A Car Buyer's Guide to Dealer Add-Ons

You've picked the car. You've agreed on the price. You're almost done.

Then come the add-ons...

Extended warranties. Tire and wheel protection. Paint protection. Service plans. GAP coverage. Maybe a few things you've never even heard of.

Some may be useful. Others may not make sense for you. The important thing is understanding what you're buying before you add it to the deal.

Here's a quick guide to some of the extras you may encounter.

Extended warranties and service contracts

These added warranties can help cover certain repairs after the manufacturer's warranty expires.

Before buying one, find out what's actually covered, what's excluded, how long the coverage lasts and whether there's a deductible.

Also check the warranty that already comes with the vehicle. You don't want to pay extra for additional protection without understanding what coverage you already have.

Maintenance plans

A prepaid maintenance plan may cover scheduled services such as oil changes, tire rotations, or other routine maintenance for a set period.

Whether it's worth it depends on the cost of the plan, what's included and how likely you are to use the covered services.

Definitely do the math before adding it.

Appearance, tire and wheel protection

Dealers may offer products designed to protect everything from your paint and interior to your tires, wheels or windshield.

Again, ask exactly what's covered.

A product that sounds like broad protection may have limitations, deductibles, or exclusions that are important to understand before you pay for it.

What about GAP coverage?

GAP is a little different.

If your vehicle is totaled or stolen, your auto insurance generally pays based on the vehicle's value, not necessarily what you still owe on your loan.

If you owe more than the insurance settlement, you could be responsible for the difference.

GAP coverage is designed to help cover that gap.

It can be particularly worth considering if you're financing most of the vehicle's purchase price or you're concerned about owing more than the vehicle is worth during the early part of your loan.

But you don't necessarily have to buy GAP coverage at the dealership.

orsa offers GAP coverage for auto loans, so if it's something you're considering, compare your options and costs before adding it to your purchase.

Remember: Add-ons change the amount you're financing

It's easy to focus on what an add-on costs per month.

But if several products are rolled into your auto loan, they increase the amount you're borrowing. Depending on your financing, you may also pay interest on those products over the life of the loan.

So, before you say yes, ask yourself:

What does it cost? What does it cover? Do I need it? And am I comfortable financing it?

You don't have to make every decision on the spot.

Understanding your options before you get to the paperwork can help you choose the protection that makes sense for you and skip what doesn't.

At orsa, being your car buying best friend means helping with more than the loan. We're here to help you understand your options before, during and after you buy.