Before closing the deal and walking away with your new car, you will need to look out for some of these tricks.
So many people get ripped off after they have already closed the deal. At this point, you need to employ your closing deal strategies while discussing the “extras” and the “warranties”.
Extras are things like rust proofing, scotch guarding, etc. Although this may sound pretty straightforward, you’d be surprised at how many people fall into the trick, thinking they’re buying necessities or beauty items!
The trickiest closing cost scam is the extended warranty, as the language used is not only controversial but also tricky!
Just beware of the dealer’s language.
Extended warranties often do cover most repairs that you require during your coverage period (up to a certain mileage amount or time period), but there is often some information that you are not told about, and tend to discover later on, when it’s too late.
They might also only cover certain types of problems. If your extended warranty doesn’t cover every part of your car, why bother?
You shouldn’t even consider buying an extended warranty if you’ll only lease the car for a short time (like 36 months).
It’s advisable to buy it when the time exceeds 60 months.
Moreover, many don’t cover daily wear and tear policies, only breakdown problems. If you do insist on getting an extended warranty, then get one that covers both instances.
Be logical, you’ll want to get a warranty on a more dependable car like a Lexus or Mercedes-Benz, since most extended warranties rarely cover the costs of fixing cars at purchase time.
Warranties are worthless if they’re not immediately both effective and with a well-established finance company (rather than one that might go bankrupt on you)!
Rather than purchasing the warranty directly from the dealer, search for others online and elsewhere.
Beware of the deductibles because you don’t want to get stuck paying for deductibles that you thought were covered by the warranty.
Now, let’s look at some of the extras that dealers get you on at closing. How they try to weasel more money out of you can be very infuriating.
Another common tactic is bundling unnecessary add-ons into the financing paperwork, hoping you won’t notice. Items like fabric protection, VIN etching, or overpriced floor mats often sneak their way into the final contract. Always read every line before signing, and don’t hesitate to question charges that don’t make sense. Dealers may pressure you by saying “everyone gets this” or “it’s required,” but most of the time, it isn’t. You are well within your rights to refuse extras you don’t need. Staying calm, firm, and informed will protect you from hidden costs and keep your car purchase fair, transparent, and stress-free.
Financing is another area where tricks often surface. Dealers may offer an attractive monthly payment but stretch the loan over more years, which means you’ll pay thousands more in interest without realizing it. Always look at the total cost of the loan, not just the monthly figure. It’s also wise to get pre-approved by your own bank or credit union before stepping into the dealership, so you know what rate you truly qualify for. This gives you leverage and helps you spot inflated rates the dealer might try to slip in. Remember, preparation is your strongest shield against these tactics.
