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

In Ontario, an extended warranty for your car loan is always an optional add-on, not a requirement for financing. While it offers protection against unexpected repair costs after your manufacturer's warranty expires, financing it into your car loan means you'll pay interest on the warranty's cost over the life of the loan, significantly increasing its total expense.

It's crucial to meticulously review the specific coverage details: what parts and labour are included or explicitly excluded, the deductible per claim, the term (years) and mileage limits, and whether it's a manufacturer-backed plan (generally more reliable and recognized) or from a third-party provider (requiring thorough research into their reputation and financial stability). Given the rising complexity and cost of vehicle repairs in the Canadian market, especially for newer models in 2025, a well-chosen warranty can provide valuable peace of mind and budget protection. However, consumers must weigh this against the upfront cost, potential for redundant coverage, and their personal risk tolerance, ensuring they understand all terms, cancellation policies, and transferability before committing.

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