
The individual who took his call immediately began arguing with him. He requested to talk with his manager, but the person refused! When the supervisor finally answered the phone, he had the same demeanor as the other person. So he simply hung up the phone in frustration. His evaluation: they’re scammers.
Another forum participant made an insightful point. Extended warranty sellers will persuade you that their policies cover most major vehicle repairs, similar to what you’d get from a car manufacturer’s original warranty.
But after closing the deal and paying up, you will discover later that most vehicle repairs aren’t covered. And if you need them, you need to pay them out of your pocket. So what good is their service contract then?
These extended warranty sellers can get away with this as most people don’t read the contract’s fine prints before they sign. Also, this forum contributor said that some of these companies change their contact numbers after selling their contracts.
How Did You Receive This Vehicle Service Notification?
How and why did it happen that you receive this unsolicited vehicle service notification? If you’re inside a car showroom looking for a brand-new or used car, a salesperson might suggest that you get an auto service contract. This person will then claim that it will protect you against any unforeseen and expensive repair costs.
If you didn’t buy the offered service contract at that time, the car dealer might have stored your personal information through this salesperson or any of its sales staff. They will use this information for their purpose and time. And when that time comes, they will follow up on you about their proposal for a service contract that will surely get your attention.
Another possibility is that they sold your personal information to a third party who also sold it to “extended warranty” providers, who are now hounding you to give them a chance.
Remember that car manufacturers, car dealers, and independent car service providers sell extended warranty contracts. So if you find that you really need this warranty, just shop around. Make sure you know your options and what you are buying.
Now that we’ve answered the questions, “What is a motor vehicle service notification?” and “What is the motor vehicle service notification scam?”, let’s proceed to whether you need to purchase a service contract or not.
Is It Necessary to Purchase a Service Contract?
In most cases, there’s really no need for you to buy an additional service contract upon buying a new car. In addition, the car dealer shouldn’t require you to sign such a contract if you bought your car through financing.
If the dealer states that you require this contract, verify with your lender to see if this is true. Don’t be like previous car buyers who couldn’t terminate their service contracts after discovering they weren’t necessary.
Be aware of dishonest car dealers who may try to smuggle an auto service contract into your car loan without your knowledge. Before signing the loan document, ask the dealer to eliminate a cost for a specific service contract that you disagree with.
How to Avoid Vehicle Warranty Scams
There are many strategies to keep these con artists from taking advantage of you.
1. Be a Skeptic
If you receive a motor vehicle notification letter or notice, don’t believe it right away. The companies that send these notices will try to make the impression that they’re from the car dealership or the car manufacturer. They’ll use terms like “Final Warrant Notice” and “Notice of Interruption.” They’ll make it appear very urgent, and you’ll be enticed to contact their toll-free number.
If you call this number, you’ll most likely be subjected to high-pressure sales tactics before you obtain any information regarding their service contract. They may even demand personal financial information from you, as well as a deposit.
2. Don’t Share Your Personal Information
Don’t give out any personal information, especially financial information, to people you don’t know. Never give out personal financial information like your Social Security Number (SSN), credit card number, or bank account to just anyone. Even your Vehicle Identification Number or driver’s license number should not be divulged.
3. Keep an Eye Out for Fast-talking Telemarketers
Don’t take it at face value if somebody calls you about your vehicle warranty expiration. You need to check your car’s warranty in your car owner’s manual or call the dealer or car manufacturer where you purchased your vehicle. If they expect you to make a decision straight away, be wary. Legitimate businesses will give their customers enough time to think about their choices.
When Should You Purchase Vehicle Warranty Protection?
I’m not suggesting you skip out on purchasing a car service contract. It’s entirely right to get such an arrangement if you buy a used car, especially if sold on an “as-is, no warranty” basis.
The majority of used cars in this category have expired warranties. So you’ll be responsible for any necessary repairs and maintenance. Within 90 days of purchasing a used car, some used car dealers offer their customers a dealer-service contract. Under state law, there are “implied warranties” that may give you warranty rights.
Some states prohibit the sale of secondhand cars “as is,” while others require the use of specific terms to disclaim implied guarantees. Certain states also have “lemon laws” that apply to used vehicles. If the secondhand car you bought is defective, you can get a replacement or a refund.
Is This an Important Service Agreement?
The company commits to undertake certain repair services in a vehicle service agreement or contract. “Extended warranties” are a term used to describe some deals. According to federal law, these are service contracts, not warranty contracts.
These agreements cover losses resulting from the failure of a car component or mechanical element. The term “extended warranty” refers to agreements that take effect or are taken into after the vehicle’s standard warranty has expired.
A company must obtain a license to sell this product in the state where it operates in order to provide this service. If a customer asks it, the company providing this service should provide a copy of the extended vehicle service warranty‘s terms and conditions before the contract is signed.
The company should provide a hard copy of the contract to the customer or lead the client to the company’s website (if one exists) to download a copy for his review. To avoid unfavorable consequences, you, as the consumer, must read the contract’s fine print before signing it.
Conclusion – What Is a Motor Vehicle Service Notification Postcard?
The notice is about the service contracts that car service companies issue. However, these service companies frequently deny coverage for necessary car repairs, and others are already bankrupt. The majority of these companies will also deny coverage if you require vehicle repairs.