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I think I got myself a great deal. They also offered the paint protection (Zurich Shield), Fabric/Vinyl/Leather Protection, and Rust protection for $799 and I took it anyway since I already got the $300 off, so it was essentially just $500 for that. Other dealers were pricing the same package for $1200.
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That is what's called the "Upsell after a Discount". You're basically giving the dealer pure profit. You should tell them you don't want it after all.
I was given the sales pitch on something similar on my current car - extended warranty because 'the turbo is going to go in 3 years, along with your HID headlights'.
First, you tell me that the car is reliable, and now you tell me the turbo is going to go? And my headlights are going to bust? I think I must have let some of my true feelings show on my face when I refused the extended warranty, because the sales guy looked pissed. I felt even better about my decision after I learned how much of that extended warranty was going into that guy's wallet.