If you are planning to buy a new car, you may have heard of dealer add-ons. It is true that you may want to avoid some of them completely. What you do not know is all automotive add-ons are not worthless. There might be one or two services or products offered by your dealer that you may find helpful depending on your situation. What should you consider? Just like when you are buying anything else, you need to run a careful benefit analysis on all add-on features. This will help you decide whether it is worth your money or not.
If you plan to keep the car you want to buy for a long time, it is not a bad idea to have an extended warranty. Just ensure you have a good price for the coverage you purchase. Take note that is you include the cost of extended warranty on your loan you will pay interest on your vehicle as well as the warranty. It is wise to look around and determine if you can get a better deal from a non-dealer source.
This is a type of insurance that can be very handy when you want to purchase a new car. Brand new cars have a tendency to depreciate very fast. If you are in an auto accident after having the car for a few months, your insurance will only compensate what the car is worth at the time of the accident. Insurance will not consider what you still owe on the loan, an amount that can be significantly more. All the same, if you are in possession of GAP insurance, the difference between the balance of the loan and the real vehicle value will be paid to you. But, you may need to find a better deal compared to what your dealer is offering.
What may be beneficial to buyers?
Even though many people may find it better to avoid particular add-ons, the following is a list of add-ons that may be useful to number of individuals:
Pre-paid maintenance plans: it is always better to handle your own maintenance. If you are someone who has the tendency to forget things, the structure in maintenance plans may prove to be helpful.
Wheel protection: if you are particularly hard on your wheels, this is a feature that will more beneficial than you think.
Low-jack anti-theft device: if you are staying in a high crime area, you may find the device is quite beneficial for you.
Importance of having the correct financing
Irrespective of the hard-ons you decide to buy, the most crucial part about purchasing a car is finding an auto loan that is perfect for you. This is especially important if you are looking for a fair deal and challenged credit. There are companies that can assist you get approved for financing that you can afford, despite what your credit score looks like. Find out if the financial company you choose can offer you the add-ons at a better price.