Extended Warranty: Why do I need it?

MikeDupont wrote:
Also, lets back up a step. imo, you shouldnt be trusting/using the dealership's financial guy. Check with your local credit unions and banks and i bet you find a better deal.

And fwiw, i never buy extended warranties. Sucker's bet- THEY have all the data AND decide if they will honor it or jerk you around until you give up.

I called our bank plus a couple credit unions and he actually found a better rate through B of A @ 4.25%, which was more than a full percent lower than the quotes I got direct from the others. Perhaps I could do better if I spent more time on it. We took a 20 year loan to keep the payment minimum and we'll try to pay it off in 5, but I thought that was a decent rate for such a long term loan.

dodge guy wrote:
Also make sure they didn’t throw in any type of GAP insurance.

Although I’ve only seen it used once. The kid at work bought a Mustang and didn’t know they included it in the deal. Well the car got totaled and it was used! Probably the only time I’ve heard it work out for the purchaser.

winnietrey wrote:
GAP insurance, may be something to consider, if you are going low down, and long term financing ( like 12 years). If so you will be under water for a long time. Make sure you get a policy you can cancel though, when you are at break even. Might bring some peace of mind. JMHO

I hadn't thought about GAP, but I won't be surprised if that's slipped in there. The insurance we got will replace it with a brand new one in the first 5 years. Then they'll cover the cost of the original financing for the rest of the time we own it. So it basically has GAP built in (better, even) and we'll be sure to keep an eye out for that and decline it when we go to sign.

We are driving to go see it in person tomorrow and do a thorough walkthrough to look for anything that may need fixing.