The Chronicle Herald (Provincial)
You’ve settled on a new car — what about all those extras?
Extended warranties. Service plans. Etching, nitrogen, rustproofing. Fabric guard, paint protection, tire program.
Just when you thought you’d hammered out the cost of your vehicle, you’re faced with a whole new list of things you need.
Or do you?
It’s the worst part of buying or leasing a car. Unless you’ve done a meticulous amount of homework, it’s easy to be overwhelmed by how many extra things get thrown at you in the F&I office at a car dealership.
It’s officially the finance and insurance office, but it can feel more like you made it past their first line of defence and now they’ve brought out the big guns. With the help of some pros – the Automobile Protection Association (APA) and a long-time car sales rep — we’ll tackle those additional offers one by one.
EXTENDED WARRANTIES
Be clear about what you’re purchasing. If your vehicle comes with a four-year warranty and you purchase a five-year extended warranty, you’re actually buying a oneyear extended warranty. Why? Like some prison sentences, they run concurrently. If you are buying it to make a warranty match your payment or lease period, you should figure the amount (usually around $2,000) as usable in the last year that’s not covered by the manufacturer. Maybe it’s worth it to you; maybe it’s not.
Dealers also sell warranties that are either brandendorsed; or through a third-party at the end of the new vehicle warranty, for those who intend to continue to operate their vehicle and feel more comfortable having some form bof coverage. These programs should not be confused as the same as a new-vehicle warranty.
With all warranties, including the original one that comes with your car, read and ask as much as you can. Ask what isn’t covered. Many have a longer coverage period for powertrain and corrosion,
so find out those details.
In Canada, all vehicles have an eight-year 130,000-km warranty on emission control systems (catalytic converters, oxygen sensors, etc.). Note: Most no longer use the term “bumper to bumper” because it’s misleading, and warranties cover things that break on the car, not things you break on the car. From the APA: “Manufacturer extended warranties offers the best value. The automakers limit the markup to about 35 per cent. Claims are unlimited or sometimes up to the value of the vehicle. Repairs are accepted at every dealer in Canada, and often the U.S. as well.”
SERVICE PLANS
Prepaying for your service is a good way to make sure you keep coming back to the dealer for maintenance. A prepaid plan can also protect you against rate increases in things like shop rates a few years down the road, and allows you to have those service visits factored into your financing.
While some like the idea of having the costs of oil changes and routine service financed at the point of purchase, the required service on a new car is going to be basically two oil changes a year, and whatever your owner’s manual tells you to do at select intervals. The dealer might want you to follow a different program, but your manufacturer’s warranty is with the manufacturer. Follow that guide. This is a peace-of-mind thing and one I live without.
Tires ran for a long time without it, and even if you pay to have it, the first time you put regular air in your tires you’ll be wondering why you spent money on it. There are applications for it in the racing world particularly, but for most of us, it’s a cost we won’t need.
ETCHING
The theory goes that etching the vehicle’s VIN onto windshields and body panels will deter thieves. The dealer spends a few bucks getting etching and stickers, you pay a huge markup for your car to be more traceable if it’s stolen.
Read the fine print if you think you might want it, but know that if the car you’re about to buy already has the etching done, you do not have to pay for it. You didn’t order it, you don’t pay. This holds for any “extras” that have already been performed on the vehicle before you showed up. They can always sell you another car.
RUSTPROOFING
You can come at this one from a few angles. Your car’s warranty will have rust protection. If you’re leasing or buy a new car when the warranty is up, why add more? Rustproofing is done by a third party, just like tinting. You’re free to take it yourself and shave off the markup. Learn what type of corrosion control they’re offering, as they are not all the same.
The APA recommends you carefully read what you’re actually purchasing. Some products being sold as rustproofing are actually just “sound deadening.” Make sure things you’ve purchased have actually been done; the documentation should be there.
Understand that to make a claim on any rust protection warranty, you have to have perforation (holes) from the inside out. That scratch or curb rash that broke the paint and led to corrosion? Not covered.
Steer totally clear of those electronic boxes they tell you will prevent rust. I believe them to be the number-one scam in the industry. While my sales rep tells me they’re worth it because they come with a warranty, the science is crackers.
TIRE PROTECTION
Neither the APA nor my sales rep buys into this one. Read the offer details, but it probably doesn’t cover potholes — most people’s number-one thought when considering it might be useful — or clipping curbs or tire rash.
Curbs and medians are supposed to be in the road; they’re not hazards. Hazards are debris or nails, not you barking a rim in a parking lot. Read the fine print: if the tire is still holding air, it’s probably not covered. One exception might be run-flats, but — really — make sure you know what it really covers.
FABRIC GUARD
Whether you get them to do it, or you do it yourself with a couple of cans of Scotchgard, remember that after each upholstery cleaning, it will have to be reapplied.
GAP INSURANCE
This can be useful to cover the difference between what is owed on your car and what it’s worth if it’s written off in a crash. First, however, check your insurance policy to see if you already have it, and ask your insurance company for a price to get it. Compare.
END-OF-LEASE WEAR-AND-TEAR
This is a good one depending on how you drive and where you live. It’s a get-out-of-jailfree card for the dents and scrapes that can add up to a lot. Hand back the keys, off you go. The cost is factored into your financing.
My sales rep notes that some policies also provide an overage amount for your mileage, but he warns if you have an extra 1,000 km you can use, if you go even one kilometre over that, to 1,001, you can lose the entire 1,000 and be charged the overage. Read the fine print.
Some of the items you’ll be offered have value. Some don’t have enough. Getting the dealer to do some things like tinting saves me time and I pay for it. If you’re uncertain, take the information home and go over it and come back. It’s your money.