Optional equipment is either factory installed, or installed at the dealership by the service department. Mark Eskeldson, author of What Car Dealers Don't Want You to Know, founder of the consumer-friendly Website CarInfo.com, and a former dealership auto mechanic, says many people are paying as much as $3,000 more than necessary for a new car, thanks in large part to overpriced, sometimes unnecessary options.
Retail markups on dealer installed optional equipment tend to be large -- as much as 25 to 65 percent (compared with 12 to 15 percent on factory installed options). Though less convenient, for certain features like car stereos and security systems, you may be able to do better by having an independent ""after-market"" installer do the job, rather than the dealer.
Fortunately, you don't have to accept dealer-installed options that you don't want. On the other hand, to get the factory-installed options you do want, you may be forced to buy others, since factory options are often grouped together into different ""trim"" packages.
These trim pachages help limit the number of available options (less complexity reduces manufacturing costs), so you probably ""won't be able to go through a long list of features and cherry-pick the ones you want,"" says Rick Popely on Cars.com. So carefully weigh features you want against what you really need; don't spend $3,000 for a bunch of factory-installed features when you only want the anti-lock brakes. You may even need to consider a different model to get what you want without paying for things you don't want.
Dealer-installed options can be difficult to price, even when you know the dealer invoice prices, largely because labor charges vary widely, depending upon where you live. Honda, for example, doesn't even divulge invoice prices of dealer-installed options.
So how do you know whether you are getting a square deal on dealer-installed options?
If an option is available from an independent after-market installer, call for a price quote (look in the Yellow Pages). Otherwise, get ready to play detective. Try calling the parts and repair department of another dealer that sells the model you want. Ask how much they would charge to install that particular option, with a breakdown between the parts and labor. You might also check out the price for the same option on a competitive car model. For example, price Toyota Corolla options to get a better idea about corresponding options for a Honda Civic.
More on options at Cars.com.
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