Avoiding Dealer Preparation Fees
If there's one thing that my golden retriever, Daisy, has taught me, it's that sniffing out what doesn't belong is a skill that comes in handy. You wouldn't believe the things she's dug up in our Melbourne backyard! But I bet you didn't think this lesson would apply to car shopping as well? Just like Daisy can sniff out an odd bone in the yard, you need to sniff out unnecessary "dealer preparation fees" that don't belong in your bill.
Believe it or not, dealer preparation fees can sometimes be those sneaky bones buried in the ground of your contract. They're basically meant to cover the cost of preparing the car for sale, like cleaning and removing any protective coverings from the factory. Now, would you pay someone extra for cleaning up the ingredients before cooking your meal in a restaurant? Of course not, it's part of the deal!
So here's the deal: the manufacturer already pays the dealership to prepare the car for sale. If the dealership is charging you a preparation fee, they're essentially double-dipping! Avoid paying this completely unnecessary fee. Ask the dealer to remove the fee, and if they refuse, remember: there are plenty of other dealers who would love your business.
Ditching Extended Warranties
Back when I had just graduated from college, I shared my abode with a rather talkative parrot named Sky. Let me tell you, a more opinionated bird you haven't met. Sky didn't like anything that wasn't immediately necessary and she'd let you know about it. "Sky unnecessary!" she'd squawk. Extended warranties are one such "Sky unnecessary" item when buying a new car.
Why, you ask? Because often, these warranties cost more than the average repair job. If your car does need a repair, it’s often less expensive to just pay for the repair out of pocket rather than shelling money for a warranty. Most new cars come with a manufacturer's warranty that should provide more than adequate coverage for the first few years.
Moreover, like Sky's chatter after dark, extended warranties often have a lot of fine print. These stipulations often mean you’re paying for coverage that you believe you have, but don't actually. So, stand strong and say no to extended warranties - just like Sky says no to me trying to change her dinner time!
The Mystery of the Fabric Protection Fee
Now, let's get into another charge that often sneaks up unnoticed - the fabric protection fee. This is basically dealers saying they'll Scotchguard your seats for a ridiculous fee. Now, you might think, "Hey, Darius, I have kids and pets, I need that!" I get you. I have Daisy and Sky. There's fur, feathers, and who knows what else in my car!
But here's a free tip - you can buy a can of fabric protector spray for about $10 and do it yourself! It’s a fun little weekend project that will save you hundreds of dollars. Remember, that dealer’s invoice with a ‘fabric protection fee’ is just as welcome as finding Sky had made a mess of your brand-new sofa. Ouch!
Turning Down Rustproofing and Paint Protection
And then we have the wonderfully named ‘rustproofing’ and ‘paint protection’. Now, if we can take a second away from buying cars to talk about Australia for a bit. As anyone living here will tell you, we do have our fair share of salt in the air. But steel corrosion is mostly a thing of the past, as the bodies of modern cars are treated at the factory to resist rust
As for paint protection, how often have you seen a newish car with peeling or faded paint? Probably not too often. That's because modern cars have high-quality finishes which don't need additional paint protection. Just keep your car clean and wax it once or twice a year, and it should keep its shine for many years to come.
Steering Clear from VIN Etching Fees
Next on the list is the Vehicle Identification Number (VIN) etching fee. Now, the VIN is a unique code given to every car, it's like a fingerprint. Etching this number into the windows can make parts less valuable to thieves since they’re clearly marked as part of a specific vehicle. It sounds useful, right?
Well, here's the rub. There's no need to pay the dealership to do this when you can do it yourself. There are do-it-yourself kits available for less than $25. Plus, do you want to pay the dealership to perform a task that might help, but definitely won't prevent, car theft? I think not!
Negotiating Accessories and Upgrades
Accessories and upgrades - they're like the ice cream parlour's topping station for your new car. Do you need them? Probably not. Do you want them? Quite likely! But remember, the dealership might be charging way over the top for adding these to your new car. Everything from sports packages, to sunroofs, to advance sound systems can cost a lot more than if you purchased these features separately.
My advice here? Only opt for accessories and upgrades you absolutely need at the time of purchasing the car. You can always add most of them later and potentially at a much lower cost.
Fleeing From Low Emission and Fuel Economy Packages
Now, don't get me wrong - I'm all for being as green as possible. I'm the guy who takes ten minutes to make sure all the recycling is properly sorted. But ‘low emission and fuel economy packages’? They cost a lot and often promise benefits which may never materialise.
The individual changes that these packages make are usually so minute that they barely affect fuel economy or emissions. You’re better off keeping the car well-maintained and driving in a fuel-efficient way. Trust me on this one.
Gapping the GAP Insurance Gap
Last but by no means least, we've got what's known as Guaranteed Auto Protection, or GAP insurance. Now, this one is tricky, as it isn't necessarily always a waste of money. Here's the deal: If your car is stolen, or written off in an accident, GAP insurance covers the difference between what you paid for the car and the current market value that your car insurance payout could be based on.
But before you say "Sign me up!", you should know that if you have a good auto insurance policy, you may not need GAP insurance. Check your current policy first. Better yet, shop around for the best auto insurance coverage instead of immediately going for the GAP insurance offered by the dealer.
In conclusion, there's no need to pay every fee that comes your way when buying a new car. The way I see it, a car is a lot like a new pet. When Daisy came home, she came with the basics - food, collar, leash. But I didn't need to get her every fancy toy or high-end pet accessory that first day. Similarly, stick to getting what you need in your new car and resist the temptation to go for all the bells and whistles. You'll be glad you did.