Used Car Warranty Pricing Scheme Is A Rip Off

Recently I received a e-mail from a used carthe hard selling. In order to get your business, they
warranty salesman who works for a broker. Seemswill try a combination of reducing the price and
he wanted to share a rather elaborate scheme hisoffering better payment plans. Anything to get the
company uses to get you to pay the highest pricesale. The second salesman who poses as a manager
they can extract from you.can offer a price discount, but only so much since he
The extended auto warranty company uses directand the first salesman need to be paid.
mail. Those receiving the letter call a toll free numberWhat happens if this more experienced salesman
and a salesman answers. Nothing wrong so far! Thecan't get the sale? He tells you there might be one
salesman will ask you a few questions and then telllast option and sends you to another salesman who
you that he needs to transfer you to a manager tooffers some serious price reductions and even more
see if your vehicle qualifies for coverage. Hmmm?attractive payment plans. This last salesman makes
There's no reason to transfer you to another person.less money because he has an easier job, after all,
The same person can find out how old your vehicle ishe's now offering the used car warranty at a fair
and how many miles it has to determine if it qualifiesprice.
for a car warranty. However, this manager will askBrokers who have the nerve to extort the highest
more questions before saying he's made anprice for a car warranty make a lot of money and
exception for you. But, you have to buy on thiscan live a life of luxury. Think about it. This first price
phone call since he's made an exception. Yeah, right!will be accepted by a good number of callers who
You guessed it, every vehicle qualifies. I'm told theyjust aren't familiar with warranty prices or who are in
consider this the most important part of the processa hurry. Cha-Ching. Some take the first price offered
and the manager can take several minutes to geton the first payment plan offered . Cha-Ching. Next,
you prepared for the salesman to take the phone callthe manager lowers the price. Cha-Ching. If you're still
back. They've gained commitment from you.not buying, the manager sweetens the payment plan.
When the salesman takes the call back, he has aCha-Ching. If you still haven't pulled out your credit
script to make you a warranty price offer. Somecard, there's one last attempt to get you to buy.
people buy at this point and the salesmen call it a "layThey send you to a lower paid salesman to give you
down". The problem is they've paid as much as $800the lowest price. Cha-Ching.
to $2000 too much.Talk about tricky sales tactics and putting consumers
But, what if the caller declines the warranty offer?through the hoops. Reputable companies are angry
Well, the salesman isn't going to give up. First, he willabout such schemes because it gives the industry a
continue trying to get the sale by comparing the costbad reputation. But, know their are very reputable
of the warranty to repair costs. Some more peoplecompanies to buy from. So, beware, if you call a
buy. Next, he'll offer a payment plan and this closescompany and start getting the run-around, you'll
more people. They've still paid too much, but theyknow what's going on and you'll run as fast as you
are unaware of the fair price for a warranty and justcan. Now you understand why I recommend avoiding
want to pay for it in installments rather than all atmiddlemen like brokers. They just don't add any value
once.and occasionally you run into one that operates a
If the salesman can't get the sale, guess what? Nowpricing scheme.
a more experienced salesman gets on the phone for