Finance and Insurance (F&I)
They used to call the dealership Finance Manager "F&I Guy." They trained him or her to prepare and process your finance arrangements and upsell you on dealer options (rust-proofing, VIN etching, etc.) and insurance (credit life and disability insurance or extended warranties.) They are very well trained and paid to increase the gross financed amount. To keep you distracted, they changed the name from F&I Manager to Finance Manager.
5 Common Auto Warranty Pitches
It makes very good sense to get an extended protection on a new car, and those offered by most auto dealerships are generally reliable. But, if you want to make a fully informed purchase, consider these common auto warranty sales pitches:
The best place to buy an extended vehicle protection is an auto dealership.
This is simply not true. Dealerships are third-party providers. It is considerably cheaper to buy your warranty plan directly from the warranty provider online. An online opportunity like Discount Warranties offers a range of direct from provider service agreements at prices that will fit your spending plan.
The only time your car will qualify for an extended warranty is when you buy it at the auto dealership.
The fact is that you can buy an extended warranty at any time. You can even buy one after your manufacturer's warranty expires. However, even though most new car manufacturer's warranties cover their vehicles for 100,000 miles, it will be cheaper to buy a vehicle service contract before the warranty expires.
You must purchase our extended warranty to qualify for financing.
This approach is coercive. Your financing eligibility depends on a good or decent credit record. The dealer does have a right to required proof of comprehensive auto insurance, but they cannot require the purchase of an extended coverage.
If you purchase an extended warranty and GAP insurance today, I can get you a great deal on the interest rate.
Insurance, warranties, and deal options may increase the amount of the loan, but they have nothing to do with the interest rates. In fact, it is against the law to make lending contingent on the purchase of an extended warranty or additional options.
The extended warranty comes with the vehicle you are about to purchase.
The extended warranty is neither free nor does it "come with" the car deal. To suggest that the warranty is automatically part of the deal is misrepresenting the product.
Has Your Auto Warranty Expired?
An Alternative to Misconceptions, Deceptions, and Lies
The best auto dealerships take professional pride in the ethics and standards of the deals they present. But, many others promote a climate of deception in their financing practices. Of course, customers are free to buy a cheap car warranty through their dealership. But, they should be free to do so without undue pressure or false claims.
A vehicle service contract or extended warranty is a prolonged vehicle protection plan offered to owners in addition to the manufacturer's standard policy. Warranties come in different formats, from reputable and not-so-reputable providers, and at a range of pricing. If you want to make an informed decision, you want to consider your options just as you would shop for your car insurance or anything else.
You can locate optional sources for warranties, customize your warranty, and find competitive pricing from reputable sources at Discount Warranties. You can trust their claim their services are free. You pay nothing additional because their compensation is provided directly by the warranty providers. Discount Warranties sends them qualified pre-screened vehicles that reduces their administrative and marketing costs. The savings role your way!
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