You negotiate hard on the price of the car. You shake hands. Then you walk into a little office to sign some paperwork, and that’s where the dealer makes a lot of its money.
That office is where add-ons happen: etching, coatings, warranties, insurance and protection packages. Most buyers end up paying for at least one.
About 72% of service members who financed a car bought at least one add-on, according to a Consumer Financial Protection Bureau report covering 2018 through 2022. The average total was $3,334 on a new car and $3,021 on a used one.
Not all of those were choices, either. In one case against a group of Texas dealerships, the Federal Trade Commission said up to 75% of buyers reported that add-ons were slipped into their contracts, according to an FTC consumer alert.
As of Oct. 1, car buyers in California have new protection. The state’s CARS Act requires dealers to show the total price in any ad or first written message about a car. Every add-on must be described as optional, in writing, before you sign, according to the California DMV.
Add-ons that give you no real benefit are banned outright — think an oil-change plan on an electric car.
And if you buy a used car for $50,000 or less, you can return it within three days, as long as you’ve driven it no more than about 400 miles. You may pay a restocking fee of $200 to $600.
State Sen. Ben Allen, the Santa Monica Democrat who wrote the law, said in a statement it’s about “protecting folks from junk fees and imposing much-needed transparency on advertised car prices.” His office projects it will save California buyers $234 million a year.
The rest of the country isn’t so lucky. The FTC wrote a national version of these rules, which it estimated would save buyers more than $3.4 billion a year.
But a federal appeals court threw it out in January 2025, ruling the FTC skipped a required step in writing it.
So unless you live in California, you’re your own consumer protection agency. I’ve been watching dealers work the finance office for more than 35 years. Here are six add-ons to refuse, wherever you live.
1. VIN etching
The pitch: Etching your vehicle identification number into the windows makes the car less attractive to thieves.
The reality: Your car’s VIN is already stamped in several places. Consumer Reports says it’s seen dealers charge $200 to $300 for etching.
What to say: “I don’t want etching. Please take it off the contract.”
2. Nitrogen-filled tires
The pitch: Nitrogen keeps your tires inflated longer than plain air.
The reality: Regular air is already about 78% nitrogen, according to NASA. In a yearlong Consumer Reports test, nitrogen-filled tires lost an average of 2.2 psi, versus 3.5 psi for air-filled tires.
That’s a small difference you can match by checking your tire pressure once a month. Consumer Reports says it has seen dealers try to add $400 for nitrogen.
What to say: “I’ll check my own tire pressure, thanks.”
3. Paint and fabric protection
The pitch: A special coating will protect your paint and upholstery from sun, stains and spills.
The reality: Modern factory paint is built to last a decade or more, and Consumer Reports says paint protection runs around $600.
A good wax a couple of times a year and a can of fabric protector from the auto parts store will go a long way for a lot less.
What to say: “No coatings or protection packages.”
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4. GAP insurance from the dealer
The pitch: If your car is totaled, GAP covers the difference between what your insurance pays and what you still owe on the loan.
The reality: GAP can make sense, especially if you put little money down or took a long loan. But you don’t have to buy it from the dealer. The CFPB found dealer GAP averaged $952.
Before you sign, call your auto insurance company and ask for a quote on GAP coverage. If you do buy it from the dealer and pay off the loan early, ask for a refund of the unused portion.
The CFPB has found that some lenders failed to refund those fees properly, costing some borrowers hundreds of dollars.
What to say: “I’ll get GAP coverage through my insurance company.”
5. A service contract rolled into your loan
The pitch: An extended warranty, or vehicle service contract, protects you from big repair bills down the road.
The reality: Warranty, service and maintenance plans were the most common add-on in the CFPB’s research, averaging $2,983. And when the dealer rolls one into your loan, you pay interest on it for years, the FTC warns.
A new car already comes with a factory warranty. You don’t have to decide in the finance office, under pressure, with the clock running. For more, see “Ask Stacy — Should I Buy an Extended Car Warranty?”
What to say: “Not today. If I want a service contract, I’ll shop for one later.”
6. ‘Market adjustment’ and dealer markups
The pitch: Demand is high, so the price is higher than the sticker.
The reality: These markups go by many names — market adjustment, ADM, additional dealer profit — and they’re money added on top of the sticker price, Kelley Blue Book explains. They’ve eased since the shortage years, but they haven’t disappeared, especially on popular models.
What to say: “I’m not paying over sticker. I’ll get quotes from other dealers.” Then do it. Email several dealers and ask each for an out-the-door price.
How to protect yourself before you sign
California buyers now get the total price in writing up front. Everyone else should demand the same thing. The FTC says to focus on the total cost, not the monthly payment, and to get it in writing.
Also, line up your own financing before you walk in. When you have a loan approval in your pocket, the dealer’s finance office loses a lot of its leverage.
You can compare loan offers in our Solutions Center, and see “4 Steps to Getting the Best Deal on a Car Loan.”
Finally, read every line of the contract before you sign it, and ask for a printed copy. If something’s on there that you didn’t agree to, don’t sign until it’s gone.
For more ways dealers pad the bill, see “7 Ways to Stop Car Dealers From Burying Thousands in Hidden Fees” and “7 Ways Car Dealerships Overcharge Retirees (and the Exact Words to Stop Them).”
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