Do I really need to purchase additional “Mechanical Breakdown Protection” on a Pre-Certified Car??
Friday, February 5th, 2010 at
4:54 am
I’m shopping a Dodge Pre-Certified Car which has 5yrs/65k (Balance of a bureau bumper2bumper) as well as 3m/3k warranties. Now a dealership has asked if we wish this one more coverage. we suspicion all is lonesome underneath warranty. Is it unequivocally necessary???? It price $ 1650 as well as is 100% refundable if not used.
this is fundamentally a use stipulate which should tumble underneath a warranty. NO??
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Tagged with: additional • Breakdown • Mechanical • need • PreCertified • Protection • purchase • really
Filed under: Car Breakdown Cover
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No.This is a way for the dealer to earn interest on YOUR money.
You don’t, it’s just a scheme by the dealer to make more money off of you.
No. Instead take the $1650 and invest it in an index fund and you will be far better off.
no dont do it, you do not need it, just adding something else to your deal that is not necessary
What a question! The dealer, and salesperson normally makes money off the extended warranties. If they didn’t, they wouldn’t offer it. If you do have a covered problem, it can save your seat! Chances are about 8 our of 10 that you won’t. Do you think the money you pay for this extended warranty is worth a 20% chance? That is totally up to you? One out of five, two out of ten.. feeling lucky?
Read carefully what it covers!
If you are worried that the car may breakdown even though it is under 5 years old, buy a Honda instead. Do not buy that terrible protection plan from the dealer. It is way overpriced and most likely won’t cover whatever does breakdown anyway.
No, don’t bother with it. The dealer earns interest on your money and you end up getting hosed on additional interest when they finance that $1650 in with your car note. Instead, take that money,and open an account dedicated to future maintenance and repairs on your car. You’ll be glad you did when it gets time to replace the tires!
As a rule these add on warrenties are not worth the expense but I would have a mechanic you trust check it out first.
$1650 is a LOT of money for an extended warranty and unless it is a Chrysler contract it is more often than not so full of loop holes and silly little clauses that exclude a lot of repairs from being covered as to not be worth that kind of money. Bottom line you can make a lot of car payments for $1650 dollars. It,s your decision but read the contract carefully. Also I have never heard of a refundable contract hmmmmmm read carefully.
See the link below, then the article about extended warranties.
Dealers do make money from a contract sale but it sounds like $1650.00 is way over priced.
You also should question about when this coverage starts, does it start at the beginning of the original in service date or does it start AFTER.
This is a critical question, if it starts from the original in service date of the vehicle then your coverage will be a lot less than what it appears.
I’m a strong advocate for extended warranties, providing they are fairly priced, a good contract and under the right circumstances, but you have to be aware of what the pitfalls are.
As a previous service manager of new car dealerships I
ve seen many cases where an extended warranty has been really helpful, but of course it’s like an insurance policy, you may never need it.
Some contracts allow you to cancel and receive a refund, but they are normally pro rated based on time and/or mileage, so if it’s not used and a year later you cancel chances are you won’t be refunded the full amount.
Consider also that if you include this with your normal financing you’ll be paying finance charges on the 1650 for the duration of the loan. So even if you get a refund you’ll still be paying for the financing.
Jerry
http://www.usedcarwise.com