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Auto lenders under investigation.
Consumer Financial Protection Bureau.
Over extended warranties and other add on Steelers try to sell car buyers.
Something consumers need to be aware of before shopping for these add on so.
How do you do that joining me now the car coach Lauren fix Lauren it's always great to have you want to show thank you so much for helping me down today.
I -- walk through these add ons one by one did you got some great information for our viewers which once -- I can't which ones to avoid.
Extended warranties what do you -- Well I -- it's a factory warranty you're buying it from the dealer for that brand of car you're buying a used car from that lot okay that makes sense.
If you're buying years aftermarket extended warranties there's been a lot of dealers have been bitten by them some don't even carry them anymore -- -- a lot of fly by night so I say.
Don't body goes there's always a little bit of scam and that.
And what I say is what that big print gives a small print tickets away all of the repairs not done -- -- dealer it's done at some other place that is a deductible or that doesn't qualify.
So I would say avoid the aftermarket repair a war and t.'s and go with the factory ones if you're going to do it.
Factory wants -- you know I've got to say -- a lot of people don't take into consideration a lot of the margin in car sales is virtually vanished.
It's these warranties where these guys make their money right.
Absolutely there is very the money section in the service in the repair.
Then the car still itself.
Is great for cash flow it's great for the dealership but there is not huge margins like there used to be.
And the warranty is an -- on especially on a used car -- -- have to celebre certain amount to recoup but because it took it and I'm trade.
Are and what about rust inhibitors -- guards this doesn't sound good to me what do you say.
You know you can buy it cannot Scotch guard for ten dollars or less pressure could go to -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- So unless your going to be building up plow truck and you're going to be using it you know in.
Buffalo winter is it probably doesn't make much sense to get the rust proofing I agree all right here's something new though I haven't heard prepaid maintenance is it worth it.
And some cases it is and a lot of the higher and luxury cars do you have it and it can actually be a benefit and by the way they are negotiable.
Two oil changes a year and a tire rotation and that'll start making up the difference right away.
The key to this and this is very important because I get a lot of letters make sure that -- getting a free will change.
Then they use the right oil because I've had people say it's had some that they put in regular no make sure it's -- the receipt that they put in the correct oil.
Otherwise your the one that's gonna pay and a warranty.
Wow gap insurance is something I have heard of -- what is that how does that work and is it worth it.
Well you know you have no choice when it comes to -- insurance that means that you are financing more than the -- locals -- and I highly recommend that insurance in case.
You lose your job or something happens and you have to figure out how to pay.
That payment that is the difference in case the car's totaled that's -- that and what you -- so that you can also negotiate by checking with your own personal insurance company.
But it best thing is don't ever be upside down a car which means you owe more on -- that's worth while.
That's so easy to do because -- -- you drive off the lot you lose so much value.
It's almost impossible it seems to me.
Take to keep the valuing your car when you look at these at odds here's one thing that bugs me you'd really have to look at the fine print to understand how well disclosed as this stuff.
Well like I said before -- -- the big print give up the small print tickets away in a summer's gonna offer you an extended warranty take it home and read it if you -- this is so confusing to me.
Take -- your friend take it to your bank or take it to someone you trust your read it and read it very slowly because.
You'll see in the small print there's always the deductible there's always what were not actually doing it it's being done by another place.
-- that's not covered only major failures like air conditioning or the whole engine.
So that may not be the case so.
I always say avoid those aftermarket warranties and if you're buying a used car or -- buying a new -- you're gonna drive a lot of miles that may make some.
It's you know this industry is on fire.
Auto lending has picking up speed some 783.
Billion in 2012.
The most in four years.
Will this action by this federal regulator slow this down could it hurt the business.
It could -- when it comes to financing -- cars.
It there's a lot of things that they want to get their fingers whenever government gets involved in anything especially the auto industry it's not going to be positive.
You know what I don't like the fact that they help them get through bankruptcy but that's a matter of of opinion on that.
But the sooner they start getting in putting more regulations on when in reality.
It's up to the consumer to make good choices.
Before being -- too much and we don't read things before we sign -- then we're going to get bitten whether it's your car your home buying a refrigerator or whatever it might be.
So you really it's always buyer beware is always your responsibility and if you have to know what -- but I'm sure you could ask somebody who can.
And you can also get on the Internet and search these things and you'll find people.
Based on the brand of the manufacturer will tell you the truth because people -- that experience -- -- you could learn from that.
Lots of sources out there for folks who want to know about these data -- absolutely more thanks for coming on great stuff great information always a pleasure to see you thank you.
Always a pleasure to see you -- thank you.
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