Should You Finance Your Extended Warranty With Your Dealer?
The short answer is no. The high pressure car salesman who tries to lure you into buying an extended car warranty by rolling the price into the sales price of the vehicle is simply trying to increase his commission. While rolling the extended warranty into your car loan may sound like a good idea, please keep in mind that you will be paying 6-10% interest for years on that extended warranty.
The $1,800 extended warranty will end up costing you about $2,650 with a 5 year loan at 8% interest. And, that figure doesn’t even included the commission that you will be paying to the salesman, the finance guy and the dealership for acting as the broker!
The Alternative to High Priced Dealer Sold Extended Warranties.
Buy direct and buy smart. Take advantage of Warranty Direct, offering consumers the same extended warranties sold by dealers without the middleman markup. Even better, you can read the actual warranty contract before you buy. With a track record that is second to none, why not get a free quote today?
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Filed under: Dealership Car Warranties, Extended Auto Warranty Providers, Financing Extended Car Warranties
When you find the vehicle of your choice whether it is new or pre-owned often you will need to find some sort of financing. This can be a real problem if you are not careful when it comes time to pay on your vehicle. The easier loans are obtained through your bank or credit union with you being the only signer on the loan agreement. This is a straightforward loan based on your credit score and handled professionally by a loan officer. Unfortunately, not all of us are able to get a loan this easy and must rely on other resources. The problem when we rely on the dealership we should make sure that we are getting a legitimate loan that we are held accountable for so our credit rating can improve.