Extended Warranty

An extended warranty, or extended service plan, provides coverage for vehicle repairs beyond the manufacturer’s base warranty period. Dealerships in Canada sell these plans (either manufacturer-backed or third-party) to customers as a way to manage the risk of future repair costs. For example, a new car might come with a 3-year/60,000 km comprehensive warranty, and an extended warranty could extend coverage for several more years. Dealership staff emphasize the value of extended warranties in F&I discussions, explaining what components are covered and the peace of mind it offers, especially given Canada’s repair and labour costs that can be high without warranty coverage.