Monday, August 3, 2009

Do People STILL Fall for Extended-Warranty Scams??

A well-dressed guy is being given the bad news by his auto mechanic: "you'd better plan on leaving your car here for a few days, it needs a lot of work..."

Well-Dressed Guy (who has greasy geri curls and looks like he fell out off the set of "I'm Gonna Get You Sucka") replies "yeah yeah, no problem....."

Mechanic: "No really, we're talking at least $1900 for parts....and then there's the labor and taxes..."

Well-Dressed Guy, who is barely paying attention: "Whatever, whatever, uh huh..."

Mechanic: "You're going to have to rent a car..."

Well-Dressed Guy: "Hey, it's no problem, I got Mogi!" And he whips out a little green credit card. Ah, I get it! This guy went to, bought an extended warranty for his car, and it's covered! He's right, there IS no problem!

Except, come on now. Well-Dressed Guy is suffering from a severe reality detachment if he really thinks that Mogi is going to cover thousands of dollars in damages to his car just because he happens to have an extended warranty with them. Extended warranties have ALWAYS been dicey propositions bordering on rip-offs-- they rarely if ever are worth the additional cost involved, either because the item being "covered" could be replaced for less than the premiums or because the most common repairs are conveniently left off the list of those covered. Extended car warranties are even bigger scams- since companies like Mogi know damn well what is likely to go wrong with automobiles when they reach a certain age or mileage level, they simply fail to include those in the warranty- something you find out ONLY when you need the work done on the car. Plus, extended warranties purchased along with the item usually accomplish nothing beyond jacking up the price of that item, providing no benefit to the consumer; I've lost count of how many times I've been "offered" an additional six months or a year of "service" (which usually involves sending the product through the mail to some factory, on my dime of course) on a vacuum or clock radio which adds maybe twenty percent or more to the price. It's almost always cheaper and more convenient just to chuck the thing and buy a new one when it breaks down beyond the manufacturer's warranty.

Check out these testimonials concerning automobile extended warranties:

You'll see that companies like Mogi are in business to scam people into shelling out their hard-earned money on worthless warranties. Of course, this should come as no surprise to anyone who has matured enough to realize that no insurance company is going to offer complete coverage for your 2001 KIA with 180,000 miles on it for a reasonable price. That won't stop Mogi and others from trying, however; I'm still getting monthly "warnings" from College Park Honda that the warranty has expired on my 2003 Honda Civic EX. Gotta give them an "A" for Effort, I guess.


  1. You are so right, people need to know about these extended warranties, All they are going to do is mad, They are going to try to trick you with many questions,. They are going to try and trouble shoot your problem, They will send you to the edge of your sanity trying to get out of replacing or repairing, Especioally the walmart extended warranties, They suck,They are the worst.....HP products There is NO such thing AS a walk in replacement on extended warranties, I am in my third week on trying to get a printer replaced. NO more warranties for me,

  2. I'm the consumer reporter for the St. Louis Post-Dispatch. Mogi is one of several sellers of extended auto service contracts based in the St. Louis area. On our website, we've got detailed info on many of these companies, their DBAs, lawsuits and consumer complaints. If you're interested, click over to

    Matt Hathaway

  3. check out:

    This company has achieved a F rating from BBB - this quite remarkable since BBB ratings range from A+ to F.