Add-ons such as extended warranties or protection packages are often folded into the loan. On a $36,000 car financed for 72 months at 7.5%, a $2,000 add-on raises the payment by about $34.58 a month and costs $2,490 once interest is included.
Add-on cost, financed
| Add-on price | Amount financed | Monthly payment | Total interest | Total extra cost |
|---|---|---|---|---|
| $0 | $34,740 | $600.66 | $8,507 | $0 |
| $1,000 | $35,740 | $617.95 | $8,752 | $1,245 |
| $2,000 | $36,740 | $635.24 | $8,997 | $2,490 |
| $3,500 | $38,240 | $661.17 | $9,365 | $4,357 |
The "total extra cost" column is the add-on price plus the extra interest on it. Financing makes any add-on more expensive than its sticker price. Ask for the cash price, compare with outside quotes, and decide whether you want it at all.
What we assumed
- $36,000 car, 10% down, 6.5% tax, 7.5% APR, 72 months.
Related calculators: Auto Loan Calculator, Personal Loan Calculator.
Questions people ask
Can I decline add-ons?
Usually yes. Review the contract line by line and ask what is optional.
Estimates for general education, not financial, tax or legal advice. Real results depend on your lender, employer, tax situation and location. See the disclaimer.