You’ll often hear a lot of things at an auto dealership when you buy a new car… including things that are flat-out wrong or said in a way that misleads you without actually being a lie. Here are some of the most common lies that you’ll hear at a dealership.
1. The best place to buy an extended warranty is an auto dealership.
It might be best for the dealership, but that doesn’t mean it’s going to be the best choice for you. You see, auto dealerships don’t offer warranties directly – they’re ultimately third-party providers, and chances are that you will get a better rate if you purchase directly from the coverage provider. This takes the middle-man out of the equation, and while it can be hard to sort through all of the companies that claim to sell warranties directly (but really don’t), we’ve found the honest ones, and you can read reviews of the best extended warranty companies over on our reviews page.
2. Your car will only qualify for extended auto warranty once, when you buy it from the dealership.
This one is definitely false – in fact, some dealerships even go on a sliding scale, increasing the price over time to encourage you to purchase an extended warranty as early as possible. In most cases, extended auto warranty in New York will be able to protect a vehicle until it hits 100,000 miles, and you can buy one at any time before that. However, it does tend to be cheaper to purchase the plan while the manufacturer’s warranty remains in effect. That much is unquestionably true.
3. You have to buy an extended warranty to qualify for financing.
This one is a little bit more complicated. In many cases, dealerships can set their own terms for financing options in accordance with applicable law. Laws do vary by region, and in many cases a dealership might actually have a strong case if it refused to sell a product to somebody that wouldn’t agree to its terms of sale.
However, most credit companies won’t care about whether you have an extended warranty or not. They’re far more interested in your overall credit score and trustworthiness as a consumer – all that most dealerships will truly require is having insurance for the vehicle. Be very cautious of any dealership that tries to push you into buying an extended warranty before offering you financing – that’s probably a good time to walk away and head to a more reputable location.
4. If you purchase an extended warranty and GAP insurance today, I can get you a great deal on the interest rate.
The extended warranty has no impact whatsoever on the interest rates that any bank (or similar institution offering credit) can offer you. This is actually codified into law – banks are specifically forbidden from requiring the purchase of an extended warranty when a vehicle is bought, and this extends to having the extended warranty as a criteria for a different interest rate.
In fact, if a dealership could get you a better interest rate with the extended warranty, then they could also get you a better rate without it – and they’re lying if they say they can’t. It’s nothing but a marketing tactic that you should be doing your utmost to avoid.
5. An extended warranty comes with the vehicle you are about to purchase.
An extended warranty is additional coverage that, by definition, is not offered as a normal component of the vehicle. Now, it’s true that extended warranties can be included with the purchase of a car, but that’s only because they’ve added its cost into what you’re paying for the vehicle.
This is misleading – they want you to think that the extended warranty is free when they’re actually charging you more and trying to pretend they’re not. Extended warranties are not free, and no provider of the coverage (which the dealership isn’t) would offer it without getting paid. A dealership isn’t going to reduce its bottom line that way.
Stay Informed and Stay Safe
The best way to avoid getting cheated when you buy an extended warranty is to arm yourself with the facts and recognize scams for what they really are. If you hear a lot of these things from your dealership, then you’ll know exactly what kind of people you’re dealing with… and why.
Instead, take a look at some of the extended warranties we’ve found and compare the prices to what the dealership tells you – chances are these plans will offer a similar degree of coverage for a much lower cost, and you can be confident that you’re getting the very best deal when you sign up for an extended coverage plan. Get a quote for an extended auto coverage today!