Public Roundtables: Protecting Consumers in the Sale and Leasing of Motor Vehicles, Project No. P104811
Federal Trade Commission: My husband purchased a pre-owned Lexus from a local dealership that had a three year warranty included in the sales price. The salesperson strongly encouraged him to also purchase a seven year warranty on the vehicle. The salesman stated that the 7-year vehicle warranty is only available at the time of sale and since it was a pre-owned car it would be both practical and cost effective to buy the additional warranty coverage. The Lexus salesman said "for an additional fee the car would have ten years of warranty instead of just three years." A little over eight years after buying the car, my husband had a problem with the car that was explicitly covered by the extended warranty on the vehicle that he had purchased. It was at that time that he was told by the dealership Service manager that the extended warranty he had purchased actually only gave him four additional years (for a total of seven years warranty on the car). The information we received when the Lexus was purchased was purposefully misleading and false. The price of the extended warranty for seven years (as it was advertised and sold) made it seem like a reasonable purchase. However, it effectively was only a four year vehicle warranty, but it was not called that nor was it explained by the salesperson as only a four year extension to the vehicle warranty.