5 Things Never to Buy at a Dealership Finance Department

By: Mike's Car Store   |   30 May 2023

The finance department of a dealership is one of the most important parts on the lot and, in most cases, is responsible for helping Kentucky drivers successfully purchase the reliable vehicle they need for their day-to-day. Unfortunately, for some dealerships, this can also be the place where customers are most easily taken advantage of. Even if you come to a financing or leasing agreement that you feel comfortable and happy with, there are still potential areas of auto finance specialists to milk you for more unnecessary fees and products. Here at Mike’s Car Store, you know we always have your best interest at heart. That’s why we’ve compiled a list of the top five things you should never buy at a dealership finance department.

#1 GPS/LoJack

While GPS and LoJack systems can certainly be helpful for you in the event of vehicle theft, they really aren't a necessary purchase. Not only is there a high markup on these services (which happen to only market to dealers rather than consumers), but most vehicles made today come with their own emergency systems that work just as well. Think Toyota 24/7 Connective Services or FordPass, both of which do not require a monthly subscription or additional costs.

#2 Paint Protection

Paint Protection is often one of the biggest scams at dealerships. While paint protection can have some benefits, the main problem is the warranty it may or may not come with as a part of your financing. Depending on the cost, a three-to-five-year warranty might be worth it to you. It’s also important to research what kinds of coating the dealership is offering. If it’s not nano or ceramic coating, we would suggest getting your paint protection somewhere else.

#3 Dealership Accessories

Dealership accessories like VIN etching, pinstripes, brake lights etc., are not always necessary to add to your financing. Looking to get these customizations will run you a lot more in the financing department than heading to a service center due to multiple markups.

#4 Disability Insurance

In most cases, disability insurance is much more expensive at a dealership than if you simply took out a life insurance policy. Many dealerships in the finance department will ask you who you’d like your vehicle title to be sent to in the unlikely and untimely event of your death. This is usually the point where they will coax you into overpriced disability insurance.

#5 Payment Packing

Payment packing refers to when a car dealer quotes you an inflated monthly payment. For example, if your actual payment on a loan is $300 per month for 60 months, the dealer might get you to agree to pay $350 per month. While this is technically illegal, there are some tactics dealers use to get around it. Dealers may offer add-ons to your purchase that look inexpensive at first but are really added onto your interest payment. To avoid this scam, be sure to always ask what your base payment is as well as how much each additional item costs before signing your contractual agreement.  

As a Lousiville, KY dealership run and owned by the #1 watched Car Salesman on the Planet, you can trust we know how to get you the best deal on a used vehicle and be transparent as possible in the financing process. We’re here for you before, during, and after the sale of your car. Even if you’re working with another dealer, we’re committed to protecting our customers. Browse our inventory of high-quality used vehicles today at Mike’s Car Store.



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