Extended Warranties On Leases Are A Racket!

Car salesmen are notorious for trying to sell their “victims” way over-priced, extended warranties on their lease vehicles, even when they know damn well that the vehicle is under manufacturer’s warranty during the entire period of the lease. Hey leasers, did you know this? If not, read on …

Extended warranties are high-profit items, and car dealer love to “offer” them out like candy to everyone who steps onto their lot, especially to the people who only lease their vehicles. The reason for this: dealer markups range from $200 to $900, and they make more cash with the leases. So, as you can hopefully now clearly see: it is no wonder warranty contracts are pushed so hard from these scumbags — even when they know damn well that people really, really don’t need them.

Below are five examples of the bogus arguments and gimmicks salesman use to trick unsuspecting lease customers into paying big bucks for unneeded warranties (you’ve been warned):

They say, “This special price on the warranty is only available through us at the beginning of the lease. If you decide to buy the car at the end of the lease the warranty will cost you much more.” What they don’t say: “Chances are, you won’t buy the car at lease-end, so if you don’t buy it from me now, I won’t get a bonus check.”

They say, “This is such a great deal that we make it a standard item for all vehicles we sell, especially the leases.” What they don’t say: “All of our customers are suckers and we expect you to be one too.”

They say, “This is much, much more than a warranty. It also covers all of your regular scheduled maintenance and oil changes. So, as you can see, it practically pays for itself!” What they don’t say: “The $650 warranty I am selling you today will save you $90 on oil changes.”

They say, “This extended warranty will make your car worth more money at the end of the lease.” What they don’t say: “Why should you care? It’s not going to be your vehicle in the end.”

They say, “The warranty is refundable if you turn in the vehicle at the end of lease.” What they don’t say: “I’m going to forget to tell you that the refund is prorated from the day that you sign the lease, so in effect most of the extended warranty is wasted during the lease period while the vehicle is under the manufacturer’s warranty.”

Leasers, beat this lying idiot at his own game by keeping the following in mind: don’t ever sign a lease for longer than the manufacturer’s warranty period. If you can follow this one simple rule, you will completely eliminate the need (not to mention: the high cost) of extending the warranty. Also, remember this: when you lease you don’t own the car, and if your lease is entirely within the period of the manufacturer’s warranty, there is absolutely no benefit to you by extending the warranty.

BTW: don’t forget mileage when considering a vehicle’s warranty on a lease. Most new vehicles come with a 3-year 36,000 mile bumper-to-bumper warranty. However, on a three-year lease that allows 15,000 miles per year (45,000 total miles), you could easily find yourself out of warranty in the last year of the lease. Keep this in mind when deciding to lease or own (or suffer the consequences)!

If you find that you absolutely must lease beyond the manufacturer’s warranty (even though I would never recommend it) consider getting an extended warranty from the manufacturer only, and skip whatever that dirt bag is telling you to get (for his own personal gain, of course).