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Sorting Through New Car Options: Which Ones To Avoid
By Eric Driver Published: 11/26/2009
With the prices of many new automobiles climbing towards $60,000, it's often easy to justify adding a few options. After all, what's another $250 or $400 when compared to $60,000? The truth is, dealerships make a bundle from these add-ons. That's why they push them on unwary buyers. What's more, you can often purchase higher quality alternatives from a private retailer. For example, the "top of the line" alarm system that costs $750 as a dealer add-on may be priced at $400 elsewhere - and it will likely be designed with better quality.
It's important that you buy the car you truly want and need, not the package that adds the most padding to the dealership's bottom line. In this article, we'll explore some of the automotive options that you'll be tempted to buy when negotiating the final price of a new vehicle.
Extended Warranty Coverage
Because automobiles are designed to last longer, automakers are offering longer warranties to entice potential customers. These warranties typically cover the powertrain, engine, and other major components. Because they offer longer coverage, there's less need to buy an extended warranty. That doesn't dissuade the dealers from trying to sell them, though. If you truly want extended coverage, wait until your normal coverage expires. Then, buy an extended policy from an independent source.
Rustproofing Solution
Rust is a problem for cars. Once it sets in, it can spread quickly and affect the integrity of the body. Having said that, there is rarely a reason to invest in this option. Not only does it cost several hundreds of dollars, but your warranty should already offer coverage for rust damage. If the salesperson says it has already been sprayed on the car (a sales tactic to encourage you to accept it), consider it a gift.
Disc Changer
Automotive stereo systems can house up to a dozen CDs. If you'd like more flexibility, you'll need to have a disc changer installed. The dealership will try to sell you a changer, but like most options, it will cost more than the amount you would otherwise spend with an aftermarket retailer. Plus, the dealer will want to install a specific brand in your vehicle - it won't necessarily be the highest-quality brand available. Plus, given the rise of iPod connectivity in vehicles, you may want to avoid disc changers altogether.
Car Alarm
This option was mentioned above, but it's worth highlighting. The dealer will mention that your auto insurance rates will decline if you have an alarm installed. This is true. They'll also mention that it's more convenient to have them install it rather than having to take your vehicle to a car alarm shop. This, too, is true. What they are less likely to mention is that the quality of the alarm will be lower than what is available from an aftermarket retailer. What's more, the price will be substantially higher.
Some car options, such as adaptive cruise control, lane-change warning systems, and night vision, are valuable. Others offer questionable value given their respective prices. Shop for the vehicle you want and need. Leave everything else on the dealership lot.