Understanding Different Types of Protection for Used and New Cars
When you buy a vehicle from a dealership, there’s usually a bunch of paperwork involved. When you go through the paperwork this is when the dealership will offer you extras you can add to your purchase such as credit insurance or extended auto warranties. With this in mind, it’s important that you know what these additions are and how they work that way they can help you decide which add-ons are right for you. Here is a look at some of the many protection options car dealerships can offer you.
Insurance
If you finance your vehicle, the dealership will go over certain insurance options available to you.
- Gap insurance is one of those options. When you lease a vehicle you’ll want financial protection in the event an accident totals your car. If this occurs, GAP insurance covers the difference between your lease payments and the current value of your vehicle. You may also receive an offer for Gap insurance if you trade in a vehicle and have a new loan that is more than your vehicle is worth. Moreover, the dealership can add the Gap insurance policy to your financing, which won’t affect your monthly payment much.
- Another insurance option available is credit disability insurance. How this works is if you become disabled your policy provider will make your vehicle payments while you are out of work. It’s important to note that these policies may carry certain restrictions on disabilities or limitations on how many payments the policy holder may make; therefore, it’s important to know these items before committing to this policy. Meanwhile, with credit life insurance, if you pass away the policy will pay up to the total amount of your loan remaining.
Extended Warranties
Chance are a dealership will offer you an extended auto warranty whether you buy a new or used vehicle. These policies work by extending your protection past your vehicle manufacturer’s warranty. For example, if your transmission breaks down and your vehicle’s original warranty expired, if you have an extended vehicle warranty, it would cover a large portion if not all of the repair costs.
- Depending on the warranty provider, they will offer several levels of coverage. The most basic covers major components such as your engine and transmission. Meanwhile, the more comprehensive plans can offer bumper to bumper protection and cover other items like your vehicle’s electrical systems, which can be a costly repair. Some of the more comprehensive plans add useful features such as roadside assistance and car rental reimbursement. This is useful if your vehicle breaks down and you need a quick replacement while your car receives service.
- If you decide to buy one of these warranties it’s important to understand it fully. Some things you’ll want to have the dealership cover is which specific parts the policy covers, whether you can take your vehicle to any auto shop or one the provider has to approve and how that provider handles claims. It’s also ideal to check if the plan has a deductible. A deductible is the amount you would have to pay before the provider pays their share.
Dealership Offerings
Car dealerships offer many different services at the time of purchase.
- One of the protection items they may offer you is rustproofing and undercoating. This is where they add a coating of protection to your vehicle to prevent it from rusting. Before committing to this, ask to see how long this protection lasts, as many new vehicles come with a lengthy warranty that covers corrosion and rust.
- Another feature they may offer is fabric protection. This is where they will treat your vehicle with Scotchgard to help the fabric in your car repel stains. If you are interested in this coverage ask the dealership if they provide any guarantees for this such as a specific time the protection should last.
- Meanwhile, they might give you the option to apply a paint sealant to your vehicle that will protect your car’s surface. Similar to the fabric protection, you should ask them specifically how this will protect your car, how long the sealant last and whether they offer guarantees on this service and if so, how long the guarantee last.
- Further, many dealers also do a service called VIN etching. VIN etching is where the dealership will etch your vehicle’s VIN number into the window in an effort to prevent theft from occurring. Another way they may help you prevent theft is with an alarm system. This is where they can install an alarm system in your vehicle so you don’t have to worry about doing this yourself.
Ultimately, the process of buying a vehicle is fun but can also be confusing when dealerships offer all these items. However, by understanding these more it can help you determine which if any of these protection offerings are right for you.
