For the love of god, please just say no to Finance spiffs unless you like to gift them the extra 1k …
From WSJ
Car shoppers headed to a dealership are in store for a hard sell on something other than a vehicle.
As dealers’ profit margins on new-car sales shrink, they are relying more on selling extended warranties, paint-protection plans and other add-on services pushed by salespeople in the finance office.
Dealers also earn a markup for arranging car loans, a piece of the business that is becoming a more reliable income generator as salespeople find it more difficult to upsell buyers on a car’s price. Most shoppers today do research online and walk into a dealership firm on a price, auto retailers say.
“Where dealers really keep their head up is boosting interest rates from the bank and throwing in products like extended warranties,” said Earl Stewart, owner of Earl Stewart Toyota in North Palm Beach, Fla.
Dealerships made an average of $908 per new vehicle last year on their finance and insurance business, far more than the $420 they earned off the actual vehicle sale, according to research firm J.D. Power. More car buyers also are plunking down for such extras, which have mixed reviews from dealers and customers. Last year, 46% of new-car buyers purchased an extended warranty from the dealer, for example, up from 40% in 2013, according to the National Automobile Dealers Association.