Kbvols
Well-known member
If you have not already I would recommend to shop around on the interest rate if buying an extended warranty will lower the rate 1% they are most likely are "ripping" you off on one or the other or both.
My opinion extended warranties are just a money grab for the dealer. The margin rates for dealers are more specifically the sales person are close to 50% of the cost. The sell is it only adds $xx each month to the payment.
I never buy high ticket items such as cars/RV's unless I can pay cash for it or have arranged for my own financing. Most dealers hate this. Never tell them this until the final deal (price/trade in) are completed.
I recently helped my son buy a new to him car. The initial interest rate they presented to him was 6.5% of course they didn't disclose the rate just the payment amount. It was amazing to watch the salesman try to hook him with a payment amount with no discussion of interest rate. I had to insist on getting the interest rate from the salesman. When we told them we would pass on financing the salesman was not happy. A trip to the sales manager miraculously produced a rate of 4.3% which was competitive with what he could get as his credit score is very good.
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My opinion extended warranties are just a money grab for the dealer. The margin rates for dealers are more specifically the sales person are close to 50% of the cost. The sell is it only adds $xx each month to the payment.
I never buy high ticket items such as cars/RV's unless I can pay cash for it or have arranged for my own financing. Most dealers hate this. Never tell them this until the final deal (price/trade in) are completed.
I recently helped my son buy a new to him car. The initial interest rate they presented to him was 6.5% of course they didn't disclose the rate just the payment amount. It was amazing to watch the salesman try to hook him with a payment amount with no discussion of interest rate. I had to insist on getting the interest rate from the salesman. When we told them we would pass on financing the salesman was not happy. A trip to the sales manager miraculously produced a rate of 4.3% which was competitive with what he could get as his credit score is very good.
Sent from my iPad using Tapatalk