Dealer Add-Ons: Check Cost and Coverage
An add-on is a separate purchase
Dealer add-ons can include service contracts, maintenance plans, GAP products, credit insurance, tire or wheel coverage, key replacement, theft products, etching, coatings, accessories, tracking devices, and appearance protection. Some may fit a buyer's needs; none should be accepted as an unnamed lump inside the payment.
FTC guidance says add-ons cost extra, can often be declined, and should not be included without the buyer's knowledge or permission.
Ask for the cash price first
For each product, request name, provider, cash price, tax, installation charge, term, covered events, exclusions, deductible, claim limit, cancellation, refund method, transferability, and whether it is required by the lender or merely recommended by the seller.
Then calculate financed cost using the actual APR and term. A modest product price can become less modest after years of interest. “Only a few dollars per month” is not a price; it is a price wearing a long coat.
Verify whether it is truly required
Ask the lender directly, through verified contact information, whether credit approval or rate requires the product. Obtain the condition in writing. Optional products should be marked optional in the documents.
FTC guidance notes that credit insurance is not required by federal law and, if a dealer requires it for financing, its cost must be reflected in APR. Other laws and lender conditions vary.
Compare overlap
Check factory warranty, dealer warranty, insurance, roadside membership, credit-card benefits, household coverage, and existing service plans. A tire plan may duplicate insurance or exclude the exact damage you worry about. A maintenance plan may cover fewer services than the vehicle schedule requires.
Read GAP coverage separately because it addresses a defined loan-balance risk, not repairs or ordinary depreciation.
Evaluate the provider and claim path
Identify who administers and pays claims, where service may be obtained, whether prior authorization is mandatory, reimbursement timing, required records, labor-rate or parts limits, and what happens if the provider or dealer closes. Search regulator and consumer-authority information appropriate to the product and jurisdiction.
Do not accept a brochure summary instead of the complete contract.
Remove unwanted products from every document
Decline in writing and check the buyer's order, retail installment contract, loan itemization, menu, and electronic signature screens. Confirm amount financed, payment, APR, and total of payments update. Use the written out-the-door price as the pre-financing baseline.
Crossing out a product on one worksheet does not remove it from the final contract automatically.
Understand cancellation before buying
Ask how to cancel, deadline, fee, mileage or time-based refund formula, who receives a refund when financed, and how the loan balance and payment are affected. A refund sent to the lender usually reduces principal rather than automatically lowering scheduled payment; verify the exact contract.
Keep proof of cancellation and follow until the credit posts.
Run a final product audit
Before signing, list every chosen and declined add-on beside the final documents. Match product price, provider, term, and coverage. If a seller says an unwanted item cannot be removed because it is already installed, ask for a vehicle without it or walk away.
Use the final contract checklist. The best add-on decision may be yes, no, or later from another provider. What matters is that it is your decision, not a surprise discovered during the first statement.