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

When financing a vehicle in Newfoundland and Labrador, you will likely be offered various add-ons such as extended warranties, rustproofing, paint protection, fabric protection, and VIN etching. It is crucial to understand that these products are almost always optional, despite how they may be presented during the sales process. These offerings represent significant profit centers for dealerships, often adding hundreds or even thousands of dollars to your total loan amount. In the current 2025 market, characterized by higher interest rates, financing these optional extras means you will pay interest on them for the entire term of your loan, substantially inflating your overall cost and monthly payments. While VIN etching is marketed as an anti-theft measure, its effectiveness and the insurance premium savings it might generate are often minimal. Similarly, the long-term value of other protections can be questionable, especially given modern vehicle manufacturing standards and existing manufacturer warranties. Under Canadian consumer protection laws, including those applicable in NL, dealerships are required to clearly disclose that these products are optional and provide their individual costs. Why this matters to you, the consumer, is that accepting these without critical evaluation can lead to unnecessary debt, higher monthly payments, and paying for products that offer little tangible benefit or are already adequately covered. Always scrutinize these offerings, understand their true cost over the loan term, and decline them unless you have thoroughly researched and determined a genuine, specific need that isn't already met.