Just to share what I know about Auto warranty and auto lending# Automobile - 车轮上的传奇
z*s
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Posted these to reply other people's discussion.
Re-post them here and hope this helps anyone who is about to shop for a car
Auto lending includes direct lending and indirect lending.
Direct means that you apply auto loan directly from bank/credit union while
indirect is you apply through dealer.
The banks/CUs compete with each other at each dealer so that dealer will
likely to "send" your application to them. But how to win a dealer, they
have several ways.
One is to pay dealer an incentive to get application, another way is to
allow dealer to mark up the apr. That means the bank may only get 3% rate
while you are paying at 4%, the extra 1 % goes to dealer's pocket.
Also, dealer usually submit your application to lenders that can make them
the most profit (they'll get paid the most from the bank/CU). They won't
send application to lenders that are likely to give you the lowest rate
Direct lending, however, has no dealer involved so the lenders do not need
to pay dealer any incentive to get your application. That's why the rate is
usually lower and the dealer does not like it
-----------------------------
I own a 2013 jeep gc and I do not recommend any extended warranty.
First of all, it may have deductibles. That means you need to pay something
out of pocket first.
Second, most dealers do not want to do warranty repair as it is less profit
for them. (This is not just jeep dealer). So a usual case is, some warning
lights pop up and the dealer told you that nothing is wrong. They want to
spend their limited resource on more profitable non-warranty repairs
Third, warranty does not pay for checkup. My jeep lost power on highway and
ETC, Serv 4wd and Traction Controll lights were on. However, the car works
fine on the second day. I called the dealer to schedule an appointment for
checkup, they told me it is 145, and not covered by the extended warranty
Re-post them here and hope this helps anyone who is about to shop for a car
Auto lending includes direct lending and indirect lending.
Direct means that you apply auto loan directly from bank/credit union while
indirect is you apply through dealer.
The banks/CUs compete with each other at each dealer so that dealer will
likely to "send" your application to them. But how to win a dealer, they
have several ways.
One is to pay dealer an incentive to get application, another way is to
allow dealer to mark up the apr. That means the bank may only get 3% rate
while you are paying at 4%, the extra 1 % goes to dealer's pocket.
Also, dealer usually submit your application to lenders that can make them
the most profit (they'll get paid the most from the bank/CU). They won't
send application to lenders that are likely to give you the lowest rate
Direct lending, however, has no dealer involved so the lenders do not need
to pay dealer any incentive to get your application. That's why the rate is
usually lower and the dealer does not like it
-----------------------------
I own a 2013 jeep gc and I do not recommend any extended warranty.
First of all, it may have deductibles. That means you need to pay something
out of pocket first.
Second, most dealers do not want to do warranty repair as it is less profit
for them. (This is not just jeep dealer). So a usual case is, some warning
lights pop up and the dealer told you that nothing is wrong. They want to
spend their limited resource on more profitable non-warranty repairs
Third, warranty does not pay for checkup. My jeep lost power on highway and
ETC, Serv 4wd and Traction Controll lights were on. However, the car works
fine on the second day. I called the dealer to schedule an appointment for
checkup, they told me it is 145, and not covered by the extended warranty
