Any consumer that has ever bought anything at a retail store understands exactly what an add-on is. Before you can pay for your sneakers at the register, they’re offering any number of extra items, like shoelaces, shoe cleaner, and socks. Now, you could either not need any of these items, or already have plenty of them. But you probably walked out the store with one or all of them to the salesperson’s delight. Going to the car dealership is no different. Their are Dealer Add-on options offered when you buy a car. There are some you should definitely buy, and some you should avoid.
Wheel and Tire Insurance
When you buy your car, you may not be thinking about any insurance above and beyond what you already are legally obligated to have. But think about your wheels and tires, there is so much that can happen to them that you wouldn’t file an insurance claim to fix. Normally, you would just be stuck forking out the extra cash to fix whatever accidental damage happens. You could accidentally hit a curb or pothole, and bend a rim or scuff a tire. This type of insurance comes in handy in these likely circumstances, so it’s an excellent add-on that consumers should consider when offered it.
An extended warranty is an add-on that might get pushed on you long after you’ve left the dealership, whether you get one or not. There are many other companies other than the dealership where you bought the car that offers them also. However, your first opportunity will always be at the dealership. This warranty could very possibly be a good idea for you. But on the other hand, it could also be unnecessary. It all depends on your circumstances and the details of the warranty. You should consider whether you have money that can pay for repairs out of pocket, and if you can fix the car yourself. If both these answers are no, then you should get this add-on.
Everyone knows that cars depreciate in value as soon as you drive them off the lot. That’s why consumers should be careful about how much of the car they are financing. When you finance the whole cost of the car without a hefty down payment, you can quickly become “under water” with your car. Meaning you owe more than the car is worth. If the time comes when you need your insurance to cover the costs of repairing or replacing the car, they will only do so for the amount the car is worth, not what you owe. This is a situation that people can avoid with sizable down payments, but gap insurance is definitely an add-on that you should choose when you don’t have one.
Key Replacement covers an occasion when you actually lose your key and you need to get it replaced. This is not unheard of, but it’s probably rare enough that most of us will never need it. It really is just an opportunity to be forgetful and reckless with your keys. Save yourself some money, and be responsible with your keys. This seems like an add-on where the dealership is trying to propose a non-existent problem, and show you the solution. Tell the dealership, no thanks. You can handle your keys.