Auto Financers, Avoid Being Taken to the Cleaners!

[pennypinch]

You may think you are getting a really good deal on that new vehicle after negotiating with the salesperson. Don't forget the next step though, you still have to deal with the auto financer. If you are not prepared, you could end up paying alot more than you had expected.

It is the auto finance managers job to get you to pay the most possible so that the dealership can maximize their profit. You need to either get a pre-approved loan elsewhere or know your credit score and what rates you should qualify for.

They may also only want to offer you packages with add-ons that you don't want or need.

You really don't need the extended warranties in most cases. As it is, the bumper to bumper usually lasts 36,000 miles or 3 years. The transmission warranty usually lasts up to 75,000 miles. If these are not enough for you, haggle with the financer, their warranty mark ups are usually 100%, therefore they have room to come down on the warranty costs.

Another add-on they may offer is paint protection. All this really is is a "grand" wax job. Something you can do yourself at below a fraction of the cost.

Just be smart and know your choices. Do not let them talk you into anything.

[dollardaze]

Thanks for posting such good information, pennypinch. It's so easy to get carried away when we want a new car (or any other big purchase, lol).

It's important that we remember that each and every little thing that we get talked into by a salesperson is going to cost us in the end. It may not seem to be a large amount for each of those things, but in the end it can cost us big time!!

[moneysense]

Something else to consider is the fact that most of us do not need a "fully loaded" vehicle. In most cases, ac, and a radio are enough. We are only driving from place to place after all and do not need all the extras.

And actually when you come right down to it, rolling your windows up and down by hand can be a real life saver if you happen to inadvertantly end up in a lake, because push button windows wont go up and down under these conditions, leaving you no way to exit your vehicle.

The GPS are nice but a road map will get you to where you are going and are much cheaper.

So be careful what you order as extras when you buy your new vehicle. Every extra costs extra.

[pennypinch]

Most of us don't need many extras. As far as the GPS systems go, they are coming down in price and can be found even at the local Wal-Mart. They are super easy to install and would be much cheaper this way than having them ordered as an extra at a dealership. The same goes for CD players and many other items that you would pay a small fortune for if ordered through the dealership.