Appendix 4. Add-on Products and Services
If you see additional fees beyond the standard Destination Fee on the manufacturer's window sticker, you should refuse to pay them, or at least negotiate them down. Add-on products and services are often built-in to the dealer's sticker price, but they are optional and you can refuse them, especially if they are not already installed. Other add-on products and services may be presented in the Finance Office when closing the deal, and if you follow the advice in Chapter 6 - Making The Deal to ask for the options to review in advance, that would be best.
Additional Fees
- Documentation fees
- Pre-delivery inspection
- Dealer prep
- Advertising charges
Add-on Products
- Paint and fabric protection: These coatings supposedly protect your car's paint and interior from stains and fading. However, their effectiveness can be debatable, and regular cleaning and maintenance might be sufficient.
- Tire and wheel protection: This covers damage to your tires and wheels. Consider whether your existing insurance already covers such damages and the likelihood of
- encountering such issues before deciding.
- Appearance packages: These include pinstripes, wheel trims, or other cosmetic enhancements. They add cost but might not significantly increase resale value.
- Extended warranties: These extend the car's warranty coverage beyond the manufacturer's warranty. Research the manufacturer's warranty, potential repair costs, and compare prices with independent warranty providers before buying.
- Pre-paid maintenance packages: These cover scheduled maintenance services. Compare costs with independent service providers and consider your driving habits before committing.
- Gap and credit insurance: Gap insurance covers the difference between your car's value and the amount owed on your loan if your car is totaled in an accident.
- Credit disability insurance: This protects your loan payments if you become disabled.onsider your existing disability insurance.
- VIN etching: This involves etching your car's VIN number onto the windows or other parts to deter theft. However, modern security systems and comprehensive insurance might offer better protection.
- If there were any add-ons installed that you don't want, ask to have them removed or, if you're willing to walk away, tell them no deal.
Warranty and Service Plans
- Ask whether the car is still under the manufacturer's warranty, and if so, what's
- covered and for how long. If the manufacturer offers its own extended warranty program, the salesperson will tell you.
- If you plan to drive more miles than average and intend to keep the car past its original warranty, an extended service plan may be worth it after the original has expired. But if you don't plan to drive more miles than average or keep the vehicle
- more than 4-5 years, an extended warranty would be overkill.
- Most used car dealers have a relationship with a VSC provider and will offer to sell you a contract, but be sure to take the time to check the company's reputation by doing a Web search for "[company name] reviews".
- To find candidates, simply search for "best vehicle service contracts", then search for reviews on any of the top recommendations and you'll find a treasure trove of reviews and ratings, including customer comments at the Better Business Bureau (www.bbb.org). Learn more at these sites:
- Keep in mind that according to most experts and consumer surveys, the premiums you pay will exceed the amounts paid through repair claims unless you choose a vehicle with a troubled reliability history.
- An alternative approach might be to self-insure: get prices on VSCs for the vehicle you want and don't buy one, but put that amount into a savings account each month to pay for or offset the cost of needed repairs. The odds are that at the end of the would-be VSC contract, you'll still have money in the bank!
- Certified Pre-owned vehicles will usually include an extended warranty, so no need to buy anything extra. If no warranty is included, you may want to consider a third-party vehicle service contract (VSC). Some refer to these as an extended warranty, but they are not. A VSC is a contract between you and a VSC provider that states what is a covered repair for the premiums paid.