Dealer had me purchase ELO and Tire Protection for a discount. Is this worth it, can I cancel?

Opalrev · Jun 18, 2019

Hi,

First time in the forums. I bought a Limited RAV4 Hybrid
I went in with a 3.4% preapproval, but the dealer wouldn't budge from the 5.99% rate. The 1750 rebate was attractive so I couldn't really press.
Instead he proposed that if I get the ELO ($1000 value) and Tire Protection ($695), he'll charge only $900. From how he described, he said the tire protection would come worn out tires and I could replace a whole set. So for some stupid reason, I felt that was a good idea. I don't have the warranty papers (coming by mail).

On paper, they charged both items and dropped from 5.99% to 4.84% to cover the cost of the tire protection.

I'm having second thoughts. Are these two things worth it? Any way I can cancel if not? If I cancel, do you think my rate would go back to 5.99%?

AllergyDoc · Jun 18, 2019

We rejected their tire coverage but got suckered into buying the gap coverage at about $550 for 3 years. I found out later my insurance offers cap coverage. I’m afraid to call and ask what it would’ve cost us but I suspect a lot less than the dealer. What’s ELO?

Opalrev · Jun 18, 2019

AllergyDoc said:
We rejected their tire coverage but got suckered into buying the gap coverage at about $550 for 3 years. I found out later my insurance offers cap coverage. I’m afraid to call and ask what it would’ve cost us but I suspect a lot less than the dealer. What’s ELO?

ELO is some kind of GPS tracking subscription, like LoJack. It also monitors the vehicle's data realtime. The original quote had a $1790 value dealer add-on pack that included "ELO", along with tint, wheel locks, and nitrogen air in tires. But the financing guy told me that isn't the actual subscription. I didn't argue because I got the car at a very competitive price with/without the dealer pack.

Do you think this tire protection and/or ELO can be cancelled? and if so, would they raise my APR?

AllergyDoc · Jun 18, 2019

Doubtful, but it likely depends on your state law.

Variman · Jun 18, 2019

In the U.S, your XSE comes with Safety Connect with a three year subscription. Safety Connect will do the same as ELO. Nitrogen air in tires has been proven to offer very little value. I would do tint and wheel locks after the sale for a lot less money.

Generally, tire protection only covers a tire if it is damaged beyond repair. For example, if a side wall is punctured the tire cannot be repaired.

As far as canceling, look up the time of "right of rescission" in your geographic area.

Opalrev said:
ELO is some kind of GPS tracking subscription, like LoJack. It also monitors the vehicle's data realtime. The original quote had a $1790 value dealer add-on pack that included "ELO", along with tint, wheel locks, and nitrogen air in tires. But the financing guy told me that isn't the actual subscription. I didn't argue because I got the car at a very competitive price with/without the dealer pack.

Do you think this tire protection and/or ELO can be cancelled? and if so, would they raise my APR?

toyodaornot · Jun 18, 2019

General rule is to not buy anything other then the car at the time of car purchase. You can always get the same thing for much less afterwards. There are no special deals that they can lead you to believe... Also trade ins is a big money maker and you are better off selling your car independently. Out of usual curiosity I did check how much dealer would offer me for my 12 year old car which was 3k. I sold it a week later for 7k.

Cruiter · Jun 18, 2019

I spent 20 years in the retail end of the car business. It's changed a bit since I retired May of '88 but there is a lot of money they try to make on the backend (financing, add on items, tire protection etc). You can get your nitrogen at Costco if you want it. They quoted me $40 but I haven't done it yet. I have a 5 gal compressor in the garage. As Variman said, you get three years of Safety connect just for buying the car, you can decide on that in three years. It will be through Toyota at their price. These are not $1000 dollar tires like I had on my 'Vette, if it were mine I'd take my chances and keep the money.

I didn't take any of those items. They tried to tie my $500 Military discount to a Toyota financial contract but reading the fine print it turned out to be a suggestion looking like it was necessary to finance to obtain it. I planted my feet and stood firm and wrote a check! My $2600 discount included $500 Military (another 20 years. Yes twice retired).

Use your best judgement and assets. Check with your local bank and/or credit union. You might get a much better rate. Remember, the backend is where they make a lot of their profit.

Variman said:
In the U.S, your XSE comes with Safety Connect with a three year subscription. Safety Connect will do the same as ELO. Nitrogen air in tires has been proven to offer very little value. I would do tint and wheel locks after the sale for a lot less money.

Generally, tire protection only covers a tire if it is damaged beyond repair. For example, if a side wall is punctured the tire cannot be repaired.

As far as canceling, look up the time of "right of rescission" in your geographic area.

Cruiter · Jun 18, 2019

Regarding trade in's; sometimes yes, sometimes no. Here in GA you only pay tax on the price of the difference if there is a trade in. So if you're writing a contract for say $40,000 and you have a trade allowance for say $20,000 then you only pay tax on the difference of $20,000. And you can/should always ask for a little more for your trade. They almost never give you their best price and you shouldn't give them yours w/o a fight to make sure you did the best you could. Don't be afraid to grab your keys and walk, it will almost always get you a little better deal. Trust me, I spent 20 years in auto retail rolling cars off the lot. But always keep it civil, that's important. Sometimes that practice eats a sales manager so bad he'll cough and give you a better deal. And if you're married, you have another asset to help. It's perfectly OK for her to stand up and tell the salesman/sales mgr they're just plain crazy !!! It'll get them almost every time. Just keep your cool and let her have some fun. You can thank her later by taking her out to dinner in the new car LOL.

Best of luck

toyodaornot said:
General rule is to not buy anything other then the car at the time of car purchase. You can always get the same thing for much less afterwards. There are no special deals that they can lead you to believe... Also trade ins is a big money maker and you are better off selling your car independently. Out of usual curiosity I did check how much dealer would offer me for my 12 year old car which was 3k. I sold it a week later for 7k.

Dovidan · Jun 18, 2019

As Cruiter says, take into account the sales tax. Here in Seattle it is 10.2%. On my last car deal I negotiated the sale price without a trade-in. Then I had the car appraised at CarMax where they offered $15K cash. I then put the car on Craig's list for $17K for a week and got no response.

Then I went back to the new car dealer where they offered 15K as a trade-in. Bottom like was I was ahead $1,500 by selling to the dealer rather than getting 15K (or even 16.2 K) from another party -- less hassle too as the dealer took care of all the paperwork.

Often the dealer won't match CarMax's offer, but if you have a desirable vehicle in great shape this approach is worth a try.

toyodaornot · Jun 19, 2019

I had one successful tradein but it really all depends on several factors but in most cases you will most likely loose with trade in.

LongRifle · Jun 19, 2019

If you're still within the allotted time limit for a refund, do so. The only person that's going to benefit from that is the finance manager. Why do you think he wouldn't budge on the rate, but would be happy to do so only if you bite?

Tire warranty (don't they already come with it), extended warranty (really? If you think you'll need this you should be looking at something more reliable) and now GPS subscriptions (wow, just wow) are all part of the dealer game. My favorite one is when they ask you how much you can afford to pay a month. That's how they hide the actual price until you're ready to sign. Caveat Emptor has never held more significance.

Dealer had me purchase ELO and Tire Protection for a discount. Is this worth it, can I cancel?

Opalrev

AllergyDoc

Opalrev

AllergyDoc

Variman

toyodaornot

Cruiter

Cruiter

Dovidan

toyodaornot

LongRifle

Top Contributors this Month

Recommended Communities