In a perfect world, a finance manager, business manager, or whatever title is given to the person in the back that prepares paperwork will be just that: the person that prepares paperwork.
In the real world, the finance manager is probably one of the best and most persistent salespersons the consumer will ever meet.
They aren’t necessarily bad people. Most are exceedingly friendly and professional, dressed to impress and possessing an easy way that puts people at ease. To a car dealership, the finance manager is the last and best chance the dealer has to make money on a vehicle sale.
There are dozens of methods that the finance manager can make money from you. The good part is that not all of the ways are bad and not all of the products that they will offer are rip offs. In most cases, though, some of the offerings are just not worth the money the consumer will pay.
Instead of going over the details of the different products and suites that aren’t really worth it, here is a short list of items that a consumer should really question and investigate before purchasing:
Undercoating, paint sealant, oil change plans, VIN etching, scotch guard, preowned vehicle leasing, personal vehicle insurance, and tires for life.
There are others that are somewhat legitimate like the ones listed above, and there are some that are downright scams, but we’re here to focus on the potentially good ones.
Dealerships such as Oklahoma City Ford Dealers and other honest dealers around the country offer a basic, short list of products that consumers should consider:
Some call it a scam, but most who have totaled a vehicle with a lien on it can attest to the wonders of Gap Insurance. In essence, it covers the “gap” between what a vehicle is worth and how much is owed when a car is totaled. For example, if someone totals their vehicle and the insurance company agrees to pay $7,000 while the driver still owes $11,000, gap insurance is designed to cover it. Without gap, the insurance company will be forced to leave the remaining $4,000 to be paid out of the customer’s pocket.
Usually ranging from $300-$700, it is a good investment for consumers who (1) finance vehicles without securing equity by putting a lot of money or trade equity down on the car, (2) drive more than 10k miles per year, and/or (3) purchase new vehicles, especially high dollar ones.
Not all warranties are created equal. A consumer who plans on keeping a vehicle beyond the factory warranty should strongly consider an extended one.
Research beforehand into some extended warranties available online for the vehicle you are considering. Know the cost, deductible, what is and isn’t covered, and whether a prorated balance is refundable if the vehicle is traded, sold, or totaled.
Armed with this knowledge, it should be easier to get a good deal on a good warranty, whether it’s the one that the finance manager offers or a separate one.
CREDIT LIFE AND DISABILITY
Most life insurance policies are designed to help with cost of living. Debt should not be paid through standard insurance.
In case of tragedy, having a credit life and disability plan will help to pay off the balance of a vehicle loan. There are few things worse after dealing with a tragedy than to find that the loved one also left major bills and debts behind.
Not all “bad” items are that bad. Some may fit into a consumer’s needs. Not all “good” finance items are good, either. The key is to do the research before getting caught off guard by a finance manager ready to spray a $20 can of Scotch Guard in your new or used car for an additional $179.
I hope it helps.