Car Add-Ons: What to Know Before You Sign (FTC Video Guide)
You’ve agreed on a price for the car, and then the finance office offers a list of extras: service contracts, gap insurance, paint and fabric protection, and more. They can add hundreds or thousands of dollars to what you pay. This FTC video explains how dealer add-ons work. Our guide shows how to handle them with confidence.
From the Federal Trade Commission (FTC) · Part of our Online Safety Video Library
What the video shows
The video explains that after you negotiate the price and financing, a dealer may offer optional add-ons such as rust proofing, fabric protection, gap insurance, or service contracts. You can say no, and every add-on you buy increases what you pay.
It recommends researching add-ons before you visit the dealer, since you may not need them or may find them cheaper elsewhere. If you do want one, you can negotiate the price. Before you sign, make sure the contract includes only the add-ons you agreed to, at the prices you agreed to.
Key takeaways
- Add-ons are optional; you can decline them.
- Research add-ons ahead of time so you are not deciding under pressure.
- Add-on prices are often negotiable, and some can be bought later or elsewhere.
- Financing add-ons means paying interest on them too.
- Read the contract line by line before signing to catch add-ons you did not agree to.
Before you sign at the dealership
- Ask for the full out-the-door price in writing, with every fee and add-on listed separately.
- Decide in advance which add-ons, if any, you actually want.
- Compare prices: gap insurance, for example, may be cheaper through your own auto insurer.
- Read every line of the contract and ask the dealer to remove anything you did not agree to.
- If you find charges you never agreed to, report them to the FTC at ReportFraud.ftc.gov.
Common dealer add-ons
- Extended service contracts (sometimes called extended warranties)
- Gap insurance, which covers the difference between what you owe and the car’s value if it is totaled
- Paint, fabric, and rust protection packages
- Window etching and anti-theft products
- Prepaid maintenance plans and tire-and-wheel protection
Common questions
Can a dealer require me to buy an add-on to get financing?
Add-ons are generally optional. If a dealer says you must buy one to get a loan or a certain rate, ask for that in writing and consider shopping elsewhere.
Is gap insurance worth it?
It can be useful if you put little money down or have a long loan. Compare the dealer’s price with what your own insurer or lender charges.
I signed and later found an add-on I didn’t want. What can I do?
Contact the dealer right away; some add-ons can be canceled for a partial refund. If you never agreed to the charge, report it to the FTC and your state attorney general.
Related guides
- How to Get the Real Price at a Car Dealership
- Hidden Fees: How to Spot Charges You Never Agreed To
- Credit Repair Scheme Halted: Red Flags to Watch For
- Why Report Fraud? (Video Guide)
About this video
This video was produced by the Federal Trade Commission (FTC), a U.S. government agency, and plays from the agency’s own channel. Juggling Chaos wrote this summary and guide; we are not affiliated with or endorsed by the agency. Some details on screen, such as phone models or web addresses, may look dated, but the advice still applies. Checked October 7, 2026.
The FTC’s car buying guidance is at Buying and Owning a Car.
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