Many uprgrades sold at dealerships are unnecessary.

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t's not uncommon for car dealerships to try to sell upgrades to new-car buyers during the financing process. Thing is, many of these upgrades are unnecessary. Here are a few things to avoid during the car-buying process.

Rustproofing/Undercoating: Generally, new cars already have these kinds of procedures performed at the factory, so they're pretty much unnecessary, making them pure profit centers for dealerships.

car sales Car dealerships profit off of upsells.

Extended Warranties: Extended warranties aren't actually unnecessary, they can be very valuable, but buyers need to read the fine print. It's important to make sure that the warranties will actually cover major repairs; a warranty that offers only limited coverage isn't worth much. Not only that, but many extended warranty coverage periods begin at the time of purchase. So if you're buying an extended warranty that last for five years on top of your new car's three-year warranty, you actually only end up with two years of extended coverage. Best to see if you can wait until the original factory warranty is about to expire.

GAP Insurance: GAP insurance covers the difference between the actual value of a vehicle and the outstanding loan balance, which could make it quite useful in the event of a loss. However, it might be an unnecessary cost if nothing should happen to the vehicle or your own insurance might already offer GAP. This is one upsell that can't always be avoided, though, since some lending institutions require it as part of a financed auto loan.

Unnecessary Service Work: Service advisors are often paid on commission based on how much work they can sell, and mechanics are paid on how much work they do, so there's incentive for both groups to sell as much as possible. This means sometimes they'll sell work that doesn't need to be done, at least not yet. For example, a service advisor might try to sell a customer a new air filter by showing them that theirs is dirty, but even though the filter may be dirty, it might not necessarily need to be replaced right away. If the vehicle maintenance schedule calls for it to be replaced at 15,000 miles, and the car only has 10,000 miles on it, you may be able to hold off (unless it's exceptionally dirty). Technicians will inspect cars during routine maintenance procedures, looking for extra work, but it's up to you as the consumer to choose whether to approve or disapprove of the work