The Forced Warranty Scam

This is when the finance manager tells you that you are not eligible for the loan by the bank unless you pay an extra £1000 for a 2-3 year extended warranty.

This scam just doesn’t make sense. Basically the finance manager is telling you that the bank won’t trust you to pay the £20,000 loan for the car, but they will trust you if you pay even more money. That’s just stupid.

You can avoid this scam if you can force them to put it in writing that you “have” to pay the extended warranty in order to get the loan.