Tag Archives: backend products

Do I Need Credit Insurance When I Buy a Car?

Don’t Buy Dealer Products and Services You Don’t Need

credit life insurance from car dealersOnce you’ve made a deal on a new car, dealers have more products to try to sell you once you get into the F&I (Finance and Insurance) manager’s office to sign papers.

Backend products offered by car dealers

You may be offered security systems, corrosion protection, paint sealant, window etchings, fabric guard, extended warranties, and credit life insurance.

These are called “backend” products and are designed to make dealers extra profit on car deals. In fact, some dealers make as much or more money on backend sales as on vehicle sales.

The products are all high-priced and are generally poor values for customers. In most cases, the products are not needed or can be acquired elsewhere for much less cost. For example, fabric guard is nothing more than Scotchguard™ in a spray can. And VIN (Vehicle Identification Number) etchings on windows provide no more security protection than the VIN plates that are already in several locations on your vehicle, including on the dash and on the engine block.

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