I walked away from a car dealership today, and canceled the deal I had almost completed. The Finance Manager there told me that the bank required that I buy a $2,000 extended warranty plan as a condition of approving my loan application. I was already wary of getting tricked into buying something I didn't want. This "requirement" sounded fishy to me, so I walked. Did I do the right thing?
You were smart to walk away from this deal. This forced warranty scam that's used by some dishonest dealers is one of the reasons that vehicle dealers are held in such low esteem by a lot of people. No bank will require that you purchase an extended warranty before it will approve a loan.
If you had demanded that the dealer put in writing that the warranty was required for loan approval, and sign it, the Finance Manager would have quickly changed his tune.
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You were smart to walk away from this deal. This forced warranty scam that's used by some dishonest dealers is one of the reasons that vehicle dealers are held in such low esteem by a lot of people. No bank will require that you purchase an extended warranty before it will approve a loan.
If you had demanded that the dealer put in writing that the warranty was required for loan approval, and sign it, the Finance Manager would have quickly changed his tune.
