Are those fees actually legit?

mesh2005

A very newbie question here. I got a quota from a Honda dealer for the CRV that outlines the market price as 32K but the total price as 41K. There are the tax, dmv fees and such which I understand. But the invoice includes $3k for "warranty", $1000 for some GAP insurance, a few hundreds for a GPS anti-theft device and such.

This is the first car I'm planning to buy and I will finance it. I thought the warranty is free? Like you buy the car and you get a warranty from the manufacturer. Looks like I got that wrong then? Are you expected to pay for the warranty? Is the GAP insurance different from the auto insurance you get to actually drive legally?

Thank you

Michaell

mesh2005 said:

A very newbie question here. I got a quota from a Honda dealer for the CRV that outlines the market price as 32K but the total price as 41K. There are the tax, dmv fees and such which I understand. But the invoice includes $3k for "warranty", $1000 for some GAP insurance, a few hundreds for a GPS anti-theft device and such.

This is the first car I'm planning to buy and I will finance it. I thought the warranty is free? Like you buy the car and you get a warranty from the manufacturer. Looks like I got that wrong then? Are you expected to pay for the warranty? Is the GAP insurance different from the auto insurance you get to actually drive legally?

Thank you

You can skip the warranty and the GPS anti theft.

GAP insurance is useful if you plan to put little money down - it will cover the "gap" between the market value and the loan balance, in case the car is stolen or totaled. However, you may be able to get this through your own insurance company for less cost.