Car's extended warranty - should you need it?

After finishing the deal on your new car, you will likely see the person in the Finance department of the dealership. This person is probably the “Last-line-of-Defense”. Just similar to the saleperson, the person in the finance office will also receive commissions from the loan and extra pieces which he would likely to recommend you to put on. And the list is very long such as extended manufacture’s warranty, paint coating, fabric protection, and… many more.

My advice is, “Do not bother if you have no knowledge about the item you are about to add on”. Even in the case you know the topics, let think in a reverse direction. What should happen if you do not have these things put on.

Extended warranty should be the first thing the financial person recommend you. It might sound correct for speding a little more in order to get extra coverage. However, most cars do not fail in the first 5 years or 100,ooo miles. Therefore, it sounds like you have extra coverage, but in reality, you merely have no coverage at all because you car will likely to fail after the extended warry expires.

Fabric protection, paint coating, and some others are items of which you should not get bothered. They are useless. In the case of fabric protection, color-fading seems the only chance to be protected. Other than that, the dealership will have hundred of stories to refuse you. So why bother?

So far, I have discussed about the techical factors. Now, let see a little about the human factors. First, let acknowledge that people who operate the dealership are not stupid. They have been paid to creat ways to earn profits at maximum lelvels. (I dare not to say they get paid to cheat.) Just simply look at their operation hours. It will somehow tell you a little. There are 2 operation hours which you may find at a dealership: showroom hours and maintenance shop hours. The showroom may open very late; however, the maintenance shop will open at the time you go to work. And, trust me, they will close at the time you are on your way home. The only chance for most people to have their cars’ fixed is Saturday. And it is very likely that most people cannot get their cars on the same day due to dozens of reasons which the dealership can make up even though the dealership can fix the problem right way.

From my opinion, if you like to car, just buy the car. And that is it. If you need a few extra options installed, considering the Yellow Book may be a better way. And most important, do not let the dealership influenced you. You spend the money. You are God! Do not let things happen in the other ways around.

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