Quote:
Originally Posted by mcbmw88
I appreciate the reply immensely. I agree that $3k+ for 1 additional year of warranty coverage is crazy after seeing it as text on a screen and not being fed 100 numbers at once.
I live in a newer neighborhood and have had 3 nails in my tire in the last 2 years, so I think the tire plan is fair for my personal use-case.
What incentive do the Finance Managers have for making these numbers up? Are they even negotiable?
I'd hate to turn down warranty coverage and fall victim to something down the road -- in that case, I'm guilty of being a little fearful of the unknown -- but what other options are there, really?
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Finance Managers are the highest paid people in the dealership (Aside from the General Manager)
Nearly all of the optional coverages are designed to maximize profit for the dealership. Every coverage has a "cost" displayed on the Finance Manager's screen. This is the cost to the dealership. Each coverage is marked up anywhere from $500 to $2,000 above cost. The more it's marked up, the more the Finance Manager gets paid.