Closing Without the Extra Costs

So many people get ripped off after they have already closed the deal. The dealer gets 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.

The trickiest closing cost is the extended warranty. The language used is so confusing. This is not the warranty that the factory gives you for the car. It is a warranty that covers the cost of fixing the car should it break down on you.

Extended warranties often do cover any repairs that you require during your coverage period, but there is often some information that you are not told about. For example, the extended warranty is usually effective only up to a certain amount of mileage or term period, whichever happens first. They might also only cover certain types of problems. If your extended warranty doesn’t cover every part of your car, why bother?

Some extended warranties don’t cover the larger problems, but just the smaller ones. If your engine conks out, you may be left in the lurch. Make sure your warranty covers all major parts. You can easily afford to replace a hose. What happens if your transmission goes out? This is where you want the coverage.

Many extended warranties don’t cover everyday wear and tear policies, only breakdown problems. If you do insist on getting an extended warranty, get one that covers both instances. You will also want to get a warranty that is effective immediately. And be sure the warranty is with a well established finance company and not one that go belly up in a year. Don’t purchase an extended warranty directly from the dealer. Instead look online for a warranty Being online gives you all the time to asses your warranty properly without any pressure.

Watch out for deductibles because you don’t want to get stuck paying for deductibles that you thought were covered by the warranty.  

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