The extras are things like rust proofing, scotch guarding etc. It seems pretty straight forward but you would be surprised at how many people get taken on these. What's really amazing is that you get scammed on a car and say, "that's not going to happen again!" Then 3 years later, Bam, what the f...... just happened???

The trickiest closing cost scam is the extended warranty because the language used is so confusing. This is not even the warranty that the factory gives you for the car.

It is a warranty that covers the cost of fixing the car should it break down on you. To get around this, you have to know the dealer’s language and you should really get this part down.

Now although extended warranties often do cover any repairs that you require during your coverage period, there is often some information that you are not told about.

For example, the extended warranty is usually effective only up to a certain amount of mileage or term period; whichever happens first. Make sure you have all the details on the terms if you decide to take on the extra auto coverage.

The warranty might also only cover certain types of problems. If your extended warranty doesn’t cover every part of your car, why bother? It will cost you so make sure it's worth it for you.

Some extended warranties don’t cover the larger engine problems or certain power train issues, but just cover the smaller issues. If your engine conks out, you may be left in the lurch. 

Don't even bother considering buying an extended warranty if you are only leasing the car for a small time period like 36 months. Perhaps it is better only for longer periods of leasing like 60 months.

Many extended warranties don’t cover everyday wear and tear policies, only breakdown problems. If you do insist on getting an extended warranty, get one that covers you for both occurances.

You will only really want to get a warranty on a more dependable car like a Lexus, Honda, or Toyota because extended warranties rarely cover the costs incurred in cars that are closer to the present time of purchase.

You will also want to get a warranty that is effective immediately. You will also want to get a warranty with a well established finance company and not one that go belly up in a year. 

Don’t purchase an extended warranty directly from the dealer. Instead look at sites on www.LendingTree.com for an online warranty because being online gives you all the time to asses your warranty properly.

Keep a close eye out for your deductibles because you don’t want to get stuck paying for deductibles that you thought were covered by the warranty.

The following chart shows some of the extras that dealers try to get you on at closing. This can be very irritating how they try to weasel even more money out of you in the end on stuff that you really don’t need at all. I mean, you already already paid a chunk of hard earned cash, but they see it as, what's another $2000 or $3000? 

Of course, when you hear them explain the extras, they will all sound like you need them NOW. It’s bad enough that they will throw them up at you but look at this table to show how much they are really ripping you off by.

Most Common Extras at Closing

As you can see, these extras when buying a car will get you in the end. If you can, you should avoid them all together. They are worth far more to the dealer than they are to you. Understand what you want and stick to your guns.