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Columns: Driving for Dollars
Terry Jackson   Expert: Terry Jackson
Driving for Dollars
Dealer said buying warranty would help obtain financing
Driving for Dollars

Fight back against shady dealer
 

Dear Terry,
A dealer told my mom that it would be easier to get financing on a used car if she bought the extended warranty, which cost more than $1,000. She bought the warranty and the financing went through. But I've never heard of this and I think she got taken. Is there anything she can do?
-- Alvaro

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Dear Alvaro,
Your mom got fleeced -- or at least tricked into buying an extended warranty under false circumstances. Lenders do not base loan decisions on whether the buyer gets an extended warranty, and any dealer who tells a customer that is being dishonest.

What she can do at this point is contact an attorney to demand a refund of the warranty premium. If she doesn't have anything in writing, it could be a tough case. But the hassle of dealing with a possible lawsuit, consumer affairs complaint and potentially damaging publicity might persuade the dealer to seek some sort of compromise. The only way to keep some dealers from pulling stunts like this is to fight back.

Good luck.

This week
Cash discounts on SUVs outweigh gas prices
Stretching payment time seldom smart
'Certified' means pricey in used cars
Fight back against shady dealer
Bankrate.com's corrections policy -- Posted: June 9, 2007
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