We have discussed several times the pros and cons of extended warranties. Sometimes they are worth it, especially in the case of a European car with a history of reliability issues. But when the dealership takes your money and never process the paperwork, it's going to be a bad time.

According to WoodTV.com, Derek Wustman bought a 2008 Saab 9-7X from Auto Exchange in Spring Lake last December . Knowing that he has bad luck with cars (which should have stopped him from buying a Saab), Wustman purchased an extended warranty for an additional $2,566. Which he was told would cover all the major components of the car for 60 months.

I know that all of you Jalops have immediately flagged a $2500 bumper-to-bumper Saab warranty for 5 years as "too good to be true." ...It turns out it was.

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Wustman's girlfriend was driving the car last month when it broke down outside of the Chicago airport. They had it towed to a local Saab dealer who diagnosed the problems and found a broken front differential ($4000) and a transfer case that needed to be repaired ($700). Wustman assumed that his warranty would cover all the issues...at least that is what he was told.

"When I called the warranty company the lady that I talked to, she was nice, really had nothing to tell me other than there was no record of my contract number, my name, the VIN number to the car or anything,"

The local news team investigated and discovered to everyone's surprise the lot was shut down because the dealership was not submitting customers' vehicle purchase documents to the state so the state couldn't process new vehicle owner's title and registration. They also tracked down the former business manager and asked if he may have sold a warranty to a customer without submitting the paperwork.

"It's possible..." he said.

If you insist on purchasing that warranty, make sure you have some paperwork to back it up and probably call the company to confirm you have coverage.

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If you have a question, a tip, or something you would like to to share about car-buying, drop me a line at AutomatchConsulting@gmail.com and be sure to include your Kinja handle.