Upsold a 100,000 Mile Warranty in Finance Office

Just an idea if no ones thought about it...if you get low financing...say .9%. Buy the warranty at the highest price possible, financed with the truck. Call and cancel within a month. They’ll send you a check for the full amount. $3,000 loan for .9% for 60 months. Cheap money. Sure you gotta pay it back, but you could use that cheap money to take care of some other things or get started on your mods no money up front.

 

When you Finance with the Dealer you pay a higher interest rate unless it's 0 percent. Then the Dealer gets a kickback from the bank!

 

Hmm. I wonder if you pay sales tax on the warranty amount. That would make it less attractive.

 

There is no bigger rip off than 0% financing. All the dealer does is jack up the final price of the truck. Secure good financing elsewhere. Secure the best REASONABLE OTDP you can. You will be better off in the long run.

 

I believe it gets bundled with all the other costs, so yes you do pay tax. but, I could be wrong.

 

If you really want a extended warranty then negotiate the price! Never pay full asking price.

 

This is not true at every dealer! Sounds to me like you got ripped off

 

Educate yourself! I'm out

 

Oh boy. Why is this soooooo hard to understand? The MFG WILL make money. The dealer WILL make money. The bank WILL make money. If you think you got the lowest possible price plus 0% percent then either you won the lottery that day or you need to take a basic business course.

 

I agree that 0% isn’t a ripoff. You are right it’s all about the OTD, including finance costs. Sure if the price of the truck may be $500 higher with 0% but if the next best option is save the $500 and pay 3.99%, you are better off with 0%. Bring your calculator as someone else said. Dealers prey on the uninformed/uneducated/people in a rush.

 

OP, I’m glad you caught the problem while it could still be fixed. Thank you for sharing the experience.

 

I think we all can agree on this.

 

^^This. When I said “no” to the extended warranty, the finance guy cut the price...twice. I still didn’t take it. I remember going through this process with the last few vehicles I purchased, so anticipated and was prepared to decline.

 

Want to piss off the finance guy after he goes thru all the work pissing you off?

After all that haggling pull out an envelope of cash, and watch as he has to count it twice.. have somebody else count it twice, etc...

 

Hahahhaha! I did that with a small boat and trailer this past summer. Secured the boat and trailer with a $500 deposit on a credit card. Came back later that week to pay in full after they rigged the boat. Watched them struggle to count a few thousand in small bills. They were rather irritated.

 

If you handed them a wad of cash I doubt they were too irritated.

 

Oh they were. The two ladies in the office were NOT happy about it. Took 'em several tries to get it right.

 

I can guarantee they act irritated (who knows the reality). Literally took them 45min+ to deal with the cash vs a cashier check, etc..

 

Daaaaam. 3k? I paid 1200 for mine.

 

When we bought my wife’s RAV4 certified used the finance guy wanted to sell me the electronics extended warranty. Told me the same “computer on wheels” crap. It’s Phoenix, extreme heat can mess them up. Yada yada.
I asked what is the most expensive thing that could break and how much and if there was a deductible. I think he said radio or instrument cluster. Did my math on the calculator. Told him I would pay less out of pocket compared to buying the warranty. Wasn’t happy. Said that was an example other things can fail. I said I shouldn’t be buying it then.