GAP insurance can be a great thing. GAP insurance is usually purchased by customers who need to take a loan out that exceeds 90% of the "Book Value" of a used vehicle, or more than 90% of the MSRP of a new vehicle. GAP insures the customer that if the vehicle is totaled in an accident and the insurance company will not pay enough to pay the amount owed on the loan, GAP coverage will pay the bank the difference to pay off the loan amount.
We believe that there are some cases where GAP can be a good insurance policy. Max wants to sell you GAP no matter what the loan-to-value ratio is on your vehicle. He also wants to sell you GAP at an inflated cost. GAP is a reasonable insurance coverage that shouldn't cost you over $450 for a policy. If Max is charging you over $450 for a GAP policy, or is asking you to buy a GAP policy when you don't owe more than 90% of Book Value, Max is at it again taking your hard earned money.
2. Inflated Finance Rates
Max is very good at taking a loan rate that the bank agrees to on your vehicle and adding a point or two of markup to that rate. Did you even know that Max could do this? For example, say your good credit score earned you a bank interest rate of 2.49%. Max takes that rate and bumps it up to say a 3.99% rate. Still a good rate, right? Well, not as good as your good credit deserves. If you are financing $10,000 over 60 months, Max just made $402 on your finance contract. If you are financing a $30,000 vehicle, Max just made $1,206 off your good credit.
At Lewiston Auto, we never mark up finance rates. We give you the same indirect finance rate the banks give us. Our rate is usually better than your bank can do because we give them a lot of business. We pass the same great rate we get from our lender on to you. We will never pad our pockets off your good credit score.
3. OVER-PRICED EXTENDED WARRANTIES
An Extended Warranty can be good insurance for customers who can't plan for costs of unexpected repairs. However, some customers pay way too much for extended coverage or pay for coverage they don't need. Max likes to mark up the extended coverage you're buying sometimes over 200%. He may also sell you coverage you don't need because the manufacturer's warranty plan is sufficient for your needs. It is important that the coverage that comes with your new or certified pre-owned vehicle is explained so that you can make an informed decision.
Lewiston Auto will always thoroughly explain the coverage you have for free, and offer you extended coverage at a reasonable cost IF YOU NEED IT.
4. PAINT SEALANT/FABRIC PROTECTION
One of the biggest dealer profit products is paint and fabric protection. Max will sell you a package that provides for both paint and fabric. Usually these packages will cost you between $300 and as high as $800 or more. Max will tell you that these products will prevent paint blemishes or stains to the carpet or upholstery, but in fact, they are little more than a car wax or a silicon fabric spray. Max is really selling you an insurance policy that is rarely used. In fact, he hopes you forget you even purchased it so he can keep all the profits. Here at Lewiston Auto we don't offer these "snake oil" products. We give each new and certified used vehicle a hand wax at no charge before you drive it away.
5. DIAMOND GLASS
Max has a product called "Diamond Glass" that is sold to you as a glass strengthener, but again, this is another insurance policy for your windshield. Many times you already have this coverage with your own car insurance. Know your coverage before making the mistake of buying this from Max. Lewiston Auto won't sell you a product that offers to "strengthen" your windshield.
6. WHEEL AND TIRE
Another Insurance policy that Max likes to sell is Tire and Wheel. Tire and wheel is an insurance policy that covers road hazard damage to your wheels or tires. You may already have this coverage through your insurance policy but you may not know it. Many times the companies that Max uses to insure your wheels and tires don't like to pay out on claims, so getting a claim paid can be a real hassle. Max hopes you don't ever make an actual claim on one of these policies because chances are, they won't pay. That means you just paid top dollar for something that doesn't have a great chance of paying out.