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

In Nunavut, as across Canada, add-ons like VIN etching, extended warranties, paint protection, rustproofing, and various insurance products (e.g., GAP, credit life) are almost universally optional and represent significant profit centers for dealerships. While they may be presented as essential for protecting your investment or reducing risk, their actual value to the consumer is often marginal, especially when financed over the term of a car loan. Financing these high-margin products means you'll pay interest on them for years, substantially increasing their true cost and adding unnecessary debt to your vehicle purchase, which is particularly impactful with current (2025) interest rate environments.

Consumer protection laws in Nunavut, like other territories, require transparent disclosure, but it's crucial for buyers to understand they have the right to decline these extras without affecting the vehicle purchase itself. Unless you have thoroughly researched a specific add-on and determined it offers undeniable, unique value that isn't already covered by your manufacturer's warranty or personal insurance, and you're prepared to pay for it upfront, it is generally advisable to politely decline them. This approach helps keep your total loan amount lower, reduces your monthly payments, and ensures you're only paying for the vehicle itself, rather than depreciating extras that offer little long-term financial benefit.