Extend new car, rust proofing and car loan insurance ...

enquiringmindAugust 11, 2012

I'm financing a new Hyundai and the dealership was offering me 3 additional items listed below when I signed up my new car contract earlier today.... and I need to let them know my decision when I pick up my new car in 2 weeks.

Therefore, I need your expert opinions out there to help make up my mind within these 2 weeks:-

1- a very unique extended warranty which extends from their original 5 year to 7 years for $1480. What so unique about it is that if I don't need it (ie: no claims) at the end of 7 years, I would have ALL that $1480 refunded (yes - tax as well)... any comments from those of you who have any experience with this type of extended warranty ?

2 - Sym-tech rust proofing for $848 or $1248 including paing & interior protection, any comments from those who had their car done by sym-tech ?

3 - they are also trying to offer me an accident and health insurance for my car loan for the duration of the financing period. anyone buys this kind of insurance ?

This is my first new car in a very long time.... so any help / hints / tips on what to buy to protect my new car investment would be much appreciated .... thanks !

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These are not "shady" deals, but I think that all 3 favor the dealership, and not the auto owner.

1. Extend the warranty from 5 to 7 years for $1480 and get the money back if no claims.

This is a free loan of $1480 to the dealer for 7 years and it probably does not cover much, maybe just the drive train. These parts are already warranteed for 5 years. What happens if the dealership changes hand, goes out of business, or re-incorporates before the 7 years is up? These days, auto dealerships are very fluid and a long term, fixed business arrangement for 7 years is more rare than new dealerships.

Do you thnik you will own this vehicle for 7 years? What happens to your money if you replace this vehicle within 5 years?

2. Rust proofig for $848 or more option at $1248.

The time to add rust proofing to a vehicle is when it is new and the surfaces are clean. This one is a maybe. Some sources say it is wasted money. It all depends on what is done. If it merely duplicates the coatings already placed by the manufacturer, it is not very helpful. It may offer some protection if you live on a gravel road where the undercarraige gets pelted with stones on a regular basis. If they add coatings to the interior of the doors, be careful here. Too much in the wrong place can gum up the workings of electric door locks; It can plug door drains.

If you live in the "rust belt" where road salts are used extensively, it may some added value.

This one is a judgement call.

3. Accident and health insurance.

This is assurance (to the dealer) that you'll have cash to pay off the loan in case of debilitating accident or sickness to you. Very likely, it will be written to the effect that in case of accident or illiness, the car loan is the first item to be satisfied.

If you are employed, have adequate health and life insurance, this is not needed. For a long trerm loan, say 5 years, the dealer (and loan agency) is very anxious to make sure that the loan covered.

    Bookmark   August 15, 2012 at 2:52AM
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jemdandy - thanks for the comments ....
yes, I felt the same with 1 and 3... and am doing some research on rust proofing... I'm comparing sym-tech, krown rust and rust check.
If any of you have good or bad experience with any one of these one... please provide comments ... thanks !

    Bookmark   August 16, 2012 at 10:26AM
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No opinion on the price but:

Had a friend in Buffalo NY. 8 year old car. Left head light went out. Could not remove the light w/o destroying the fender. Rust. Could not remove the fender w/o destroying whatever it was bolted too. Rust. Sold the car for $25 to a friend moving to California.

Friend drove to CA with one HL. CA wanted to charge use tax of $200-300 to enter the state as a resident. Would not believe he only paid $25. It was quite a battle but he won.

    Bookmark   August 16, 2012 at 11:36PM
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First, I have had three Toyota 3/36K b2b std warranty vehicles where they tried to sell me a Toyota Factory Plaitnum warranty extending protection from 3/36K b2b, 3/50K engine and tranny to 7/100K b2b....for about $1400 with anywhere from a $50 to $100 deductible. They offer the same cash back deal if not used deal.

Toyota allows dealers anywhere to sell their contracts at any price. On each of the 3 toyota purchases I opted for the platinum warranty, 7/100K, NO DEDUCTIBLE...but for around $640. Twice I got the contract over the internet. The last time the dealer just asked what price I had and matched it. There is NO REFUND if the contract is not used. For each car, at some point, I used the contract. I broke out even once, it has already paid for itself once and time will tell on my current car.

I do not know how Hyundai warranties work or are sold. First if ots not a b2b warranty I'd pass. Second, if its not zero deductible I'd pass. Third if its not a genuine Huyndai factory warranty I'd pass. Finally, if that price did not pretty dramtaically I'd pass. You are paying $1500 for 2 years of coverage. Google and research before you commit. I like Hyundais and my Dad is happy with his Tuscon....let me know what you find out. (Dad keeps his cars 3 years or so...warranty was not necesary)

As far as all the other ad ons....rust, stain protection, insurance...PASS, PASS and PASS. I have not seen any car 10 years or newer with rust in years. Are they really going to replace the fabric 4 years from now if they cant get a stain out. Will they patch in something that does match? Will they replace the entire seat or charge you for the seat but cover the fabric? I have yet to find someone who bought these things much less filed a claim.

I generally keep my cars 7 years or 100K. One reason I like toyota's is the reasonable cost of their warranty.

    Bookmark   August 17, 2012 at 12:05AM
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thanks for the comments andrelaplume2, yes sounds like I should shop around via internet with various Hyundai dealers here and see what they can offer re: b2b factory warranty with zero deductables .... anything less is not really a good deal ..... thanks !

    Bookmark   August 17, 2012 at 6:59AM
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I know for Honda, there are some dealers that will sell you the factory for MUCH, much less than what others will. I try to buy as little as possible from the dealer---as one can usually find better deals elsewhere (online) I know some of the Honda dealers have do it urself videos on their websites for installing aftermarket parts.

    Bookmark   August 17, 2012 at 10:21AM
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