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In QC, what should I know about extended warranty for car loans?
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Car Loan Glossary • province

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

In Quebec, an extended warranty, often referred to as a service contract, is an entirely optional product offered alongside your car loan, not a mandatory requirement for financing. While it can offer valuable peace of mind against unexpected, costly repairs, especially given the increasing complexity of modern vehicles, it's critical to understand that financing this additional cost will increase your monthly payments and the total interest accrued over the loan's term.

Before agreeing, meticulously review the contract details: identify precisely what components and labour are covered, and crucially, what is explicitly excluded, such as wear-and-tear items or specific high-tech systems. Pay close attention to the deductible amount per claim, the warranty provider (manufacturer-backed versus third-party), and the claims process, as these factors significantly impact its value. Given anticipated market conditions in 2025, including potentially higher interest rates, carefully weigh the warranty's cost against your vehicle's projected reliability and your personal risk tolerance, always remembering that Quebec's Office de la protection du consommateur (OPC) provides specific protections for consumers regarding optional products like these.

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