Alabama Consumers – Be Wary Of Extended Warranties On Cars


Alabama consumers are pressured into buying extended warranty agreements when buying cars. This recent post by Ronald Burdge shows why that may not be a good idea.

Extended warranties have been one of the highest profit customer ripoffs ever seen in the auto industry. Worse yet, with little regulation, they are likely to stay that way. So, what can you do to avoid being ripped off by one?

First, don’t buy one. Everyone in the industry knows that the profits are high and the payout is low. No matter what they are wanting to charge you, the odds are that over half that money is pure profit to the car dealer. And if the warranty company’s name isn’t the same as an auto manufacturer, then you can bet that the profit margin is even higher, probably at least 60 percent and more likely 75 percent of the price is pure profit.

Please read this rest of this excellent post.
Ronald Burdge is an experienced consumer lawyer out of Ohio who has an extensive blog on consumer issues and lemon law. We have heard him speak at conferences and he knows his stuff.
Particularly if you are interested in consumer issues related to cars – subscribe to his blog. We do and find it very helpful.

Another resource for you is to join our Facebook Fan Page – Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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