Home › Car buying › Dealer add-ons
Why trust this: VaultRubric's owner spent years in dealership sales and management. This guide explains how the deal is built from the other side of the desk, and every number is either cited or yours.
Short answer: add-ons are optional and the price is negotiable (CFPB, FTC). The F&I office is where much of a dealer's profit is made, so expect a polished pitch and a menu of products.
Best move for most buyers: decline every add-on at the dealer, then buy only GAP (from your insurer) if you're putting little down. Each add-on rolled into the loan costs its price plus interest.
The math:
Sources: CFPB: Take control of your auto loan (step-by-step guide); FTC: Financing or leasing a car; CarInsurance.com: where to buy gap (insurer $20–$40/yr avg; dealer $500–$700)
A best fit for the situation described, not financial advice or a buy/sell recommendation. Partner links never change a pick.
What it is: Pays the gap between what you owe and what insurance pays if the car is totaled or stolen.
Typical cost: Dealer: about $500–$700, usually rolled into the loan; from your auto insurer: about $20–$40 a year on average (CarInsurance.com). Washington's regulator warns dealer “GAP” is often a debt-waiver contract that can be overpriced. Sources: CarInsurance.com: where to buy gap (insurer $20–$40/yr avg; dealer $500–$700), CFPB: What is GAP?, Washington Insurance Commissioner: Gap insurance vs. debt waiver.
Our take: Worth a look only if you put little down, financed 60+ months, or rolled in negative equity. Quote your insurer and credit union first.
How to decline: “I'll get GAP through my insurance company. Please take it off.” If told GAP is required: “Show me where the lender requires it in writing.” (CFPB: if it's truly required, its cost must be in the finance charge and APR.)
What it is: Pays for some repairs after the factory warranty ends; coverage, deductibles and exclusions vary.
Typical cost: Can add hundreds to more than $1,000 plus interest (CFPB). An NCLC study of 3 million add-on sales found service contracts marked up 83% on average (via Consumer Reports). Sources: CFPB: Stand your guard on add-on products, Consumer Reports on NCLC study: add-on markups (Oct. 12, 2017).
Our take: If you want one, you don't have to buy it today: most can be bought later, before the factory warranty ends, and the price is negotiable.
How to decline: “I'm not buying a service contract today. If I change my mind I'll buy one before the factory warranty runs out.”
What it is: Coatings or sprays sold to protect paint, upholstery or the underbody.
Typical cost: About $600 for paint protection and $800 for rustproofing, based on Consumer Reports' shoppers. AAA: new-car paint and modern upholstery are built to hold up with normal care. Sources: Consumer Reports: Just say no to these dealership extras, AAA Club Alliance: Are dealer add-ons worth the cost?.
Our take: Usually skip. A good wax or a can of fabric protector does most of the job.
How to decline: “I didn't ask for that. Please remove it from the price or find me the same car without it.” (CR: if you didn't ask for it, you don't have to pay for it.)
What it is: The VIN etched into the windows as a theft deterrent.
Typical cost: Usually $200–$300 (Consumer Reports, AAA). The NCLC study found a 325% average markup and one dealer charging $349 to $5,000 for the same product. Sources: Consumer Reports: Just say no to these dealership extras, AAA Club Alliance: Are dealer add-ons worth the cost?, Consumer Reports on NCLC study: add-on markups (Oct. 12, 2017).
Our take: Skip, or ask your insurer whether it lowers your premium. Do-it-yourself kits exist.
How to decline: “No VIN etching, thanks. Please take that line off.”
What it is: Tires filled with nitrogen instead of regular air (green valve caps).
Typical cost: Consumer Reports has seen dealers try to add $400. Regular air is already about 78% nitrogen. Sources: Consumer Reports: Just say no to these dealership extras, Consumer Reports: Should you use nitrogen in your tires?.
Our take: Skip. Check tire pressure monthly with regular air.
How to decline: “Regular air is fine. Please remove the nitrogen charge.”
What it is: Covers road-hazard damage to tires and wheels (potholes, curbs).
Typical cost: We found no neutral published price range; dealers price it individually. AAA calls it usually unnecessary unless the car has low-profile tires and alloy wheels. Sources: AAA Club Alliance: Are dealer add-ons worth the cost?, CFPB: Take control of your auto loan (step-by-step guide).
Our take: Consider only for low-profile tires on expensive wheels, and compare with a tire shop's road-hazard plan.
How to decline: “I'll pass on tire and wheel. If I want road-hazard coverage I'll buy it with my next set of tires.”
F&I managers are often paid on product sales. The menu is usually presented as monthly-payment differences (“only $14 more a month”). Ask for each product's full price and term instead; that is the number to compare.
Usually not. CFPB: if you're told it's required, ask where the contract says so or call the lender; if it truly is required, its cost must be included in the finance charge and APR.
Many service contracts and GAP products can be cancelled for a prorated refund; check the cancellation section of the contract.
Consumer Reports and AAA say it's usually not worth $200–$300; ask your insurer whether it lowers your premium.
Estimates, not financial advice. Taxes, insurance, PMI and fees vary by lender, county and city; confirm with your lender, dealer and state agency before acting.