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Dealers Might Try To Sell You These Three Things, Don't Buy Them

Buying a car in this economy, be it brand-new or used, is a straight-up challenge. You want the best bang for your buck, but the market is not entertaining any interesting or attractive deals. Everyone is trying to sell vehicles priced as high as possible since, you know… Inflation and other global problems are not going away anytime soon. What you can do is avoid these three offerings that might seem like a good idea. They aren’t!
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For starters, we must acknowledge those dealers that are honest and are not trying to make their customers pay more than what’s necessary or already agreed upon for a car. Adding all kinds of extras that are not in any way, shape, or form necessary is not something these entities do. If you do or did business with them, don’t forget who they are. They are not that common nowadays.

Next, the first thing you should avoid from the list of things dealers might try to sell you is the third-party warranty that may be branded as an extended service contract or simply as a warranty. Besides being expensive, it is not going to help you much if you’re having serious car problems. It’s no match for what the manufacturer offers.

In most cases, these warranties are offered by small companies that may be even headquartered out of state. That’s why customers usually don’t receive a document that says what that warranty specifically covers. You pay the money and the dealership gets its cut, but you don’t know what you get. The car’s yours, but the warranty that’s already paid for is not properly explained. You might want to sue, but you’ll lose if you can’t prove what you bought exactly.Don't fall into the trap!
There have also been cases in the U.S. where dealers were doing shady stuff like selling warranties and getting the money for them, but the cash never got to the company that offered this type of product. If asked about it or if someone submitted a claim, they’d just say they forgot to submit the paperwork.

If a third-party warranty is something you’d like to have, ask questions about it, request some details, check its availability, review the costs it covers specifically, or check the maximum amount you’ll be able to use in case of repairs that are needed often is. You might be surprised to learn the third-party warranty can be used only for cheap replacements of some small parts or just checks that are usually offered for free by businesses that want to have you as a customer. Some might even tempt you with covering rental costs, but that’s not going to be available for the entire time your car awaits a mechanic’s touch.

Be extra careful! Always ask for proof, and always have something in writing that explains the product you’re paying for.Insurances are tricky
Gap insurance is another thing dealers might try to charge you for. This type of product promises to cover the difference between what a leased car or truck is currently worth, and the amount that you owe on it in case of a bad crash. This is particularly aimed at those that didn’t fully pay for their new vehicle and chose to make a down payment so a finance or lease agreement can happen. Gap insurance is basically promising you total coverage in case you’re involved in an accident that wrecks the leased or financed vehicle. You won’t have to pay a thing after the inspectors have done their job.

The product is cheap if you buy it from insurance agents, but some dealers add it and charge a lot more than what’s necessary for it. Keep in mind that gap insurance usually adds just $20 to 30$ more to your annual car financing or leasing costs. Furthermore, some car salespeople might charge for it, and include it as an add-on in your contract, but never actually give you the advantages of this type of insurance.

Similar to a third-party warranty, you should always ask for proof and details if your dealer wants to add GAP insurance to your contract or purchase agreement. You need evidence, contact details, and what deductibles there are! You might want to sue, but it won't be possible without clear proof.Saying it is not the same as proving it
Finally, credit life disability policies are another type of insurance that some dealers might want you to buy. The idea sounds good at first. They’ll tell you that if you pass away, the company will pay a part of the whole loan you had if you were, of course, insured.

The problem is that not many people made claims. Under 1% of those that bought credit life disability insurance with their car actually ended up using it.

Never buy something that’s not properly explained, presented, or offered by a company that is yet to be known for having at least some activity in the space.


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