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!
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Filed under: Dealership Car Warranties, Extended Auto Warranty Providers, Financing Extended Car Warranties
