When signing the final paperwork for your car purchase, you will most likely be inundated with offers for add-on products. These may range from various vehicle protection products to gap insurance and extended warranties. These offers usually come with slick sales pitches and pressure to buy right now. But before you do, you will want to do your research first. Most often, you can buy products outside of the dealership at better prices. You can purchase products such as extended warranties from many lenders and insurance companies. The same applies to gap insurance coverage, which can usually be packaged with the rest of the car insurance coverage you purchase from an auto insurance company.


The time pressure may come from the dealer’s inclination to include the products in your car’s financing. “It will only add a few bucks per month to your payment,” you might be told. In truth, you rarely want to finance these add-ons. They add little value to your vehicle but raise your financing’s loan-to-value (LTV) ratio, potentially placing even more financial pressure on you. The “just a few bucks per month” argument also hides the actual cost of the products.


Purchasing a manufacturer-certified used car typically gets you factory warranty coverage, eliminating the need to purchase an extended warranty immediately. Other used vehicles are generally sold as-is, with no warranty past the car’s original factory warranty. Once that warranty ends, or if it is already finished, you will be on your own for repair costs. Consumer advocates almost universally advise against purchasing extended warranties. If you decide to do so, be sure to compare the products available in the marketplace, their prices, and the companies behind them.

Purchase the right car insurance 

It is often overlooked, but buying car insurance to protect your new car is not just a good idea; it is the law. Even if it is not, most lenders will require you to have insurance on any car they finance. The coverage that is needed will vary by state and lender. For more information, get in touch with Earn-a-Car today.