It is no secret car dealers make more selling add ons and financing cars that they do on the actual car. Extended warranties, maintenance agreements, insurance of all kinds, and the always popular paint sealants and undercoating are large profit centers.
The very best salespeople get promoted to
“Finance Manager” and are often the highest paid employees in the store.
Peter put up an excellent post about cars
becoming disposable.
There is one type of insurance I insist
anyone seeking my help buy, GAP. This insurance pays the difference between
what you owe and what the insurer will pay if your car is a total loss. Please,
please don’t be naïve enough to think the insurer cares what you owe. This also
applies to leasing.
For your financial well being, have your
financing arranged before you begin shopping. Your bank, or better, your credit
union can help you understand what you can afford without the excitement of
that studly 4x4 you just drove sitting out front waiting for you to take it
home.
That is not to say you shouldn’t finance
through the dealership. They may have a better deal or will beat the deal you
have in hand when you first walked in.
As always, YMMV.
On a personal note, the last time I had a
car payment was 1984. Over the years, I have helped hundreds to go into debt,
or even deeper into debt, so they could drive the car/truck/soccer mom van of
their choice.
We all make choices. I enjoy my vehicles and part of that
enjoyment is if I break it, only myself will be harmed.
No comments:
Post a Comment