Even Customers With Bad Credit Entitled To Back End Products

Qualifying only for bad credit car finance does not exempt you from getting services or products on the back end of the sale. Negotiations are not finished once the vehicle purchasing decision is made. Consumers should be aware of the back end products that dealers may offer. They can then determine if these are worth the money.


An extended warranty is considered good because it can be a money-saver. This product is really an extended service contract. If the car finance agreement is not as long as the new vehicle warranty, it can be beneficial. An extended warranty is even more attractive for a driver on a restricted budget purchasing a used car that comes with a very short or no warranty. However, no lender requires this product, no matter what the dealer says.

Gap insurance covers the difference between the car finance balance and the current value of the car. It is applicable when vehicles are totaled or stolen before their car loans have been repaid. Drivers with car finance terms longer than 36 months or who make a relatively small deposit should consider this product.

Dealers charge a documentation fee to cover their clerical costs for preparing vehicle sales paperwork. This fee is subject to negotiation and in some states, dealers are limited in the amount they may charge. A local DMV office can provide more information regarding the regulations in your state. Request to have the fee lowered or removed, when necessary.

A separate vehicle preparation fee is a waste of money and should be credited. This fee is already included in the manufacturer suggested retail price for the car so it should not be charged separately. Vehicle VIN Window etching should also be passed on because it can cost over $350. Drivers can do it themselves at a much lower price.