So many people get ripped off after they have already closed their new car deal. They get you on the extras and the warranties at that point.
The extras are things like rust proofing, scotch guarding etc. It seems pretty straight forward but you would be surprised at how many people get taken on these.
Extended warranties are the most common "extra". Sold as an extension of your factory warranty, they may be completely unnecessary if you don't plan to keep the car more than the three or four years covered by the factory warranty. In addition, the extended warranty may cost more than the actual cost of typical repairs during the coverage period. The extended warranty may also exclude certain items. If you want an extended warranty shop around. There are many reputable companies now offering an extended auto warranty product at rates far more competitive than your auto dealer.
Other common "extras" are shown below. Most are completely unnecessary or can be purchased at a far lower cost than what is offered by your car dealer. Most are worth far more to your car dealer than they are to you.
Description |
Your price |
Dealers costs |
Rust proofing |
$800 |
$40 |
Extended warranty |
$1200 |
$300 |
Scotch guard |
$300 |
$5 |
Car alarm |
$400 |
$100 |
Paint sealant |
$300 |
$10 |
Credit/insurance costs |
$200 |
$30 |
Detailing and pin striping |
$299 |
$30 |
Total of extras |
$3499 |
$515 |
NEXT: AVOIDING AUTO FINANCE PROBLEMS |
