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In AB, what should I know about add-ons and etching for car loans?
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Car Loan Glossary • ab

In AB, what should I know about add-ons and etching for car loans?

In Alberta, add-ons such as VIN etching, extended warranties, rustproofing, paint protection, and various insurance products (like credit life/disability or GAP insurance) are almost universally optional and represent a significant profit centre for dealerships. While some may offer perceived benefits, they dramatically inflate the total cost of your car loan, as you'll be financing these extras-and paying interest on them-for the entire term, potentially adding thousands to your overall expense in a 2025 market where interest rates remain a key consideration.

It's crucial to understand that you are not obligated to purchase any of these to secure your vehicle or financing. Alberta's consumer protection laws require clear disclosure, but the onus is on you to critically evaluate their true value, compare them to independent third-party options, and decline them if they don't meet a genuine, independently verified need. Always negotiate the vehicle price and financing terms separately from any add-ons, and be prepared to firmly decline anything you haven't thoroughly researched and deemed essential, as they often offer disproportionately low value compared to their high cost.

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Related Topics: ab province topic

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