Service contracts (extended warranties): the appropriate chapter, but the bottom line is that they are high profit, andI cover these in more detail in (^)
vary in quality and value. Average markup: $750-$1,500 (on good ones)
Prepaid maintenance: where a good finance manager will use them, playing on fears of roadsideRemember those interview questions? Here’s (^)
breakdowns or the high costs of future repairs—especially if you’re awoman. Prepaid maintenance contracts can be excellent value; I make (^)
sure to include them on many expensive European cars, as they cost lessthan the recommended maintenance if you follow the manufacturer’s
schedule, mainly because they lock in current labor rates, which tend to goup every year.
For the majority of these plans, it’s best if you research the cost ofmaintenance first. Call a service manager or writer at a dealer of the brand (^)
you’re interested in and ask what the total cost of the recommendedservices the manufacturer —not the dealer—recommends (dealer service (^)
departments routinely recommend lots of services that aren’t necessary).Based on this, you’ll know if the prepaid maintenance plan is actually
saving you any money. They run anywhere from $300 to over $1,000. Average markup: $150-300
Aftermarket accessories: remember: all super-duper paint sealants and upholstery protectors are These usually carry substantial markups. But
basically worthless from a monetary standpoint. percent on most offered at a dealer Average markup: 30-50
Credit life & disability: offered any more. It isn’t a high-profit item, but if offered, I would suggestThis used to be a big seller, but I hardly see it (^)
declining it. Average markup: $100-300 56
barry
(Barry)
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