In NB, what should I know about extended warranty for car loans?

Extended warranties are entirely optional and not a prerequisite for securing a car loan in New Brunswick. However, if you choose to purchase one, its cost will typically be rolled into your financing, increasing your total loan amount, the interest paid over the term, and consequently, your monthly payments. It is crucial to meticulously review the specific coverage details, including what components are covered (e.g., powertrain, electrical, infotainment), the duration, mileage limits, and any exclusions, as these vary significantly between providers. Understand the deductible structure - whether it's per visit or per repair - as this directly impacts your out-of-pocket expenses for claims. Distinguish between manufacturer-backed warranties, which often offer broader coverage and easier claims processing through authorized dealerships, and third-party plans, which require more scrutiny regarding their financial stability and claims procedures. In the 2025 market, with increasingly complex vehicle technology and rising labour costs across Canada, an extended warranty can offer financial protection against unexpected, expensive repairs, but it's essential to weigh this against the upfront cost and potential for overlap with any remaining factory warranty. Always inquire about the cancellation policy and transferability if you sell the vehicle, as these features can add value. While New Brunswick doesn't have unique provincial regulations specifically governing extended warranties beyond general consumer protection, HST will apply to the purchase price. Ultimately, this decision matters because it impacts your long-term financial commitment and your peace of mind regarding future repair costs, making a thorough comparison of terms, conditions, and providers paramount.