JWM PLAYS
Well-Known Member
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Wanted to share an interesting thing my wife and I went through. We are no strangers to buying/trading vehicles and she has actually worked for an equipment distributor that sells warranties and is familiar with the workings.
Before we ever set foot on a lot, we knew the trade in value on her vehicle we could expect to get and resulting equity we would be putting into the Jeep , our credit score and the interest rate we should get and the price we should expect to pay for the trim level she was wanting. All together, there wasn't more than $500 wiggle room anywhere.
I'm always a "no" on any add on products in the finance dept. (extended warranty, gap insurance, paint protection) whatever it is, I'm a no knowing that most if not all of these products I can shop for and purchase myself if I wanted them without financing them in to the loan.
When it came time, the finance guy was more forceful on selling the warranty than any I had ever encountered in my 45 yrs. He started by explaining that the warranty he was selling us was 6yr 100K miles and included oil changes. He started with "payment increase $60", no, "payment increase $40", no "extend the terms of the loan to keep the same payment" no. He finally asked me what would it take and I said free. He then came back with "$10 payment increase with same terms" no. His last try was to ask me if I would take it if he got us a lower interest rate on our loan to cover for the warranty, same payment, same terms. At this point (and knowing I had the option to cancel within 30 days) I relented and allowed it. He then got us a 1.75% reduction on our interest rate. I told my wife as we were leaving, I promise you, somehow he fooled us. Even though the net out of pocket to us was effectively $0, he got us somehow.
When we got home, I immediately set out to look into the extended warranty he sold us and the terms of it. Oddly enough, the extended warranty contract was nowhere to be found in our paperwork. I had to request the extended warranty contract from my dealer several times before they sent it. Once I received it, I found that the terms were 5 yrs 60k miles and did not include oil changes. Quite different from 6yr 100k miles including oil changes.
We promptly cancelled the contract and the warranty company gave the $ to the bank holding the loan who reduced the principal by that amount. I think we came out ahead in that we got a 1.75% reduction in our rate out of the deal and restored the financed amount back to the pre warranty amount.
Before we ever set foot on a lot, we knew the trade in value on her vehicle we could expect to get and resulting equity we would be putting into the Jeep , our credit score and the interest rate we should get and the price we should expect to pay for the trim level she was wanting. All together, there wasn't more than $500 wiggle room anywhere.
I'm always a "no" on any add on products in the finance dept. (extended warranty, gap insurance, paint protection) whatever it is, I'm a no knowing that most if not all of these products I can shop for and purchase myself if I wanted them without financing them in to the loan.
When it came time, the finance guy was more forceful on selling the warranty than any I had ever encountered in my 45 yrs. He started by explaining that the warranty he was selling us was 6yr 100K miles and included oil changes. He started with "payment increase $60", no, "payment increase $40", no "extend the terms of the loan to keep the same payment" no. He finally asked me what would it take and I said free. He then came back with "$10 payment increase with same terms" no. His last try was to ask me if I would take it if he got us a lower interest rate on our loan to cover for the warranty, same payment, same terms. At this point (and knowing I had the option to cancel within 30 days) I relented and allowed it. He then got us a 1.75% reduction on our interest rate. I told my wife as we were leaving, I promise you, somehow he fooled us. Even though the net out of pocket to us was effectively $0, he got us somehow.
When we got home, I immediately set out to look into the extended warranty he sold us and the terms of it. Oddly enough, the extended warranty contract was nowhere to be found in our paperwork. I had to request the extended warranty contract from my dealer several times before they sent it. Once I received it, I found that the terms were 5 yrs 60k miles and did not include oil changes. Quite different from 6yr 100k miles including oil changes.
We promptly cancelled the contract and the warranty company gave the $ to the bank holding the loan who reduced the principal by that amount. I think we came out ahead in that we got a 1.75% reduction in our rate out of the deal and restored the financed amount back to the pre warranty amount.
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