When you buy a brand new car, you deal with experienced sales experts who use various time-tested techniques to sell you add-on services and products. With income on new car sales tighter than ever before, these adept salespeople have plenty of incentive to sell you whatever car dealership options they are able to.
Although some of the people dealer options, upgrades and extras could be worth the investment, it•s important to know the worst dealer options when buying an automobile so that you can avoid them. Rust-proofing, VIN etching and extended warranties are only a few of the options that won't be be worth your money.
What are dealer options?
Dealer choices are accessories and equipment the dealer increases the vehicle to improve the sales cost of the vehicle. You will find three types of options you may encounter:
- Factory-installed options: Installed at the factory prior to the vehicle is distributed to the dealer.
- Port-installed options: Installed on vehicles imported from overseas as they reach the port of entry.
- Dealer-installed options: Installed by the dealer after the vehicle reaches the dealership•s lot.
Options installed in the factory and port are approved by the vehicle•s manufacturer, and they•re typically contained in the new vehicle•s warranty. You•ll locate them listed on the official window sticker that•s necessary for new cars. What•s more, the cost is uniform, so that they won•t vary from dealer to dealer.
In contrast, dealer options aren•t approved by the manufacturer and, therefore, aren•t contained in the vehicle•s warranty. They•re unlisted on the official window sticker, however they should be detailed on the second sticker on the car. Also, because they•re installed by the dealer, prices can vary depending on in which you go.
In general, though, many dealer options are overpriced and used to increase profits on new vehicle sales.
5 worst dealer options when buying a car
If you•re buying a new car, it•s vital that you check the vehicle•s stickers for all options. When you typically can•t negotiate factory- and port-installed options, you may have some wiggle room with dealer-installed options.
We•ve rounded up 5 worst dealer choices to try to avoid when purchasing an automobile • and spoke with experts about alternatives.
1. Rust-proofing
Dealer-applied undercoating may cost as much as $1,200, depending on the car, the type of treatment package • basic or premium • and whether or not this includes an additional option, for example sound-deadening.Rust-proofing could be sold to the new car buyer as a separate dealer option or be included in a pricey bundle called an “environmental protection package” which can include paint sealant and fabric protection.“Cars leaving the factories today all have excellent rust-proofing,” says Mike Quincy, auto content specialist in the Consumer Reports Auto Test Center in East Haddam, Connecticut. “[Dealers] have an incentive to do it because there•s a good amount of markup they can get on these types of services.”Why to skip it: Brand new cars already come with rust-proofing, plus some automakers will void the factory corrosion-perforation warranty if the car is undercoated with a third-party.Some dealers will give you fabric protection, that is designed to protect your seats from stains.“Lots of dealers will also eagerly pitch you fabric protection, that is basically a spray that they will placed on • a sprig which costs them almost nothing, but for which they might then ask you for $100 or even more,” Quincy says.Why to skip it: “If you actually need additional fabric protection, all you have to do is purchase a bottle of Scotchgard,” says John Nielsen, national director of auto repair and buying at AAA.This dealer option is often promoted by showroom salespeople as a product that offers new cars a year-round no-wax shine that provides a long-lasting barrier from the environment. Protective paint sealant may cost the new car buyer well over $200.
Why to skip it: Most automotive paints today are durable finishes that benefit a lot more from regular washing and waxing, says Nielsen.
4. VIN etching
VIN etching is a method that allows you to make an adhesive plastic stencil containing the vehicle identification number, or VIN, of the car. You then place that stencil on the window and apply a special acid solution that chemically burns, or etches, the amount to the glass.VIN etching could be a deterrent to thieves because it causes it to be extremely difficult for them to make money from selling windows and windshields and also causes it to be more difficult to find away out to dispose of an automobile once it's been stolen.Actually, it•s recommended by police and auto insurance agencies. Some insurers may even offer a discount towards the comprehensive part of your vehicle insurance or waive your insurance deductibles if your car has got the feature.It•s an easy process, but VIN etching as a dealer option can cost the car buyer from $150 to $300. If you do-it-yourself, you are able to shave off over $100.Why to skip it: If you•d enjoy VIN etching, it•s cheaper to use a do-it-yourself kit, which runs from $20 to $40 online.Like a dealer option, basic guarantee policies for cars can begin at $1,000 and easily climb to many thousand dollars for luxury and high-performance cars.Extended warranties offer bumper-to-bumper protection, covering everything on your car except components commonly replaced in routine maintenance. Plan prices vary by mileage, the word of coverage and deductible level.Why to skip it: New vehicles typically already come with manufacturer warranties. Even when you•re buying used, you don•t want to get the warranty on the day you buy • this means that you are able to shop around if you want one. Regardless, it•s often better to make use of the money you'd spend on an extended warranty for that recommended maintenance that the car requires.The best choices on an automobile can increase your driving experience and even raise the car•s value when you•re prepared to market it or trade it in. But you don•t need to accept the dealer-installed options you don•t want.In the event that a brand new vehicle has some dealer-added options, you can ask the dealership to get rid of them and adjust the sales cost of the automobile accordingly. In some instances, it may not be possible • for instance, if rust-proofing or paint protection has already been applied, it may not be removable.When the dealer can•t or won•t get rid of an option, you can test to barter the price of the automobile like you would. Again, there•s no guarantee that this will work, but even showing just a little initiative in negotiation can change the path of the conversation.For example, consider calling another dealer in the region to obtain a concept of what they might charge for several options or perhaps see how much it•d cost should you do it yourself. This can give you a good reference inside your negotiations.If a dealer doesn•t budge much or is unwilling to negotiate entirely, you are able to decide to purchase the car as-is or leave.Dealer-installed options aren•t always worthwhile, so it•s vital that you check what you•re charged for. While dealers aren•t always prepared to remove options they•ve installed or perhaps negotiate around the price, know that these options aren•t standard, and also you don•t have to accept them.As with all other aspect of the car-buying process, take the time to shop around and make a price comparison and options from multiple dealers in your area to make sure that you•re obtaining the best deal available.