Using an Extended Warranty to Negotiate the Best Car or Truck Deal at Your Dealership
Sure enough most articles potential auto buyers read talk about full and through investigation, fact finding and “preparation” before buying your next vehicle. Sure you can become an expert reading “consumer reports” and auto review sites. Yet in 2011 it’s on the “back end” that auto dealerships make their profits not on the listed sale price of the vehicle – be it car, truck or SUV.
Consumers it seems “know more now”. They now car prices, they dicker dealer to dealer. Dealers may their money on new cars and trucks on more than just the sale of the automobile – not like the “good old days”. It’s a whole kettle of fish they look at. It’s not just the sticker price they look at even if you pay cash. Auto service for example, reputation in the local auto sales community, volume of sales to put together deals with the factory and even cash flow to pay the dealerships bills come into play even if you pay cash for your new form of transportation come into play. Yet the greatest majority of auto sales involve “good old fashioned’ car payments. Hence as a knowledgeable consumer out for the best deal you must be aware and cognizant of these back end sales tactics and procedures.
For example there is a lot of debate on the practice and concept of extended warranties in purchasing “extended car warranties”. Just like in big box electronic stores most people insist that they never buy or are even conned into purchasing additional coverage. Yet in some cases when it comes to electronics it makes sense to buy these add ons. In the case of electronics for things you use every day and are not worth fixing such as phones and printers it makes sense. In a similar way laptop computers are downright expensive to maintain, use proprietary parts and components and it makes sense to put out the premium for the extended warranty when you purchase the new product.
If the car or truck is a very expensive vehicle to maintain perhaps the extra warranties make sense. The dealer may have negotiated a better deal on service and have access to parts discounts you can never as private buyer have. Add on if you have extra needs – say rough roads to your home , a long tow from you residence that would otherwise be a hefty charge – and the coverage package includes that , then the extra out of pocket expenses may just cover that. Ditto if a loaner car is part of the package.
The whole scenario remember should be a business decision made rationally. It is like the decision of whether or not to sign up for a yearly auto club plan. It is a judgment call and even a gamble. Yet for most drivers you are almost guaranteed at least one tow job or cold weather boost start a year. That one service call is usually worth more to you out of pocket than the yearly auto club membership fee. Everything else so to speak is a bonus.
Lastly consider the whole auto sales “game” and negotiating skills tactics and viewpoints. Add on at car dealerships are not only an opportunity for the accounting dept at the firm to get more money out of your pocketbook or increase monthly payments, but also a means of negotiation and cost reductions to you as an automobile purchase customer. Salespeople and management is first and foremost “sales people”. Salespeople are often the easiest people to sell to. Every day they attempt via a logical system to talk people into “things”. You would be amazed at when the tables are turned, and they are so used to flowing down the river and following ‘systems” that they can be “ground down”. At to that the egos involved that they must win at almost any cost. It’s a personal failure so to speak.
Hence use the extended warranty and its price or coverage discussion to your benefit. You may not be able to reduce the price of the car or new truck yet you may be able to win a better deal over and get better value for your money by demanding and negotiating discounts and increased or better coverage in the extended warranty provisions.
At the end of the day , especially when looking at the long run when buying big ticket items such as automobiles that the overall final cost and value of the entire purchase seen in the long term is what counts.
Author Bio: Samuel Samuels
Edmonton Truck Dealers
http://edmontontruckdealers.com
Fort mcMurray Camrose Truck Centers
Camrose Auto Dealers
Category: Automotive
Keywords: extended warranties auto dealers,negotiate best deal trucks,extended warranties deals auto dealers