Dealer Charges and Extended Warranty: Understanding Extras for Financial Advisors

Dealer Charges and Extended Warranty

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Question

Dealer charges include extras such as extended warranty.

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Explanations

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A. B. C. D.

B

Option B, "True", is the correct answer. Dealer charges may include extras such as extended warranties.

When purchasing a vehicle, dealerships may offer additional products or services beyond the cost of the car itself. These additional products or services are often referred to as "dealer charges" or "dealer fees." Some examples of dealer charges include documentation fees, destination fees, and advertising fees.

In addition to these fees, dealerships may also offer extended warranties, which are agreements to cover the cost of certain repairs or replacements beyond the manufacturer's warranty. Extended warranties can be a valuable option for some buyers, as they can provide peace of mind and protect against unexpected repair costs. However, they can also be expensive, and buyers should carefully consider whether they are worth the cost.

It is worth noting that the inclusion of extended warranties in dealer charges is not universal across all dealerships or all vehicle purchases. Some dealerships may offer extended warranties as an optional add-on, rather than including them in the base price of the vehicle. Additionally, some buyers may choose to purchase extended warranties separately from the dealership or not at all.

Overall, while the specifics of dealer charges can vary depending on the dealership and the vehicle being purchased, it is generally true that these charges can include extras such as extended warranties.