Avoid These Dealership Add-Ons at All Cost When Purchasing a Vehicle
When you purchase a vehicle from the dealership, a lot more goes into the price tag than the purchase price. Aside from taxes and other fees, dealerships often try to sell you additional options.
Since making money is in the dealership’s best interest, many of these options, accessories, and add-ons may not be completely necessary. To help avoid paying for something you don’t need, be wary of the following car dealership add-ons.
Why car dealership add-ons are a tricky business
Once you’ve found the car of your dreams and you’re ready to make the purchase, the car dealership will take you inside to start the financial paperwork. According to U.S. News Cars, this part of the car-buying experience is often when honest car buyers lose out, and dealerships make their profit.
Dealerships can add many add-ons and options to your car’s price tag. They will likely offer these to you in ways that make you believe you really need them. But you can find some of these add-ons cheaper outside the dealership, while others you may disregard altogether.
By paying closer attention to what your dealership adds to your purchase price, you could save yourself from significant expenses. These five add-ons should be the first to watch out for:
1. Protection for paint and fabric
Car dealerships often offer various types of paint, body, and fabric protection as add-on options. Though it may seem smart for a car buyer to prolong the life of the car’s exterior and interior, these add-ons may simply be a way for dealerships to make money.
Remove options like paint sealant (paint doesn’t need sealing) and rust-proofing (all cars are essentially rust-proof) from your purchase price, as they don’t do much for the vehicle in the end.
2. VIN or window etching
This add-on is often offered to car buyers as a preventative measure. A dealership may tell you that etching your VIN (vehicle identification number) into the window glass will make it less likely to be stolen. The thief would need to replace all the window glass before getting rid of it.
The dealership may also say that window etching makes a stolen vehicle easier to find. But should your vehicle get stolen, the thieves will most likely not even look at the window etching. And statistically speaking, your car may never be stolen. The additional cost to your purchase simply may not be worth it.
3. Extended warranties
Most car dealerships offer an extended warranty for their vehicles, which provides coverage for certain items after the manufacturer’s standard warranty ends. The dealer can also call it a vehicle service contract or a vehicle protection plan.
If something goes wrong with your vehicle, the extended warranty could come in handy. The catch, however, is that most extended warranties also come with heavy fine print and massive markups. This means that it may not be worth it in the end.
It’s important to remember that you don’t have to purchase extended warranties with a vehicle; you can also obtain them outside the dealership from lenders and insurance agencies.
4. Gap insurance
If you total your vehicle and owe more on it than it is worth, you would not have enough money to pay off your loan, and you would be responsible for covering the “gap.” Gap insurance ensures you aren’t in this situation.
While gap insurance isn’t a bad idea for some people, it’s important to reduce the total cost by finding a policy elsewhere. The car dealership will do its best to mark up the prices on gap insurance, ensuring you pay more than necessary. However, lenders typically require gap insurance for leased vehicles and include it in the monthly payment.
5. Tire and wheel packages
Options and add-ons for a vehicle’s tires and wheels are one of the most popular ways a dealership can supplement its purchase price. These options can feel worthwhile at first. But often it will be an unnecessary expense.
Filling your tires with nitrogen, for instance, can seem like a luxurious upgrade, but according to Edmunds, “it isn’t really worth it, especially given that plain old air is free.”
Originally written and published by Marci Houghtlen on July 22, 2019. This article has been refreshed and updated.
