Dealer Fraud: Worthless Add-ons and Costly Insurance Options
Do not let the dealers use their “scam art” on you and sell you worthless add-ons such as fabric protectant, rust-proofing, VIN etching and lifetime wax protection since they have very little value, though the salesmen will probably claim the opposite. Besides the price, new cars already come with rust-proofing and lifetime wax doesn’t last longer than any other wax job.
A prepaid maintenance plan might also be worthless since it usually covers only the regular maintenance expenses such as tire rotations and oil changes. In other words, the maintenance plan might cost more than the individual visits would. So if the dealer refuses to negotiate the price of the plan, it’s probably better to save your money and spend it on those oil changes.
The same refers to the extended warranties. These are service plans that cover maintenance and repair costs after the regular warranty expires, but they only help you if you plan to keep the car past the original warranty’s expiration. You might decide whether you need it or not later, look for more profitable terms and save your money, so do not get pressured into buying one before you leave the dealership.
Costly insurance options
Car dealers will offer buyers various overpriced insurance options that the buyers probably don’t need at all. No law requires buyers to carry gap or credit life insurance.
Gap insurance pays the difference between the value of the car and how much is owed on it in case it is wrecked or stolen. Gap insurance is a one-time cost of around $700. Those who can afford a large down payment could probably skip the gap insurance or get it online for about $300.
Credit life insurance covers the balance in case you die before paying off the loan. If you think that you need it, then you’d better get it not from the dealer, but shop around for better prices.
If you believe that you are a victim of dealer fraud for any reason, please feel free to call us toll free at 866 .975.3666 to contact our dealer fraud attorney.