5 Car Dealer Add-Ons That Are Usually a Waste of Money
Negotiating the price of a new car is already stressful enough, but it doesn’t stop there. Dealers will typically present a list of add-ons that can quickly increase a vehicle's price. While some may sound useful, many are overpriced and unnecessary.
If you’re shopping for a new car, here are dealer add-ons that are usually a waste of money.
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1. Extended Warranties
Extended warranty coverage is insurance that covers defects that come up after the car is no longer covered by the factory warranty. According to Consumer Reports (CR), it can add $2,000 or more to the total price.
It may sound like a good idea, but Consumer Reports pointed out that most new cars already come with factory-backed protection, which typically lasts several years and tens of thousands of miles. The Federal Trade Commission (FTC) also called out warranties and other add-ons, stating that it’s an egregious charge that basically duplicates the manufacturer’s warranty, Kelley Blue Book (KBB) reported.
2. Nitrogen-Filled Tires
Nitrogen-filled tires were another add-on that the FTC called out. In theory, nitrogen-filled tires can hold pressure longer than air-filled ones. CR reported that some dealers add on $400 for this.
But CR also pointed out that air is mostly nitrogen anyway, and all tires lose pressure over time. Save money by choosing air-filled tires and regularly checking the tire pressure with a tire gauge
3. VIN Etching
VIN etching involves engraving your vehicle identification number into the windows to deter theft. According to CR, this add-on could be an extra $200 to $300, and it's unnecessary. CR explains that all new cars have VINs in multiple places, including under the hood and in the doorjambs.
4. Paint and Fabric Protection
According to U.S. News & World Report, paint and fabric protection can add hundreds or even thousands of dollars, and is often unnecessary. There are also cheaper options.
U.S. News & World Report also pointed out that many vehicles already come with factory-backed fabric protection. You can also add it to the vehicle yourself with spray-on products like Scotchguard.
5. Key Protection
Key fobs are expensive to replace, but you probably don’t need to pay hundreds of dollars to insure them. U.S. News also pointed out that it doesn’t make much sense to pay hundreds of dollars to protect the key fob that costs $500 to replace and reprogram. Also, if your key fails due to a mechanical or electrical problem, it’s likely covered under your car’s warranty.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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